FIX has become the undisputed common language of the global financial market. It is an open-source platform available to all, and it is constantly evolving. Geared toward minimizing cost and maximizing efficiency, the development of FIX trading has changed the way the market is handled by everyone from trading firms to day traders.
The transmission of accurate and up-to-date information is what sets the FIX protocol apart from just another strategy or system. It is universal, meaning no matter what technique you’re using, it’s a language you need to know to communicate with the appropriate parties.
With the setting of this standard for the exchange of financial information comes the need to evolve and grow as the market changes and the landscape of security changes.
As the financial landscape changes, security protocols also change. The need for excellent security to protect valuable financial information as it is communicated across databases is high on the list of priorities for users of any technology. FIX is no exception. While FIX was created to be a standardized tool that enabled ease of use, security measures are rarely one-size-fits-all.
Development of a TLS protocol, allowing for ease of integration into existing systems, allows authentication at a variety of levels in order to ensure that it works across the board.
The success of FIX relies on this security to keep assets and information secure. Appropriate security measures and implementation will continue to evolve as the market evolves.
Fast and reliable information is key in successful trading at all levels. Reducing latency in sending and receiving information is a priority for the ever-changing landscape of FIX trading.
Different trade types have differing degrees of leniency for latency. High volume trades such as FX trading require very low latency in order to provide as accurate information possible as quickly as possible.
Working to reduce latency while keeping the playing field level is a factor that is considered with every update to technology and how to implement FIX protocols.
Time-Sensitive Market Data
FIX relies on data, as all trading does. Whether this is in query form for research purposes or market data used for indications and quotes, this data is time-sensitive and must be accurate. Getting these messages delivered in a timely fashion and in a way that makes sense for the end-user is among the highest priorities as FIX continues to evolve. Doing this securely so as to avoid data errors or timing issues affects trade in positive ways and is one of the reasons that the FIX protocol works so well.
As the landscape of trading changes, as more security risks are posed, and as more players enter the trading market, FIX trading will continue to grow and evolve with the times. The ideal solution for exchanging financial information between players, it must continue this evolution in order to survive and thrive. This will help it to remain the industry standard for years to come.