The FIX Trading Community (‘FIX’), the non-profit, industry-driven standards body at the heart of global financial trading, proudly celebrates its 30th anniversary. Over the past three decades, FIX has been at the forefront of electronic trading innovation, transforming the landscape of global financial markets and setting new standards for efficiency, transparency, and accessibility.
Thirty years ago, the financial world relied on the telephone and manual processes to execute trades. Recognising the need for a more efficient and reliable system, Bob Lamoureux and Jacques Perold (Fidelity Investments), and Chris Morstatt and Jim Leman (Salomon Brothers) developed the Financial Information eXchange (FIX) protocol. Enabling electronic communication of equity trading data, FIX quickly became the industry standard.
A Journey of Innovation and Growth
From its inception, FIX has continually evolved to meet the changing needs of the financial industry. The first public version, FIX 2.7, was released in 1994, laying the foundation for the future of electronic trading. As the protocol advanced through numerous iterations, it introduced and expanded critical features such as advanced order handling, indications of interest (IOIs), and trade advertisements.
By the late 1990s, FIX had expanded to support Straight-Through Processing (STP), eliminating manual intervention in many post-trade processes. This era also saw the introduction of support for derivatives, fixed income and foreign exchange (FX) markets. Today, FIX is the de facto messaging standard for pre-trade and trade communication in global markets and continues to expand into the post-trade space and new asset classes.
Transforming Modern Finance
FIX’s impact on the financial industry is profound. The protocol has driven exponential growth in trading volumes, enabling markets to become more liquid and efficient. It has democratised global market access, allowing participants from around the world to connect and trade seamlessly.
The evolution of FIX standards has supported the development and adoption of sophisticated trading styles and strategies, including algorithmic and high-frequency trading. These innovations have transformed modern trading, making it more dynamic, responsive, and efficient. Alongside this, FIX’s commitment to enhancing post-trade processes has helped to enable faster clearing and settlement times, reducing errors and accelerating workflow.
Empowering the Market
FIX has facilitated more effective risk management and hedging. Traders can now better assess and manage their risk exposures, ensuring more stable and predictable outcomes. The protocol has also contributed to greater market transparency, improving market integrity and boosting investor confidence. The efficiencies brought about by FIX have led to lower trading costs, including reduced commissions and tighter spreads.
Rich History, Bright Future
As we celebrate this momentous milestone, we reflect on the incredible journey of the FIX Trading Community and its pivotal role in shaping the future of electronic trading. We look forward to continuing our mission of fostering innovation, collaboration, and excellence in global financial markets for many years to come.
Source: FIX
