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Discussions > General Q/A > FIX Vs SWIFT

FIX Vs SWIFT

Complete message thread from old site

Sandeep Bhatt
2533 days ago,(2007/05/17)

Hi all,

i came across SWIFT Messaging going through this forum.

So I want to know:-

1. What Is SWIFT?
2. How does it differ from FIX?
3. Are FIX and SWIFT interchangeable?
i.e can i use FIX in place of SWIFT or vice versa for electronic
commn of securities transactions.

Thanks in advance.

Shalom Reich
2533 days ago,(2007/05/17)

1 - I believe that it stands for Society for Worldwide Inter-bank Funds Transfer. SWIFT defines ISO standards for financial service messages, proveds a secure network for these messages and sells products to send/receive messages over the network. For more about SWIFT, see http://www.swift.com/

2 - FIX only defines a message format. The FIX and SWIFT communities overlap and there is considerable communication between the groups.

3 - FIX mesaages tend to be from pre-trade (IOI etc.) through allocation. SWIFT messages (when I last looked) started at the Order and continued through the post-trade (corporate actions, statements etc.) SWIFT covers a wider product set (especially cash and OTC derivatives). Where the two message sets overlap, the content of the messages is similar but not the same. The format of the messages are different as well.

Shalom Reich

> Hi all,
>
> i came across SWIFT Messaging going through this forum.
>
> So I want to know:-
>
> 1. What Is SWIFT?
> 2. How does it differ from FIX?
> 3. Are FIX and SWIFT interchangeable?
> i.e can i use FIX in place of SWIFT or vice versa for electronic commn
> of securities transactions.
>
> Thanks in advance.

FIX Trading Community
2533 days ago,(2007/05/17)

[ original email was from Niall McCallion - nmccallion@espeed.co.uk ]

> 1. What Is SWIFT?
http://en.wikipedia.org/wiki/Society_for_Worldwide_Interbank_Financial_Telecommunication

> 2. How does it differ from FIX?
Fix is a protocol for exchanging data between two parties, and no more.

Swift you buy and provides services, protocol, networks, etc. From Wp: "SWIFT provides a centralized store-and-forward mechanism, with some transaction management. For bank A to send a message to bank B, it formats the message according to standard, and securely sends it to SWIFT. SWIFT guarantees its secure and reliable delivery to B. SWIFT guarantees are based primarily on high redundancy of hardware, software, and people."

In my arena SWIFT is largely used in the back office, FIX in the front and middle office.

> 3. Are FIX and SWIFT interchangeable?
No. But they're not mutually exclusive.

> i.e can i use FIX in place of SWIFT or vice versa for electronic commn
> of securities transactions.

Not really. Fix can be used in teh Swift area if you use SwiftNet.

Hope that helps.

Niall

FIX Trading Community
2531 days ago,(2007/05/19)

[ original email was from Joshua Derrick - joshuaderrick@mac.com ]
> > 1. What Is SWIFT?
SWIFT (Society for Worldwide Interbank Financial Telecomunication) is an industry owned co-operative, which provides secure, standardised messaging services and interface software to some 8,100 financial institutions in 207 countries and territories. SWIFT members include banks, broker-dealers, and investment managers. SWIFT's community of users also encompasses market infrastructures in payments, securities, treasury and trade. SWIFT aims to be the global financial community's foremost messaging infrastructure, providing lowest risk and highest resilience. SWIFT currently is approaching 5x9 reliability with 99.999% of uptime. Further, SWIFT serves the financial community by significant commitment to the collaboration of efforts and the interoperability of standards on the global and local level in various sectors of the financial services industry.

> > 2. How does it differ from FIX?
SWIFT differs from FIX in that it provides a secure and resilient communications network to the global financial community allowing for guaranteed secure delivery of messages over its network using various messaging protocols, whereas FIX, as stated on their website, is a series of message specifications.

> > 3. Are FIX and SWIFT interchangeable?
SWIFT and FIX are not interchangeable. SWIFT provides a secure global network supporting various internationally recognised standards for messaging for the financial services industry in payments and cash management, securities, treasury and OTC derivatives and trade services, while FIX is a series of messaging specifications for the Pre-Trade, Trade and Post-Trade lifecycle for specific asset classes.

Messages defined in a protocol such as FIX (or ISO, FpML, etc..) can be carried over the SWIFT network. SWIFT also provides a series of ISO messages to its user community for various sectors of the financial services industry in support of the payments and cash management, securities, treasury and OTC derivatives and trade services business globally.

For further information about SWIFT, please visit www.swift.com.

Joshua Derrick
SWIFT Standards