FIX Trading Community today announced it has extended the Trading Enablement Standard Initiative (TESI) to include foreign exchange (FX) client enablement.
Earlier this year FIX announced that TESI had adopted FIX Protocol guidelines in order to reduce operational risk and enable more efficient set up of clients on OTC electronic trading platforms. Following this and TESI’s development and implementation of the FIX standard to manage the process of enabling clients on fixed income trading platforms in 2013, today’s announcement represents another important step as part of a much wider TESI rollout.
Through TESI, FX market participants are able to change pricing streams, map accounts, authorise new instruments and even suspend clients for trading, initiating the distribution of an automated message to all parties involved. By communicating this information via the FIX Messaging Language, users do so with the advantage of a globally standardised infrastructure that is recognised and used by thousands of firms worldwide for the completion of several million daily transactions.
Now these facilities have been made available to clients using FX execution platforms for FX spot, forwards, swaps, FX options, non-deliverable forwards and precious metals trading, with the intention of reducing cost, increasing efficiency and enhancing transparency.
Co-chair of FIX Trading Community’s OTC Products Committee and managing partner of Etrading Software, Sassan Danesh, commented, “The extension of this initiative to FX is an important step towards a multi asset class ‘straight through enablement’ that will allow dealers to manage a previously manual process electronically using the FIX Protocol.”
Neill Penney, Workflow Management Proposition Manager at Thomson Reuters, added, “All of us in the FX industry share a common goal: simplifying FX trading, reducing costs, and streamlining processes. This benefits all of our customers – be they corporations, pension funds, asset managers, banks or governments – and reduces the impact of FX transaction costs on end users.”