The power of FIX API: a deep dive into the FIX API platform in the liquidity bridge

Author: Anastasia Taganova

Earlier this week, we hosted a webinar on the powerful FIX API platform, which is part of the Trade Processor liquidity bridge and margin engine. In this article, we summarise the key points from the webinar and once again highlight the platform's possibilities.

What is the FIX API platform?

The FIX API platform is a trading execution engine that’s built into the Trade Processor liquidity bridge to expand its capabilities. It elevates the trading process, including order execution, liquidity aggregation, and gathering market data.

Who is the FIX API platform for?

The FIX API platform has several main use cases for retail and PoP brokers, liquidity providers, and hedge funds.

• For Retail Brokers, it’s about attracting institutional and professional traders who use their own bots and algo trading solutions and don’t really need a trading platform.
• For liquidity providers or PoP brokers, it’s about liquidity management: Aggregate liquidity from one or multiple upstream liquidity providers using the Trade Processor bridge. They can then distribute this liquidity downstream to their own clients, acting as the "market maker".
• For Hedge Funds, it’s about substituting a trading platform, gaining an edge with low latency and direct market access, and having a single spot for over 100 liquidity providers, perfect for those with multiple liquidity providers.

Key Features of the Trade Processor with the FIX API Platform

Utilising the FIX API platform allows you to unlock a lot of potential in the Trade Processor liquidity bridge.

Liquidity Aggregation

It connects multiple liquidity providers (LPs) and aggregates their quotes. This ensures that your clients get competitive pricing and deep market depth, and you don’t need to establish a new connection every time you want to add a new liquidity provider.

Order Routing

The bridge routes client orders efficiently based on predefined rules. For example:

• Hedge large orders with liquidity
• Internalise smaller trades to maximise

FIX API Cabinet

This is a specialised module within the Trade Processor that gives your clients access to FIX API for trading.

It allows:

• Direct FIX API Your clients have the option to trade directly in the cabinet.
• Reporting and Monitoring. Track FIX API activity in real-time, ensuring transparency and compliance.

Risk Management

The platform cludes tools to monitor and control exposure in real-time. It helps brokers efficiently manage A-book and B-book strategies.

Integrated Solution

By offering FIX API through Trade Processor, you don’t need a separate infrastructure for FIX connections. It’s all part of the same ecosystem.

You can also integrate the FIX API platform using two different routes: the FIX protocol or the REST API. To establish the connection, you only need to connect your trading solution to the FIX API platform in Trade Processor.

Time and Cost Efficiency

Building a FIX API infrastructure from scratch is expensive and time-consuming. The Trade Processor provides a ready-to-use FIX API system, reducing setup time and operational overhead.

What do you need to start with the FIX API platform?

Launching the FIX API platform and incorporating it into your workflow is not difficult. Here are the core steps you’ll need to get started.

• Create the FIX API platform in the Trade Processor liquidity bridge.
• Set up the connection.
• Set up the trading workflow (FIX session settings, accounts, symbols, swaps, and leverage profiles).
• Set up the execution and feeding configuration.

Tip: You can do everything yourself or delegate the setup process to the TFB team. To learn more, email us at sales@t4b.com.