[This message was posted by Richard Labs of CL&B Capital Management, LLC 
<[EMAIL PROTECTED]> to the "Algorithmic Trading" discussion forum at 
http://fixprotocol.org/discuss/31. You can reply to it on-line at 
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> How can I thank you Rick? Thank you so very very much :)

Srihari,

Don't thank me. Thank the founders of FIX for having the foresight to put the 
following sentences into FIX's foundation trust indenture that are indeed 
brilliant:

***

FIX Protocol is open and free, but is not software. Rather, FIX is a 
specification which software developers can create commercial or open-source 
software, as they see fit.

Purposes ... to insure that the FIX Protocol remains without charge to any 
person (whether involved in the provision of financial services or member of 
the general public) and that it is managed by an open vendor-neutral process.

***

My wish for you would be that you consider doing some of your academic work in 
well documented, open source code, and that others after you might benift from 
it. I'm not suggesting you give away any trading secrets or proprietary know 
how, just that you consider sharing the basics with everone. Prior to writing 
code, try to look at what others have done in open source or open standards, 
perhaps you are just duplicating others good work? That's fine if you are just 
learning, however if you can refactor other open source code to suit your own 
purposes, and keep it very well documented and up to date, perhaps others might 
benefit too? They might stand on your shoulders. 

Later on, if you continue in this career direction perhaps you will find time 
to donate to FIX to work on one of the numerous committees helping to support 
and refine the protocol. You don't have to be a paid member to participate. 
It's hard work however, because informed technical consensus does not come 
easy. It takes time and effort. 

How is it that something that's given away free is so valuable? It's because so 
many people contributed their time and best thinking to it, and insured that it 
was developed and maintained in a "vendor-neutral process". Then they gave it 
away for free. 

If the entire world's financial capital could move around to the very best 
opportunities with less friction, perhaps it might be possible earn 5 bp more 
per year in aggregate. Ask yourself if you think that might be feasible? Using 
good, clean, efficient trading standards, would 5 bp more return be a 
possibility? 

FIX goes into emerging markets absolutely for free. They get to start right off 
the bat at the highest level. No need to "accumulate know how" gradually over 
time, like accumulating roads, bridges, ports and transportation infrastructure 
- start right out with the very best stuff on day one, just as soon as they are 
ready for access to worldwide capital. 

Remember too what 5 bp more return on capital means for labor. You don't have a 
5 bp bump up in aggregate return on capital without also having a corresponding 
bump up in the return to labor. Best of all labor probably didn't have to work 
any harder or become more productive - the capital was what picked up the pace. 

Bottom line, trading standards can provide a very nice boost to worldwide 
wealth. While that alone won't solve natural resource constraints, polution, 
health care, poverty, distribution inequity, political instability and other 
world wide problems, at least it increases wealth that can pay for some of 
those things. 

I'm convinced that wide adoption of FIX and continuous improvements to it could 
indeed yield that 5 bp. If you get a chance and would like to help out in that 
effort I think you too would find it intrinsically rewarding.  

Rick 

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