Allocation doubts

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1

Imported from previous forum

2

I would like to clear some of my doubts.

  1. The allocation of shares to the account holder(s) can be done in
    a) average price or
    b) executed price.
    Then for eg.
    If the buy order was for 1000 shares and 500 shares got executed at 133 and 500 at 140
    and the shares have to be allocated to
    account_holder1 -600 shares and
    account_holder2 -400 shares
    The allotment has to be done by executed price. Which account holder gets the best price ?
    If possible kindly give the answer refering to the example above.

  2. How are allocation done for allocation transaction type (AllocTransType) other than new.

=>If possible please give a brief flow of infomation from when a order is recieved and it’s execution.
As in how allocation comes in picture.

Thanking u in anticipation
Ashwini.

3
  1. In your example the AllocAccount repeating group would have 4 entries:

#: AllocAccount; ExecPrice; AllocShares
1: account_holder1; 133; 300
2: account_holder2; 133; 200
3: account_holder1; 140; 300
4: account_holder2; 140; 200

(this assumes account_holder1 is 60% and account_holder2 is 40% of each print based upon their initial 600 vs. 400 composition of the original 1000)

Also please refer to Example 2-2 in Appendix K of FIX 4.2 spec.

  1. I do not understand this question. Please refer to Appendix K of the FIX 4.2 spec and see if this helps. Thanks.

> I would like to clear some of my doubts.
>
> 1) The allocation of shares to the account holder(s) can be done in
> a) average price or
> b) executed price.
> Then for eg.
> If the buy order was for 1000 shares and 500 shares got executed at 133 and 500 at 140
> and the shares have to be allocated to
> account_holder1 -600 shares and
> account_holder2 -400 shares
> The allotment has to be done by executed price. Which account holder gets the best price ?
> If possible kindly give the answer refering to the example above.
>
> 2) How are allocation done for allocation transaction type (AllocTransType) other than new.
>
> =>If possible please give a brief flow of infomation from when a order is recieved and it’s execution.
> As in how allocation comes in picture.
>
> Thanking u in anticipation
> Ashwini.
>
>
>
>