What is new in FIX Protocol 5.0

Posted on 18. Apr, 2011 by in Other

The FIX 5.0 is the response to the growing needs of financial institutions. The FIX version 5.0 enhancements address the following key needs of industry.
PROTOCOL LEVEL: Introduction of independent session layer called Transport Independence (TI) Framework. This framework is known as FIXT. It’s initial version is 1.1. You can get detailed specifications from fixprotocol.org.
PRODUCTS: Enhanced support for FX Trading
NEW ORDER TYPES: Enhanced Order Routing features for RESERVE, PEG and TRIGGERED Orders
TRADE PROCESSING: Additional features for post-trade and clearing process for allocation, trade and position reporting
REGULUATORY REQUIREMENTS: Support for Reg-NMS, OATS Phase 3 and MiFID regulatory initiatives
MARKTE DATA: Market Data optimization extensions improving book management.
ALGORITHMIC TRADING: Enhanced support to Algorithmic/Strategy trading.
Enhancements to Derivatives post trade processing
Out of all these, the major feature is the Transport Independence Framework (FIXT 1.1 http://fixprotocol.org/specifications/FIXT.1.1).
The key objective of this framework is to enable a single FIX session to support multiple FIX application messages. For example, a firm can run FIXT1.1 and allow Order messages of FIX 4.3, Allocation messages of FIX4.4 and Market data message of FIX5.0 etc. this gives the great benefit to Sell-side firms to run their FIX engines for wider audience.
The new Framework also allows FIX messages to be carried over other transports such as MQSereis, TIBCO etc. For more details please refer FIXT specifictions.

FIX 5.0 is response to the needs of the financial institutions. FIX 5.0 addresses the following key needs of financial services industry.

  • PROTOCOL LEVEL: Independent session layer called Transport Independence (TI) Framework. This framework is known as FIXT. Its initial version is 1.1. You can get specifications from fixprotocol.org here.
  • PRODUCTS: Enhanced support for FX Trading
  • NEW ORDER TYPES: Enhanced Order Routing features for RESERVE, PEG and TRIGGERED Orders
  • TRADE PROCESSING: Additional features for post-trade and clearing process for allocation, trade and position reporting
  • REGULUATORY REQUIREMENTS: Support for Reg-NMS, OATS Phase 3 and MiFID regulatory initiatives
  • MARKTE DATA: Market Data optimization extensions improving book management.
  • ALGORITHMIC TRADING: Enhanced support to Algorithmic Trading/Strategy trading.
  • DERIVATIVES TRADING: Enhancements to Derivatives post trade processing

Out of all these the major feature is the Transport Independence Framework (FIXT 1.1).

The key objective of this framework is to enable a single FIX session to support multiple FIX application messages. For example, a firm can run FIXT1.1 and allow Order messages of FIX 4.3, Allocation messages of FIX4.4 and Market data message of FIX5.0 etc. this gives the great benefit to Sell-side firms to run their FIX engines for wider audience.

The new framework also allows FIX messages to be carried over other transports such as MQSereis, TIBCO etc. For more details please refer FIXT specifictions.

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