The
FIX Protocol is a free, open and non-proprietary messaging standard that was
developed in 1992 by Fidelity Investments & Salomon Brothers to facilitate
bilateral communications framework for equities trading. FIX has metamorphosed
many times in a bid to satisfy investor taste complexities. With growing local
supports now expanding, the Nigeria space will leapfrog from local support
vendors’ investments in FIX to ensure the proposed FIX platforms succeeds.
Investigations
revealed that the palliative measure became necessary in view of inability of
some capital market operators to upgrade to the software going by the mandate
for them to recapitalize to N300million at almost the same time.
It
was gathered that Nigeria Stock Exchange (NSE) has made the use of FIX Order
Management System (OMS) technology mandatory for trading at the floor of the
exchange. This has forced operators yet to upgrade to resort to trading under
another operator that has upgraded thereby limiting their operation.
Amos
Emmanuel, chief executive officer, Programos Software Limited- a major player
in the implementation of the software at capital market space, said that the
market is already using FIX OMS technology as some stockbroking firms have
achieved the certification while others are at different stages on the process
of using the recommended infrastructure. He lamented the slow pace of migration
which has lasted for more than three years now owing to downturn in the capital
market.
“This
intervention by the market regulator is a welcome development as it will help
stockbroking firm without strong financial footing to achieve the upgrade and
continue to be in business. With FIX OMS technology trading at Nigeria Stock
Exchange is made very open and shareholders can as well monitor trading from
their home or office,” he said.
He
added that: “Many organizations have complied by acquiring the required
software and communication technologies adequate for the FIX implementation.
The good signs include that investor confidence will return to most
implementing turbulent markets that may have previously experienced painful
recessions, and market transparency will improved tremendously.”
Yele
Okeremi, chief executive officer, Precise Financial Systems, said that the
mandate to adopt the global standard of FIX protocol is a step in the right
direction as it will allow indigenous software providers in the capital market
to compete with foreign providers and as well give the local operators more
opportunity to play on a global level.
He
however, cautioned against some stock broking firm using the mandate to show
preference for foreign software against the local ones.
He
noted that it is security risk to allow foreigners control the country
financial data now that they have taken control of our national data in the
National Identity card scheme.
The
software expert, urged capital market software providers to be intelligent and
scale up their product to meet the adopted FIX protocol in order to consolidate
their dominance in the capital market space.
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