The Financial Information Exchange (FIX) protocol was created in 1992 to serve as the “universal” communication language for international financial transactions. Since all order systems are different, there was a strong need to communicate all executions between brokers, exchanges, mutual funds, investment banks, and direct market access participants using a universal format. FIX is the standard means of communication for trading in global equity markets, and is also heavily used in currencies, bonds, and derivatives. Every large institutional and professional market participant uses FIX to trade and has been doing so for over 25 years. FIX works by defining preset “tags” as value placeholders. Orders are entered by defining variables in the tags – for example the value for “side” of the trade can be a 1 for Buy or 2 for Sell, in Tag 54. There is currently no universal FIX interface to connect to crypto exchanges – each crypto exchange has its own, though not necessarily proprietary, communication standard. Lack of a standard communication protocol hinders participants’ ability to easily access multiple exchanges.
XTRD has launched a universal low latency FIX based API connecting to the most popular crypto exchanges to make it easy for major institutions, hedge funds, and algorithmic traders to access all cryptocurrency markets by coding to just one FIX application – in one format – with which they are already intimately familiar. This communications bridge allows large market participants to easily add multi-exchange crypto execution to their existing transaction systems, jumpstarting universal crypto trading adoption among the institutional sector.
FIX API got capabilities to:
- Aggregate liquidity across different exchanges
- Manage orders books consistently, in real-time
- Build custom single order books based on an account’s unique needs (e.g. I want to see quotes from Exchange A and B but not from C)
- Provide single trading interface over the FIX API to all connected exchanges.
- Stream normalized market data to subscribers utilizing the FIX protocol
- Perform SMART routing – the execution engine will automatically choose the best execution path based on previous trading history and current market conditions (liquidity, price, slippage)
- Spread one large order across multiple exchanges
- Perform pre-trade risk management
- Drop copy all executions to clients over a FIX API
- Handle up to 20,000 orders per second