{"id":510197,"date":"2022-10-19T13:23:59","date_gmt":"2022-10-19T13:23:59","guid":{"rendered":"https:\/\/www.publicfinanceinternational.org\/?p=510197"},"modified":"2022-11-04T10:12:48","modified_gmt":"2022-11-04T10:12:48","slug":"electronic-trading-protocols","status":"publish","type":"post","link":"https:\/\/www.publicfinanceinternational.org\/electronic-trading-protocols\/","title":{"rendered":"Electronic Trading Protocols"},"content":{"rendered":"\n

Electronic Trading Protocols are a set of rules that govern the way orders are transmitted and executed between buyers and sellers in the securities markets.<\/p>\n\n\n\n

They provide a common framework for all market participants to follow when trading securities. Electronic Trading Protocols are used in all types of securities markets, including equities, fixed-income, and derivatives markets.<\/p>\n\n\n

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\"Electronic<\/figure><\/div>\n<\/div><\/div>\n\n\n\n\n\n\n

Who Invented Electronic Trading?<\/h2>\n\n\n\n

A programmer called Joshua Levine joined a company called Datek Securities in the 90s and built upon their high-frequency trading strategies. Joshua Levine and another associate of Datek Securities started a company called The Island ECN<\/a> in 1996 and made its first electronic trade in 1997. They were the first venue completely reliant on electronic trading with no human input.<\/p>\n\n\n\n

List of Electronic Trading Protocols<\/h2>\n\n\n\n

Virtually all U.S. and European exchanges use electronic platforms instead of or in combination with physical ones. The NASDAQ exchange<\/a> was the first to offer complete functionality through electronic trading. Examples of exchange-owned electronic trading platforms are NYSE Arca and Globex (NYSE: GLOB).<\/p>\n\n\n\n

Here\u2019s a list of the protocols used around the world.<\/p>\n\n\n\n

USA<\/h3>\n\n\n\n
\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n Exchange <\/th>\n \n Native Order Flow <\/th>\n \n FIX Order Flow <\/th>\n \n Market Data <\/th>\n <\/tr>\n
\n B3 (stock exchange) (aka BM&FBovespa) <\/td>\n \n FIX <\/td>\n \n FIX4.4 <\/td>\n \n UMDF (FIX\/FAST) <\/td>\n <\/tr>\n
\n Bolsa Mexicana de Valores <\/td>\n \n FIX <\/td>\n \n 4.4 - version 2.4 <\/td>\n \n INTRA (UDP) \/ SIVA (TCP) <\/td>\n <\/tr>\n
\n BIVA <\/td>\n \n OUCH <\/td>\n \n FIX 5.0 <\/td>\n \n ITCH <\/td>\n <\/tr>\n
\n Boston Options Exchange <\/td>\n \n SAIL <\/td>\n \n 4.2 <\/td>\n \n HSVF <\/td>\n <\/tr>\n
\n Cboe <\/td>\n \n BOE <\/td>\n \n 4.2 <\/td>\n \n PITCH <\/td>\n <\/tr>\n
\n Chicago Mercantile Exchange <\/td>\n \n iLink <\/td>\n \n FIX <\/td>\n \n Simple Binary Encoding <\/td>\n <\/tr>\n
\n Montreal Exchange <\/td>\n \n SAIL <\/td>\n \n 4.2 <\/td>\n \n HSVF <\/td>\n <\/tr>\n
\n Nasdaq <\/td>\n \n OUCH 4.2\u00a0 <\/td>\n \n - <\/td>\n \n ITCH5.0 <\/td>\n <\/tr>\n
\n NYSE <\/td>\n \n Pillar <\/td>\n \n 4.2 <\/td>\n \n <\/td>\n <\/tr>\n
\n TSX <\/td>\n \n FIX Client <\/td>\n \n TSX-FIX <\/td>\n \n QUANTUMFEED <\/td>\n <\/tr>\n
\n Aequitas Neo <\/td>\n \n FIX <\/td>\n \n FIX <\/td>\n \n NITCH <\/td>\n <\/tr>\n
\n ICE <\/td>\n \n FIX <\/td>\n \n FIX <\/td>\n \n iMpact <\/td>\n <\/tr>\n <\/table>\n<\/div>