Can anyone provide information on carbon credit exchanges?
Is FIX (Financial Information Exchange) protocol applicable to the trading process of carbon credit exchanges? Are there any relevant specifications or trading processes that can be further referenced? Any additional insights or suggestions are welcome.
Thank you!
I think FIX can use all trading platforms. But carbon platforms doesnt need low latency and doesnt have high freq transactions, at least in eu. But if FIX is must, need to customize many fields i think.
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FIX is agnostic to asset classes. Is the “trading process of carbon credit exchanges” different from trading process of other assets (e.g. stocks, futures, options) on exchange? If the process is very similar I don’t see a reason why a carbon credit exchange can’t use FIX. An order book model (for example) has a lot of similarities across exchanges, there may be salient differences based on the exchange rule book.
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Thanks for your reply. I just curious about why there is no FIX customized for carbon credit trading. Or perhaps because the trading volume for carbon credits is not significant enough, and currently most transactions are still conducted through manual paper-based processes. But it seems it needs a standard for the future.
Hi,
My I suggest we get on a quick call to discuss? If there are gaps between what the FIX Protocol can currently support, and what’s needed for carbon trading, the sooner we understand those gaps the sooner we can close them and have a full FIX standard. Happy to set something up.
Best regards,
Jim Kaye, Executive Director, FIX Trading Community
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Hi @shenghsiunghu,
Do you have an example of the type of carbon credit you are looking to trade?
Carbon credits are traded by FIX, I have seen it myself. Cannot name the venue. Treated like with a bond with a number of workflows associated.
No extra complexity required due to the underlying.
Regards,
John Greenan