European trading receives updated data standards announced by FIX, a renowned organization.
The FIX Trading Community, a global organisation that operates in over 60 countries, has recently unveiled the latest version of the Market Model Typology (MMT) 5.0. This industry data standard is designed to streamline trade classification across European capital markets, providing a consistent and transparent framework for trading firms.
Developed in collaboration with the Federation of European Securities Exchanges, MMT 5.0 addresses the requirements of the upcoming European Consolidated Tape (ECT) and the revised post-trade transparency rules under MiFIR RTS 1 and RTS 2. The standard aims to help trading firms, such as investment banks, hedge funds, and sovereign wealth funds, accurately interpret and understand details of published transactions.
One of the key benefits of MMT 5.0 is its ability to standardise trade classification, ensuring all market participants interpret trade data uniformly. This enhancement in data quality and market transparency is expected to be particularly useful in quantifying European addressable liquidity, a challenge that has historically been difficult due to disparate data standards and market fragmentation.
MMT 5.0 also incorporates definitions for newly revised regulatory requirements and voluntary flags that provide further insights into transaction details. These additional flags are believed to be helpful in moving towards the goal of addressing European liquidity challenges, as suggested by the FIX Trading Community's CEO, Mr. Kaye.
The standard is already in use by all major European trading infrastructure venues and the majority of market participants. It is considered crucial for making consolidated European market data clean, comparable, and actionable, empowering firms to operate efficiently under the new transparency regime.
The FIX Trading Community, an independent global community where capital markets firms collaborate to solve common issues and shape the evolution of capital markets, has been actively involved in addressing a wide range of global issues, including those specific to securities markets. Their work encompasses issues like digital assets, reference data, carbon trading, AI, algo trading, FICC, and ETFs.
For more information about what the FIX Trading Community can do for a firm, visit www.fixtrading.org. The organisation's efforts also involve managing local regulation and market structure matters in various countries through country and regional committees.
Since being handed over to the FIX Trading Community in 2013, MMT has continuously evolved to meet the needs of an increasingly complex regulatory and market structure landscape in Europe. The community's MMT Steering Committee has worked closely with European regulators since 2013 to ensure the standard meets the new requirements for a European consolidated tape, expected later this year.
In conclusion, the introduction of MMT 5.0 marks a significant step forward in enhancing the transparency and efficiency of European capital markets. By providing a consistent and transparent framework for trade classification, the standard is expected to improve data quality, facilitate compliance with the anticipated ECT operational by end of 2025, and ultimately empower firms to operate efficiently under the new transparency regime.
- The Market Model Typology (MMT) 5.0, a data standard developed by The FIX Trading Community, aims to help firms, such as investment banks, hedge funds, and sovereign wealth funds, identify and understand trade details more accurately, which is crucial for quantifying European addressable liquidity.
- MMT 5.0 incorporates definitions for newly revised regulatory requirements and voluntary flags that provide further insights into transaction details, which are considered beneficial in addressing European liquidity challenges.
- The standard is already in use by all major European trading infrastructure venues and the majority of market participants, making consolidated European market data clean, comparable, and actionable, thus empowering firms to operate efficiently under the new transparency regime.
- The FIX Trading Community, an organization that collaborates with various global businesses and finance entities, has been actively engaged in shaping the evolution of capital markets, addressing issues like digital assets, market structure, regulation, AI, algo trading, FICC, and ETFs.
