European trading standards received a fresh update as Fix Publishes New Data Standards
Preparing for the European Consolidated Tape: FIX Trading Community Unveils MMT 5.0
The FIX Trading Community, an independent global organisation comprising capital markets firms, has published the latest version of its Market Model Typology (MMT) standard - MMT 5.0. This updated industry data standard is designed to help firms prepare for the upcoming European Consolidated Tape (ECT), ensuring they can accurately understand all published transaction details across European capital markets[1][2].
The origins of MMT can be traced back to 2012, when the Federation of European Securities Exchanges developed it to resolve disparities and quality issues caused by multiple different data standards in the region. In 2013, the responsibility of MMT was handed over to the FIX Trading Community to promote its adoption and independent development[1][2].
MMT 5.0 covers the recently revised post-trade transparency regulatory requirements of MiFIR RTS 1 and RTS 2, while also introducing voluntary trade flags to enhance transparency and market understanding[1][2]. These additional flags will be particularly helpful in addressing the challenges of quantifying European addressable liquidity, a task that has been challenging for investors for decades, according to Mr. Kaye, the FIX Trading Community's CEO[1].
The new typology provides several benefits to trading firms preparing for the European Consolidated Tape. It offers:
- A unified language and classification system for trade data, enhancing data quality and comparability across European venues.
- Improved transparency around trades via standardized classification and add-on flags, aiding liquidity quantification and investor decision-making.
- Regulatory compliance by directly covering obligations stemming from European post-trade transparency regulations under MiFIR.
- A foundation for firms to interpret the consolidated tape data accurately when it launches, thus simplifying integration and analysis[1][2].
The FIX Trading Community's independent, industry-wide governance ensures MMT evolves impartially to meet the requirements of all market participants, reflecting effectively any structural and regulatory changes[1][2].
Country and regional committees within the FIX Trading Community manage local regulation and market structure matters. The organisation also works on issues related to specific asset classes, such as digital assets and ETFs, as well as broader topics like carbon trading, algo trading, AI, FICC, and securities markets regulations and structures[1].
For more information about how the FIX Trading Community can benefit a firm, visit www.fixtrading.org. It's worth noting that MMT 5.0 meets the new requirements for a European consolidated tape expected later this year, and it is already being used by all major European trading infrastructure venues and the majority of market participants[1][2].
In conclusion, MMT 5.0 is a critical tool for European trading firms to adapt to the consolidated tape framework expected by the end of 2025. By providing a unified language and classification system, improved transparency, regulatory compliance, and a foundation for interpreting consolidated tape data, MMT 5.0 is set to play a significant role in shaping the future of European capital markets.
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