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WHAT IS FIX PROTOCOL?

FIX (Financial Information eXchange) protocol is the specification developed for exchanging the financial information electronically. It is currently used for electronic, accurate and speedy exchange of financial information, between the exchanges and exchange members, institutional investors and vendors of various markets around the world. It is used in various scenarios such as Trading, Clearing Open contract management, market rate information. The specifications are expanding every time the FIX protocol new version is released and hereafter the scenarios and specification will go on increasing.

The FIX protocol specifications are owned and managed by the organization, FIX　Protocol　Limited (FPL). This organization consists of many people involved in financial institutions and is not owned by a specific corporate enterprise. It is supported by the people who carry out the activity periodically without any charge by aiming the industry standards. There are many working groups also focusing on various themes. The information such as activity contents and members, specifications is published on FPL website(http://www.fixtradingcommunity.org/ )

FIX protocol is a ‘Specification’ and does not indicate to any specific software or hardware. For example, though at present, electronic mail is commonly used, the used software differs according to the user and the used environment such as Microsoft Outlook and Mozilla , Webmail and Cell phone text messaging.

This is because the specifications related to the electronic mail are generally published, and various companies have developed the independent software based on those specifications. Similarly, even for FIX Protocol, many companies provide various types of software (communication management software called as FIX engine and FIX ADAPTER, FIX simulation, and test system etc.) on the basis of FIX specifications. There are also some companies that provide the services used in FIX (network hub, automatic identification test etc.).

FIX HISTORY

Since its inception in 1992 as a bilateral communications framework for equity trading between Fidelity Investments and Salomon Brothers, FIX has become the de-facto messaging standard for pre-trade and trade communication globally within the Equity markets, and is now experiencing rapid expansion into the post-trade space, supporting straight – through processing(STP) from Indication-of-Interest (IOI) to Allocations and confirmations. From this foundation, the protocol is gathering increased momentum, as it continues to expand across the Foreign Exchange, Fixed Income and Derivative markets.

If you have any requirements for FIX protocol-based solutions for Electronic Trading, do not hesitate to contact +91-20-49007800 or email- sales@fixsol.com