Published On: Tue, Jun 28th, 2011

FIX Protocol Brings Efficiencies, Cost Reductions to Taiwan

Edward Mangles FIX ProtocolFIX Protocol Limited (FPL), the non-profit electronic trading industry association that owns, develops and promotes the FIX Protocol messaging standard, has welcomed the announcement by Taiwan’s Financial Supervisory Commission (FSC) that integration of the FIX Protocol into key Taiwanese exchanges and clearing facilities will be completed this month.

The integration of FIX will allow securities and futures operators to benefit from the use of a global standard to communicate transactions in many securities and futures markets. The service will save an estimated cost of NT$75 million to NT$80 million, according to the FSC.

The FIX Protocol integration is part of a larger project, run by Taiwan’s Financial Supervisory Commission (FSC), to integrate data transmissions of securities and futures-related organisations and enhance the Taiwanese market’s competitiveness on the international stage. The project is estimated to reduce annual transaction costs for the Taiwanese market by NT$130-200 million.

FIX Protocol Limited (FPL) Asia Pacific Regional Director, Edward Mangles, said this project was an excellent example of the benefits FIX can bring to the evolving Asian market.

“The FSC’s determination to facilitate easier, lower-cost trading via the FIX Protocol is a commendable demonstration of what FIX is all about,” he said. “The adoption of FIX in Asia has accelerated in line with growing global interest in our region, because when everyone is speaking the same language it makes trading more efficient. Improved trading practices generate the potential for increased flows, which in turn help drive further growth in Asian capital markets.”

FPL is in a unique position to work with market participants anywhere in the world to increase standardisation and promote the use of best practices to improve the trading environment because of the nature of FPL’s global membership-based and volunteer-led organisation, Mr Mangles said.

“The FPL organisation is unique, comprising people from firms across the industry that are fierce competitors normally, but who come together to collaboratively look at ways to make the markets better for everyone,” he said. “We are talking every day to exchanges, regulators and other market participants across Asia to keep evolving the FIX Protocol, making sure it drives market improvements everywhere it is implemented.”

FIX is the language of the world’s financial markets and was developed originally to support buy-side to sell-side communication. It has recently gained significant interest from trading venues wishing to use it to connect to market participants. Markets that utilise FIX are able to benefit from significant cost savings and improved efficiencies by enabling firms to connect to trading partners, both domestically and across geographic borders, in a standardised manner, minimising the financial implications of market entry and significantly reducing switching costs.

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