FIX buyside call to arms

Maria Netley, EMEA Secretariat,
FIX Trading Community

Covid-19 sent shockwaves across financial markets. All of us have been forced to adapt to the new normal, which for the most part has been successful. However further regulatory change is emerging as policy makers need to adapt to longer term structural changes facing capital markets globally. Here’s how you can help.

Over the past few months the FIX Trading Community has come together several times to consider responses to the recent consultations. Working in co-operation with the industry associations, one of the underlying strengths of the FIX Trading Community is the depth of participation from all areas within the electronic trading industry. This enables FIX to support or recommend changes to regulation that meet the primary goal of supporting free, open and unambiguous standards for electronic trading in the best way possible.

The importance of responding to these consultations cannot be underestimated and for FIX, the involvement of our members is vital. Each consultation will always reflect on thinking about how the market structure proposals relate to all aspects of trading with the ultimate aim of providing free, open and unambiguous standards to the industry, with all the cost benefits that brings to your firm. While providing feedback to regulators on commercial aspects is one for our members to do in their firm capacity, the creation of free and open standards is where FIX can deliver for the industry. If we as an industry fail to address the regulatory changes necessary for data standards, further regulatory change will be inevitable, requiring yet more implementation or risk of potential fines as individual market participants – on repeat until we get this right.

In contrast, if workable and reliable data standards are put in place, the market structure debate will be better equipped for policy makers to formulate future regulation on the back of accurate data, implementing regulatory changes that are truly in the best interests of the end investor.

Without free, open and unambiguous standards and without FIX this industry would be a poorer, more expensive and less innovative place. However, it must not be left to a few individuals to take on this challenge alone and we all have a responsibility to ensure that our firms are represented to contribute to the debate thoroughly and globally. Some working groups can focus on quite technical aspects of the implementation of the protocol, but without this attention to detail the protocol would not be as effective, particularly when taking into consideration the increase in regulatory conflicts.

Failure to participate and the failure to share your specialist knowledge risks sub-optimal regulation which impacts us all. In the 25 years since FIX was first established it is good to note that this is continually improving, but we cannot rest on our laurels and we need to work with all segments of the industry and with the regulators to ensure that this continues to be the case.

As we move into the next round of consultation, the FIX Trading Community is making a significant drive to really focus on the needs of the buyside, in helping them to come together as a community and focus on the elements of their business impacted by regulation.

In an era of extensive scrutiny of the markets and its participants, the obligations upon buyside firms increase almost daily, with client and regulatory reporting often cited as one of their biggest challenges. It is now that these firms need to really understand the immense amount of data that they are receiving and how they can analyse and use that data to provide the best service for their end clients.

Thanks to the work of the EMEA Governance team, FIX Trading is able to have more open debate with the regulators, but it is important to remember that those conversations are only valuable when informed by our membership.

The Investment Management Working Group in Europe is now working through a systematic list of challenges that give buyside firms the opportunity to discuss data in a safe, confidential environment looking into the detail in a way that few other associations are able to focus on.

For the buyside this represents one of the best opportunities for you to help to drive the debate and make your voice heard.

For details about buyside participation contact Maria Netley maria.netley@fixtrading.org

To enquire about membership contact Neena Dholani at neena.dholani@fixtrading.org

For Details about joining or sponsoring the conference contact : events@fixtrading.org