Cancel vs Cancel/Replace

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1

Imported from previous forum

2

I need some clarification regarding what the suggested sequence of messages is for the following condition.

A new order is entered for 10,000 shares
A partial fill is done for 4000 shares
The owner of the order wishes to reduce the order quantity to 4000 i.e. consider it completely filled
Should a Cancel for the remaining quantity be sent or a Cancel and replace for a quantity of 4000.

Rgds
Wasil Husain
Credit Lyonnais Securities

3

It would be better to issue a Cancel request to cancel the balance outstanding especially since it is possible an additional fill could take place while attempting to cancel.

> I need some clarification regarding what the suggested sequence of messages is for the following condition.
>
> A new order is entered for 10,000 shares
> A partial fill is done for 4000 shares
> The owner of the order wishes to reduce the order quantity to 4000 i.e. consider it completely filled
> Should a Cancel for the remaining quantity be sent or a Cancel and replace for a quantity of 4000.
>
> Rgds
> Wasil Husain
> Credit Lyonnais Securities
>

4

[ original email was from John Armstrong - johna@ms.com ]
Either could happen in normal situations. If
the customer knows he’s filled on 4K, then
he would probably issue a cancel. But it is
also possible that he wants to reduce to 4K
but doesn’t yet know that he is filled on 4K
so issues a cancel/replace to reduce to 4K.

A good question to ask is what should the appropriate response be to the latter case if the
order is already filled on 6K. Should it be a Replaced or a TLTC?

Since FIX cancel (and cancel/replaces) take a
"best effort/cancel balance" approach, my vote
would be a Cancelled(or Replaced).
Only if the request cannot be accomodated at all
should a TLTC be sent.

> It would be better to issue a Cancel request to cancel the balance outstanding especially since it is possible an additional fill could take place while attempting to cancel.
>
> > I need some clarification regarding what the suggested sequence of messages is for the following condition.
> >
> > A new order is entered for 10,000 shares
> > A partial fill is done for 4000 shares
> > The owner of the order wishes to reduce the order quantity to 4000 i.e. consider it completely filled
> > Should a Cancel for the remaining quantity be sent or a Cancel and replace for a quantity of 4000.
> >
> > Rgds
> > Wasil Husain
> > Credit Lyonnais Securities
> >
>