FIX Protocol Limited Restructuring and
Membership Drive
Jim Northey
Chair, FPL Global Derivatives Committee
FIA Futures & Options Expo
November 6, 2002
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Key Topics
• FIX Protocol Organization Restructuring Effort
• Membership Opportunities for all firm types
• Current Standards Activities
• FIX 4.4 Status and Implications
• Next Steps for Global Derivatives Committee
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FPL Organization – Pre-Restructuring
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Focused primarily on equities across regional markets:
– U.S. Committee
– European Committee
– Asia-Pacific Committee
– Japan Committee
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All volunteer support
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Limited to balanced number of buy-side and sell-side firms
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FPL Reorganization Goals
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Expand membership to include wider financial community
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Represent products/services beyond equities
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Globally coordinate/share expertise in support of education and marketing
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Provide regions with source of product and implementation expertise, business
process for obtaining that support
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Accommodate protocol implementation stage at both the regional and product
level
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Reduce workload on key FPL members, establishing business processes to
allow additional participation for achieving what a handful of people now do.
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Enhance and articulate member benefits
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Avoid unnecessary bureaucracy/hierarchy
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Maintain grass-roots and volunteer culture
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FPL Organization – Post-Restructuring
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Creation of Global Product Committees
– Global Fixed Income
– Global Derivatives
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Established the FPL Program Office for Membership Services
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Membership open to all firm types
– Buy-side Firms
– Sell-Side Firms
– Exchanges
– ECNs/ATSs
– Utilities
– Vendors
– Other Associations
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FPL Membership Terms & Structure
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Annual Membership through calendar year (New members join now through
year end 2003)
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Membership is at the firm level
– Multiple individuals per firm can participate
– Each firm has one vote per committee
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Equal membership reflected in pricing
– Same fee regardless of firm type
– Members join on a per committee basis
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FPL is a non-profit organization using membership fees to fund FPL activities
– Maintained pre-restructuring fee of $8,000 per committee
– Reduced cost of global membership to $25,000 (Firm maximum)
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Global Derivatives Committee Membership
Opportunities
Geography
Buy-side
Sell-Side
Exchange
Utility
Association
Vendor
U.S.
Europe
Asia Pacific
Japan
Multi-Region
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Current Standards Initiatives
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•
•
•
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Fixed Income
– Additional changes to support full life cycle
Listed Futures and Options Post Trade Support
– Trade Capture
– Position Management
– Allocation
ISO/XML
– Working with ISO 15022 Working Group 10
• Pre-trade
• Trade
• Post Trade
FIXML
– Schema based upon FIX 4.3 Errata to meet current commitment
– Attempt to address message size issue using Schema technology
Interoperability
– FpML, SWIFT
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FIX 4.4. Update
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FIX 4.4
– Incorporate final round of Fixed Income changes
– Incorporate listed futures and options post trade support
– Minor improvements
– Seen as incremental to FIX 4.3
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Potential Standards Initiatives
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SFXL Integration
– Securities Financing
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Corporate Actions
– ISO 15022? MDDL?
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Next Steps
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Expand membership in Global Derivatives Committee – contact
[email protected]
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Establish a steering committee based upon the full representation matrix
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Once Steering Committee is in place
– Establish committee governance
– Establish standing sub-committees
• Transition active working groups into subcommittees
– Identify ad hoc sub-committees
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Get to work!
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