FIX Protocol top for post-trade workflow
The majority of market participants use the FIX protocol for post-trade workflow, according to a survey from the industry body that oversees the development of the platform.
Three-quarters of respondents utilise FIX for their post-trade confirmation/affirmation workflow, the FIX Trading Community said.
Survey respondents came from the broker/dealer community and the majority of the world’s top 20 investment banks were represented. The body said the survey was to determine where work needs to be done by the Global Post-Trade Working Group (GPTWG) from the perspective of both geography and asset class.
In addition, the survey found that 95 per cent of market participants believe FIX has the potential to have the same impact in post trade as it has in the front office. Most of the respondents (70 per cent) also said FIX helps to improve client satisfaction, while a majority reported cost savings from using the protocol.
Scott Atwell, manager of FIX Trading and Connectivity at American Century Investments, said: “If you are a buy-side firm thinking about trying to implement this flow, you can be successful, because all the major sell-side firms support this. And because they have already implemented this, they are eager to use and provide that for other buy-side firms.” American Century is receiving FIX 4.4 Confirms for approximately 90 per cent of all its non-US confirmations, he added.
Laura Craft, GPTWG co-chair and director of equities and fixed income at Traiana, believes more firms will sign up to the protocol. She said: “These survey results clearly demonstrate the success of the Global Post Trade Working Group and its members’ drive on both the buy-side and sell-side to adopt FIX standards in the post-trade allocation and confirmation process.”
The FIX protocol is a non-proprietary, free and open standard used extensively by buy and sell-side firms, trading platforms and regulators to communicate trade information.