Imported from previous forum
We are going to start using FIX to supply our clients with Order and Trade data, and to allow for Order submissions. Which version of FIX should we chose to support?
Our clients do not currently use FIX, so essentially we can choose any version and they will adapt.
Should we use the latest version 5.0 SP2, or are there benefits to staying with something like version 4.4? Pros and cons?
Definitely 4.4. 5.0SP2 brings extra complexity and few (probably zero) benefits for most trading systems. All your clients who do FIX will be able to easily handle a nice generic 4.4 implementation.
We are going to start using FIX to supply our clients with Order and Trade data, and to allow for Order submissions. Which version of FIX should we chose to support?
Our clients do not currently use FIX, so essentially we can choose any version and they will adapt.
Should we use the latest version 5.0 SP2, or are there benefits to staying with something like version 4.4? Pros and cons?
Thanks for your input. If nobody else replies with any other reasons, then we will use version 4.4.
Definitely 4.4. 5.0SP2 brings extra complexity and few (probably zero) benefits for most trading systems. All your clients who do FIX will be able to easily handle a nice generic 4.4 implementation.
[ original email was from John Greenan - john.greenan@alignment-systems.com ]
> Definitely 4.4. 5.0SP2 brings extra complexity and few (probably zero) benefits for most trading systems. All your clients who do FIX will be able to easily handle a nice generic 4.4 implementation.
Apart from clients that use the majority (by installations) of buy-side OMS platforms…
I disagree with this statement. It is like recommending to use MS Word 97 instead of MS Word 2010 because ribbons are too complicated. Given a free choice I would always opt for the latest version of a software. FIX 5 is now out for almost 5 years. Reality is that you seldom have a free choice and FIX versions are something like a chicken and egg thing (“I cannot use/move to FIX 5 because the firms I connect to are still on FIX 4.x”).
Exchanges and regulators are moving to FIX 5 where they can whilst often additionally supporting a “legacy” FIX 4.x engine connection. FIX 5 allows you to still send FIX 4.x message within that framework. Given the statements “We are going to start using FIX” and “Our clients do not currently use FIX”, I do not see a reason to start with an older version. A lot of new functionality has been added by FIX 5 service packs and extension packs. Using FIX 4.x typically leads to the usage of many user-defined fields which contradicts the idea of standardization. FIX 5.0 SP2 is a very complete standard by now which you might compare to MS Office again. How many of us are using all of its features and would we be using an older version just because it already covers what we need? The breadth of FIX 5 means that only users such as exchanges with trading, clearing, market and reference data will use a substantial subset of the protocol. It does not mean that plain vanilla users (order add/modify/delete and execution report) cannot easily use it.
With my GTC co-chair hat on, I would like to know more about the complexity of FIX 5 that you are claiming. Obviously, FPL is interested in learning what may be the barriers for migrating to FIX 5 other than the chicken and egg issue. FIX 4.4 is now more than 8 years old and older FIX versions are not extended (just like new MS Office features are not built into older versions). If we say that FIX 4.4 is all we will ever need then this contradicts the belief that the world is changing and one needs to adapt to new requirements.
Thank you,
Hanno.
Definitely 4.4. 5.0SP2 brings extra complexity and few (probably zero) benefits for most trading systems. All your clients who do FIX will be able to easily handle a nice generic 4.4 implementation.
We are going to start using FIX to supply our clients with Order and Trade data, and to allow for Order submissions. Which version of FIX should we chose to support?
Our clients do not currently use FIX, so essentially we can choose any version and they will adapt.
Should we use the latest version 5.0 SP2, or are there benefits to staying with something like version 4.4? Pros and cons?
[ original email was from Toby Corballis - toby.corballis@rapidaddition.com ]
I would echo Hanno’s sentiments. Sure there are people on 4.4… if you look hard enough you’ll find some on 4.0 but as 5.0 offers more coverage and functionality; as more and more firm are starting to adopt it; and as a decent FIX engine will support sessions using more than one version of the protocol I would definitely recommend going to the latest version. Otherwise you risk unplanned downstream costs, IMHO.
I disagree with this statement. It is like recommending to use MS Word 97 instead of MS Word 2010 because ribbons are too complicated. Given a free choice I would always opt for the latest version of a software. FIX 5 is now out for almost 5 years. Reality is that you seldom have a free choice and FIX versions are something like a chicken and egg thing (“I cannot use/move to FIX 5 because the firms I connect to are still on FIX 4.x”).
Exchanges and regulators are moving to FIX 5 where they can whilst often additionally supporting a “legacy” FIX 4.x engine connection. FIX 5 allows you to still send FIX 4.x message within that framework. Given the statements “We are going to start using FIX” and “Our clients do not currently use FIX”, I do not see a reason to start with an older version. A lot of new functionality has been added by FIX 5 service packs and extension packs. Using FIX 4.x typically leads to the usage of many user-defined fields which contradicts the idea of standardization. FIX 5.0 SP2 is a very complete standard by now which you might compare to MS Office again. How many of us are using all of its features and would we be using an older version just because it already covers what we need? The breadth of FIX 5 means that only users such as exchanges with trading, clearing, market and reference data will use a substantial subset of the protocol. It does not mean that plain vanilla users (order add/modify/delete and execution report) cannot easily use it.
With my GTC co-chair hat on, I would like to know more about the complexity of FIX 5 that you are claiming. Obviously, FPL is interested in learning what may be the barriers for migrating to FIX 5 other than the chicken and egg issue. FIX 4.4 is now more than 8 years old and older FIX versions are not extended (just like new MS Office features are not built into older versions). If we say that FIX 4.4 is all we will ever need then this contradicts the belief that the world is changing and one needs to adapt to new requirements.
Thank you,
Hanno.Definitely 4.4. 5.0SP2 brings extra complexity and few (probably zero) benefits for most trading systems. All your clients who do FIX will be able to easily handle a nice generic 4.4 implementation.
We are going to start using FIX to supply our clients with Order and Trade data, and to allow for Order submissions. Which version of FIX should we chose to support?
Our clients do not currently use FIX, so essentially we can choose any version and they will adapt.
Should we use the latest version 5.0 SP2, or are there benefits to staying with something like version 4.4? Pros and cons?
Thank you everyone for the replies. We will use version 5.0 as it is current and do not find it any more difficult in complexity.
Definitely 4.4. 5.0SP2 brings extra complexity and few (probably zero) benefits for most trading systems. All your clients who do FIX will be able to easily handle a nice generic 4.4 implementation.
We are going to start using FIX to supply our clients with Order and Trade data, and to allow for Order submissions. Which version of FIX should we chose to support?
Our clients do not currently use FIX, so essentially we can choose any version and they will adapt.
Should we use the latest version 5.0 SP2, or are there benefits to staying with something like version 4.4? Pros and cons?
I think this depends on whether or not you’re using a commercial FIX server or writing your own. If you were writing your own code, then yes FIX 5.0 introduces a lot more complexity than the 4.x series releases do - however, if you’re just going to purchase a solution from a vendor, you might as well start out with the latest FIX version. As Hanno points out, there’s no point in staying on an older version if there’s no cost to you in going with the latest stuff.
Cheers,
Russ
[ original email was from John Greenan - john.greenan@alignment-systems.com ]
> We are going to start using FIX to supply our clients with Order and Trade data, and to allow for Order submissions. Which version of FIX should we chose to support?
Our clients do not currently use FIX, so essentially we can choose any version and they will adapt.
Should we use the latest version 5.0 SP2, or are there benefits to staying with something like version 4.4? Pros and cons?
To give a decent answer there are a few questions to be answered:
What are you going to be trading? Equities, fixed income etc.
Are there any complex order requirements such as algorithmic trading or futures/options strategy orders?
Will your clients connect directly or via a hub such as NYFIX, Autex, Fidessa Express?