The FIX Trading Community has published new guidance for electronic securities lending, establishing common workflow practices designed to support greater automation across the market. The guidelines provide a standard electronic messaging framework for securities lending contracts conducted bilaterally or through trading venues. They cover quote negotiation workflows, last look and Free of Payment (FOP) lending, and build on earlier FIX practices covering US equities, corporate bonds and DTC-eligible DVP US cash collateral contracts.
Developed by a working group spanning buy- and sell-side firms, vendors and venues, the framework is intended to reduce the cost and complexity of integrating different securities lending platforms and workflows.
FIX said a common protocol should also improve operational resilience and make it easier for firms to connect to new venues and trading protocols as securities lending becomes increasingly electronic, while providing a foundation for further market structure and workflow innovation.
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