FIX Endorses Study Group Focusing on International Derivatives Regulation

The industry-driven and non-profit standards institution, FIX Trading Community (FIX), announced today a sponsorship agreement with the ISO Study Group, the goal of which is to establish ISIB standard’s rules for derivative financial instruments.

The International Securities Identification Number (ISIN) is a universal recognition code assigned to securities issued in the financial markets. It consists of 12 alphanumeric characters (numbers and letters) defined according to the ISO 6166 standard.

With the start of this new cooperation, FIX wants to document the best practices and encourage the creation of ISIN identifiers among those markets participants who use the body’s open standards. In addition, the entity wishes to integrate them with other standards such as FpML and ISO, to ensure maximum effectiveness and operational Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.

The ISO Study Group is a response to the ESMA requirements about the need to use ISIN codes as over-the-counter (OTC) derivatives identifiers. Statutory objectives of the intuition, however, go beyond the requirements of the ESMA and include the creation of a global identification standard improving Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and regulators’ activities in various jurisdictions.

As reported by Jim Northey, member of FIX Trading Community and ISO Study Group, in a recent official statement on the sponsorship agreement: "Given the regulatory mandate for the creation of unique product identifiers for derivatives, FIX is delighted to play its part in ensuring a positive engagement between industry and regulators to ensure an optimal solution for all stakeholders.”

Through the working groups – also committees and subcommittees – FIX seeks to identify key regulatory and business issues facing the industry, trying to find the best solutions. Currently, the institution operates dozens of different bodies, and the ISO Working Group is the newest addition to them.