Post-trade Processing
FIX's work in this space has focused on developing standards for order submission, execution and data, helping firms to normalise and understand their data, and therefore measure their performance in a consistent and explainable manner.
The FIX Trading Community supports the industry’s post‑trade processing needs by developing and promoting open, implementation‑focused standards to enable the electronic handling of allocations, confirmations, settlement instructions and ongoing cash and payment events across asset classes.
Through long‑standing FIX messaging capabilities and associated guidance, the community has helped firms automate traditionally manual middle‑ and back‑office workflows, improve data consistency and reduce operational risk.
This is achieved by providing a neutral forum to address evolving challenges such as accelerated settlement cycles and increasing regulatory demands.
By encouraging common data definitions and interoperable processes, this work has delivered tangible benefits to the industry, including higher straight‑through‑processing rates, faster and more reliable settlement, reduced errors and costs, and greater transparency across the post‑trade lifecycle.
The FIX Protocol has supported allocations, confirmations and settlement instruction messaging for over 20 years with support across a wide range of order management systems and a broad implementation footprint across buyside and sellside firms.
FIX's extensive library of related recommended practices documents describe the overall framework for these messages with asset class-specific documents across equities, FX, fixed income, futures, swaps and equity options.
Further documents cover specific scenarios including FX/fixed income swaps on SEFs, broker allege and buyside confirmation requests, and qualified vendor.
With settlement cycles shortening around the world, the need to direct settlement information directly to those who need it has become paramount.
Electronic communication of settlement status information has been available for some time between custodians and their counterparts, but getting this directly and electronically to dealing desks compresses communication and issue resolution time, critical as settlement moves to T+1 in more markets. FIX has created messages and recommended practices to cover this area.
FIX has developed messages and recommended practices for the post-trade message flow between Investment Managers and Brokers to agree and confirm cash movements throughout a contract’s lifecycle.
These activities include collateral, swap reset payments, upfront and unwind payments, margin variation, daily margin for listed derivatives, collateral for CCP-cleared trades, OTC option cash collateral, and general payments.
Currently, initiating contract payments after settlement is manpower-heavy, relying on phone calls, emails, spreadsheets, and paper documents to reconcile and agree on payments and amounts. This document explains how FIX messages can automate this process.