Imported from previous forum
[ original email was from Jean Francois TREGUIER - scpjft@hotmail.com ]
Hello,
I would ask the FIX comunity the following questions about the advertisement message ?
-
During a FIX session when is this message submitted ?
-
Is this message type mandatory for a complete execution?
-
In which order is this message submitted, in comparison whith execution messages.
-
From which side is it submitted ?
Thank’s in advance
Regards, JF
The Advertisement message (commonly referred to as "Trade Advertisement) is sent by the sellside. It is not mandatory. It differs from an IOI in that it is used by the broker to communicate completed trading blocks for a stock vs. an IOI communicating the immediate opportunity (e.g. customer on the other side) to buy/sell the security. Trade Advertisements can be sent at any time (not tied to any specific message flow) and often are sent at intervals representing groups or chunks of completed trades vs. sending one for each and every trade reported to the tape. Buyside firms often look at trade advertisements to see which broker “has the axe in the name” (has already traded large chunks of the security and might have better access to additional supply). Within the industry there are also several commercial systems which brokers often report trade advertisements to. One reason for this is that a broker’s history of trade advertisements, for example within a particular country, is often used by issuing companies when they consider which firms to involve in their IPOs.
> Hello,
>
> I would ask the FIX comunity the following questions about the advertisement message ?
>
> - During a FIX session when is this message submitted ?
>
> - Is this message type mandatory for a complete execution?
>
> - In which order is this message submitted, in comparison whith execution messages.
>
> - From which side is it submitted ?
>
>
> Thank’s in advance
>
> Regards, JF
>
[ original email was from Gordon Mitchell - gordon.mitchell@reuters.com ]
The comment about buyside firms often looking at Adverts to see who "has the axe in the name" suggests brokers generally target Adverts at more than just their immediate customer.
With FIX 4.2 IOI’s can use lists for multiple target distribution. Adverts seem to have a similar requirement, how does the industry typically implement this functionality for Adverts given that lists are not available? Am I right in thinking multiple messages are issued?
Tks, G
> The Advertisement message (commonly referred to as "Trade Advertisement) is sent by the sellside. It is not mandatory. It differs from an IOI in that it is used by the broker to communicate completed trading blocks for a stock vs. an IOI communicating the immediate opportunity (e.g. customer on the other side) to buy/sell the security. Trade Advertisements can be sent at any time (not tied to any specific message flow) and often are sent at intervals representing groups or chunks of completed trades vs. sending one for each and every trade reported to the tape. Buyside firms often look at trade advertisements to see which broker “has the axe in the name” (has already traded large chunks of the security and might have better access to additional supply). Within the industry there are also several commercial systems which brokers often report trade advertisements to. One reason for this is that a broker’s history of trade advertisements, for example within a particular country, is often used by issuing companies when they consider which firms to involve in their IPOs.
>
>
> > Hello,
> >
> > I would ask the FIX comunity the following questions about the advertisement message ?
> >
> > - During a FIX session when is this message submitted ?
> >
> > - Is this message type mandatory for a complete execution?
> >
> > - In which order is this message submitted, in comparison whith execution messages.
> >
> > - From which side is it submitted ?
> >
> >
> > Thank’s in advance
> >
> > Regards, JF
> >
>
[ original email was from Gordon Mitchell - gordon.mitchell@reuters.com ]
The comment about buyside firms often looking at Adverts to see who "has the axe in the name" suggests brokers generally target Adverts at more than just their immediate customer.
With FIX 4.2 IOI’s can use lists for multiple target distribution. Adverts seem to have a similar requirement, how does the industry typically implement this functionality for Adverts given that lists are not available? Am I right in thinking multiple messages are issued?
Tks, G
> The Advertisement message (commonly referred to as "Trade Advertisement) is sent by the sellside. It is not mandatory. It differs from an IOI in that it is used by the broker to communicate completed trading blocks for a stock vs. an IOI communicating the immediate opportunity (e.g. customer on the other side) to buy/sell the security. Trade Advertisements can be sent at any time (not tied to any specific message flow) and often are sent at intervals representing groups or chunks of completed trades vs. sending one for each and every trade reported to the tape. Buyside firms often look at trade advertisements to see which broker “has the axe in the name” (has already traded large chunks of the security and might have better access to additional supply). Within the industry there are also several commercial systems which brokers often report trade advertisements to. One reason for this is that a broker’s history of trade advertisements, for example within a particular country, is often used by issuing companies when they consider which firms to involve in their IPOs.
>
>
> > Hello,
> >
> > I would ask the FIX comunity the following questions about the advertisement message ?
> >
> > - During a FIX session when is this message submitted ?
> >
> > - Is this message type mandatory for a complete execution?
> >
> > - In which order is this message submitted, in comparison whith execution messages.
> >
> > - From which side is it submitted ?
> >
> >
> > Thank’s in advance
> >
> > Regards, JF
> >
>
[ original email was from Witold Sames - witold@javtech.com ]
If you look at some systems, such as Autex or Bloomberg, you will see that in many cases Advertisements are not targeted at all, meaning that they are intended to be distributed by that system to all subscribers. The idea behind a trade advertisements is just that, advertising. The greater the audience, the better. As a broker, I want "the world" to know that I am the one swinging the axe, so they can call me instead of someone that is merely handling kitchen knives, to stay with the metaphor.
>
> The comment about buyside firms often looking at Adverts to see who “has the axe in the name” suggests brokers generally target Adverts at more than just their immediate customer.
>
> With FIX 4.2 IOI’s can use lists for multiple target distribution. Adverts seem to have a similar requirement, how does the industry typically implement this functionality for Adverts given that lists are not available? Am I right in thinking multiple messages are issued?
>
> Tks, G
>
> > The Advertisement message (commonly referred to as "Trade Advertisement) is sent by the sellside. It is not mandatory. It differs from an IOI in that it is used by the broker to communicate completed trading blocks for a stock vs. an IOI communicating the immediate opportunity (e.g. customer on the other side) to buy/sell the security. Trade Advertisements can be sent at any time (not tied to any specific message flow) and often are sent at intervals representing groups or chunks of completed trades vs. sending one for each and every trade reported to the tape. Buyside firms often look at trade advertisements to see which broker “has the axe in the name” (has already traded large chunks of the security and might have better access to additional supply). Within the industry there are also several commercial systems which brokers often report trade advertisements to. One reason for this is that a broker’s history of trade advertisements, for example within a particular country, is often used by issuing companies when they consider which firms to involve in their IPOs.
> >
> >
> > > Hello,
> > >
> > > I would ask the FIX comunity the following questions about the advertisement message ?
> > >
> > > - During a FIX session when is this message submitted ?
> > >
> > > - Is this message type mandatory for a complete execution?
> > >
> > > - In which order is this message submitted, in comparison whith execution messages.
> > >
> > > - From which side is it submitted ?
> > >
> > >
> > > Thank’s in advance
> > >
> > > Regards, JF
> > >
> >
>