From a technical and electronic trading standpoint, it is the FIX Protocol that is making this transition easier to achieve for those banks or brokerage operations that are looking to service the requirements of QDIIs.
Back in September 2008, it became apparent that the technology vendors in mainland China were already using variants of the FIX Protocol or the Chinese equivalent “Step”, which is considered to be entirely compatible with the FIX Protocol from version 4.0 onwards.
Due to the advancements and inroads made by the FIX Protocol, the QDII opportunity is there for both banks and brokerages outside of China to capitalise on and service, not withstanding the other business challenges, compliance, credit facilities, know your customers (KYC) etc. they need to deal with.
Sources for research material utilised for this article:
http://www.deaconslaw.com/
