Drop-copies replace versus restatement

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Imported from previous forum

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[ original email was from Greg Wood - gregjwood@hotmail.com ]
Hi,

I’m looking for advice on best practice for NOEs/drop-copies.

If a client is using a broker-provided application to place/amend/cancel orders and they also receive drop-copies via FIX 4.2, what is the street practice for sending messages to acknowledge the replace of an order ?

Since the replace is unsolicited in a FIX sense, it should probably be treated as a restatement (ExecType=D). However it is actually solicited by the client through the application - just not via FIX - in which case it seems logical to provide ExecType=5 in the drop-copy.

Thanks,

  • Greg
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[ original email was from Andrew Scott - ascott@latentzero.com ]
> Hi,

I’m looking for advice on best practice for NOEs/drop-copies.

If a client is using a broker-provided application to place/amend/cancel
orders and they also receive drop-copies via FIX 4.2, what is the street
practice for sending messages to acknowledge the replace of an order ?

Since the replace is unsolicited in a FIX sense, it should probably be
treated as a restatement (ExecType=D). However it is actually
solicited by the client through the application - just not via FIX - in
which case it seems logical to provide ExecType=5 in the drop-copy.

Thanks,

  • Greg

Greg,

I think you would be best advised to be as flexible as possible and support both 150 ExecType = 5 [Replaced] and 150 ExecType = D [Restated], and make this a counterparty configuration on your application.

This will give you the best chance of supporting diverse implementations upstream in the market place.

Hope this helps,

Andrew

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[ original email was from Kevin M. Young - kmy@capgroup.com ]
In practice, I have only seen ExecType=5 which I would think works with most client OMS integrations. I have seen instances where some clients want the Ack, and other clients who just want the fill/partial fill execution report. If your clients are receiving an Ack and generating a placeholder/unsolicited OMS order, then they generally need ExecType=5 to keep a good audit trail of the state of the order. If your customer’s OMS supports the replace of a fully filled order, then I could see how ExecType=D might be a better fit for that situation, but I would say your client would also support ExecType=5 in those cases too.

Hi,

I’m looking for advice on best practice for NOEs/drop-copies.

If a client is using a broker-provided application to place/amend/cancel
orders and they also receive drop-copies via FIX 4.2, what is the street
practice for sending messages to acknowledge the replace of an order ?

Since the replace is unsolicited in a FIX sense, it should probably be
treated as a restatement (ExecType=D). However it is actually
solicited by the client through the application - just not via FIX - in
which case it seems logical to provide ExecType=5 in the drop-copy.

Thanks,

  • Greg