FIA Tech, a leading provider of technology and data solutions for the global futures industry, today announced that it will bring FIA Tech’s Foreign Security Futures and 871(m) compliance analytics to the Nasdaq Custom Basket Futures offering. This strategic partnership will enable buy-side and sell-side clients to perform pre-trade regulatory and tax risk checks, delivering execution and operational efficiencies from trade inception.
Nasdaq’s Custom Basket Futures allow investors to create futures contracts based on customized equity baskets drawn from a broad universe of U.S. and European securities. Developed in response to growing demand for flexible, capital-efficient global equity exposure, the solution provides standardized contracts traded on a regulated non-U.S. futures exchange combining customization with the benefits of listed derivatives.
By embedding FIA Tech’s analytics directly into this workflow, clients gain immediate visibility into key U.S. regulatory considerations, including Foreign Security Futures classifications and 871(m) tax implications. FIA Tech launched its Foreign Security Futures analytics in 2021 to help firms navigate complex rules governing futures contracts on single name securities and narrow-based security indexes listed on non-U.S. exchanges and recently expanded its regulatory offering with 871(m) analytics to help firms identify qualified and non-qualified products subject to IRS withholding requirements.
This represents a significant step forward for industry transparency and operational readiness. Market participants will benefit from day-one regulatory clarity, helping reduce operational risk, avoid costly remediation, and improve compliance with requirements from the IRS, CFTC, and SEC.
As demand for customized derivatives continues to grow, FIA Tech and Nasdaq are working together to modernize market infrastructure, provide clients with the tools needed to trade with confidence in an increasingly complex regulatory environment and support innovation across global derivatives markets.
