What great news that FPL has put their hat in the ring to bring the consolidated tape to market. They had such terriffic success with establishing FIX and are one of the few organisations that has acheived notable success in the securities industry over
the last decade and more.
Its vitally important for the global securities industry that the design and ownership f the organisation is a not for profit structure. There is strong commercial contendors in this space that would destroy the concept before it has a chance.
I hope the politicians and regulators see the sense of a industry led solution and the fact that FPL has the presence and history to deliver the consolidated tape.
Get behind FPL on this as its so important that the industry takes charge of its affairs before it is bestowd from on high and we end up in a further mess
I completely agree with you Gary - that looking to FIX when developing the consolidated tape would be a good road for the financial industry to go down. It's an established standard that most of the industry (well, the sell-side anyway) already uses.
However, I have heard from a few people (I'm a journalist, we hear things) that there are some on the sell-side that do not think going down the FIX route is the best option. FIX is ubiquitous on the sell-side; on the buy-side not so much. The tier one buy-side
firms all rely on the XML-based FIX, but when you move down the food chain to the 'Mom & Pop' fund managers - FIX is harder to find.
When developing a consolidated tape for Europe there are political issues (isn't there always?) It can not be seen as a London-based, large investment bank initiative - and an embrace of FIX looks that that to some people. (And that is not even going into
what Swift may feel about Europe going whole hog down the FIX route for the CT.)
Those 'political' issues may out weigh any potential benefits of FIX.
Arhhh politics! I agree this can stupify the best of plans. However FPL does appear the very best option if there is to be a quick and cheap solution. SWIFT is far to slow and cumbersom and has minimal buy side usage where FIX has penetrated into the buyside
already and is an ongoing and growing use. The CT would further escalate FIX into the buyside community and this would obviously benefit the sell side banks
Its important that the industry takes charge of the CT and moves fast gaining as much industry wide support along the way.
Lets kick politics out of the industry
If they implemented using AMQP (an Open Source web-native transactional middleware) for delivery, and offered under a Creative Commons license, they could make it available to anyone over the web.
FIX & FIXML as options for the data protocol would cover all the bases.
There would still be market for "premium" delivery via market data vendors, but a decent image on consolidate BBO would be available over the web to anyone, even retail.
© Finextra Research 2014