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Concepts

Authentication​

Verifying user identity to ensure only authorized entities access the ABX FIX system. In FIX, authentication is done through X.509 certificates, along with username and password, to initiate secure sessions.

Authorization​

Role-based permissions assigned within the ABX FIX system. Permissions define the level of access users have, such as viewing market data or executing trades, based on their assigned roles.

Base Currency​

The first currency listed in a currency pair, indicating the currency being bought or sold in a trade. For example, in USD/KES, USD is the base currency.

Beneficiary​

The recipient of funds in a cross-border payment. The beneficiary’s details, including bank information, are specified in payment instructions.

Currency Pair​

A combination of two currencies for exchange, representing the relative value of one against the other. In USD/KES, USD is the base, and KES is the quote currency.

Execution Report (FIX)​

A message (MsgType: 8) providing detailed updates on order status, from initiation through to completion, allowing clients to track the trade’s lifecycle.

Fill or Kill (FoK) Order​

An order requiring immediate execution in its entirety. If the full quantity can’t be filled instantly, the order is canceled.

FIX Protocol​

An industry-standard messaging protocol for real-time electronic communication of financial data, used for executing trades and transmitting payment information. ABX’s FIX implementation ensures secure, reliable exchanges between financial institutions.

Heartbeat (FIX)​

A message (MsgType: 0) exchanged between FIX systems to maintain connection stability. It identifies dropped connections and helps re-establish sessions.

IBAN (International Bank Account Number)​

A standardized identifier used internationally for bank accounts, essential for correct cross-border fund transfers.

Liquidity Provider​

A financial institution offering quotes (prices) for currency pairs, enabling FX transactions. Liquidity providers respond to RFQs with current buy and sell rates.

Logon (FIX)​

An initial FIX message (MsgType: A) that establishes a secure session with ABX’s FIX gateway using the X.509 certificate, username, and password.

Market Data​

Real-time data on currency prices, exchange rates, and liquidity conditions. Market data provides insight for informed trading and is essential for evaluating currency pair trends.

Order Management (FIX)​

Managing trade orders within the ABX FIX system, from initiation to execution or cancellation. Messages like New Order Single (MsgType: D) facilitate handling market and limit orders.

Payment Instructions​

Instructions for cross-border payments, detailing how funds should be transferred to the beneficiary. Payment instructions include account information, IBAN, SWIFT/BIC codes, and other details necessary for accurate payment routing.

Quote​

A currency exchange rate offered by a liquidity provider, specifying the buy and sell rates for a currency pair. A quote’s details include the rate, provider, and expiration time.

Request for Quote (RFQ)​

A request submitted by clients to liquidity providers to obtain real-time pricing for a specified currency pair. Multiple providers respond to the RFQ, allowing the client to choose the best quote.

Role-Based Access Control (RBAC)​

Access permissions assigned to users within the ABX FIX system based on their roles. For example, users in a trading role can view and execute trades, while others may have view- only access to market data.

Session Management (FIX)​

Mechanisms ensuring stable and secure FIX connections, including Heartbeat (MsgType: 0) and Sequence Reset (MsgType: 4) messages to detect errors, re-sync, or recover connections.

SWIFT/BIC Code​

A unique identifier for financial institutions used in international payments to route funds accurately across borders.

Trade Execution​

Completing a trade based on an accepted quote. In FIX, execution signifies the finalized exchange of currencies between buyer and seller.

X.509 Certificate (FIX)​

A digital certificate used to authenticate users on the ABX FIX gateway. It ensures secure, trusted communication, essential for financial data integrity and security.