FIX Initiatives

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The table below provides background on the various initiatives underway within the FIX Trading Community™.  If you are interested in learning more details about or getting involved in any of the below initiatives, please contact the organisation’s Program Office.

Name of Initiative Purpose Latest Status
Consolidated Audit Trail (CAT) To further assist firms with their CAT implementations specifically looking at where FIX coverage is necessary to support the various CAT reporting requirements whether it be through existing tags or the creation of new tags. The group currently has two areas of focus:
• Transferring of FDIDs
• FIX to CAT Mapping Exercise
Cybersecurity To discuss current issues and challenges on this front, review processes and procedures, and leverage the community to develop best practices on how best to handle security concerns. The initial FIX-over-TLS (FIXS) standard was produced for using the Internet Transport Layer Security (TLS) protocol with FIX.  Follow link in the first column to access the standard.  The group is now looking at better ways to authenticate firms at the application level.  A new initiative, FIX Authentication (FIXA), brings a number of benefits, including improved security, greater flexibility and ease of use as well as removing out-of-date methods.  The current thinking is to leverage HTTP Authentication which is widely used on the Internet today, and introduce it as a new framework with authentication schemes for FIX.
Digital Currency / Blockchain To educate the FIX community on cryptocurrency, with a particular focus on how cryptocurrencies are being traded as well as how the trading life cycle is impacted by cryptocurrency. A draft version of a set of FIX for cryptocurrency best practices is currently being developed and will be shared with the larger community once ready for wider review.
Execution Venue To standardise the reporting of the executing venue and create a set of guidelines to provide greater transparency for buy-side clients about where and how their orders are executed by their brokers. An updated version of the ‘Execution Venue Reporting Best Practices’ was distributed (see link in first column) and is focused on adding further clarity around Last Capacity and Liquidity flag definitions, as well as mandating all executing venues, including broker crossing and alternative trading systems, to supply valid Market Identifier Codes (MICs) on their executions.  These changes were made to comply with MiFID II requirements.  Going forward, the group has expanded to include all firm types to work through some of the issues and will also globalise the initiative working with representatives from Europe and Asia.
FICC To oversee the multi-asset class activities and strategic considerations of FIX with regards to the Derivatives, Fixed Income and Foreign Exchange areas especially given many of the common and overlapping initiatives in the pre-trade, trade and post-trade space. Market consolidation, regulatory changes often involve multiple asset classes, and portfolio diversification increases the need for a comprehensive view. Several sets of FIX best practices have been developed in both the fixed income and foreign exchange arenas.  These can be accessed via the link to our guidelines page in the first column and under the ‘Fixed Income’ and ‘Foreign Exchange’ headers you will see the various guidelines listed.  Additionally, recently a MiFID FICC Advisory Subgroup was developed to work alongside existing FIX MiFID working groups to review content and standards that are being created in the organisation and for the group to review from a FICC perspective.
FIX Orchestra To address the work of generating machine readable rules for FIX Specifications to improve operational efficiency and the value of the FIX Protocol by reducing the time and effort it takes to onboard, certify, and deploy new FIX connections with counterparties. Participants of this group are currently defining the requirements for creating a machine readable FIX specification.
High Performance To focus on specific aspects where fit-for-purposefulness of FIX for high performance financial transactions can be improved. The working group which is organized into subgroups focused on specific aspects where fit-for-purposefulness of FIX for high performance financial transactions can be improved, continues to meet.  Subgroups include Application layer, Session layer, FIX Simple Binary Encoding (SBE), ASN.1 and Google Protocol Buffers.  SBE and FIXP were moved to GitHub to add participation outside of the FIX Trading Community.
MiFID II To explore how to effectively address the many challenges impacting global post-trade processing to encourage the development of increased transparency, reduced costs and greater efficiencies in this space. The following set of subgroups are active:

  • Best execution– documentation of best practices for best execution reporting, leveraging related work from the FIX TCA Working Group.
  • Reference data– ensuring the community fully understands the requirements and implications for reference data and is engaged in relevant industry discussions on common standards.

For additional details, please visit the link to the page in the first column.

Post-Trade To discuss and address specific regulatory technical standards (RTS) items and provide guidelines and best practices to meet these regulatory requirements. The group published a standardized and detailed set of guidelines for a number of different asset classes and workflows:  Common Framework, SEF, FX, FI, Futures, Equity Swaps, Qualified Vendor, Equity Allocations.  See link to our guidelines page in the first column and under the ‘Post-Trade’ header you will see the various guidelines listed above as well as the original equities version.

Current developments are underway to further extend FIX into the post trade FX space; track post transaction payment status via FIX; and communicate clearing and settlement status via FIX.

Repo To develop and maintain a standard and a detailed set of guidelines and message specifications for automating the full life cycle of Repos via FIX, including post trade, asset servicing, collateral management, regulatory reporting through the full life cycle and eco system of Brokers, Clients, Custodians and Service Providers. The group is in the process of being launched and is seeking individuals that have skills in at least some of the following areas:

  • Data Management including accounts, collateral eligibility and CCP/CSD Info
  • Workflow including trade execution, post-trade and collateral
  • Transaction events including close-outs, re-pricings and collateral substitutions
  • Reporting
Securities Lending To develop a set of messages to support automated processing of securities lending.  The focus will be on cleared securities lending but consideration will be given for extensibility to non-cleared activity. The messages are intended to support loans collateralized by cash and non-cash securities and to support practices by global CCPs that cleared securities lending transactions. The group is in the process of being launched and the initial scope will include submission of bilaterally agreed new loans as well as new loans matched on trading platforms, affirmation where required, and acknowledgement.  The messages will include settlement status updates for new loans.  Once settled and cleared there will be messages for daily position reconciliation, post-trade lifecycle events, and contract adjustments.  Finally, the contracts will include termination events such as return of loaned shares and buy-in following a failed recall.
SFTR To assist firms as they meet the challenges posed by the European Commission’s introduction of the Securities Financing Transactions Regulation (SFTR).  Identify the data, operational and reporting issues created by the introduction of SFTR, and guide the industry in associated implementation and best practice.

The group is in the process of being launched and is seeking individuals that have skills in at least some of the following areas:

  • Co-chairs representing Custody and Asset management
  • Individuals working directly with securities financing transactions
  • Individuals with an understanding of the data or operational implications of transaction reporting
  • Individuals with an understanding of the data or operational implications of the production of Prospectuses and Investor Reports
Transaction Cost Analysis To create a standardised set of guidelines for understanding the true cost of transactions among brokers and liquidity destinations. Phase II (not officially underway yet) of the project will expand the document to include TCA perspectives on Futures and Listed Options, Foreign Exchange and Fixed Income.  In early 2014, a set of best practices for equities was released to develop industry-wide terminology and methodology for TCA equities, from pre-trade to post-trade analytics.  This was recently updated by the IA (Investment Association) – see link in first column.