Podcast
Questions and Answers
Which organization initiated the FIX protocol?
Which organization initiated the FIX protocol?
What is the primary purpose of the FIX protocol?
What is the primary purpose of the FIX protocol?
Which markets has the FIX protocol expanded into?
Which markets has the FIX protocol expanded into?
Which protocol is commonly used for pre-trade communications and trade execution in the financial markets?
Which protocol is commonly used for pre-trade communications and trade execution in the financial markets?
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Which organizations are among the users of the FIX protocol?
Which organizations are among the users of the FIX protocol?
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What is the main purpose of the FIX protocol?
What is the main purpose of the FIX protocol?
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What is the tag value pairing used in the FIX protocol?
What is the tag value pairing used in the FIX protocol?
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Which of the following is true about FIXP?
Which of the following is true about FIXP?
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Which of the following is a reason for using binary message encodings in FIXP?
Which of the following is a reason for using binary message encodings in FIXP?
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When negotiating delivery guarantees in a point-to-point session, what can be asymmetrical?
When negotiating delivery guarantees in a point-to-point session, what can be asymmetrical?
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Which of the following is true about the Body length in a FIX message?
Which of the following is true about the Body length in a FIX message?
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Which of the following is true about the checksum of a FIX message?
Which of the following is true about the checksum of a FIX message?
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Which of the following is true about FIXML?
Which of the following is true about FIXML?
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Which of the following is true about Simple Binary Encoding (SBE)?
Which of the following is true about Simple Binary Encoding (SBE)?
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FIXML is commonly used for trading applications rather than back-office and clearing applications.
FIXML is commonly used for trading applications rather than back-office and clearing applications.
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SBE messages are self-describing and include metadata that describes the message layout.
SBE messages are self-describing and include metadata that describes the message layout.
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The session layer in FIX protocol is responsible for message exchange and includes checkpoint recovery mechanisms.
The session layer in FIX protocol is responsible for message exchange and includes checkpoint recovery mechanisms.
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FIXT is a transport-independent protocol that guarantees message delivery in both directions.
FIXT is a transport-independent protocol that guarantees message delivery in both directions.
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True or false: The FIX protocol was created in 1992 for international real-time exchange of information related to securities transactions and markets.
True or false: The FIX protocol was created in 1992 for international real-time exchange of information related to securities transactions and markets.
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True or false: The FIX Trading Community is a non-profit organization that aims to address the business and regulatory issues impacting multi-asset trading across the global financial markets.
True or false: The FIX Trading Community is a non-profit organization that aims to address the business and regulatory issues impacting multi-asset trading across the global financial markets.
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True or false: The FIX protocol is primarily used for post-trade communication in the global equity markets.
True or false: The FIX protocol is primarily used for post-trade communication in the global equity markets.
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True or false: The FIX protocol is mainly used for equity transactions in the back office area.
True or false: The FIX protocol is mainly used for equity transactions in the back office area.
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True or false: FIX evolved into a family of related technical standards after FIX version 4.2.
True or false: FIX evolved into a family of related technical standards after FIX version 4.2.
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True or false: Tagvalue encoding is character-based and uses ASCII codes.
True or false: Tagvalue encoding is character-based and uses ASCII codes.
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True or false: The content in the body of a FIX message is specified by the (tag 35, MsgType) message type defined in the header.
True or false: The content in the body of a FIX message is specified by the (tag 35, MsgType) message type defined in the header.
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True or false: Message delivery guarantees in FIXP can be asymmetrical, where orders are sent over an idempotent flow and executions are returned over a recoverable flow?
True or false: Message delivery guarantees in FIXP can be asymmetrical, where orders are sent over an idempotent flow and executions are returned over a recoverable flow?
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True or false: FIXP supports both point-to-point and multicast use cases?
True or false: FIXP supports both point-to-point and multicast use cases?
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True or false: Binary message encodings are supported for both session layer and application messages in FIXP?
True or false: Binary message encodings are supported for both session layer and application messages in FIXP?
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Study Notes
Overview of the FIX Protocol
- The FIX (Financial Information eXchange) protocol is an electronic communications protocol for real-time exchange of information related to securities transactions and markets.
- It was initiated in 1992 and is now the de facto messaging standard for pre-trade and trade communication in global equity markets.
- The FIX Trading Community is a non-profit, industry-driven standards body that promotes the use of the FIX protocol to increase operational efficiency and reduce costs and risks in financial markets.
- The FIX protocol was initially created to replace verbal communication between broker-dealers and institutional clients, allowing for faster and more accurate data sharing.
- It is widely used by various entities in the financial markets, including mutual funds, investment banks, brokers, stock exchanges, and ECNs.
- FIX is mainly used for equity transactions in the front office area, but it is also expanding into other asset classes like fixed income, foreign exchange, and derivatives.
- The FIX protocol consists of various technical standards, with separate documents for message encoding and session layer specifications.
- The original FIX message encoding is known as tagvalue encoding, which uses ASCII codes to represent fields and values.
- FIX messages are composed of a header, body, and trailer, with each field identified by a unique numeric tag.
- The body length of a FIX message is calculated from tag 35 to tag 10, including the delimiter SOH (start of header) characters.
- The last field in a FIX message is the checksum, which is calculated by summing the ASCII values of all characters in the message and performing modulo 256.
- In addition to tagvalue encoding, FIX also has other encodings like FIXML (XML schema) and Simple Binary Encoding (SBE), which offer different advantages in terms of performance and compatibility.
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Description
Test your knowledge on application messages for trade-related information in this quiz. Learn about order requests, current state updates, and execution of orders. Explore topics such as header editing and body length calculation. Put your skills to the test and become an expert in handling trade-related application messages.
