The FIX Trading Community has published Market Model Typology (MMT) 5.0, as part of an effort to provide an industry data standard to help firms prepare for the upcoming European consolidated tape.
MMT is an industry data standard for classifying trades across European capital markets, and the offering is set to meet the needs of firms such as investment banks and hedge funds by helping them understand the details of published transactions, to maintain transparency in market data.
FIX executive director, Jim Kaye, said: “MMT is a great example of FIX’s unique ability to take everyone’s needs into account in a completely unbiased way, and ensure market structure and regulatory changes meet the needs that industry participants have today, as well as new requirements that emerge as markets evolve.”
The updated MMT builds on recent models, originally developed by the Federation of European Securities Exchanges to tackle issues of data quality. The industry standard was later taken over by FIX in 2013.
The new offering focuses specifically on meeting the European consolidated tape requirements, which is expected by the end of 2025, and also covers the recently revised post-trade transparency regulatory requirements of Mifir RTS 1 and RTS 2.
Additionally, MMT 5.0 provides definitions for some voluntary flags, to further enhance transparency and a general understanding of European capital markets.
“I think it’s fair to say that quantifying European addressable liquidity has been somewhat challenging for investors for decades – both those within Europe and for international investors assessing these markets for investment,” Kaye added.
“We have undertaken many years’ of very detailed work to look at how these challenges can be addressed, and we believe that these additional trade flags will be very helpful in moving toward that goal.”