Download - What is FIX API?
INTRODUCTION TO BOSTON TECHNOLOGIES FIX APIFIX is the way the world trades and it is becoming an essential ingredient in minimizing trade costs, maximizing efficiencies and achieving increased transparency.
PRESENTER/MODERATOR
Matt NolanManaging Director, Boston Technologies Inc.As a Managing Director, Matt is responsible for creating and scaling the firm’s FX, Metals and CFD offering in the worldwide markets. Matt possesses expert knowledge in the FX, Metals and CFDs field and has over 10 years of in depth experience in global financial markets.
BOSTON TECHNOLOGIES INC.
• Boston Technologies is the inventor of the first commercial MT4 bridge and Start Your Own Brokerage (SYOB) package
• Established: April 2007
• Founded by George Popescu
• Revenue growth year over year
• Developed Network Infrastructure with data centers in New York NY4, London LD4, Tokyo TY3, and Hong Kong
• Platforms supported: MT4, FIX API, HotSpot, Integral, Currenex, FXAll, FXone, First Derivatives, FlexTrade, 360T, and EBS Direct
• Headquartered in Boston with offices in New York, London, Tokyo, and Shanghai
AGENDA
• What is FIX API • Reasons to use FIX API• Requirements• Types of orders• Advantages and Disadvantages
WHAT IS FIX API?
FIX (Financial Information Exchange) API (application programming interface) – an electronic communications protocol for financial information exchange. In Forex FIX API allows communication between a trader, investment fund, or broker and a liquidity provider.
MT4
Client Server
Trading Terminal
Signal Provider
Aggregator/ECN
BRIDGEFIX API
FIX API
FIX API
FIX API
FIX API
Market Taker
Market Maker/LP
REASONS TO USE FIX API
• Speed of execution• Aggregation• Conformance with industry standards• Ability to use custom platforms• Ability to control more aspects of the trade• Safety and anonymity of the system• Cross-connect with LPs to reduce latency• Depth of Market• Ability to use your own algorithms
FIX MESSAGING
2 Sessions: Market data and Trading
Tags:Login, Heartbeat, Logout
Client Message
Quote Request
Quote Cancel
New Order Single
Return Message
Quote (streaming, for spot request)
No return message, ends streaming spot quotes
Execution Report
MT4 VS FIX CONNECTIVITY
FIX API:Reduces latency 250 ms to 500 ms
EXAMPLE
Citi Bank bought 1000 EURUSD @ 1.38672Boston Prime sold 1000 EURUSD @ 1.38672 Traded on 05/02/2014 5:14 PM
1000 EURUSD @ 1.38672
2014-05-02 17:14:58.984 [crt:0, prs:0, q:1, wrtMsg:0] -> 8=FIX.4.2|9=0264|35=8|49=BOS|56=CITI_TRADE|34=10|52=20140502-17:14:58|66=1|20=0|11=635346476457121251|6=0|14=0|15=EUR|17=NONE|31=0|32=0|37=58945125-802f-49d3-ad67-7823b7caa94f|38=1000|150=A|39=A|40=C|44=-1|54=1|55=EUR/USD|60=20140502-17:14:58.984|151=0|167=FOR|194=0|195=0|460=4|10=094|
ORDER TYPES
•Market Order – An order that an investor makes through a broker or brokerage
service to buy or sell an investment immediately at the best available current price
– Fill Ratio 99.97%
•Limit Order– An order placed with a brokerage to buy or sell a set number of
shares at a specified price or better – Fill ratio 80-90%
HOW TO GET STARTED
• Outsource or develop in-house • Find an experienced programmer or
partner with solid knowledge of HTTP, telnet, TCP or JAVA
• Learn about the FIX API specifications of the liquidity provider• Ask for connection details for a test (UAT) environment• Connect live (preferably cross-connect). Boston Technologies
provides cross-connects in NY4, LD4 and TY3 datacenters
OF FIX API
• Why wait for the second tick? FIX is ideal for high frequency strategies.
• Total control over the process of transferring and receiving data
• No intermediary or middleware software (Client Terminal => MT4 Trade Server => MT4 Bridge => Aggregator => Liquidity Provider)
• Faster overall execution speed
• Ability to design a personalized interface or use an existing one
• Use your favorite platforms: MT4, HotSpot, Integral, Currenex, FXAll, FXone, First Derivatives, FlexTrade, 360T, and EBS Direct
• Opportunity to use various order types such as market or limit
• Limit slippage
THINGS TO CONSIDER
• Budget• Timeline• Outsource or create in house• Resources and skills to maintain
functionality and performance
24 hour support
3 shifts, 1 full time person per shift @ $40,000/year
~$10,000 per month
$2,000-3,000 per month
System Development
1 person @80,000/year~$6,500/month
$2,000 setup, $600 monthlyoff-the-shelf
ARE YOU READY TO CONNECT?
• Phone: +1(617)-314-6800• E-mail:[email protected]• www.bostontechnologies.com
Boston Technologies Inc. 280 Summer Street, 9th FloorBoston, MA 02210Phone: +1 617 314 6800
Boston Prime Ltd. 1 Ropemaker StreetCitypoint Suite 1248London EC2Y 9HTPhone: +44 (0) 330 808 0145
Boston Technologies Japan Inc.Yaesu Sakai Building 8F 1-4-6 Yaesu, Chuo-kuTokyo 103-0028, JapanPhone: +03-5542-1455
Boston Technologies Shanghai Representative Office33 Huayuanshiqiao Road,Citigroup Tower, 23rd FloorPudong, Shanghai 200120Phone: +86 021-61010368
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