FPL Announces FIX Algorithmic Trading Definition Language Enters Beta Phase

FPL Announces FIX Algorithmic Trading Definition Language Enters Beta Phase

August 16, 2007

    LONDON, Aug. 16 /Xinhua-PRNewswire/ -- 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
participants.

    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
http://www.fixprotocol.org/working_groups/algowg/documents

    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 more information, please contact:

     Daniella Baker, 
     FPL Marketing and Communications Manager
     Fix Protocol Limited
     Tel:   [phone]
     Email: [e-mail]