Allocations

, ,
1

Imported from previous forum

2

Hi All,

How do we decide whether to do allocations based on average price or on execution price?

thanks,
ashwini

3

It’s a market practice (business) issue. Certain markets require executed price allocation. Some that I am aware of are: Japan for Japanese institutions (non-Japanese are AvgPx), I’ve heard Brazil for Brazilian institutions, and I believe Korea, Poland, and Egypt for all institutions. The driving force behind adding support for executed price allocations in 4.2 was by our local Japanese FIX contingent for their market. It does have applicability outside of Japan, however, most of the worldwide equity markets are AvgPx.

[Disclaimer: I do not claim to be correct or an expert in market practice rules]

> Hi All,
>
> How do we decide whether to do allocations based on average price or on execution price?
>
> thanks,
> ashwini
>