Easy to Borrow

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Imported from previous forum

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I am looking to implement an “Easy to Borrow” functionality in FiX. Would anyone with experience with this be able to point me in the right direction for getting started?
Thanks

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To specify the lender for a security, generally needed when a security is not considered easy-to-borrow, you can use the Party groups that were defined starting with FIX 4.3. You specify a count of the number of parties, then each party’s role, id and idsource. So, if you were indicating that broker with a mnemonic of ABCD was your lender, you’d say:

453 (NoPartyIDs) = 1
448 (PartyID) = ABCD
447 (PartyIDSource) C (generally accepted market participant identifier)
452 (PartyRole) = 8 (locate/lending firm)

David Rhodes
TransactTools

I am looking to implement an “Easy to Borrow” functionality in FiX.
Would anyone with experience with this be able to point me in the right
direction for getting started? Thanks

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[ original email was from Eric Gottesman - egottesman@jefexservices.com ]
> I am looking to implement an “Easy to Borrow” functionality in FiX.

Would anyone with experience with this be able to point me in the right
direction for getting started? Thanks

Or, for FIX.4.2 or prior, to specify the lender for a security, generally needed when a security is not considered easy-to-borrow, and the customer is not a B/D, you can use the user defined tags 5700 (LendingBroker) and optionally 5701 (LocateID).
So, if you were indicating that broker with a mnemonic of ABCD was your lender and lender gave you a locate id of 1234, you’d specify:
14=N 5700=ABCD 5701=1234

Regards,

Eric Gottesman
Jefferies Execution Services

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[ original email was from Ryan Pierce - rpierce@taltrade.com ]
> I am looking to implement an “Easy to Borrow” functionality in FiX.

Would anyone with experience with this be able to point me in the right
direction for getting started? Thanks

Are you talking about allowing one party to transmit a whole list of easy to borrow symbols within a FIX session? I don’t believe that functionality is currently supported in the protocol. It is also something that is already done out of band; a lot of firms will, for example, FTP a file each morning.

Reg SHO puts some big demands on firms to receive an affirmative locate on a lot of securities prior to shorting them. I’ve heard talk in the past about adding a “Security Locate Request” and “Security Locate Response” to the protocol, so a broker may, for example, ask their clearing firm for a locate via FIX, get a realtime response, and then transmit an order to an ECN or exchange specifying the locate firm and ID in the Parties block as David Rhodes has mentioned, or via the proprietary tags 5700 and 5701 as Eric Gottesman mentioned. I’m not sure of the status of realtime security location in FIX.