Market Identification Code(MIC) Module Research

The Market Identifier Code (MIC) (ISO 10383) is a unique identification code used to identify securities trading exchanges, regulated and non-regulated trading markets. The MIC is a four alphanumeric character code, and is defined in ISO 10383[1] by the International Organization for Standardization (ISO).[2] For example, the US NASDAQ market is identified by MIC code XNAS.

sample here https://www.onixs.biz/fix-dictionary/4.4/app_6_c.html

In a blockchain-based MIC, can centralized authority (ISO) be responsibe for assigning MIC? Yes, it is possible for a centralized authority like the International Organization for Standardization (ISO) to be responsible for assigning MICs in a blockchain-based FIX protocol implementation.

The ISO is responsible for maintaining various standards, including financial instrument codes such as the Market Identifier Code (MIC). The MIC is used to identify trading venues such as exchanges, multilateral trading facilities, and systematic internalizers. ISO 10383 is the international standard that defines the MIC and provides a list of codes for various trading venues.

In a blockchain-based FIX protocol implementation, the ISO could continue to be responsible for maintaining the list of MICs and assigning new codes as needed. This would ensure consistency and standardization across different blockchain-based implementations and make it easier for market participants to identify trading venues across different platforms.

The blockchain-based FIX protocol could then use the ISO-assigned MICs in their messaging system to identify the relevant trading venue for each transaction. This approach would provide a centralized source of authority for assigning MICs while still leveraging the benefits of a decentralized blockchain-based system for processing and verifying transactions.

Why is MIC module needed? Some of the FIX Message such as Quote and Market Data Request requires MIC as part of the field, this means that users of Re when intending to send Quote or Market Data Request would make use of the MIC module.

The Market Identifier Code (MIC) is a four-letter code used to identify a trading market or exchange. In a blockchain-based implementation, creating a MIC would typically involve defining certain fields to ensure consistency and standardization across the platform. Some possible fields that could be included in creating a MIC on a blockchain are:

1.Market Operator Identifier: A unique identifier assigned to the market operator by the regulatory authority or a market identifier code organization. 2.Trading Venue Identifier: A unique identifier assigned to the trading venue by the market operator or a market identifier code organization. 3.Instrument Code: A code used to identify the financial instrument being traded, such as a stock, bond, or derivative. 4. MIC Market Segment Identifier: A code used to identify the specific segment of the market where the instrument is traded, such as equities, fixed income, or options. 5.Name: A descriptive name for the market or exchange being identified by the MIC. 6.Location: The geographic location of the market or exchange. 7.Asset Class: The type of financial instruments being traded on the market or exchange. 8.Currency: The currency used for trading on the market or exchange. 9.Regulatory Authority: The regulatory authority responsible for overseeing the market or exchange. 10. Status: The current status of the market or exchange (e.g. active, inactive, suspended). 11. Unique Identifier: A unique identifier that is assigned to the market or exchange and used in conjunction with the MIC

The Market Operator Identifier (MOI), Trading Venue Identifier (TVI), Instrument Code, and Market Segment Identifier together make up one Market Identification Code (MIC).

The MIC is a standardized code used to identify financial markets, trading venues, and financial instruments. It is typically composed of a four-letter code that includes the MOI, TVI, Instrument Code, and Market Segment Identifier in a specific order.

The MOI identifies the market operator responsible for the trading venue, the TVI identifies the specific trading venue, the Instrument Code identifies the financial instrument being traded, and the Market Segment Identifier identifies the specific segment of the market where the instrument is traded.

By combining these identifiers in a standardized way, the MIC provides a unique code that can be used to identify and distinguish different markets, trading venues, and financial instruments in a consistent and globally recognized manner.

By defining these fields, a standardized approach can be established for creating MICs on a blockchain-based FIX protocol implementation, which can improve interoperability, consistency, and transparency across the platform.

Transparency: The use of MICs on a blockchain-based FIX protocol implementation can enhance transparency and traceability in financial transactions. As MICs are assigned to specific trading venues, it becomes easier for market participants to identify where a trade was executed, which can help to mitigate disputes and improve the overall integrity of the financial system.

Standardization: By leveraging the existing standardization of MICs, a blockchain-based FIX protocol implementation can provide consistency and interoperability across different trading platforms. This standardization can simplify the process of identifying trading venues across multiple systems, improving efficiency and reducing the potential for errors.

Decentralization: The decentralized nature of a blockchain-based FIX protocol implementation can reduce the potential for fraud, hacking, or other malicious activities. As transactions are recorded and verified by multiple parties on the network, it becomes more difficult for any one party to manipulate or corrupt the system.

Efficiency: The use of MICs on a blockchain-based FIX protocol implementation can enhance efficiency in financial transactions. As trading venues are identified more quickly and accurately, transactions can be processed more quickly and with less manual intervention, reducing the potential for errors and improving overall speed.

Compliance: The use of MICs on a blockchain-based FIX protocol implementation can aid in regulatory compliance. As MICs are assigned to specific trading venues, it becomes easier for regulators to identify where a trade was executed, which can help to ensure that transactions are in compliance with applicable regulations.

Overall, the use of MICs on a blockchain-based FIX protocol implementation can improve transparency, standardization, efficiency, compliance, and security in financial transactions, providing a range of potential benefits for market participants and regulators alike.

Does all users of FIX protocol compulsorily have a market identification code? No, not all users of the FIX protocol are required to have a Market Identification Code (MIC). A MIC is a unique identifier code used to identify trading venues, regulated markets, and other entities involved in financial transactions. While some users of the FIX protocol, such as trading venues or brokers, may be required to have a MIC, others may not need one depending on their role in the financial ecosystem. For example, if you are using the FIX protocol to connect to a broker or trading venue that has a MIC, you may not need to have your own MIC. However, if you are a market maker or a trading platform, you may be required to have a MIC.

what are the components of MIC module

1. RegisterMIC - for registering MIC details on the blockchain from ISO
2. UpdateMIC - for updating MIC
3. DeleteMIC - for removing MIC

Frequently asked Questions Here https://www.iso20022.org/sites/default/files/media/file/FAQ_ISO_10383_January2023.pdf

list of Market Identifier Codes https://www.iso20022.org/sites/default/files/ISO10383_MIC/ISO10383_MIC.pdf