Taking cost and complexity out of post-trade FX operations

Regulatory requirements are adding further cost and complexity to the FX back office so Frances Faulds reports on how the FIX Working Group and two of the industry’s leading technology providers are helping market participants to address the issues.

There are a myriad of competing challenges facing the FX back office today. While the industry makes efforts to address these, other steps are being taken to further develop the use of the FIX messaging protocol in FX which will have important consequences for the post trade FX landscape. Almost two years ago the FIX Trading Community formed a global post-trade working group, merging US and European working groups and inviting greater participation from Asian and Japanese members, to further expand the organisation’s collaborative business reach. David Tolman, co-chair of the Global FX Post-Trade FIX Working Group, says the group was set up to come up with industry guidelines across all asset classes. The FIX protocol has a lot of flexibility and Tolman says the guidelines are aimed at giving greater guidance on how it should be used. Guidance for the FX market, covering pre-trade, SEF, trading venues etc, has been drafted over the past nine months and some initial implementations with the major FX...continued

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