FIX for allocations in T+1 regime: use case

India’s phased transition to T+1 settlement is now starting to affect securities traded by international investors. The FIX Protocol can be used to share fund information at time of trade, to streamline the allocation and settlement matching process.

  • A key deadline in the India settlement process is at 7pm on T0 when all trade allocations need to be confirmed between the broker and the client and sent to the stock exchange. If this is not done by the cut off time, the trade moves to non-standard ‘hand delivery’ process potentially incurring higher costs and operational inefficiencies.
  • The use of FIX to communicate fund information at point of trade from fund managers to brokers may be helpful to ensure this tight deadline is met.
  • The FIX Trading Community would like to remind the industry that fund information can commonly be sent from buyside to sellside organisations using FIX fields including Tag 79 (AllocAccount) and Tag 80 (AllocQty)

For example: FIX Tag 1 or FIX Tag 78/79/80 are already used in communicating the FINI IDs by international investors to brokers in case of Taiwan Equity trading and a similar workflow would apply in case of India market, where international clients can communicate the allocation information to their brokers at the time of trade execution.

The FIX protocol is used globally to improve efficiency and standards of data transmission.  Please go to Home • FIX Trading Community v1.8 for information on FIX and forums which can be used to discuss the use of the FIX protocol in tackling business challenges.

Asia Pacific FIX Technical Subcommittee and FIX India Working Group