The FIX Trading Community, which characterizes itself as the non-profit, industry-driven standards body at the heart of global financial trading, reports the extension of the trading enablement standard initiative (TESI) to include foreign exchange (FX) client enablement.
TESI uses FIX electronic communications protocols to “manage the complex process of enabling clients on fixed income trading platforms,” according to a FIX statement. “TESI is now available to clients using FX execution platforms for FX spot, forwards, swaps, FX options, NDFs and precious metals trading.”
With TESI, “FX market participants can change pricing streams, map accounts, authorize new instruments or even suspend clients for trading and a message will be automatically distributed to all relevant parties using a standard protocol,” according to the statement, which notes also that the FIX messaging language offers “all parties involved … assurance that they are using the protocol that has become a standard for the way the world trades.”
The FIX protocol is used by thousands of firms every day to complete millions of transactions, enabling the industry “to minimize the cost of trading, maximize operational efficiencies and achieve increased transparency,” according to the FIX Trading Community.
“The extension of this initiative to FX is an important step toward multi-asset class ‘straight through enablement’ that will allow dealers to manage a previously manual process electronically using the FIX Protocol,” Sassan Danesh, co-chair FIX Trading Community OTC products committee, and managing partner, Etrading Software, says in the statement. “Further work is being undertaken to ensure a smooth adoption by the industry.”
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