Imported from previous forum
[ original email was from Corwin Yu - cyu@sasiny.com ]
A general question, what is the proper code/process for handling London/SETS equity trading when sending orders for instruments denominated in pounds vs pence?
For example, if a client sends an order in GBP and the current instrument they are bidding for is in pence (GBp/GBX), do we normalize, or reject? And is GBp the proper code for pence, or is it GBX? I realize this may be a best practice question, I am just looking for insights.
Regards,
Corwin Yu
[ original email was from Steve Wilkinson - steve.wilkinson@solutionforge.com ]
Corwin,
In our experience, the simplest thing is to recommend your clients use ‘GBP’ over FIX and then convert into pence for display and onward processing. However not all buy-sides can support pounds on the wire so it is helpful if you can support ‘GBX’ over FIX. Although ‘GBX’ (meaning pence) is not strictly an ISO currency code, it seems to be used by some systems and you may be forced to support it. I don’t think there is any argument for supporting 15=‘GBp’ though.
FYI, our OMS now mandates that all brokers support ‘GBP’ for trading UK stocks.
Trust this helps - Steve.
A general question, what is the proper code/process for handling
London/SETS equity trading when sending orders for instruments
denominated in pounds vs pence?For example, if a client sends an order in GBP and the current
instrument they are bidding for is in pence (GBp/GBX), do we normalize,
or reject? And is GBp the proper code for pence, or is it GBX? I realize
this may be a best practice question, I am just looking for insights.Regards, Corwin Yu
I would disagree with the statement:
“I don’t think there is any argument for supporting 15=‘GBp’ though”.
There are many firms using GBp successfully, while I know of few (if any using GBX)
Ross
Corwin,
In our experience, the simplest thing is to recommend your clients use
‘GBP’ over FIX and then convert into pence for display and onward
processing. However not all buy-sides can support pounds on the wire so
it is helpful if you can support ‘GBX’ over FIX. Although ‘GBX’ (meaning
pence) is not strictly an ISO currency code, it seems to be used by some
systems and you may be forced to support it. I don’t think there is any
argument for supporting 15=‘GBp’ though.FYI, our OMS now mandates that all brokers support ‘GBP’ for trading
UK stocks.Trust this helps - Steve.
A general question, what is the proper code/process for handling
London/SETS equity trading when sending orders for instruments
denominated in pounds vs pence?For example, if a client sends an order in GBP and the current
instrument they are bidding for is in pence (GBp/GBX), do we
normalize, or reject? And is GBp the proper code for pence, or is it
GBX? I realize this may be a best practice question, I am just looking
for insights.Regards, Corwin Yu
[ original email was from Ian Hoenisch - ihoenisch@fastesp.com ]
We currently support GBP, GBp and GBX. I have seen all 3 used. It really depends on what the downstreams systems need: reporting, display, market access, cash desks.
Ian
I would disagree with the statement: “I don’t think there is any
argument for supporting 15=‘GBp’ though”.There are many firms using GBp successfully, while I know of few (if any
using GBX)Ross
Corwin,
In our experience, the simplest thing is to recommend your clients use
‘GBP’ over FIX and then convert into pence for display and onward
processing. However not all buy-sides can support pounds on the wire
so it is helpful if you can support ‘GBX’ over FIX. Although ‘GBX’
(meaning pence) is not strictly an ISO currency code, it seems to be
used by some systems and you may be forced to support it. I don’t
think there is any argument for supporting 15=‘GBp’ though.FYI, our OMS now mandates that all brokers support ‘GBP’ for trading
UK stocks.Trust this helps - Steve.
A general question, what is the proper code/process for handling
London/SETS equity trading when sending orders for instruments
denominated in pounds vs pence?For example, if a client sends an order in GBP and the current
instrument they are bidding for is in pence (GBp/GBX), do we
normalize, or reject? And is GBp the proper code for pence, or is it
GBX? I realize this may be a best practice question, I am just
looking for insights.Regards, Corwin Yu
[ original email was from Peter Bailey - pbailey@gl-asia.com.hk ]
GBX is a sub-currency of GBP. GBP is ISO whereas GBX is not. The LSE issues quotes in GBX and positions are reported in GBP. This parent-child relationship is not exclusive to the UK - in South Africa there are ZAC (cents) and ZAR (rand) for example.
We currently support GBP, GBp and GBX. I have seen all 3 used. It really depends on what the downstreams systems need: reporting, display, market access, cash desks.
Ian
I would disagree with the statement: “I don’t think there is any
argument for supporting 15=‘GBp’ though”.There are many firms using GBp successfully, while I know of few (if
any using GBX)Ross
Corwin,
In our experience, the simplest thing is to recommend your clients
use ‘GBP’ over FIX and then convert into pence for display and
onward processing. However not all buy-sides can support pounds on
the wire so it is helpful if you can support ‘GBX’ over FIX.
Although ‘GBX’ (meaning pence) is not strictly an ISO currency code,
it seems to be used by some systems and you may be forced to support
it. I don’t think there is any argument for supporting 15=‘GBp’
though.FYI, our OMS now mandates that all brokers support ‘GBP’ for trading
UK stocks.Trust this helps - Steve.
A general question, what is the proper code/process for handling
London/SETS equity trading when sending orders for instruments
denominated in pounds vs pence?For example, if a client sends an order in GBP and the current
instrument they are bidding for is in pence (GBp/GBX), do we
normalize, or reject? And is GBp the proper code for pence, or is
it GBX? I realize this may be a best practice question, I am just
looking for insights.Regards, Corwin Yu
[ original email was from Steve Wilkinson - steve.wilkinson@solutionforge.com ]
I stand corrected - presumably using ‘GBP’ is the only literal interpretation of the spec (being the only genuine ISO code), but with all things FIX, whatever works for you and your counterparties…
Apologies for the misinformation.
Steve.
I would disagree with the statement: “I don’t think there is any
argument for supporting 15=‘GBp’ though”.There are many firms using GBp successfully, while I know of few (if any
using GBX)Ross
The FIX Spec has, since FIX 4.0 (circa 1996), contained the following in Appendix A:
“Note: Prices defined in FIX messages should be made consistent with the currency code used. In some markets, prices are quoted as multiples or fractions of the currency, FIX messages should normalize the amount to coincide with the indicated code (e.g. UK securities are quoted in pence but must be represented in FIX messages as pounds).”
Also, I know that Reuters and Bloomberg feeds use “GBp” to denote pence. I think that I have also seen other market data feeds use “GBx”.
Other examples of currencies where markets often quote prices in units of the smaller currency include IEP (Irish Punts), ILS (Israeli Shekel), and ZAR (South African Rand). As previously noted, the smaller currency units are not defined in ISO 4217.
I stand corrected - presumably using ‘GBP’ is the only literal
interpretation of the spec (being the only genuine ISO code), but with
all things FIX, whatever works for you and your counterparties…Apologies for the misinformation.
Steve.
I would disagree with the statement: “I don’t think there is any
argument for supporting 15=‘GBp’ though”.There are many firms using GBp successfully, while I know of few (if
any using GBX)Ross