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What Is the FIX by sana1212

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									When it comes to having a set standard for electronic communications involving trade related messages,
there is no room for leeway which could give an unfair advantage to Institutions, Brokers, Dealers,
Industry, Exchanges, and Electronic Communication Networks. Specialized protocols are employed to
ensure that the standardization practice is upheld and the system works in a legal and unobstructed
manner.




The Financial Information eXchange Protocol is the most comprehensive progression of specifications
concerning messaging of trade-associated electronic communications. This FIX Protocol has been
designed with the idea in mind to simplify automated electronic trading for the world of assets in
financial instruments. This protocol is used as the main building frame of trading software to provide the
ability to perform at the necessary level in which transactions can take place electronically with
efficiency, speed and with transparency.



Direct market access is possible using this protocol as it allows pre-trade, global equity markets and the
post-trade services. This means that the protocol has made its way into Forex, Fixed Income and
Derivative markets. The FIX Protocol has been used by an increasing number of buyers, firms and sellers
in the form of online trading. The prominence of the protocol is seen in about 75 percent of these
electronic trades using a supported FIX interface. Nearly every asset class can basically be accessed
through the FIX standards which make it one of the most versatile platforms for carrying out transaction
messaging.



Direct market access using FIX was composed of the buyers and sellers, vendors and exchange
communities needed a standard that worked for them and provided the necessary real-time
communications. The design of the protocol was to improve the trading process on a global level and
forming it to benefit the already existent standards within the industry.



The FIX system is a frame work which does not cost anything because it is both open source and
available free. This makes it very effective to implement if not using a system that is already running the
FIX model standards. Since it is in the public domain it still requires tweaks here and there to ensure a
smooth transaction without breaking the standardization that has been defined for use with the
protocol. There are over 30 types of data that are transmitted over the protocol, which allows for
specific reporting about an individual financial instrument in greater detail than was possible before the
protocol was in place.
The FPL in Asia is a key technical part of the trade order system; learn how it works on our site

								
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