# Exchange Traded Options Strategies **URL:** \ **Category:** General Q&A\ **Tags:** general-qa, xid\_167901, imported\ **Created:** [November 23, 2009, 5:30pm UTC](https://forum.fixtrading.org/t/exchange-traded-options-strategies/4949 "2009-11-23T17:30:07Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![robertmitchell45](https://avatars.discourse-cdn.com/v4/letter/r/ec9cab/32.png) [@robertmitchell45](https://forum.fixtrading.org/u/robertmitchell45)\ **Post date:** [November 23, 2009, 5:30pm UTC](https://forum.fixtrading.org/t/exchange-traded-options-strategies/4949/1 "2009-11-23T17:30:07Z")
Imported from previous forum ---
**Author:** ![robertmitchell45](https://avatars.discourse-cdn.com/v4/letter/r/ec9cab/32.png) [@robertmitchell45](https://forum.fixtrading.org/u/robertmitchell45)\ **Post date:** [November 23, 2009, 5:30pm UTC](https://forum.fixtrading.org/t/exchange-traded-options-strategies/4949/2 "2009-11-23T17:30:07Z")
Hello, If I wanted to develop an exchange for options strategies, so you could buy and sell butterflys, straddles, etc. would I have participants use NewOrderSingle or NewOrderMultileg to trade my instruments? I’m going to return a SecurityList with a separate security for each options strategy I want to make a market for, so all the participant will have to specify is the contract (security id) and the price and the side. It doesn’t seem right to have them submit a NewOrderMultileg when they aren’t going to be specifying any leg information. Having said that, it doesn’t seem entirely correct to refer to a butterfly as a NewOrderSingle. Any help would be appreciated. Regards, ---
**Author:** ![robertmitchell45](https://avatars.discourse-cdn.com/v4/letter/r/ec9cab/32.png) [@robertmitchell45](https://forum.fixtrading.org/u/robertmitchell45)\ **Post date:** [November 23, 2009, 10:38pm UTC](https://forum.fixtrading.org/t/exchange-traded-options-strategies/4949/3 "2009-11-23T22:38:00Z")
I think my message is a bit of a mess. Paragraphs are your friend. Too bad there is no edit option on this fine message board 😉 Let’s say you are going to build a trading platform. The instruments will be equity calendar spreads. There will be 6 stocks and for each stock there will be 8 different spreads offered. Now I have 48 instruments, each of which represents a multileg strategy. But I’m going to return to the participants in my market a list of securities like this aapl\_buy\_jan200\_call\_sell\_dec200\_call, etc. So my question is, when I ask participants to place orders in my market, should they send a NewOrderSingle or a NewOrderMultileg? Thanks! ---
**Author:** ![lalindias\_x](https://avatars.discourse-cdn.com/v4/letter/l/919ad9/32.png) [@lalindias\_x](https://forum.fixtrading.org/u/lalindias_x)\ **Post date:** [November 24, 2009, 1:29am UTC](https://forum.fixtrading.org/t/exchange-traded-options-strategies/4949/4 "2009-11-24T01:29:14Z")
I believe that a New Order – Single is the appropriate message in this particular context. We offer such multi-legged instruments in our trading platform and participants submit orders for them using the New Order – Single message. I believe the same applies for other platforms (e.g. CME). > I think my message is a bit of a mess. Paragraphs are your friend. Too > bad there is no edit option on this fine message board 😉 > > Let’s say you are going to build a trading platform. The instruments > will be equity calendar spreads. There will be 6 stocks and for each > stock there will be 8 different spreads offered. > > Now I have 48 instruments, each of which represents a multileg strategy. > But I’m going to return to the participants in my market a list of > securities like this aapl\_buy\_jan200\_call\_sell\_dec200\_call, etc. > > So my question is, when I ask participants to place orders in my market, > should they send a NewOrderSingle or a NewOrderMultileg? > > Thanks! ---
**Author:** ![hanno.klein](https://yyz2.discourse-cdn.com/flex010/user_avatar/forum.fixtrading.org/hanno.klein/32/38_2.png) [@hanno.klein](https://forum.fixtrading.org/u/hanno.klein)\ **Post date:** [November 24, 2009, 8:06am UTC](https://forum.fixtrading.org/t/exchange-traded-options-strategies/4949/5 "2009-11-24T08:06:07Z")
I agree that NewOrderSingle is the right choice IF(!) you never need to specify leg information. Such leg information not always relates to the definition of the instrument but e.g. to clearing information. Examples are the position effect (564) of a leg or different clearing accounts (NestedPartyID group) to be used for each leg. These fields are part of LegOrdGrp but outside of InstrumentLeg group. The latter is to define a multileg instrument. Definitions like the side or ratio of a leg would not be in your NewOrderXXX message but be part of your SecurityDefinition messages and covered by the single SecurityID value. In the absence of SecurityDefinition messages, you would need NewOrderMultileg as the user then has to explicitly describe the instrument everytime he enters an order. For that he would use the InstrumentLeg group within LegOrdGrp. Regards, Hanno. > I think my message is a bit of a mess. Paragraphs are your friend. Too > bad there is no edit option on this fine message board 😉 > > Let’s say you are going to build a trading platform. The instruments > will be equity calendar spreads. There will be 6 stocks and for each > stock there will be 8 different spreads offered. > > Now I have 48 instruments, each of which represents a multileg strategy. > But I’m going to return to the participants in my market a list of > securities like this aapl\_buy\_jan200\_call\_sell\_dec200\_call, etc. > > So my question is, when I ask participants to place orders in my market, > should they send a NewOrderSingle or a NewOrderMultileg? > > Thanks! ---
**Author:** ![robertmitchell45](https://avatars.discourse-cdn.com/v4/letter/r/ec9cab/32.png) [@robertmitchell45](https://forum.fixtrading.org/u/robertmitchell45)\ **Post date:** [November 24, 2009, 2:46pm UTC](https://forum.fixtrading.org/t/exchange-traded-options-strategies/4949/6 "2009-11-24T14:46:33Z")
Thank you gentlemen. In terms of instrument creation I was planning to use MsgType\<35\>=c SecurityDefinitionRequest to handle participant requests for new strategies. I’m not sure about clearing information so I will look further into ‘position effect (564)’. Thanks again for your helpful suggestions. Cheers. > I agree that NewOrderSingle is the right choice IF(!) you never need to > specify leg information. Such leg information not always relates to the > definition of the instrument but e.g. to clearing information. Examples > are the position effect (564) of a leg or different clearing accounts > (NestedPartyID group) to be used for each leg. These fields are part of > LegOrdGrp but outside of InstrumentLeg group. The latter is to define a > multileg instrument. > > Definitions like the side or ratio of a leg would not be in your > NewOrderXXX message but be part of your SecurityDefinition messages and > covered by the single SecurityID value. > > In the absence of SecurityDefinition messages, you would need > NewOrderMultileg as the user then has to explicitly describe the > instrument everytime he enters an order. For that he would use the > InstrumentLeg group within LegOrdGrp. > > Regards, Hanno. > > > I think my message is a bit of a mess. Paragraphs are your friend. Too > > bad there is no edit option on this fine message board 😉 > > > > Let’s say you are going to build a trading platform. The instruments > > will be equity calendar spreads. There will be 6 stocks and for each > > stock there will be 8 different spreads offered. > > > > Now I have 48 instruments, each of which represents a multileg > > strategy. But I’m going to return to the participants in my market > > a list of securities like this > > aapl\_buy\_jan200\_call\_sell\_dec200\_call, etc. > > > > So my question is, when I ask participants to place orders in my > > market, should they send a NewOrderSingle or a NewOrderMultileg? > > > > Thanks!