More than half of futures commission merchants (FCMs) identify reliance on outdated post-trade systems as their primary operational challenge, prompting a substantial rise in planned technology investments. According to a recent survey of 50 global clearing firms conducted by Acuiti in partnership with Nasdaq, nearly 70% of FCMs intend to increase their post-trade technology budgets over the next three years, with close to half aiming to boost spending by over 10%.
The survey underscores a pressing need to modernize critical infrastructure that supports risk management, margin calculations, and collateral handling for exchange-traded derivatives. Many of these legacy platforms, essential for the clearing process, are approaching the end of their useful life, creating bottlenecks and vulnerabilities exposed during periods of market stress such as the surge in volatility following the Covid-19 pandemic.
The research highlights a shrinking field of third-party technology vendors, complicating clearing firms’ efforts to upgrade. Over the past two decades, industry consolidation and provider withdrawals have left firms dependent on a small number of dominant suppliers like FIS and ION Group. This limited vendor pool contributes to concerns about choice and innovation within the post-trade ecosystem.
Most clearing firms do not develop post-trade systems in-house. The survey reveals that around 35% rely primarily on vendor platforms, 15% maintain mostly internal systems, and the remainder use a hybrid approach combining both. This mix helps spread costs and allows firms to focus more on client acquisition and service.
Nasdaq itself is actively marketing its Calypso clearing platform to FCMs. Calypso integrates risk, margin, and collateral management across both listed and over-the-counter derivatives, aligning closely with the operational challenges outlined by the surveyed clearing brokers. Nasdaq’s involvement in the research signals its strategic interest in capturing greater market share amid a wave of planned spending increases.
Beyond Nasdaq, other key players also target this market segment. For instance, LSEG Technology provides the post-trade platform used by London clearing house LCH’s EquityClear operation. Industry competition remains focused on delivering comprehensive, scalable solutions to address the evolving demands of clearing houses and their clients.
The increased investment trend reflects a broader industry recognition that post-trade technology is a critical foundation for operational resilience and regulatory compliance, especially as trading volumes and market complexity continue to grow. Firms see upgrading these systems as essential to mitigate risks and maintain competitiveness.