October 18, 2018 marked the launch of the Financial Data Exchange, LLC, a special industry group (SIG) created with the goal of unifying the financial industry (financial institutions (banks), industry groups, data aggregators, permissioned parties, fintech companies, and other industry participants) around a common, interoperable standard for secure exchange of financial data. Michael Best has provided general counsel representation to the SIG in order to bring this project to fruition since early 2017. This SIG represents a major move in the financial services industry to seek a commonly adopted standard in financial transaction protocol.
At launch, the Financial Data Exchange included 22 board members, including banking industry giants such as CitiGroup, Bank of America, Wells Fargo, and JPMorgan Chase; many of the nation’s largest financial aggregators, such as Intuit, Finicity, and Yodlee; and permissioned parties like Fannie Mae, Fidelity Investments, Experian, and Quicken Loans. Additional board members include BB&T, Capital One, Charles Schwab, FS-ISAC, PNC Bank, the Securities Industry and Financial Markets Association (SIFMA), TD Bank, USAA, U.S. Bank, Xero, and The Clearing House (TCH).
Michael Best’s team worked with the initial group of financial aggregators and permissioned parties to form the initial entity (known as “Initiative X”) and then, through much work and effort, negotiated a merger with FS-ISAC and became a subsidiary of FS-ISAC with access to its nearly 7,000-financial institution industry membership group. In addition to acting as the Financial Data Exchange’s general counsel, Michael Best attorneys also provided IP and trademark counsel, and negotiated an operating agreement, membership agreement, and IP Policy with the 22 board organizations.
Now that Financial Data Exchange has launched, it is seeking to grow its membership significantly and is open to industry participants wishing to join in this unprecedented joint effort of interested parties. See https://financialdataexchange.org/ for information on joining.