12 July 2001: FIX Protocol and SWIFT Merge XML Protocols

FIX Protocol (FPL) and Swift plan to converge their messaging protocols to create an XML-based version of the ISO 15022 protocol for securities message types, which is being developed by the International Standards Organisation (ISO) Working Group 10.

The end result, it is hoped, will be a superset of a number of XML protocols, including the existing FIX and ISO 15022 standards, FpML, and GSTPA, within the ISO 15022 XML framework.

The process is expected to be complex and long-term, according to FPL, but the companies are aiming to release a version of ISO 15022 XML by early 2002.

ISO 15022 XML will leverage FPL’s expertise in the pre-trade/trade execution domain, and Swift’s post-trade domain expertise. The aim is to bring together different parts of the trade life cycle to work through issues that are currently “hindering straight-through-processing” (STP).

FPL will continue to support its current FIX protocol in both traditional "Tag=Value" and FIXML syntaxes, and its user base, but in time, it is expected that FIX and FIXML will be phased out in favour of ISO 15022 XML.

FPL says that while FIX is the de-facto standard in front office trade messaging, its relationship with ISO, an international standards body, will enable its FIX protocol to become a formally recognized standard.

"Achieving interoperability and convergence of standards from the front to back office is an industry prerequisite if higher rates of STP are to be achieved," says Francis Remacle, head of the securities industry division at Swift. "Unless everyone is speaking the same language, communication will be compromised, irrespective of other efforts toward automation."