What is the FIX Protocol?&

FIX Resources

Cate Long, Multiple-MarketsCo-Chair, Education and Marketing Subcommittee

Global Fixed Income Committee

The FIX Protocol Tool Kit Lunch and Learn - March 21, 2006

<<< What is FIX >>>

• A technical specification for the electronic communication of trade-related messages

• Collaboratively developed by many market participants

• Made up of fields and messages

<<< FIX fields >>>

• FIX defines what information the individual fields contain:

Value Product

1 AGENCY

3 CORPORATE

6 GOVERNMENT

10 MORTGAGE

•Fields are the individual pieces of standardized data

460 = Product

<<< Messages >>>

• Messages are made up of individual fields depending on the purpose of the message

• IOI message – includes routing, administration, instrument, quote fields

<<< Message flow >>>

• IOI and quote response

<<< Why use FIX >>>

• Standardizes communications with all your counterparties

• Supports STP• Reduces entry errors• Makes establishing new trading relationships

quick and easy• Increasingly supports cross asset trading

<<< FIX enables access >>>

• Alternative trading systems

• Single dealers

• Exchanges

<<< FIX trade many products >>>

• Corporates• Convertibles• High yield• MBS• CMB• ABS• CMO• CP

• CD• Repo• Treasuries• Agencies• Municipals• Swaps• Non-US securities

<<< Buyside FIX usage >>>

0%

10%

20%

30%

40%

50%

60%

Pre-Trade Trade Post-Trade Futuresupportw/in 24months

Fixed income

Equity

Derivatives

FX

Source: fixprotocol.org/survey

 

<<< Sell side FIX usage >>>

Fixed income

Equity

Derivatives

FX

Source: fixprotocol.org/survey

 

0%

10%

20%

30%

40%

50%

60%

Pre-Trade Trade Post-Trade Futuresupportw/in 24months

<<< Buyside fixed income usage >>>

Governments Agencies Corporates

Source: fixprotocol.org/survey

 

0%

20%

40%

60%

Converts MBS

Pre-Trade Trade Post-Trade Support w/in 24 months

<<< Sellside fixed income usage >>>

Governments Agencies Corporates

Source: fixprotocol.org/survey

 

Converts MBS

Pre-Trade Trade Post-Trade Support w/in 24 months

0%

20%

40%

60%

<<< FIX Global Survey results >>>

• By asset class and geographic region• Current and projected usage• Detailed by buyside, sellside, vendor and exchange• Information on OMS, networks, FIX engines• 580 respondents• Conducted by FPL and the Tower Group• Led by Brian Nathan, Macgregor & Bill Hebert,

Fidelity

<<< FIX resources >>>

• Who is using FIX • FIX job listings• Technical specifications• FIX events• FIX Implementation Guide• newsFIX, fixed income newsletter • FIXGlobal, the quarterly FIX journal• Discussion forums• FIX products and vendors• FIX Global Survey

<<< Global Fixed Income Committee >>>

• Large group of markets professionals• Monthly conference calls• Subcommittees• Dan Doscas, HSBC & Tony Barral, NYFIX

co-chairs