Capital Market Operators Get September Deadline for FIX Software

Stock brokering firms and investment banks in the country have up to September this year to adopt Financial Information Exchange (FIX) protocol software, Nigeria Communicationsweek has learnt.

The FIX Protocol is a free, open and non-proprietary messaging standard that was developed in 1992 by Fidelity Investments & Salomon Brothers to facilitate bilateral communications framework for equities trading.

Capital market operators were earlier given December 2014 deadline to upgrade but the new director general of Security and Exchange Commission (SEC) extended the deadline to allow more operators to migrate.

Amos Emmanuel, chief executive officer, Programos Software Limited- a major player in the capital market space, said that the market is already due to commence the use of the FIX OMS technology as some stockbroking firms are already at different certification stages on the process using their recommended infrastructure.

He added that: “Though power, infrastructure, and regulatory are impediments to smooth take off of FIX, many organizations have complied by acquiring the required software and communications technology adequate for the FIX implementation. The good signs include that investor confidence will return to the turbulent market that have previously experienced painful recessions, and that market transparency will improve tremendously.”

Yele Okeremi, chief executive officer, Precise Financial Systems, said that the mandate to adopt the global standard of FIX protocol is a step in the right direction as it will allow indigenous software providers in the capital market to compete with foreign providers and as well give the local operators more opportunity to play on a global level.

He however, cautioned against some stock broking firm using the mandate to show preference for foreign software against the local ones.

Since its conception, its usage has significantly expanded in response to evolving industry needs and today it is the predominant messaging standard for pre-trade and trade communication globally within the equity markets.

FIX has metamorphosed many times over in a bid to satisfy investor taste complexities. With growing local supports now expanding, the Nigeria space will leapfrog from local support vendors’ investments in FIX to ensure the proposed FIX platforms succeed.