Imported from previous forum
[ original email was from Jim Northey - jnorthey@jandj.com ]
Adding some reference data information to FIX messages to represent Fixed Income instruments. What I don’t quite understand is when I should add to the “Attributes” types in InstrumentExtension or when I should use Stipulations. Seems like a bit of a judgement call.
Where is it best to put additional reference information to describe bonds? Seems like it should go in the Attributes section of InstrumentExtension since that appears optionally everywhere Instrument does, which is not the case for the Stipulations component block.
Any help is appreciated.
[ original email was from John Harris - john.harris@bondmart.com ]
Jim,
Stipulations are contractual details related to transaction. Examples would include "Offer me a mortage pool, but without any California mortgages" and "Do not include any callable bonds in my repo collateral." Stipulations often refer to the fundamental characteristics of an instrument, but are not in and of themselves themselves "reference" or fundamental data.
Best,
John
> Adding some reference data information to FIX messages to represent Fixed Income instruments. What I don’t quite understand is when I should add to the “Attributes” types in InstrumentExtension or when I should use Stipulations. Seems like a bit of a judgement call.
>
> Where is it best to put additional reference information to describe bonds? Seems like it should go in the Attributes section of InstrumentExtension since that appears optionally everywhere Instrument does, which is not the case for the Stipulations component block.
>
> Any help is appreciated.
>
[ original email was from Dean Kauffman - dean.kauffman@tradeweb.com ]
Jim,
Stipulations are meant to communicate attributes desired in selecting a bond in an query or to clarify aspects of a bond that are not implied by the CUSIP in trade messages. IOIs can also use Stipulations to communicate a range of values or exclusions when instrument attributes are negotiated during the trade.
On the other hand the InstrumentExtension component block is meant to convey fixed attributes of a security that go beyond the Instrument component block.
If information does not subclass the security and could be omitted from an Execution Report without changing the meaning it should go into InstrumentExtension. But if the information is key to the correct interpretation of the message it should be a Stipulation.
Hope this helps.
> Adding some reference data information to FIX messages to represent Fixed Income instruments. What I don’t quite understand is when I should add to the “Attributes” types in InstrumentExtension or when I should use Stipulations. Seems like a bit of a judgement call.
>
> Where is it best to put additional reference information to describe bonds? Seems like it should go in the Attributes section of InstrumentExtension since that appears optionally everywhere Instrument does, which is not the case for the Stipulations component block.
>
> Any help is appreciated.
>
[ original email was from Jim Northey - jnorthey@jandj.com ]
John, Dean:
This helps quite a bit.
I think as the information that is being added is reference data (from data vendors / prospectus) pre-trade to support full life cycle (research, trading, post trade, risk management) - I think I will add attributes to the Instrument Extension Component.
Jim
> Jim,
>
> Stipulations are meant to communicate attributes desired in selecting a bond in an query or to clarify aspects of a bond that are not implied by the CUSIP in trade messages. IOIs can also use Stipulations to communicate a range of values or exclusions when instrument attributes are negotiated during the trade.
>
> On the other hand the InstrumentExtension component block is meant to convey fixed attributes of a security that go beyond the Instrument component block.
>
> If information does not subclass the security and could be omitted from an Execution Report without changing the meaning it should go into InstrumentExtension. But if the information is key to the correct interpretation of the message it should be a Stipulation.
>
> Hope this helps.
>
> > Adding some reference data information to FIX messages to represent Fixed Income instruments. What I don’t quite understand is when I should add to the “Attributes” types in InstrumentExtension or when I should use Stipulations. Seems like a bit of a judgement call.
> >
> > Where is it best to put additional reference information to describe bonds? Seems like it should go in the Attributes section of InstrumentExtension since that appears optionally everywhere Instrument does, which is not the case for the Stipulations component block.
> >
> > Any help is appreciated.
> >
>