Communication standard of algorithmic transaction

Compared with the limit order in the traditional market, algorithmic trading needs more communication parameters. The trading system used by the buyer's traders (usually called "order management system" or "execution management system") must be able to adapt to the increasing number of new algorithm instructions. The new complex algorithm needs to spend a lot of research and development and other expenses, such as infrastructure, marketing and so on. What the seller needs to do is to let the electronic instructions of the new algorithm go directly to the buyer's trader, so that the latter can place an order directly without recoding every time.

FIX agreement organization is a non-profit trading association, which publishes free open communication standards for electronic securities trading. Its members include almost all large and medium-sized brokers, money market banks, institutional investors and mutual funds. This institution has a monopoly position in pre-trading and standard setting in the field of securities trading. In 2006-2007, several members jointly published a draft XML standard describing the types of algorithmic trading instructions. This standard is called FIX Algorithm Transaction Definition Language (FIXatdl). Before FIXatdl was officially released in March 2008, many large institutions participated in the testing of the standard, including TransMarket Group, Barclays, Bloomberg, Fu Sheng Securities, Citigroup, Credit Suisse, Fidelity Investment, Goldman Sachs, ITG, JPMorgan Chase, Merrill Lynch, Morgan Stanley, NeoNet, Pragma@Weeden and UBS.