Imported from previous forum
Hi,
We have a client that trades on multiple exchanges. Now the client has started sending in dually listed identifiers.
Sales is wary or speaking to the client and asking to send them 207/100 to identify the destination of the order.
We noticed that client sends sedols for Europe and cusips for US. Is this something that could be used to route orders, or is someone using anything like this? If not, any other suggestions ? Appreciate the help…
PS: Client does send in tag 15, but that is not an option as GDRs are a problem then…
You could have a products database where you could store the sedols/cusipds for each instrument and map it to either a primary exchange or all exchanges where that instrument is traded.
It would be best if clients can send 207/100, if not, you could always query your products database and populate destination. The only thing you might want to get information on is how do you know when to route client’s order to a primary exchange and when to route it to an alternate exchange. May be clients can send it on a separate tag, may be you could find that out based on some other fields on the message and applying some rules!
Cheers!
Hi,
We have a client that trades on multiple exchanges. Now the client has
started sending in dually listed identifiers.Sales is wary or speaking to the client and asking to send them 207/100
to identify the destination of the order.We noticed that client sends sedols for Europe and cusips for US. Is
this something that could be used to route orders, or is someone
using anything like this? If not, any other suggestions ? Appreciate
the help…PS: Client does send in tag 15, but that is not an option as GDRs are a
problem then…
[ original email was from Rikard Hedberg - rikard.hedberg@omxgroup.com ]
Aditya,
you should preferrably use ExDestination (100) for routing purposes. The SecurityExchange (207) is needed as a qualifier for the Symbol (55) (or other Security ID) in cases where the same symbol/securityID value represents different securities at various markets. The primary listed exchange is generally what you are expected to enter into the 207 field in those cases.
Regards
Rikard
Hi,
We have a client that trades on multiple exchanges. Now the client has
started sending in dually listed identifiers.Sales is wary or speaking to the client and asking to send them 207/100
to identify the destination of the order.We noticed that client sends sedols for Europe and cusips for US. Is
this something that could be used to route orders, or is someone
using anything like this? If not, any other suggestions ? Appreciate
the help…PS: Client does send in tag 15, but that is not an option as GDRs are a
problem then…
Are you sure that the client does not mind where you route the order to, in case of multiple listings? Liquidity is probably quite different, leading to different qualities of execution. This should be a good rationale to convince your client of the benefits of a little extra work (and following best practices as described by Rikard in his posting).
Regards,
Hanno.
Hi,
We have a client that trades on multiple exchanges. Now the client has
started sending in dually listed identifiers.Sales is wary or speaking to the client and asking to send them 207/100
to identify the destination of the order.We noticed that client sends sedols for Europe and cusips for US. Is
this something that could be used to route orders, or is someone
using anything like this? If not, any other suggestions ? Appreciate
the help…PS: Client does send in tag 15, but that is not an option as GDRs are a
problem then…
[ original email was from John Greenan - john.greenan@alignment-systems.com ]
Setting aside the US for one moment, you refer to Sedols in Europe.
If you look at http://www.londonstockexchange.com/NR/rdonlyres/2698BDEE-8D1E-489E-AECB-956528801AD0/0/SedolMasterfile.pdf does that cover the situation?
So right now for pretty much all cases you can default the exchange from the Sedol. Can you give a specific example sedol where this is causing a problem?
Hi,
We have a client that trades on multiple exchanges. Now the client has
started sending in dually listed identifiers.Sales is wary or speaking to the client and asking to send them 207/100
to identify the destination of the order.We noticed that client sends sedols for Europe and cusips for US. Is
this something that could be used to route orders, or is someone
using anything like this? If not, any other suggestions ? Appreciate
the help…PS: Client does send in tag 15, but that is not an option as GDRs are a
problem then…
[ original email was from Andrew Scott - ascott@latentzero.com ]
Hi there,
Dual listed securities will not be a problem with sedols as they are an OPOL level identifier. They will of course be much more of a problem with CUSIPs, which are issue level.
If a product lookup is not going to be practical, then what you could try, if you are sure that European orders are always sent with a sedol, and US orders with a CUSIP, is to route on desk by 22 IDSource, where 22 = 1 routes to your US desk, and 22 = 2 to your European desk.
Another workaround for cash / care orders is, where more than one row is returned from your security master on a product lookup, have the order stop with the sales trader with an alert so the client’s dealer can be contacted to resolve the listing.
Maybe the client will then see the value of supplying destination / listing information with the order.
Hope that helps!
Hi,
We have a client that trades on multiple exchanges. Now the client has
started sending in dually listed identifiers.Sales is wary or speaking to the client and asking to send them 207/100
to identify the destination of the order.We noticed that client sends sedols for Europe and cusips for US. Is
this something that could be used to route orders, or is someone
using anything like this? If not, any other suggestions ? Appreciate
the help…PS: Client does send in tag 15, but that is not an option as GDRs are a
problem then…
Hi Andrew - that was helpful. Probably not possible with the current infra. but good solution neverthless…
[ original email was from George Brisco - george.brisco@trialius.com ]
Hi Aditya,
The fundamental question here is “What is the client expecting you to do”
From your post you infer that when they send sedols they want european exchanges, and when they send cusips they want US exchanges. This may well be correct, and whilst far from ideal, I have seen worse ways of distinguishing orders.
As people elsewhere in the thread have indicated, it is possible to find the “primary exchange” for a particular SEDOL. That might well be the correct thing to do.
The important thing is to make sure that the client know what you ARE going to do. Having an “undocumented” rule that says “SEDOLS->EUROPE, CUSIPS-> US” is just going to come back and bite you in the behind some day.
Personally, I would explain to sales that there is a risk that if left unchecked an order will get routed to somewhere with limited liquidity, that the client will therefore fail to get best execution, and will then be mighty unhappy. It is probably the matter of a moment to clear this up with them.
George
Hi,
We have a client that trades on multiple exchanges. Now the client has
started sending in dually listed identifiers.Sales is wary or speaking to the client and asking to send them 207/100
to identify the destination of the order.We noticed that client sends sedols for Europe and cusips for US. Is
this something that could be used to route orders, or is someone
using anything like this? If not, any other suggestions ? Appreciate
the help…PS: Client does send in tag 15, but that is not an option as GDRs are a
problem then…