The FIXML Protocol

FIXML transfers financial transactions.

"FIX" is a standard of message exchange for securities trading popular in U.S. and European financial markets. FIXML is extensible markup language (XML) version of the FIX system.

Function

A FIX message is a readable ASCII text message with different fields identified by a number. XML operates as a text formatting standard, similar to hypertext markup language (HTML). It was a simple progression to replace the field identifying numbers with XML tags.

Comparison

FIX is popular with brokers, market makers, mutual funds and investment banks. It has become well-established and IT departments are reluctant to move to a new method of communication which engenders workload disruption and the possibility of failure. FIX field identifiers are two or three digit numbers. FIXML identifiers are meaningful words and so are longer. Opponents of FIXML stress the increased overhead these XML tags impose. Supporters point out that the FIX standard is ill-defined and there are a number of variations in implementation.

Development

The FIX Protocol Organization was created to manage and promote FIX messaging (including FIXML). The development of FIXML is an opportunity to tighten up the definition of standard codes used in a FIX message. The development of the FIXML standard is ongoing.

References

• The FIX Protocol Organization: FIXML
• The FIX Protocol Organization: What is FIX