Is there any recommended guideline or process for an Executing Broker to inform the Clearing Broker about a StepIn transaction? The client would indicate a StepIn on the AllocationInstruction level but is there a way for the Clearing Broker to know upfront about the Step In transaction? Like a message from Execution Broker to Clearing Broker?
Please have a look at “Equity Allocations Via FIX - Recommended Guidelines v1.2.8” which is one of the documents available on the FIX website for recommended practices (https://www.fixtrading.org/recommended-practicesguidelines/) in the section “Post Trade”.
Hi Klein,
I already had a look at the document you mentioned. In page 121, it simply mentioned ‘Trades’ are sent from Executing Broker to Step Out Broker but it doesn’t mention what type of FIX message should be used and the corresponding message spec. Appreciate if any guidance can be provided.
Thanks,
Ramjee.
Trades can be sent with the ExecutionReport(ER, 35=8) or the TradeCaptureReport(TCR, 35=AE). The corresponding message specs can best be viewed in FIXimate (fiximate.fixtrading.org). The guideline only has specs for the allocation and confirmation messages as I believe there is nothing specific to the ER/TCR in the given context. ER or TCR may be used to forward the execution information and both contain parties components that may be used to specify step-in/out brokers. FIX uses the terms give-up (step-out) and take-up (step-in) to express the following party roles:
95 = Give-up (trading) firm
96 = Take-up (trading) firm
Thanks Klein for the inputs. Will start with this.