A new post-trade confirmation hub using FIX Protocol Ltd (FPL) open source messaging has been unveiled by Fidessa.
The common financial markets messaging technology has been embedded into Fidessa’s post-trade workflow so that the vendor’s buy and sell-side clients can confirm trades between themselves on a fixed fee basis, rather than per transaction.
Covering equities trading the new service should eliminate any requirement for proprietary alternatives and is reflective of a common move in this sector towards FIX and common standards in order to meet the numerous regulatory challenges stemming from the Pittsburgh G20 meeting, including the European Market Infrastructure Regulation (EMIR).
Commenting on the hub, Steve Grob, director of group strategy at Fidessa, said: "For some time the industry has been looking at post-trade as a key battleground in the war on daily operating costs. Recent fragmentation into competing alternatives has simply made the whole process even more inefficient for market participants of all types."
For the messaging and standards organisation bringing the buy and sell-side together and reducing its traditional reliance on broker-driven traffic is a benefit. Fidessa's David Pearson, who is also the co-chair of the FPL Post-trade Working Group for Europe Middle-East and Africa (EMEA), explained that the approach has been “to focus on both the messaging standards that the industry wants to adopt and the business process for the operational users. By standardising the workflow for all our buy and sell-side customers we are able to provide a straight-forward and effective middle office environment. In addition, firms can leverage the existing FIX infrastructure they already have in place for routing order flow."