FIX Trading Community introduces real-time settlement message types

FIX Trading Community introduces real-time settlement message types

The FIX Trading Community (‘FIX’), an industry-driven standards body dedicated to streamlining securities transactions, announced the launch of innovative new message types.

The decision to introduce these new message types was motivated by the increasing industry demand for more efficient, timely, and standardised settlement status communications.

FIX Trading Community stands as a pillar in the financial sector, consistently serving as the market standard throughout various stages of trade lifecycle management. Their prominence is bolstered by their role in pioneering electronic trading and ensuring that industry participants adhere to optimal standards.

The recently unveiled message types are designed to enhance operational efficiency, mitigate risks, and bolster wider industry efforts directed at expediting the settlement process. By providing real-time settlement updates, they aim to redefine post-trade communication standards.

These innovative message types not only align with the push to accelerate settlement cycles but also serve to buttress initiatives that seek to uphold the high levels of automation and efficiency that industry participants have come to appreciate.

The transition to T+1 in the US, along with its subsequent global implications, underscores the urgent necessity for heightened trade visibility. Efficient and rapid communication becomes paramount, especially between buy-side firms, custodians, and brokers. It’s essential in facilitating the prompt detection of errors and the resolution of issues that may arise.

FIX Trading Community Americas Regional Director Laurence Jones said, “Often recognised as the force driving electronic trading, FIX has consistently served as a market standard across the various stages of trade lifecycle management. In response to the rapidly evolving settlement cycle landscape, FIX is working alongside the industry to develop new standards, in order to sustain the high levels of automation and efficiency experienced upstream. Our core mission is to empower and support market participants meet their regulatory requirements.”

Torstone Technology Product Manager David Pearson said, “The transition to T+1 in the US and the potential repercussions on markets globally have highlighted the pressing need for greater trade visibility and more efficient, speedy communication across buy-side firms, custodians and brokers – both crucial in supporting the early detection of errors and the swift resolution of issues. FIX’ new workflow and messaging standards will drive significant improvements to post-trade operational inefficiencies by closing the existing communication gap and enabling near real-time updates on securities settlement status for end clients.”

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