FIX Protocol Ltd. Unveils Algorithmic Trading Definition Language for Rapid Algo Deployment

FIX Protocol Ltd. used its FIX EMEA Trading Conference to unveil version 1.1 of its Algorithmic Trading Definition Language (FIXatdl), effectively making the standard available to the broad marketplace for the first time. FIXatdl introduces a standard format that allows brokers and other providers of algorithmic trading strategies to release their model specifications in a standard XML format, rapidly reducing time to market for new and updated trading models.

The standard has been in the works for some time and has already made an impact on the development of algorithmic models by brokers and their integration by order and execution management systems providers.

FIXatdl pioneer RealTick, for example, has recently announced the addition of FIXatdl-based models to its EMS from the likes of Goldman Sachs and Nomura, which is understood to have accelerated the deployment of the former Lehman Brothers models using the standard.

Another EMS provider, Portware, is also working on FIXatdl integration, and others are expected to embrace the standard, based on what FpL sees as compelling development cost and time-to-market benefits.

According to Scott Atwell, FPL global Steering committee co-chair, and manager of FIX trading and connectivity at big buy-side firm American Century Investments, “The standards-based language, FIXatdl, will generate significant cost savings and improve efficiencies for all participants in the ever-expanding world of algo trading. Sell-side firms that want to update existing algorithms or release new ones to their clients will be able to do so in a reduced time-frame; buy-side firms will be able to benefit from faster access to new and innovative trading strategies, enabling a more timely and effective response to dynamic market conditions; and OMS and EMS vendors will be able to include new algorithms in their systems more swiftly and at a reduced cost.”

FIXatdl 1.1 complements the FIX messaging standard and allows firms receiving orders to specify exactly how their algorithmic orders should be expressed in their clients’ desktop applications. Strategies using FIXatdl 1.1 can then be transmitted from the trader’s systems via the FIX Protocol. All versions of the FIX Protocol are fully supported and no changes to the underlying FIX infrastructure are required.

The release of FIXatdl 1.1 follows extensive testing and feedback on previous versions from a broad range of industry participants.