Allocation Cancel/Replace Requests

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Imported from previous forum

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Hi,

Can somebody please tell me if the following procedure for handling cancel or replace requests for buyside initiated Allocations is correct?

Allocation ID=1 is received from the buyside and accepted.
A cancel or replace request is recevied from the buyside, which is rejected by the sellside. Would you expect the original Allocation ID=1 to remain valid?

Thanks

Simon

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[ original email was from Alvin Mullan - alvin.mullan@ubs.com ]
Simon,

First the long answer.

Buy-side sends:
AllocID = 1, AllocTransType = 0 (New).
Sell-side responds:

  • Alloc Ack, AllocStatus = 3 (Received).
  • Alloc Ack, AllocStatus = 0 (Accepted).

Then buy-side sends cancel (or replace):
AllocID = 2, RefAllocID = 1, AllocTransType = 2 (Cancel).
Sell-side responds:

  • Alloc Ack, AllocStatus = 3 (Received).
  • Alloc Ack, AllocStatus = 1 (Rejected) - e.g. “Too late to cancel”.

Then the Allocation on ID = 1 is still valid and is possibly now being settled.

If the cancel is sent before the broker sends the second Alloc Ack message on AllocID =1, and the cancel is rejected, then the AllocID = 1 is still active. But what scenarios would need a rejected? bad message or invalid RefAllocID are the obvious.

The short answer? Yes.

Hope this helps.

Regards,
Alvin

Hi,

Can somebody please tell me if the following procedure for handling
cancel or replace requests for buyside initiated Allocations is correct?

Allocation ID=1 is received from the buyside and accepted. A cancel or
replace request is recevied from the buyside, which is rejected by the
sellside. Would you expect the original Allocation ID=1 to remain valid?

Thanks

Simon