By Scott Atwell, Manager FIX Trading and Connectivity, American Century Investments.
The benefits of increasing the use of FIX for allocations and confirmations include efficiency gains, improved straight-through processing, and quicker identification of issues, all of which provide significant risk reduction and cost savings. We have approximately 20 brokers that support this. The key measuring stick for us is, of all the confirms that we have, what percentage of those have moved to this automated matching solution. For American Century, we have had over 75% of our confirm flow via FIX during the last eight months. If you are a buy-side firm thinking about trying to implement this flow, you can be successful, because all the major sell-side firms support this. And because they have already implemented this, they are eager to use and provide that for other buy-side firms.