21 December 2014

Market Model Typology becomes FIX-administered standard

03 February 2014  |  823 views  |  0 Source: Federation of European Stock Exchanges

The Federation of European Securities Exchanges (FESE) and FIX Trading Community are pleased to announce that the Market Model Typology (MMT) has become a FIX standard.

As a result the standard is available for adoption by all market participants. This will allow them to enhance data standardisation and provide greater clarity on the types of activity conducted. This will all contribute to enhanced transparency for the benefit of investors, market participants and regulators.

The MMT initiative was originally launched by FESE to support the implementation of the original 2010 CESR recommendations on post-trade reporting standards. Since then, it has been significantly developed and enhanced through the collaborative efforts of exchanges, MTFs, market data vendors and trade reporting venues with the aim of standardising post-trade data and providing greater transparency.

Adoption of the MMT standard will result in clean and consistent post-trade data, which is represented the same way regardless of trading venue or OTC reporting venue. MMT will make it easier to consolidate data from multiple venues to create a European consolidated post-trade tape.

As part of this effort, the MMT standard has been brought into the FIX family of standards and the FIX Protocol has been extended to support the MMT in its market data and trade reporting message suite. This enables the MMT to leverage the FIX community to broaden development and implementation of the MMT standard, especially to the buy and sell side. However, MMT is designed and allowed to be freely used in any protocol, meaning as well non-FIX protocols, which makes MMT a truly independent and open standard.

Jim Kaye, Co-Chair of the FIX Trading Community Global Steering Committee and Director of Execution Services at BAML and Simon Gallagher, Chair of MMT Steering Committee and Director at Euronext commented, "Moving the MMT standard under the FIX standards ensures that it is free to use for the entire industry. It is important that the members of the FIX Trading Community broaden the development and implementation of the MMT standard and come together to resolve any future events." Judith Hardt, Director General of FESE said, "We are delighted that MMT has grown to the point where it can become an industry standard. We look forward to MMT being adopted beyond the exchange community, with all the benefits that it holds for end investors."

The benefits of this initiative will be felt by all participants within the market and provide greater transparency for regulators and policy makers, allowing them to make informed decisions on regulations for market structure. Greater transparency of post-trade data will lead to efficiencies in data collection benefiting the wider trading community as it becomes easier and cheaper to consolidate data from different sources.

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