FIX (Financial Information Exchange) API (application programming interface) is an electronic communications protocol for financial information exchange. In our case, we use it to allow communication between a client, trader, investment fund, or broker and a liquidity provider.

FIX API is a universal standard and it is used by numerous banks, prime brokers, and hedge funds. The origins of FIX API date back to the early 1990s, when several volunteer programmers were seeking opportunities for communication support when trading stocks. In 1998, this team of programmers started a non-profit company called FIX Protocol Limited (FPL), which focused on expanding, developing and supporting the protocol.

Reasons for a client to start using FIX API

  • The client is not satisfied with existing financial platforms and interfaces because it is impossible to control all system functionality simultaneously.
  • Limitations of existing interfaces. For example, many well-known platforms need two or more ticks to fill an order, which is unacceptably slow for high-frequency strategies.
  • A need for safety and maintaining the anonymity of a client’s automated systems.
  • A desire to cross-connect with the liquidity provider.