The global trading industry has begun implementation of the guidelines set down by the FIX Trading Community to reduce operational risk and enable more efficient set up of clients on OTC electronic trading platforms.
The Trading Enablement Standardisation Initiative (TESI), launched in January 2013, has been working with a number of platforms to promote automation and standardisation of important client information such as:
• Enable a brand new buy-side trader
• Setting the risk profile for a new buy-side trader
• Enabling new products for an existing buy-side trader
By using the FIX Messaging language to transmit this information, all parties involved will have assurance that they are using the protocol that has become the standard for the way the world trades. It is used by thousands of firms every day to complete millions of transactions, enabling the industry to minimise the cost of trading, maximise operational efficiencies and achieve increased transparency.
Sassan Danesh, co-chair FIX Trading Community global fixed income committee, managing partner, Etrading Software, says: “Historically, the management of trading relationships across OTC markets has been an error-prone, manual process. The Straight Through Enablement capability provided by FIX allows industry adopters to provide superior client service and reduced operational risk by ensuring the dissemination of consistent counterparty information between market participants.”
Justin Peterson, a managing director at Tradeweb says: “TESI allows for the standardisation of client enablements on electronic platforms, thereby making that process faster and more efficient. We worked closely with FIX Trading Community to develop the initiative, and are implementing it because of the benefits it brings to our clients in the global fixed income trading industry, and in the derivatives markets in Europe and Asia.”