FPL Announces FIX Algorithmic Trading Definition Language Enters Beta Phase

    LONDON, Aug. 27 /CNW/ - FIX Protocol Ltd (FPL) has announced that the FIX
Algorithmic Trading Definition Language (FIXatdl (SM)) has entered its beta
phase in preparation for its ultimate release targeted for late 2007. The new
language will deliver advanced support for algorithmic trading, enabling
adopters to benefit from a dramatic reduction in the deployment effort
required to roll out new algorithmic order types.
    The FPL organisation has been overwhelmed by the level of interest that
the FIXatdl (SM) has generated within the industry. It has gained support from
leading industry participants including Barclays Capital (NYSE:   BCS),
Bloomberg Tradebook, Credit Agricole Cheuvreux, Citi (NYSE:   C), Credit Suisse
(VX: CSGN and NYSE:   CS), Fidelity Capital Markets Services, Goldman Sachs
(NYSE:   GS), Investment Technology Group (NYSE:   ITG), J.P. Morgan Chase & Co
(NYSE:   JPM), Lehman Brothers (NYSE:   LEH), Merrill Lynch (NYSE:   MER), Morgan
Stanley (NYSE:   MS), NeoNet (XSTO: NEO), Pragma Financial Systems and UBS
(XVTX: UBSN & NYSE:   UBS). These firms have studied and reviewed the language
and each has published samples of their algorithmic trading strategies in the
new XML format, ensuring that all their current and near-term algorithmic
trading strategies can be easily and rapidly expressed in this new format.
    The new language will allow broker-dealers to specify algorithmic order
types in an industry standard XML format, enabling Buy-side clients to access
new order types within a significantly reduced timeframe. Similar to the way
an Internet browser can render a standard HTML page, Buy-side systems will be
able to read the new standard XML files and render new order entry screens,
using common "look and feel" elements and layouts that may be completely
specified and individualised locally. The final order entry screens include
helpful pop-ups, and each order entry field may have behind the scenes
comprehensive validation requirements formally expressed. Furthermore, the
language specifies how the highly unique parameters that are associated with
constantly evolving, new algorithmic order types will be formally expressed
using standard FIX communication protocols.
    Following initial implementation effort, the deployment timeframes for
additional complex order types will be significantly reduced. The language
will generate a compelling reduction in the financial and technical resource
investment required by firms to innovate and adopt new algorithmic order types
and will open up a wealth of opportunity for all algorithmic trading industry
    Having completed development and initial testing phases, and gained broad
industry feedback, on July 23rd FIXatdl (SM) successfully entered into its
final stage of testing, the beta testing phase. This will provide an
opportunity to determine any final, minor changes required for the first
release of this new language.
    Commenting on the new language, Kevin Houstoun, Co-Chair FPL Global
Technical Committee and Consultant to HSBC stated, "In FIX.4.4 and FIX.5.0 we
addressed the issue of how to communicate the parameters of an algorithmic
trading strategy in a standard yet flexible way. This complimentary language
greatly extends that approach to include the display of those custom
parameters and complete validation. This allows sell-sides, ECNs and exchanges
to develop and deploy new algorithms much more quickly than before, and
represents an important step towards the industry's ultimate objective of
minimising cost drag on end investors. The speed with which a new algorithm
can be deployed using this technology is truly impressive and I'd like to
congratulate John Goeller, Richard J. Labs and the rest of the FPL Algorithmic
Trading Working Group on the production of an important extension to FIX."
    John Goeller, Chair FPL Algorithmic Trading Working Group and Director of
Portfolio and Automated Trading, Merrill Lynch added, "I would like to
congratulate the FPL Algorithmic Trading Working Group for delivery of this
new language which describes algorithmic orders in a standardised way. The
team contributed significant time and effort on both business and technical
fronts in the development of a solution which should benefit the whole
algorithmic trading community."
    Richard J. Labs, CFA, CPA, member of the FPL Algorithmic Trading Working
Group and Managing Member, CL&B Capital Management, LLC added "This exciting
new language would not have been possible without the extensive input we
received from several technology vendors and key members from the
broker-dealer community, who have run up their algorithmic orders in this new
standard format so we may now proceed with everything we need for exhaustive
stress testing and finalisation. The FPL Algorithmic Trading Working Group
welcomes all additional input prior to our finalising this language in the
near future."
    The XML files and a full presentation focused on this initiative,
including audio and slides are available for download at

    About FIX Protocol Ltd

    FIX Protocol Ltd is a non-profit organisation that owns the intellectual
property rights of the Financial Information eXchange Protocol (FIX), which is
available free of charge from the FPL website, subject to FPL's copyright and
acceptable use policy. FIX is a globally-recognised messaging standard
enabling the electronic communication of pre-trade and trade messages between
financial institutions, primarily investment managers, broker-dealers, ECNs
and exchanges. For more information, see http://www.fixprotocol.org.

For further information:

For further information: Daniella Baker, FPL Marketing and
Communications Manager, Daniella.Baker@fixprotocol.org, +44-207-936-9334

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