Mostly… fixed income and cross product eTrading

April 17, 2007

Liquidity Hub, not FIX

Filed under: etrading, FIX — holky @ 7:30 am

What are the implications of Liquidity Hub choosing to create their own proprietary API, rather than using FIX, for dealers to connect in consistent fashion to liquidity regardless of where it’s hosted?

With the Liquidity Hub crosshair on Euro Govys (after swaps initial offering from some LH dealers end Jun, US treasury OCT 07, then mortgages), does this introduce a competing ‘standard’ protocol for the most commonly etraded fixed income markets?



  1. Since most dealers will be connecting via ION MarketView gateways, the underlying protocol will be a matter of indifference.

    A proprietary API and FIX are not mutually exclusive anyway. FIX is a wire protocol. Any dealer API is going to encapsulate some wire protocol, whether proprietary or no. And in the case of LH, I believe they are using FIX as the underlying wire protocol under the covers of their API.

    Comment by etrading — April 17, 2007 @ 7:51 am

  2. What’s the implication for the buyside? Seems none to me….given LH will run via 3rd Party ECN’s it is just a case of integration with that ECN.

    Comment by waratah — April 17, 2007 @ 9:42 am

  3. Both comments are spot on. Given the state of FI tech groups, and the lack of interest by dealers on the business side in a true electronic and (decimal) market most have just run with ION as the easiest solution. It’s a broad product.

    LH (sigh). What will this really bring anyway? More dealer control? LH via 3rd party ECN’s exactly means FIX to LH via the ECN, and just remember to connect to the NYSE for Treasuries too in 2008!

    Overall, take a flash back to the equity markets e-early days. Multiple protocols/api’s; some even resembling each other… FIX to the rescue? Fast FIX? More evolution to come…

    Comment by lacidar — April 17, 2007 @ 11:36 am

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