54=D Subscribe on IPO and/or CIV

1

Hi all,
Just came across this:

Document “IPO Recommended Practice/Guidelines” mentions "Side (54) in section 4.6 to be populated with “Buy” (1) when sending an order in a primary market environment during issuing processes.
According to FIXIMATE comment 54=D (Subscribe) is (not) restricted to (e.g.) CIV (Collective Investment Vehicles ?) and the opposite action to 54=E (Redeem) is also related to funds operating - my guess.

But would it also make sense/ would it be meaningful or allowed to use 54=D instead of 54=1 in an IPO processing ? Just to distinguish the order from a secondary market order or at least to prevent it from being routed to the secondary market after IPO closure and a missed unsolicited Cxl.

Thank you for a comment.
Ulrich

2

I was involved in producing that document, however, I am not fully aware of how broadly this is used, nor of variations in actual usage.

As I recall, I believe it was stated that way to support implementing on FIX 4.2 (Note that 54=D (Subscribe) was added in FIX 4.4). The IPO is, from the order sender’s perspective, a Buy order, in my view, though. Best to discuss with your counterparties.