FIX Trading Community has published its implementation guide for the Shanghai-Hong Kong Stock Connect service, due to go live on Monday.
The guide sets out a number of suggested FIX tags and how to use them in order to provide a basis for messaging standardisation for Stock Connect.
The link between Hong Kong and Shanghai is intended to enable global investors to trade Shanghai A shares through the Hong Kong Stock Exchange, while Chinese mainland investors can trade H shares in Hong Kong through the Shanghai Stock Exchange, opening up new pools of investors for both exchanges.
FIX wants to standardise trading messages for the service and educate participating firms on best practice.
The guide was developed in conjunction with the Asia Securities Industry and Financial Markets Association following a series of working groups with sell-side, buy-side, vendors and other market participants.
Jessica Morrison, head of APAC Market Structure at Deutsche Bank and Asia Pacific Exchange and Regulatory Subcommittee co-chair at FIX Trading Community, said the guide will provide practical suggestions for the community on how best to communicate Stock Connect orders.
“We believe that standardisation will help bring efficiency to the market, reduce complexity and therefore help the buy-side, sell-side and vendors manage cost and operational risk. We hope market participants find it helps them participate in this historic opening of the China market," she said.
The guide can be downloaded from the FIX Trading Community website HERE.