INTRODUCTION TO BOSTON TECHNOLOGIES FIX APIFIX is the way the world trades and it is becoming an essential ingredient in minimizing trade costs, maximizing efficiencies and achieving increased transparency.

PRESENTER/MODERATOR

Matt NolanManaging Director, Boston Technologies Inc.As a Managing Director, Matt is responsible for creating and scaling the firm’s FX, Metals and CFD offering in the worldwide markets. Matt possesses expert knowledge in the FX, Metals and CFDs field and has over 10 years of in depth experience in global financial markets.

BOSTON TECHNOLOGIES INC.

• Boston Technologies is the inventor of the first commercial MT4 bridge and Start Your Own Brokerage (SYOB) package

• Established: April 2007

• Founded by George Popescu

• Revenue growth year over year

• Developed Network Infrastructure with data centers in New York NY4, London LD4, Tokyo TY3, and Hong Kong

• Platforms supported: MT4, FIX API, HotSpot, Integral, Currenex, FXAll, FXone, First Derivatives, FlexTrade, 360T, and EBS Direct

• Headquartered in Boston with offices in New York, London, Tokyo, and Shanghai

AGENDA

• What is FIX API • Reasons to use FIX API• Requirements• Types of orders• Advantages and Disadvantages

WHAT IS FIX API?

FIX (Financial Information Exchange) API (application programming interface) – an electronic communications protocol for financial information exchange. In Forex FIX API allows communication between a trader, investment fund, or broker and a liquidity provider.

MT4

Client Server

Trading Terminal

Signal Provider

Aggregator/ECN

BRIDGEFIX API

FIX API

FIX API

FIX API

FIX API

Market Taker

Market Maker/LP

REASONS TO USE FIX API

• Speed of execution• Aggregation• Conformance with industry standards• Ability to use custom platforms• Ability to control more aspects of the trade• Safety and anonymity of the system• Cross-connect with LPs to reduce latency• Depth of Market• Ability to use your own algorithms

FIX MESSAGING

2 Sessions: Market data and Trading

Tags:Login, Heartbeat, Logout

Client Message

Quote Request

Quote Cancel

New Order Single

Return Message

Quote (streaming, for spot request)

No return message, ends streaming spot quotes

Execution Report

MT4 VS FIX CONNECTIVITY

FIX API:Reduces latency 250 ms to 500 ms

EXAMPLE

Citi Bank bought 1000 EURUSD @ 1.38672Boston Prime sold 1000 EURUSD @ 1.38672 Traded on 05/02/2014 5:14 PM

1000 EURUSD ＠ 1.38672

2014-05-02 17:14:58.984 [crt:0, prs:0, q:1, wrtMsg:0] -> 8=FIX.4.2|9=0264|35=8|49=BOS|56=CITI_TRADE|34=10|52=20140502-17:14:58|66=1|20=0|11=635346476457121251|6=0|14=0|15=EUR|17=NONE|31=0|32=0|37=58945125-802f-49d3-ad67-7823b7caa94f|38=1000|150=A|39=A|40=C|44=-1|54=1|55=EUR/USD|60=20140502-17:14:58.984|151=0|167=FOR|194=0|195=0|460=4|10=094|

ORDER TYPES

•Market Order – An order that an investor makes through a broker or brokerage

service to buy or sell an investment immediately at the best available current price

– Fill Ratio 99.97%

•Limit Order– An order placed with a brokerage to buy or sell a set number of

shares at a specified price or better – Fill ratio 80-90%

HOW TO GET STARTED

• Outsource or develop in-house • Find an experienced programmer or

partner with solid knowledge of HTTP, telnet, TCP or JAVA

• Learn about the FIX API specifications of the liquidity provider• Ask for connection details for a test (UAT) environment• Connect live (preferably cross-connect). Boston Technologies

provides cross-connects in NY4, LD4 and TY3 datacenters

OF FIX API

• Why wait for the second tick? FIX is ideal for high frequency strategies.

• Total control over the process of transferring and receiving data

• No intermediary or middleware software (Client Terminal => MT4 Trade Server => MT4 Bridge => Aggregator => Liquidity Provider)

• Faster overall execution speed

• Ability to design a personalized interface or use an existing one

• Use your favorite platforms: MT4, HotSpot, Integral, Currenex, FXAll, FXone, First Derivatives, FlexTrade, 360T, and EBS Direct

• Opportunity to use various order types such as market or limit

• Limit slippage

THINGS TO CONSIDER

• Budget• Timeline• Outsource or create in house• Resources and skills to maintain

functionality and performance

24 hour support

3 shifts, 1 full time person per shift @ $40,000/year

~$10,000 per month

$2,000-3,000 per month

System Development

1 person @80,000/year~$6,500/month

$2,000 setup, $600 monthlyoff-the-shelf

ARE YOU READY TO CONNECT?

• Phone: +1(617)-314-6800• E-mail:sales@bostontechnologies.com• www.bostontechnologies.com

Boston Technologies Inc. 280 Summer Street, 9th FloorBoston, MA 02210Phone： +1 617 314 6800

Boston Prime Ltd. 1 Ropemaker StreetCitypoint Suite 1248London EC2Y 9HTPhone: +44 (0) 330 808 0145

Boston Technologies Japan Inc.Yaesu Sakai Building 8F 1-4-6 Yaesu, Chuo-kuTokyo 103-0028, JapanPhone： +03-5542-1455

Boston Technologies Shanghai Representative Office33 Huayuanshiqiao Road,Citigroup Tower, 23rd FloorPudong, Shanghai 200120Phone： +86 021-61010368

Follow us: