Welcome to the September 2010 FPL news update. Over what is normally a relatively quiet period, with those of us based in the northern hemisphere jetting off to warmer climates, preferably with a beach towel in tow, this summer has proven not to be the case with interest in FPL and its activities continuing to increase, building on the growing momentum we have witnessed since the start of the year!
Over the summer months FPL has observed a flurry of activity regarding financial regulation and the use of standards. Communicating the benefits that FIX offers for regulatory requirements is an area of significant focus for the organisation and interest from this sector is on the rise. This was highlighted by the recent announcement of the Australian Securities & Investments Commission (ASIC) regarding its adoption of FIX for the reporting of short positions as of June 1st 2010. FIX is the language of the world’s financial markets, having achieved mass adoption across the global financial services industry, and interest from regulators in the protocol is very encouraging. By choosing FIX regulators enable many firms to leverage their existing investments in technology across additional business processes, generating the potential for significant cost savings and further efficiency gains. It was also encouraging that on a recent trip to London members of FPL were invited to join other MiFID Forum participants and meet with ASIC representatives to discuss the benefits of using standards. ASIC’s move to select FIX is yet another example of the growing level of interest by regulators to chose standardised practices. This move builds upon the 2009 announcement by the Investment Industry Regulatory Organization of Canada (IIROC) advising of the regulator’s plans to adopt FIX for market surveillance and transaction reporting.
From a European perspective as the region’s regulatory environment continues to evolve and impact decision making, FPL dedicated its July EMEA Quarterly Meeting to this subject area. This meeting generated significant discussion focused on the recent CESR consultation and the key issues facing this market post-MiFID, including the proposed Consolidated Tape, post-trade reporting and broker-crossing related concerns.
FPL in Europe is being increasingly approached to comment on regulatory consultations and as it is a neutral industry body it is keen to ensure that these responses reflect the interests of its membership. To this effect FPL is currently formulating an EMEA Regulatory Subcommittee. This group will work with FPL to ensure that all responses are reflective of member interests and participants will initially focus on the role that FPL should play in the development of a European Consolidated Tape. This group is open to all FPL Member firms based in the EMEA Region. If your firm is interested in participating please contact the FPL Program Office by emailing [email protected].
The European group will complement work already underway in the Americas and Asian markets by FPL. In the Americas region a FPL/FIF (Financial Information Forum) Regulatory Working Group has been formulated. This group was created to combine the expertise of FPL’s knowledge of electronic trading and leverage FIF’s relationships with the regulatory community in the U.S. The group’s purpose is to work together to standardise trade reporting and develop further standard approaches. This group will focus on addressing a series of regulatory initiatives including short sale reporting, trade reporting, dark pools and sponsored access.
From an Asian perspective the FPL Asia Pacific Exchanges and Regulator Sub-committee continues to reach out to regulators across this diverse region, in order to highlight the benefits that standardisation and use of the FIX Protocol presents.
In Japan the topic of regulation will also feature prominently at the FPL Japan Electronic Trading Conference on October 6th in Tokyo as the subject area of ‘Changing Global Stock Market Regulation and Japan’ is addressed during a keynote speech.
Increasing the FPL membership is essential for the on going success of the organisation. Not only do new member firms provide vital funding required to facilitate the ongoing development of the FIX family of standards to ensure they meet evolving industry requirements, new members also add significant value as they enable FPL to benefit from the insight and perspectives of their employees and truly represent the broader community in decision making. Over recent months FPL has placed an increased focus on expanding its membership and since June more than 25 new firms have chosen to join the FPL community! This is excellent news for FPL and with many more firms contacting the organisation to explore the benefits that FPL membership could present to their companies, we look forward to welcoming additional firms to our committees and working groups in coming months. If your firm would like to find out more about the advantages of FPL membership please contact the FPL Membership Relations Manager Bernie Simon by email at [email protected].
From an events perspective FPL has been very busy over recent months putting in place a schedule that will enable it to provide educational opportunities in multiple markets globally. FPL’s events provide a forum where local market participants can learn about the latest trading trends and developments to the FIX Protocol that could help their firm to trade more efficiently. Over coming months FPL will be hosting conferences and briefings in Cape Town, Singapore, Mexico City, Tokyo, Sydney, New York, Stockholm and Dubai. Each of these events have been formulated through the collaboration of FPL Member firms and we encourage all readers interested in finding out more about these initiatives to visit the FPL events page (www.fixprotocol.org/events) for further details.
These are just some of the highlights of FPL’s activities over the past three months and upcoming initiatives, to stay up-to-date with the latest FPL news and developments please visit the FPL website www.fixprotocol.org.