Order Routing Networks

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1

Imported from previous forum

2

Hi,

Would anyone happen to know if FIX order routing networks generally FIX version agnostic?

Thanks.
Rich

3

Hi Rich-

Generally speaking, FIX routing networks support multiple versions of the protocol. The key is that the various OMS & EMS systems that initiate orders can be on varied versions, so the networks must support.

Some will attempt to upgrade or downgrade messages to accommodate the receiving party, but this is not always effective, owing to required fields in a new version that were not existent in an earlier version, for example.

In practice, what happens in the typical buy-side to sell-side process is that the broker (sell-side) will maintain multiple FIX sessions, one for each of the FIX versions that it supports. The FIX network and buy-side then effect a connection to the one desired/required by the buy-side firm.

Hope that is helpful.

Hi,

Would anyone happen to know if FIX order routing networks generally FIX version agnostic?

Thanks.
Rich

4

Hi Mark,

Appreciate your response.

The ORNs that I’ve spoken to do support multiple FIX versions and some are even version agnostic but most have a limit (for example 4.2 or 4.4). If firms want to upgrade to 5.0, my assumption is that they would be limited by the version support available via the ORN. Would you say that’s accurate assumption?

Also, I was hoping I could find a list of the ORN’s and their FIX version support capabilities. Would you or anyone happen to know where to find one?

Thank you.
Rich

Hi Rich-

Generally speaking, FIX routing networks support multiple versions of the protocol. The key is that the various OMS & EMS systems that initiate orders can be on varied versions, so the networks must support.

Some will attempt to upgrade or downgrade messages to accommodate the receiving party, but this is not always effective, owing to required fields in a new version that were not existent in an earlier version, for example.

In practice, what happens in the typical buy-side to sell-side process is that the broker (sell-side) will maintain multiple FIX sessions, one for each of the FIX versions that it supports. The FIX network and buy-side then effect a connection to the one desired/required by the buy-side firm.

Hope that is helpful.

Hi,

Would anyone happen to know if FIX order routing networks generally FIX version agnostic?

Thanks.
Rich

5

[ original email was from Toby Corballis - toby.corballis@rapidaddition.co.uk ]
Hi Rich,

Difficult to get a comprehensive list. Part of the problem (if it is, indeed a problem) is, as it is with FIX generally, there is no obligation to register the fact that you use FIX. Therefore, it is entirely possible that there are firms / ORNs out there using FIX that aren’t well known to be doing so (I know of two such ORNs). That is, of course, up to them.

There is, however a list of sorts. If you go to the “FPL Members” link to the left of this page you will see a list of members with “Vendors” being one group. You will have to do a bit of sleuthing to work out which one is an ORN and which is not. You can aso find out who uses what verison if you click on the “Who uses FIX” link on the left. Like all lists there is a danger that it is not up to date (I notice for eexample that ASIC, the Australian regulator, is not listed though they do, in fact, use FIX for Short Position reporting.

If you email me directly I can also let you have the names of the ORNs I know of.

Be aware, also, that some ORNs are actually “routes” into other ORNs (known as concentrator networks).

Cheers

Toby

Hi Mark,

Appreciate your response.

The ORNs that I’ve spoken to do support multiple FIX versions and some are even version agnostic but most have a limit (for example 4.2 or 4.4). If firms want to upgrade to 5.0, my assumption is that they would be limited by the version support available via the ORN. Would you say that’s accurate assumption?

Also, I was hoping I could find a list of the ORN’s and their FIX version support capabilities. Would you or anyone happen to know where to find one?

Thank you.
Rich

Hi Rich-

Generally speaking, FIX routing networks support multiple versions of the protocol. The key is that the various OMS & EMS systems that initiate orders can be on varied versions, so the networks must support.

Some will attempt to upgrade or downgrade messages to accommodate the receiving party, but this is not always effective, owing to required fields in a new version that were not existent in an earlier version, for example.

In practice, what happens in the typical buy-side to sell-side process is that the broker (sell-side) will maintain multiple FIX sessions, one for each of the FIX versions that it supports. The FIX network and buy-side then effect a connection to the one desired/required by the buy-side firm.

Hope that is helpful.

Hi,

Would anyone happen to know if FIX order routing networks generally FIX version agnostic?

Thanks.
Rich

6

Hi Rich-
As much as I hate generalizations, you are generally correct: there is a least-common-denominator effect at play, meaning you can use only the highest level of FIX that the sender, carrier (ORN) and receiver ALL support.
There are exceptions where, for instance, ORN’s could allow direct pass-through connections, without any FIX software hub value-add (validation, tag re-mapping, drop copy agent, etc.). But, as most ORN’s make their bones by being the “normalizer”, insulating sender and receiver from much of the grunt-level work of message flows and maintenance, the norm is use only up to the highest level the ORN supports.
And, not to get too particular, some firms (buy-side, sell-side and ORN’s) have adapted early versions of FIX to support what later versions support natively. This can be accomplished through tri-lateral agreement on use of custom tags.
I am not aware of a central repository of data on each ORN, at least one that would be always accurate. Best to check with each directly to learn of most current capabilities.
Best regards,
Mark V.

Hi Mark,

Appreciate your response.

The ORNs that I’ve spoken to do support multiple FIX versions and some are even version agnostic but most have a limit (for example 4.2 or 4.4). If firms want to upgrade to 5.0, my assumption is that they would be limited by the version support available via the ORN. Would you say that’s accurate assumption?

Also, I was hoping I could find a list of the ORN’s and their FIX version support capabilities. Would you or anyone happen to know where to find one?

Thank you.
Rich

Hi Rich-

Generally speaking, FIX routing networks support multiple versions of the protocol. The key is that the various OMS & EMS systems that initiate orders can be on varied versions, so the networks must support.

Some will attempt to upgrade or downgrade messages to accommodate the receiving party, but this is not always effective, owing to required fields in a new version that were not existent in an earlier version, for example.

In practice, what happens in the typical buy-side to sell-side process is that the broker (sell-side) will maintain multiple FIX sessions, one for each of the FIX versions that it supports. The FIX network and buy-side then effect a connection to the one desired/required by the buy-side firm.

Hope that is helpful.

Hi,

Would anyone happen to know if FIX order routing networks generally FIX version agnostic?

Thanks.
Rich

7

[ original email was from Toby Corballis - toby.corballis@rapidaddition.co.uk ]
Hi Rich

In my experience the answer is both “yes”, and “no”. One thing is whether it is a pass-thru network or not. Many networks will lay out quite strict rules on what you can and can’t do - rules of engagement. This allows them to perform a conformance test with each participant then sleep safely at night knowing everyone is conforming to a normalised verison. Usually this will be 4.2 and/or 4.4. Other networks allow you to send any configuration of a message you want but only in a particular supported set of versions (again, notably 4.2 and 4.4). However, there are a few out there who don’t mind what you send over and put the onus on you and your counterparty(ies) to perform any relevant validation.

Cheers

Toby

Hi,

Would anyone happen to know if FIX order routing networks generally FIX version agnostic?

Thanks.
Rich

8

Hi Toby,

Appreciate the response. In my research, I’m finding the same.

I was curious if a firm is upgrading to version 4.4 for example and the ORN says they are only able to support up to 4.2, my initial thoughts were that the firm can’t route 4.4 traffic to this particular ORN - it would have to connect to this ORN using 4.2 or use an ORN that supports 4.4. Is this an accurate assessment?

Thank you.
Rich

Hi Rich

In my experience the answer is both “yes”, and “no”. One thing is whether it is a pass-thru network or not. Many networks will lay out quite strict rules on what you can and can’t do - rules of engagement. This allows them to perform a conformance test with each participant then sleep safely at night knowing everyone is conforming to a normalised verison. Usually this will be 4.2 and/or 4.4. Other networks allow you to send any configuration of a message you want but only in a particular supported set of versions (again, notably 4.2 and 4.4). However, there are a few out there who don’t mind what you send over and put the onus on you and your counterparty(ies) to perform any relevant validation.

Cheers

Toby

Hi,

Would anyone happen to know if FIX order routing networks generally FIX version agnostic?

Thanks.
Rich

9

[ original email was from Toby Corballis - toby.corballis@rapidaddition.co.uk ]
Hi Rich,

Not quite right as it is possible to route 4.4 messages across a 4.2 session and some networks will support this, e.g. Autex, whilst others don’t.

A few are beginning to support FIX5.0 too (likley to increase with the fact that many exchanges are now supporting FIX5.0), which decouples the transport layer so you can use a different transport, for example AMQP if you want.

Kind Regards

Toby

Hi Toby,

Appreciate the response. In my research, I’m finding the same.

I was curious if a firm is upgrading to version 4.4 for example and the ORN says they are only able to support up to 4.2, my initial thoughts were that the firm can’t route 4.4 traffic to this particular ORN - it would have to connect to this ORN using 4.2 or use an ORN that supports 4.4. Is this an accurate assessment?

Thank you.
Rich

Hi Rich

In my experience the answer is both “yes”, and “no”. One thing is whether it is a pass-thru network or not. Many networks will lay out quite strict rules on what you can and can’t do - rules of engagement. This allows them to perform a conformance test with each participant then sleep safely at night knowing everyone is conforming to a normalised verison. Usually this will be 4.2 and/or 4.4. Other networks allow you to send any configuration of a message you want but only in a particular supported set of versions (again, notably 4.2 and 4.4). However, there are a few out there who don’t mind what you send over and put the onus on you and your counterparty(ies) to perform any relevant validation.

Cheers

Toby

Hi,

Would anyone happen to know if FIX order routing networks generally FIX version agnostic?

Thanks.
Rich