The FIX Trading Community, the industry association that manages the world’s trading language, the FIX Protocol, has published Market Model Typology (MMT) 5.0, which will help trading firms ready themselves for the pending European Consolidated Tape.
MMT is the independent industry data standard for classifying trades used across European capital markets, ensuring all firms – from investment banks to hedge funds to sovereign wealth funds – can accurately and consistently understand everything they need to know about every published transaction, ensuring market data is both clean and transparent.
FIX Executive Director, Jim Kaye, said that FIX was uniquely positioned as an independent, industry-run body to ensure MMT meets the needs of all market participants. “MMT is a great example of FIX’s unique ability to take everyone’s needs into account in a completely unbiased way, and ensure market structure and regulatory changes meet the needs that industry participants have today, as well as new requirements that emerge as markets evolve,” he said.
Developed in 2012 by the Federation of European Securities Exchanges to address data quality issues arising from the array of disparate data standards in use at the time, MMT was handed over to FIX in 2013 to promote the adoption of the standard and continue the independent development of the flags based on industry requirements. Today MMT is used by all major European trading infrastructure venues and the majority of market participants.
The updated MMT meets the new requirements for a European consolidated tape, expected later this year. FIX’s MMT Steering Committee has worked closely with European regulators since 2013, keeping the standard up to date with changing regulations and user requirements and underpinning the efficiency and transparency of the entire market.
MMT 5.0 covers the recently revised post-trade transparency regulatory requirements of MiFIR RTS 1 and RTS 2, but importantly also defines a number of voluntary flags that further improve transparency for those seeking to understand European capital markets.
“I think it’s fair to say that quantifying European addressable liquidity has been somewhat challenging for investors for decades – both those within Europe and for international investors assessing these markets for investment,” Mr Kaye said. “We have undertaken many years’ of very detailed work to look at how these challenges can be addressed, and we believe that these additional trade flags will be very helpful in moving toward that goal.”
The FIX Trading Community is the only independent global community where capital markets firms come together to solve common issues and shape the evolution of capital markets. FIX groups in over 60 countries are working on a range of global issues including digital assets; reference data; carbon trading; AI; algo trading; FICC and ETFs, while country and regional committees work together to manage local regulation and market structure matters. To see what FIX can do for your firm, visit www.fixtrading.org.
