Imported from previous forum
Survey Findings Affirm that FIX Protocol Remains the Pre-eminent Messaging Standard in the Electronic Trading Environment
NEEDHAM, MASS., September 25, 2003 – FIX Protocol Ltd. and TowerGroup today announced the results of a survey designed to capture how North American investment management firms, broker/dealers and capital markets technology vendors are utilizing and investing in FIX technology. The survey includes highlights and details on sell-side, buy-side and vendor FIX usage.
FIX Protocol Ltd. and TowerGroup surveyed 138 business and IT executives of North American banks, brokerages, asset managers and technology software and networking vendors in developing the “FIX Americas 2003 Survey.” Results show that the FIX Protocol is the de facto trading-related protocol, with 97% of sell-side firms reporting FIX usage. “Opportunity for increased penetration exists on the buy-side where current usage is at 77% and an additional 15% are currently implementing,” said Rich Ronan, senior vice president of the Global Investment Management Technology Group at Alliance Capital Management and FIX committee member. Findings indicate that by addressing differences in the interpretation of FIX and by expanding functional coverage, additional buy-side firms would consider implementation.
“As the FIX Protocol continues to expand its product and functionality coverage towards its full potential, it becomes more important to maintain a consistent approach across all segments of the market,” said Robert Hegarty, vice president of the Securities & Investments practice at TowerGroup. “The more in-sync the market is on developing FIX capabilities, the bigger impact it will have on trading decisions and technology investments.”
Other survey highlights include:
· Buy-side firms do take into account the FIX capabilities of their trading partners in deciding where trading might occur.
· In many cases, the sell-side is continuing to take the lead in providing additional capabilities for FIX trading, and is waiting for implementation and usage by the buy-side.
· Survey respondents strongly desire that FPL remain a non-profit organization, though recognize that some type of funding model is needed.
· Buy-side firms indicate even after they have implemented FIX capabilities, it can still take an average of two to four weeks to implement connectivity to additional brokers.
“The survey results affirm the initiatives that our volunteer members are actively working on,” according to Peter Randall, Executive Director of FIX Protocol Ltd. “This includes an increased focus on education and marketing, our partnership with derivatives and bond market industry associations, a redesign of our web site and the coordinated expansion into new markets, especially the Asia/Pacific region.”
TowerGroup and the FIX Protocol Ltd. targeted CIOs, COOs, Heads of Operations and IT, and senior executives involved in capital markets trading as the audience for this survey just released to all participating institutions and presented at a Webinar earlier today. An executive summary will be made available to members of the press. Financial institutions interested in obtaining the full results of the survey, including a recorded version of the Webinar, may contact TowerGroup at +1.781.292.5200 or email service-info@towergroup.com.
About FIX Protocol Ltd.: FIX Protocol Ltd. is a non-profit organization that owns the intellectual property rights of the Financial Information eXchange protocol (FIX), which is provided free in the public domain. FIX is a globally recognized messaging standard enabling the electronic communication of pre-trade and trade messages between financial institutions, primarily investment managers, broker/dealers, ECNs and stock exchanges. For more information, see www.fixprotocol.org.
About TowerGroup: TowerGroup – now celebrating its 10th year – is the leading research and consulting firm focused on the global financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world’s largest financial services, technology and consulting firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in New York, London, and Kuala Lumpur, TowerGroup serves a global client base. Visit TowerGroup online at www.towergroup.com.
Contact
Ms. Faye Nikolaidis at: + 1 (212) 455 8078, fnikolaidis@cooperkatz.com (TowerGroup)
Mr. Tom Jordan at: +1 (212) 652 4469, fpl@fixprotocol.org (FPL Program Office)