What is Financial Information eXchange?
Also known as FIX, Financial Information eXchange enables electronic communications to be sent between financial institutions and brokers in real time. It’s a system that helps to reduce trade costs, increasing the speed and efficiency of financial markets around the world.
Where have you heard about Financial Information eXchange?
Financial Information eXchange is widely used by investment banks, mutual funds, brokers, stock exchanges and other electronic communication networks that facilitate trading outside a stock exchange.
What you need to know about Financial Information eXchange.
By using Financial Information eXchange, brokers and other financial institutions can discuss details about trades including:
- Equity order submissions, cancellations and replacements
- Equity execution reporting
- Equity order statusing
- Equity trade allocation
- Indication of interest
- Completed trade advertisements
Financial Information eXchange is similar to Open Financial Exchange (OFX) which is also used to communicate financial information online, however OFX works slightly differently, allowing a client to connect directly to a financial institution's server.
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