Friday, September 6, 2013

Linux networking basics for FIX Connections

Knowledge of networking basics are extremely important if you are dealing with FIX connection , FIX stands for Financial Information Exchange protocol and its the most popular protocol for electronic trading and supported by many brokers , exchanges etc.

  I would like discuss few important network related information which is quite useful for FIX connection establishment.


VPN (Virtual Private Network)

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VPN uses a technique known as tunneling to transfer data securely on the Internet to a remote server on your workplace network. Using a VPN helps you save money by using the public Internet instead of using costlier leased lines. VPN provides security at network layer unlike HTTPS which provide security at application layer.
most of clients and broker used VPN to connect there FIX Engines and allow trading.

before setup of VPN some contracts needs to be sorted out by both party
e.g.
1) Encryption key
2) Protocol used
3) VPN Connector IP

once your VPN connection got setup you can connect to your brokers trading system on there respective IP/Port.

DMZ (Demilitarized Zone)
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Its host on any network which is used to connect Corporate network to public network e.g. external exchange connection.
Firewall rules are relaxed for this zone , also if security of DMZ is compromised then also intruder won’t get access to corporate network.

Normally client connection or exchange/broker connection originates and terminates in DMZ.

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