FIA Releases Drop Copy Recommendations
The Futures Industry Association ("FIA") released a set of recommendations for increasing the usefulness of Drop Copy systems in exchange-traded markets. Drop Copy systems provide a way to monitor trading activity in real-time, and help maintain the risk management processes of brokers, trading firms, and end-users. The systems produce reports generated at the point of execution that summarize a participant's activity in a trading venue, including order state changes, modifications, rejections, and cancellations. FIA offered the recommendations in order to help promote the wider adoption and standardization of Drop Copy functionality. In the paper, FIA recommends extending Drop Copy functionality to all types of trading and incorporating additional features to meet regulatory reporting requirements, in order to enhance risk management in the futures industry.