Help -Wanted( info for commodities)

[mahendrakumar_x]

Imported from previous forum

[mahendrakumar_x]

Hi All,

Can any one help me for the below details for commonidities using FIX:

1. Which version supports commodities

2. what are the required tags to place an order for commodities

Regards,

Mahendra

[sunilsingh57_x]

Try to look into this link-" http://www.fixprotocol.org/functionality". I don’t find comodities mentioned anywhere up till Fix 5.0

Regards,
Sunil

[kaymahes_x]

Hi Mahendra,

When there is talk of Commodities Trading, it about Futures and Options. Refer investopedia definition at

What Are Commodities and Understanding Their Role in the Stock Market

[quote from investopedia]

2. The sale and purchase of commodities is usually carried out through futures contracts on exchanges that standardize the quantity and minimum quality of the commodity being traded. For example, the Chicago Board of Trade stipulates that one wheat contract is for 5,000 bushels and also states what grades of wheat (e.g. No. 2 Northern Spring) can be used to satisfy the contract.

[/quote from investopedia]

A very goog article explaining origin / history of commodities trading is available at

Commodity market

For FIX protocol support for Futures and Options refer

http://fixprotocol.org/functionality

Hope this answers your question. Feel free to post any more questions you have.

regards,
K. Mahesh
+1-203-252-4039

Hi All,

Can any one help me for the below details for commonidities using FIX:

1. Which version supports commodities

2. what are the required tags to place an order for commodities

Regards,

Mahendra

[sunilsingh57_x]

Mahesh,
Those were some really knowledgeable links that you’ve given. Can you provide some FIX logs for commodity futures starting from New order to order ack and then fill. That would really help. We already have logs w.r.t. futures and options trading pertaining to securities and Index. Just wanted to know how is it different from commodities.

Regards,
Sunil

[girishkumar49_x]

Hi Mahendra,

When there is talk of Commodities Trading, it about Futures and Options.
Refer investopedia definition at

What Are Commodities and Understanding Their Role in the Stock Market

[quote from investopedia]

2. The sale and purchase of commodities is usually carried out through
   futures contracts on exchanges that standardize the quantity and minimum
   quality of the commodity being traded. For example, the Chicago Board of
   Trade stipulates that one wheat contract is for 5,000 bushels and also
   states what grades of wheat (e.g. No. 2 Northern Spring) can be used to
   satisfy the contract.

[/quote from investopedia]

A very goog article explaining origin / history of commodities trading
is available at

Commodity market - Wikipedia

For FIX protocol support for Futures and Options refer

http://fixprotocol.org/functionality

Hope this answers your question. Feel free to post any more
questions you have.

regards,
K. Mahesh +1-203-252-4039

Hi All,

Can any one help me for the below details for commonidities
using FIX:

1. Which version supports commodities

2. what are the required tags to place an order for commodities

Regards,

Mahendra

Hi mahesh

Can you please help me in commodities trading through FIX and if you have any logs relating to this you can send me on my email id. early response much appreciated.

Regards
Girish

[kaymahes_x]

Hi Girish, Sunil,

Unfortunately I do not have any logs for these. Hope any of the other members could provide these to you.

Regards,
Mahesh
+1-203-252-4039

[benhmida_x]

Hi All,

please i’m having a little issue while expressing quantities for commodities.

In commodities markets, base metals for example, quantities are expressed in “lots”, each lot refers to a different amount of metric tons depending on the underlying, examples :

• For Aluminium, 1 lot is 25 tons
• for Nickel, 1 lot is 6 tons …

Could you please help me express this in fix messages, as I would like the quantity to be expressed in “lots”, but to be clear it refers to a certain amount of metric tons depending on the underlying.

Thank you.

Regards,
Wissam.

[fibarra_x]

Hello,

One approach could be if you specify, in the security list or security definition, tags 996 and 1147 (UnitOfMeasure and UnitOfMeasureQty), there you could specify how is defined each unit.

So your trading could still be traded in the units that you define and those units are defined with the UnitOfMeasure and UnitOfMeasureQty tags.

Regars

[benhmida_x]

thank you very much Javier,

However, how would I express the lots in my spec ?

let’s take an example :

if a client wants to trade 10 lots of aluminiun, if I understand what you said, there should be :

38 = 10
996 = t (metric tons)
1147 = 25

but how would I mention that the quantity he requested is 10 LOTS so he doesn’t get mistaken it’s 10 tons ?

Thank you.
Regards,
Wissam.

[fibarra_x]

Well, that would depend on how you’re specifying the security list. In the security list you could define, for instance:

35=y
55=Symbol_A
996=t
1147=25

So, with that, you will define that Symbol_A will be handled by using that configuration of tons and qty per ton.

And, in the trading you can send:

35=D
55=Symbol_A
38=10

So, your engine or application, behind the gateway should understand that Symbol_A should handle the Qty multiplying it by 25 tons.

Regards

[benhmida_x]

thank you very much Javier.
Much appreciated !

[fibarra_x]

You’re welcome.