UK-based telecommunications provider Syntegra has joined the Financial Information eXchange (FIX) protocol organisation. The aim is to develop what Syntegra calls “a cost effective, secure and centralised FIX messaging utility.”
Syntegra provides a secure IP-based electronic communications network called Infrastructure for Financial Markets (IFM), best known for providing the SettleNET connection for CREST users. The company is now exploring potential new service offerings ainmed at helpng smaller buy and sell-side firms automate their order flow without buying an expensive Order Management Service (OMS) or FIX capability. By offering an Order Management Service as an Application Service Provider (ASP), Syntegra believes it can win their business.
In addition to adding FIX capabilities, Syntegra plans to provide an enhanced offering including security and other value-added features such as full message authentication, non-repudiation and encryption. “This initiative will help extend access to FIX automation to a much wider number of market participants, irrespective of their budget or size,” explains Kevin Covington, sector manager for the wholesale financial services division at Syntegra. “Our intent is to ensure that smaller firms will have access to a cost-effective, automated order management process, while also having the luxury of knowing their order flow is totally secure. We believe that security and non-repudiation is going to become absolutely essential as the FIX protocol moves further down the trade life cycle. We see this initiative as more than a traditional hub and spoke service, but a secure communications infrastructure offering the same level of service as a peer-to-peer connection.”