Connection initiation standard

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Imported from previous forum

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[ original email was from Justin Kelly - justin@peresys.co.za ]
Hi,

I’m trying to find out if it is part of the FIX protocol that the Buy-Side MUST connect to the Sell-Side? Is this an internationally adopted standard that has any relevance or is it possible for a HUB to have the connections all inbound regardless of the Buy/Sell-Side status?

Thanks
Justin

3

The standard per Fix is that the buy side must connect to the sell side and thats the standard adopted by the industry. But in practice it can be the other way round also. In case of a hub its always better to initiate connection as its neither a client/counterparty. It has the responsibility to stay connected both the parties in its network.

Justin

It is not specified as part of the FIX protocol, it is just market
practice. A few years ago one of the hub providers did set up a hub that
had only inbound connections. They where forced to change this model as
some brokers refused, or where unable, to connect via an outbound
connection.

Cheers Kevin Houstoun Consultant to HSBC.

Hi,

I’m trying to find out if it is part of the FIX protocol that the Buy-
Side MUST connect to the Sell-Side? Is this an internationally adopted
standard that has any relevance or is it possible for a HUB to have
the connections all inbound regardless of the Buy/Sell-Side status?

Thanks Justin

4

[ original email was from tushar deshpande - tushar.deshpande@citigroup.com ]
we have incoming connections from several sell-side parties(all major
players in the financial industry in the Americas) for several years
now.

Sunil, where do you see that the standard per FIX is that the buy side
must connect to the sell side?

thx,
Tushar

The standard per Fix is that the buy side must connect to the sell side
and thats the standard adopted by the industry. But in practice it can
be the other way round also. In case of a hub its always better to
initiate connection as its neither a client/counterparty. It has the
responsibility to stay connected both the parties in its network.

Justin

It is not specified as part of the FIX protocol, it is just market
practice. A few years ago one of the hub providers did set up a hub
that had only inbound connections. They where forced to change this
model as some brokers refused, or where unable, to connect via an
outbound connection.

Cheers Kevin Houstoun Consultant to HSBC.

Hi,

I’m trying to find out if it is part of the FIX protocol that the
Buy- Side MUST connect to the Sell-Side? Is this an internationally
adopted standard that has any relevance or is it possible for a HUB
to have the connections all inbound regardless of the Buy/Sell-Side
status?

Thanks Justin

5

Tushar,
You said you have several incoming sell-side parties connecting to you. In that case you will be most likely representing a Hub. A hub is an exception to the general standard of connectivity wherein the buy-side connects the sell-side.
I am sorry I wrongly quoted as per standards of FIX.

Thanks,
Sunil