Service Pack 3 of the FIX 5.0 trade messaging standard will aim to incorporate a raft of recent extension packs and help firms reconcile and manage key data.

Hanno Klein, a senior VP at Deutsche Boerse who serves as co-chair of the FIX Protocol Global Technical Committee , said at this weeks' FIX Protocol EMEA Trading Conference that the service pack would be released "this year".

The move comes three years after the previous full service pack, and will formally roll up more than 50 extension packs that have been made available for market adoption since the last release.

FIX has in recent years become a widely-used standard for messaging between trading participants, and Service Pack 3 is likely to be seen as an important update for the markets.

"All of the functionality is already available in extension packs, but the service pack groups these together," he said.

The new service pack would greatly assist trading and clearing houses in reconciling participant information, he said, as well as helping traders produce lists of their accounts and related parties. Clearing firms would be able to more easily apply risk limits.

For the post-trade environment, companies are now able to "standardise their clearing workflows" with exchanges and clearing houses, as per Futures Industry Association and Futures & Options Association requirements.

Fixed income traders, he added, are also seeing improved quote workflows and better security definitions using recent extensions.

"We are also actively working to provide regulators with the choice of using a non-proprietary, free, open and global standard, which helps firms already using the protocol to leverage their existing investments to meet regulatory requirements," he said. Service Pack 3 will address a raft of different regulations in markets globally, including short selling rules, market transparency, trade reporting, registration, and swaps data repositories.

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