Liquidnet and Capital Group complete first post-trade via FIX Protocol

 

Liquidnet and Capital Group complete first post-trade via FIX Protocol

http://www.automatedtrader.net/news/at/142877/liquidnet-and-capital-group-complete-first-post_trade-via-fix–protocol

Liquidnet and Capital Group extend FIX into confirmation and allocation

New York – Liquidnet and Capital Group have become the first broker and asset manager combination to successfully complete the post-trade lifecycle by utilizing the FIX Protocol.

FIX Protocol has been considered a reliable, open and independent industry standard for years, with many asset managers and brokers adopting the technology for front office messaging pertaining to executions and orders. More recently, some asset managers have also chosen to use FIX to communicate their allocations to their executing brokers. The extension of FIX into confirmation and affirmation by Liquidnet and Capital Group marks the first use of FIX for the complete post-trade life-cycle.

“At Liquidnet we are constantly searching for new ways to partner with our Members and provide them with value-added solutions to their everyday needs,” said Paul McSherry, Head of US Trading Operations at Liquidnet. “By employing FIX Protocol, we now have a reliable and highly customizable tool that enables us to further cater to the buy-side community’s evolving needs of minimizing cost, diversifying risk and processing trades seamlessly.”

“When we first took on this project, we were looking for an alternative to our current post-trade process. Leveraging our existing front office FIX infrastructure for confirmations seemed an efficient and cost effective solution” said Darrin Vallone, Vice President of Operations at Capital Group. “We put together a great team to work on this project and what they were able to accomplish in such a short time is impressive.”

“FIX Protocol provides buy and sell-side firms with a standardized approach for more effective management of risk issues, enhanced transparency, reduced costs and greater efficiencies for equities post-trade processing,” said Courtney McGuinn, FIX Protocol Operations Director. “We’re thrilled to see early adopters expanding their use of this technology to increase efficiency in the post trade environment.”

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http://thetradenews.com/USA_Features/The_Big_Idea/SEF_protocols_central_to_market_choice.aspx.

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Initiative led by 12 investment and commercial banks has gathered the support of many of the leading bond electronic trading venues The Fixed Income Connectivity Working Group of leading sell side banks (FICWG) welcomes the positive response shown by the industry for the adoption of open, standardi

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CHICAGO, April 23, 2013 (GLOBE NEWSWIRE) — Greenline Financial Technologies, Inc., a leading provider of multi-protocol electronic trading technology, today announced the Australian Securities Exchange (ASX) has successfully used VeriFIX to test its ASX ITCH, ASX OUCH and ASX 24 ITCH services.

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No Easy FIX: Brokers Eye Outsourcing FIX Connections (fix protocol)

FIX costs have long been a thorn in the side of more than a few brokers. While many still insist on managing their FIX connectivity internally, others have chosen to outsource this service to third-party providers. The question remains: Is the benefit worth the internal staffing and budgeting, or is it time to hand off this service to the vendor community? By Anthony Malakian

Many firms like to talk about their operational resilience and their ability to weather financial crises. Then there’s Dominick & Dominick, founded in 1870, five years after the Civil War’s bloody conclusion. During its 140-year history, the New York-based financial services firm has only known two owners. It has survived market crashes, Black Tuesday, the Great Depression, and numerous recessions and bubble bursts. The firm, which serves as a wealth manager and brokerage, prides itself on its personalized customer service and the closeness of its client relationships. That has meant responding to new IT challenges in-house to guarantee that level of personalized service.

But when it came to managing the firm’s FIX connectivity, the internal effort proved too daunting and expensive, and undermined the firm’s client focus. Dominick & Dominick doesn’t have its own FIX team. Since 2005, that responsibility has fallen to Michael Abbruzzese and an IT employee here and there, who dealt with the different FIX providers. Abbruzzese, Dominick & Dominick’s managing director and head of block trading, says he’s no expert when it comes to FIX connectivity. “We kind of muddled through the process the best we could, which took time away from our day jobs,” he says.

 

“The biggest benefit for us or for anyone else is the portability of the FIX connections. You’re not necessarily married to your OMS anymore. …ConnEx gives us the flexibility to take all of our FIX connections and just repoint them to the new OMS, if we were to make a switch.” —Michael Abbruzzese, Dominick & Dominick

 

Still, Abbruzzese never gave much thought to the idea of outsourcing the firm’s FIX connectivity until Dominick & Dominick went looking for a new order management system (OMS). When speaking with representatives from ConvergEx, he mentioned how much of a headache FIX-related issues were to the firm. He was directed to George Rosenberger, who heads ConvergEx’s ConnEx unit, which specializes in FIX outsourced solutions.

Ups and Downs 

The Financial Information eXchange (FIX) messaging protocol was created in 1992 as a way to communicate trade information among market participants in a standardized way. And in the years since, the growth of the FIX protocol has mirrored the meteoric rise of electronic trading. But as FIX’s role in the markets expanded, so too did the costs and resources required to manage the connections.

Prior to the financial crisis of 2008, most brokerages chose to manage FIX connectivity in-house. They felt it provided them with improved customer service, rapid connection times to add new lines, and faster reaction time to respond to outages.

But since 2008, brokers’ volumes have fallen—volumes on the New York Stock Exchange, which correlate well with broker-dealer volumes, have steadily fallen year-over-year since 2008, from a high of 2.6 billion average daily shares to 1.1 billion in 2012, a decrease of 57 percent (see chart). This trend is not expected to turn around in 2013. Therefore, firms have begun to examine the costs of keeping an entire team onboard dedicated to FIX.

With this in mind, early last year ConvergEx launched its ConnEx suite of FIX infrastructure solutions. After speaking with ConvergEx’s Rosenberger, Abbruzzese says it made sense to switch to ConnEx because it offered specific FIX expertise and the vendor understood the tagging, which typically presents significant setup challenges, according to Abbruzzese.

“For us, that was a process that we had to learn as we were going because we weren’t necessarily sure what the best way to do it was,” he says. “Being with ConnEx takes all that off our plate. We’ve had new connections with them that went live overnight and we’ve never had an issue.”

 

The full article is available at http://www.waterstechnology.com/waters/feature/2239622/no-easy-fix-brokers-eye-outsourcing-fix-connections 

 

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Will Concentrate on Liquidity Aggregation, Execution Management, Algo Trading and FIX Testing Today, three trading technology colleagues join forces to co-found Tradepoint Systems, LLC.

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