Imported from previous forum
Hi everyone,
I’m working with a group developing a new idea/service for the online trading industry. My aim with this post is to confirm whether we ‘have’ to develop our service using FIX or not?
Mainly our service will be aimed at retail online trading platforms, however, we do not want to exclude other trading platforms the further you move through the complete execution of a trade.
I can’t go into too much detail regarding the service so I apologise up front for being a little vague.
Our service will add a feature to any trading platform i.e. Metatrader (note: we mention Metatrader as it’s very popular but our service must be accessible to ALL known trading platforms at all levels). The functionality of the feature I can’t discuss, but it needs to achieve the following:
Action 1:
A user (i.e. retail trader logged onto their FXPro account via Metatrader) activates the functionality of our service direct from their trading platform. This action activates a request for an information-set from the broker i.e. user account details and information on a particular trade. This information is then sent securely to our central system.
Action 2:
This information is then checked on our central systems to confirm the user has an existing account with us. Result from check:
a. If no account exists our system will send a secure message to the user through the trading platform prompting them to click to confirm and create a new account and then proceeds to action 3
b. If account is confirmed proceed to action 3.
Action 3:
Transaction information is confirmed by our system and sent back to the user through the trading platform for final confirmation of the transaction.
Action 4:
With final confirmation received our service is sent to the user and payment instructions sent to the broker to debit the traders account and transfer funds to us.
We just need to know whether or not to continue to research the need for FIX to achieve our goal? Please do let me know whether more information is needed from us before you can give any advice??
Thanks in advance for any help or suggestions received…
Regards,
David.
Hi everyone,
I’m working with a group developing a new idea/service for the online trading industry. My aim with this post is to confirm whether we ‘have’ to develop our service using FIX or not?
Mainly our service will be aimed at retail online trading platforms, however, we do not want to exclude other trading platforms the further you move through the complete execution of a trade.
I can’t go into too much detail regarding the service so I apologise up front for being a little vague.
Our service will add a feature to any trading platform i.e. Metatrader (note: we mention Metatrader as it’s very popular but our service must be accessible to ALL known trading platforms at all levels). The functionality of the feature I can’t discuss, but it needs to achieve the following:
Action 1:
A user (i.e. retail trader logged onto their FXPro account via Metatrader) activates the functionality of our service direct from their trading platform. This action activates a request for an information-set from the broker i.e. user account details and information on a particular trade. This information is then sent securely to our central system.
Action 2:
This information is then checked on our central systems to confirm the user has an existing account with us. Result from check:
a. If no account exists our system will send a secure message to the user through the trading platform prompting them to click to confirm and create a new account and then proceeds to action 3
b. If account is confirmed proceed to action 3.Action 3:
Transaction information is confirmed by our system and sent back to the user through the trading platform for final confirmation of the transaction.
Action 4:
With final confirmation received our service is sent to the user and payment instructions sent to the broker to debit the traders account and transfer funds to us.
We just need to know whether or not to continue to research the need for FIX to achieve our goal? Please do let me know whether more information is needed from us before you can give any advice??
Thanks in advance for any help or suggestions received…
Regards,
David.Ps. just to confirm we will not be involved in the process of any trade or order of any particular financial instruments. All we see is the details of a trade (i.e. FX - Pair - Order amount) and confirmation it has been placed with the broker.
Hi David,
To answer your question, we have to first go into “What is FIX?”
[Start quote from http://fixprotocol.org/what-is-fix.shtml]
The Financial Information eXchange (“FIX”) Protocol is a series of messaging specifications for the electronic communication of trade-related messages.
…
FIX is the industry-driven messaging standard that is changing the face of the global financial services sector, as firms use the protocol to transact in an electronic, transparent, cost efficient and timely manner. FIX is open and free, but it is not software. Rather, FIX is a specification around which software developers can create commercial or open-source software, as they see fit. As the market’s leading trade-communications protocol, FIX is integral to many order management and trading systems. Yet, its power is unobtrusive, as users of these systems can benefit from FIX without knowing the language itself.
[End quote]
“Our service will add a feature to any trading platform i.e. …”
Most trading platforms provide FIX interfaces for communication, so your service can easily plug into most trading platforms / applications.
“a request for an information-set from the broker i.e. user account details and information on a particular trade”
there are message types in FIX which would support conveying these types of information. Since sufficient information is not present, a specific ^35= value cannot be mentioned here.
Note:- If the available standard FIX message types do not meet your needs, new message types can be added to the next release of FIX thru the GTC process. Also FIX is very flexible to permit user defined message types / tags / enumerations.
“payment instructions sent to the broker to debit the traders account and transfer funds to us.”
I think SWIFT is used for money transfer, since I do not know SWIFT and this is NOT a SWIFT discussion forum, I would not venture to discuss this Action of your project further here, but feel free to continue discussing the FIX messaging part / trading platform integration aspects of your project here.
“we will not be involved in the process of any trade or order of any particular financial instruments.”
FIX is popular today in the high speed front end trading, but nothing in FIX prevents its use for transmitting any other kind of data. Now with transport independence framework FIXT.1.1, the session and application layer are completely decopuled, so you could use a robust reliable realtime FIX on TCP session to send across any data on an IP network.
“All we see is the details of a trade (i.e. FX - Pair - Order amount) and confirmation it has been placed with the broker.”
Looks like you need drop copy execution reporting / Execution Acknowledgement / Trade Capture reporting.
Regards,
K. Mahesh