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Product Discussion

FIX vs SWIFT

Complete message thread from old site

Arthur Chan
3451 days ago,(2004/11/12)

How is FIX different from SWIFT in terms of the market their service and the functionalities they privde.
It seems to me both are gateways with its own message format.

FIX Trading Community
3451 days ago,(2004/11/12)

[ original email was from Chris Pickles - chris.pickles@radianz.com ]
> How is FIX different from SWIFT in terms of the market their service and
> the functionalities they privde. It seems to me both are gateways with
> its own message format.
FIX is an industry standard - not a service provider. The FIX Protocol is a protocol and messaging standard that can be used on any network, whether public or private. FIX is not a service provider.

SWIFT is an application service provider that operates its own proprietary network.

Jörg Thönnes
3451 days ago,(2004/11/12)

> > How is FIX different from SWIFT in terms of the market their service
> > and the functionalities they privde. It seems to me both are gateways
> > with its own message format.
> FIX is an industry standard - not a service provider. The FIX Protocol
> is a protocol and messaging standard that can be used on any network,
> whether public or private. FIX is not a service provider.
>
> SWIFT is an application service provider that operates its own
> proprietary network.

While the FIX standard is open, you have to pay for the SWIFT specification and to make acceptance tests before joining the SWIFT network. Basically, there is one official SWIFT network to join, while there are many exchanges which offer FIX as their API.

In addition, the banks tend to use the SWIFT message format as an internal communication standard between their in-house system.

SWFIT is about 30 years old (FIX 12 years) and it is mainframe-based (IBM/390). Originally it was developed for the post-trading phase (allocation, settlement etc.), while FIX was developed to speed up the communication between brokers and their clients.

There are efforts to harmonize both message standards as a ISO standard.
The keywords here are ISO 15022 and ISO 20022 (UNIFI = UNIversal Financial Industry messsage scheme). See e.g.

* http://www.londonmarketsystems.com/iso20022.pdf
* http://www.swift.com/index.cfm?item_id=6610

Hope that helps as a start.

Cheers, Jörg

Sam Romilly
3451 days ago,(2004/11/12)

SWIFT provides a range of financial messaging services to the industry over our global secure network - SWIFTNet. SWIFT promotes the use of the FIX Protocol over SWIFTNet with the SWIFTNet FIX Service.

SWIFT also develops financial messaging standards on behalf of the industry. SWIFT is actively wotking with the FIX Protocol to ensure inter-operability between FIX and ISO20022 standards. The objective is to achieve eventual convergence to a single standard for the complete transaction lifecycle.

Whilst use of the FIX Protocol and the ISO20022 standards are free, you usually need to pay for the applications that generate and process the messages. Access to the SWIFT network requires a SWIFT Interface, whilst access to use of the FIX Protocol requires a FIX Engine. These applications run on a wide variety of platforms and operating systems. The SWIFTNet FIX Service ensures any FIX Engine can connect to a SWIFT Interface and exchange all FIX message types from FIX versions 4.0 to 4.4.

> > > How is FIX different from SWIFT in terms of the market their service
> > > and the functionalities they privde. It seems to me both are
> > > gateways with its own message format.
> > FIX is an industry standard - not a service provider. The FIX Protocol
> > is a protocol and messaging standard that can be used on any network,
> > whether public or private. FIX is not a service provider.
> >
> > SWIFT is an application service provider that operates its own
> > proprietary network.
>
> While the FIX standard is open, you have to pay for the SWIFT
> specification and to make acceptance tests before joining the SWIFT
> network. Basically, there is one official SWIFT network to join, while
> there are many exchanges which offer FIX as their API.
>
> In addition, the banks tend to use the SWIFT message format as an
> internal communication standard between their in-house system.
>
> SWFIT is about 30 years old (FIX 12 years) and it is mainframe-based
> (IBM/390). Originally it was developed for the post-trading phase
> (allocation, settlement etc.), while FIX was developed to speed up the
> communication between brokers and their clients.
>
> There are efforts to harmonize both message standards as a ISO standard.
> The keywords here are ISO 15022 and ISO 20022 (UNIFI = UNIversal
> Financial Industry messsage scheme). See e.g.
>
> * http://www.londonmarketsystems.com/iso20022.pdf
> * http://www.swift.com/index.cfm?item_id=6610
>
> Hope that helps as a start.
>
> Cheers, Jörg