MCP as a Trading Layer

In 2022, When I began working on the FIX Gateway and later the Market Data Feed for a trading engine, the AI product hype was just kicking off. Later, I couldn’t help but wonder how AI or AI agents might play a role in this highly regulated industry.

• FIX (Financial Information Exchange Protocol)
• MCP (Open AI Context Protocol)

Now I can say we’ll likely see a Trading AI agent soon. It’ll be a game-changer for the both trading and AI agent industry.

MCP as an AI Integration Layer

It complements the existing FIX infrastructure, allowing an AI to manage trading workflows without disrupting low-level exchange connectivity. FIX remains the trading backbone, while MCP empowers the AI to act as the "brain".

How It Works

- Build an FIX Gateway MCP server for the FIX Gateway to expose order and trade data while accepting AI commands (e.g., “buy 100 Siemens shares” translates to a FIX 35=D message).

- Build an MCP server for the Market Service to stream real-time market data (e.g., Xetra prices) to the AI.

Example Workflow

- Market Service MCP server: “DAX down 1%, Siemens at €145.”

- Analyzes the data and decides to buy.

- FIX Gateway MCP server receives the AI command, sends a FIX order to Xetra Exchange.

- Xetra Exchange executes the trade, sends confirmation via FIX → MCP → AI.

Technical Flow

• Market Service → MCP Server → AI (Data Input)
• AI → MCP Server → FIX Gateway → Exchange (Trade Execution)
• Exchange → FIX Gateway → MCP Server → AI (Execution Confirmation)

How MCP Fits In

MCP as the AI Integration Layer

MCP creates "MCP servers" (standardized endpoints) for FIX Gateway, Market Service, and external data sources. These servers expose their data and functionality to an AI in a uniform way. The AI doesn’t need custom code to talk to each system. MCP abstracts the complexity of FIX messages and market data formats into a simple, AI-friendly interface.

AI Managing FIX and Market Data

An AI to monitor the stock market, detect arbitrage opportunities, and execute trades via FIX Gateway.

Bridging FIX and MCP

FIX Gateway continues to handle low-level exchange communication (e.g., FIX 4.2 or 5.0 messages). MCP doesn’t touch this—it sits above it.

Managing the Exchange Connection

FIX Gateway already connects to the exchange (e.g., Xetra via FIX), MCP doesn’t interfere—it leverages that connection. The AI uses MCP to instruct the Gateway rather than speaking FIX directly.

Outcome

AI-driven trading system that leverages FIX expertise while adding MCP’s AI integration power.