Industry standards body FIX Protocol Limited (FPL) says it is reforming its exchanges working group and will focus on driving use of its messaging standard by ECNs and market operators.
The move by FPL follows news that Deutsche Börse and OMX are working together to develop and promote a common exchange messaging standard based on the FIX protocol.
Deutsche Börse Systems, the technology subsidiary of the German exchange, said in March that it will work with Swedish stock exchange operator to define a 'harmonised exchange standard' which will use the FIX specification.
FPL says its 2005 survey showed that over three quarters of the exchanges already support a FIX interface and the majority handle over 25% of their total trading volume via FIX. The organisation says in 2006 there has already been an increase in exchange participation within FPL activities and their use of the protocol.
In light of this, FPL is re-establishing the exchanges/ECN working group which will be lead by representatives from three regions – Matt Simpson of the Chicago Mercantile Exchange (Americas region), Kathleen Grey of HSBC (Asia Pacific/Japan region) and Hanno Klein of Deutsche Börse (EMEA region).
Says Simpson: "Exchanges play a critical role in creating efficiencies across the industry both in terms of cost and technology. FIX provides an excellent basis from which to achieve these goals, on the condition that exchanges use FIX in a consistent manner and support a core set of functionality for market participants. The purpose of the group is to define this model in practical terms and ensure that it meets the needs of all exchanges and their users."