The Federation of European Securities Exchanges (FESE) and non-profit standards body, FIX Trading Community, said that the Market Model Typology (MMT) has become a FIX standard and is available for adoption by all market participants.
This will allow them to enhance data standardisation and provide greater clarity on the types of activity conducted. It will also contribute to enhanced transparency that benefits investors, market participants and regulators.
The MMT initiative was originally launched by FESE to support the implementation of the original 2010 Committee of European Securities Regulators (CESR) recommendations on post-trade reporting standards. Since then, it has been significantly developed and enhanced through the collaborative efforts of exchanges, multilateral trading facilities (MTFs), market data vendors and trade reporting venues with the aim of standardising post-trade data and providing greater transparency.
Adoption of the MMT standard will result in clean and consistent post-trade data, which is represented the same way regardless of trading venue or over-the-counter (OTC) reporting venue. MMT will make it easier to consolidate data from multiple venues to create a European consolidated post-trade tape.
As part of this effort, the MMT standard has been brought into the FIX family of standards and the FIX Protocol has been extended to support the MMT in its market data and trade reporting message suite. This enables the MMT to leverage the FIX community to broaden development and implementation of the MMT standard, especially to the buy and sell side. However, MMT is designed and allowed to be freely used in any protocol, meaning as well non-FIX protocols, which makes MMT a truly independent and open standard.
“Moving the MMT standard under the FIX standards ensures that it is free to use for the entire industry,” said Jim Kaye, co-chair of the FIX Trading Community global steering committee and director of execution services at Bank of America Merrill Lynch (BAML) and Simon Gallagher, chair of MMT steering committee and director at Euronext . “It is important that the members of the FIX Trading Community broaden the development and implementation of the MMT standard and come together to resolve any future events.”
Judith Hardt, director general of FESE said, “We are delighted that MMT has grown to the point where it can become an industry standard. We look forward to MMT being adopted beyond the exchange community, with all the benefits that it holds for end investors.”
The benefits of the initiative will be felt by participants within the market and provide greater transparency for regulators and policy makers, allowing them to make informed decisions on regulations for market structure. Greater transparency of post-trade data will lead to efficiencies in data collection benefiting the wider trading community as it becomes easier and cheaper to consolidate data from different sources.
Cash-flow based metrics now feature prominently alongside traditional revenue measures of business performance in the key figures or financial summary pages of any public company.
GTNews asks Pugsley about what advice she would give to treasurers dealing with mergers and acquisitions, what the key challenges for her year ahead will be and how she is selecting a treasury management system (TMS).
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.