1. 1 XML WORKSHOP John Goeller Vice President Salomon Smith Barney Equity Capital Markets June 17th, 1999 - New York Utilizing XML to Enhance FIX

2. 2 FIX Overview FIXML Related Standards Work Conclusion Contents

3. 3 Institutional Trader Phone / VerbalFIX / Electronic OrdersIndications DirectionOrder Acknowledgments Executions ColorTrade Reports NewsResearch Notes Trade IssuesE-Mail Broker Sales / Trader FIX FIX What is FIX?

4. 4 The Future of FIX Expansion Exchanges and ECNs  Exchanges and ECNs  Program Trading, Fixed Income, and Derivatives  Allocations Certification Ongoing testing and certification process  Ongoing testing and certification process  Supports increased usage  Ensures compatibility Coordination  GSTPA  ISO 15022 Evolution  FIXML

5. 5 FIX Protocol Unveiled FIX Fields FIX Message Structure FIX Session and Application Layers FIX Message Types FIX Examples

6. 6 <TAG>=<VALUE><DELIMITER> Composed of four parts ------ ------ “=“ ------ non-printing ASCII character called the SOH character Example: “8=FIX.4.1^” FIX Fields

7. 7 TAG-VALUE Message Header Message Body Message Trailer Identifies message type, message length, sender/destination,sequence number, sending time, etc Contains specific session and application message content Contains optional digital signature and the required checksum value FIX Message Structure

8. 8 Trading Application FIX Protocol Session Layer Establishing and terminating the connection Message Delivery data integrity, sequencing, addressing Application Layer Business related content Order, Execution, IOI, etc FIX Session and Application Layers

9. 9 Session Messages Application Messages Heartbeat Logon Test Request Resend Request Reject Sequence Reset Logout Advertisement Indications of Interest News New Order - Single Execution Report Don’t Know Order Cancel/Replace Order Cancel Request Order Cancel Reject Order Status Request Allocation Allocation ACK New Order - List List Status List Execute List Cancel Request List Status Request Quote Quote Request Email Don’t Know Trade Settlement Instr. FIX Message Types

10. 10 FIX Single Order Example 8=FIX.4.1^9=0235^35=D^34=10^43=N^49=VENDOR^50=CUSTOMER^56=BROKER^52=19980930-09:25:58 GMT^1=XQCCFUND^11=10^21=1^55=EK^48=277461109^22=1^54=1^38=10000^40=2^44=76.750000^59=0^10=165 8=FIX.4.1 9=235 35=D 34=10 43=N 49=VENDOR 115=CUSTOMER 56=BROKER 52=19980930- 09:25:58 GMT Begin String Body Length MsgType MsgSeqNum PossDupFlag SenderCompID OnBehalfOfCompID TargetCompID Sending Time 1=XQCCFUND 11=10 21=1 55=EK 48=277461109 22=1 54=1 38=10000 40=2 44=76.750000 59=0 Account (optional) ClOrdID HandInst Symbol SecurityID(optional) IDSource(optional) Side OrderQty OrdType Price(optional) TimeInForce (optional) HeaderBody Trailer 10=165 Checksum

11. 11 FIX and XML: FIXML Ensures consistent parsing Removes ambiguities Improves expression of data relationships Creates simplified programming model Provides cleaner, more expressive structure

12. 12 FIXML: Example Syntax 49=VENDOR115=CUSTOMERID56=BROKERSenderCompIDOnBehalfOfCompIDTargetCompID <SENDER><COMPID>VENDOR</COMPID><ONBEHALFOF>CUSTOMERID</ONBEHALFOF></SENDER><TARGET><COMPID>BROKER</COMPID></TARGET></HEADER><INDICATION>……</INDICATION></FIXML> Becomes….

13. 13 FIXML: Implementation Issues Easy migration for existing FIX engines “Embedded FIXML”  “Embedded FIXML” Backward-compatibility optional field can co-exist with “standard” tag=value data  optional field can co-exist with “standard” tag=value data XML attributes represent existing FIX tags  XML attributes represent existing FIX tags Session Layer remains intact core engine is not affected  core engine is not affected

14. 14 FIXML: Embedded messages FIXML can be “wrapped” as a value of a standard FIX tag 49=BROKER56=HUB128=INST998=FIXML1.0997=245999=<FIXML><Header> …. ….</Header><Indication> </Indication> SenderCompIDTargetCompIDDeliverToCompIDFIXMLVersion FIXML Data Length FIXMLData FIXML

15. 15 FIXML: Major Technical Goals Separation of application data from FIX session protocol allow two to evolve independently  allow two to evolve independently Standard-base format for business data eliminate reliance on proprietary parsing and validation  eliminate reliance on proprietary parsing and validation  improve interoperability  pass XML messages to non-FIX downstream systems Other design considerations Scalable  Scalable  Maintainable  Easy to use  Provide Grammar for Securities Trading

16. 16 FIXML: Major Business Goals Utilize existing systems and processes Protect investment in traditional FIX Provide migration path to next generation FIX systems Impose little or no impact on existing business applications Position FIX for greater interoperability with other industry standards

17. 17 FIXML: Current Status DTD’s completed on January 15th, 1999 FIXML Pilot Projects Two types Modification of existing FIX engine  Modification of existing FIX engine  Utilization of internet application server technology to demonstrate FIXML Number of Pilots underway More expected after June 1999 and Y2K  More expected after June 1999 and Y2K

18. 18 FIXML Working Group Apt Computer Systems Aztec Software and Technology Braid D.E. Shaw Deutsche Bank DLJ DTC Enterprise Engineering Fidelity Investments Goldman Sachs GreatWay Technology Innovision IntegraSolv Introspect Consulting Javelin Microsoft MINT Solutions Morgan Stanley National Securities Clearing Neon FIX Paine Webber Robert Fleming SIAC Sybase webMethods XML Solutions XML/EDI Group Many Others

19. 19 FIXML: More Information FIX Web-Site www.fixprotocol.org Contains:  FIXML White Paper  FIXML Discussion Group FIXML web-site www.innovision.com/xmlprotocols/fixml/ Contains:  FIXML DTD’s  FIXML Demo Applications

20. 20 Related Standards Work ISO 15022 GSTPA Other XML-based Protocols

21. 21 ISO 15022 and FIX Mapping Provide mapping rules to middleware vendors  Provide mapping rules to middleware vendors Future standards development Agree on aligning and synchronizing the standards  Agree on aligning and synchronizing the standards Common standards architecture Agree on common position regarding XML  Agree on common position regarding XML

22. 22 What have we done? Reviewed syntax and data mapping of FIX messages – New Order – Execution Report – Allocation/Allocation Ack – Settlement Instructions Next Steps – Analyze field dependencies and lengths – Review Technical Representation FIX/15022 Mapping

23. 23 GSTPA Leverage existing standards ISIN (Asset Identifiers), BIC (Firm Identifiers), and ISO 15022 (Financial Data Dictionary)  ISIN (Asset Identifiers), BIC (Firm Identifiers), and ISO 15022 (Financial Data Dictionary) Work with standards bodies Utilize XML as the tool of interoperability

24. 24 Other XML-based Protocols Identify groups trying to achieve similar goals IFX, FinXML, FpXML  IFX, FinXML, FpXML Develop common strategy

25. 25 One Possible Solution Develop common grammar FIX15022 XML-Based Data Dictionary <HandlingInstruction> 21 (Tag for Handling Instruction) 22a::AUTO (Tag for Handling Instruction) “21=1”“:22F::AUTO//DDOT”

26. 26 Another solution Build consensus around industry specific XML vocabularies Adopt consistent set of syntax for different XML vocabularies Provide repository and registry of DTD’s Get involved with industry clearinghouses Current Initiatives: www.biztalk.org www.xml.org

27. 27 FIX usage is increasing XML is emerging as a tool to enable interoperability Coordination is key to GSTPA’s success Conclusion