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September 2, 2013

Post-Trade Confirmation via FIX

By John D'Antona Jr.

The buyside and sellside can now confirm their equity trades via the FIX protocol.

Fidessa, an order and execution management system vendor, has opened its post-trade confirmation hub to both buysiders and sellsiders to confirm trades using the same messaging system already used in order routing. By using the same system, both parties can save time and money in the post-trade settlement process, Fidessa said.

The new service enables firms to send and receive allocation and confirmation instructions to each other via an open, free-to-use protocol, said Fidessa's director of group strategy, Steve Grob. Using the same system, FIX, removes the need for proprietary or other messaging system alternatives that charge on a per-message basis.

"Recent fragmentation into competing alternatives has simply made the whole process even more inefficient for market participants of all types," Grob said. "Now firms can leverage their existing FIX infrastructure and pay a flat fee."

Prior to this, firms paid a per-message fee to conduct post-trade settlement. Historically, this process was manual and very expensive.

"Firms said, 'We have FIX for order sending. Why can't we use the same system for confirmations?'" Grob said.

 

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