How to Ack an Execution Report

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Imported from previous forum

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In the context of an ECN that has Market Maker Participants offering QUOTES to the market (Tradeable quoting).
How can a Market Maker (Quoting party) Ack that he received an execution report from the ECN ?

In other words, if the ECN wants to be 100% sure that the Market Maker has received an Execution, is there an “Execution report Ack” message that would serve the opposite function of the “Don’t Know Trade” (DK) message ?

3

From the FIX spec:

Message Acknowledgment:
The FIX session protocol is based on an optimistic model; normal delivery of data is assumed (i.e. no acknowledgment of individual messages) with errors in delivery identified by message sequence number gaps.  Each message is identified by a unique sequence number.  It is the receiving application's responsibility to monitor incoming sequence numbers to identify message gaps for response with resend request messages.  

The FIX protocol does not support individual message acknowledgment.  However, a number of application messages require explicit application level acceptance or rejection.  Orders, cancel requests, cancel/replace requests and allocation require specific application level response, executions can be rejected with the DK message but do not require explicit acceptance.

In the context of an ECN that has Market Maker Participants offering
QUOTES to the market (Tradeable quoting). How can a Market Maker
(Quoting party) Ack that he received an execution report from the ECN ?

In other words, if the ECN wants to be 100% sure that the Market
Maker has received an Execution, is there an “Execution report Ack”
message that would serve the opposite function of the “Don’t Know
Trade” (DK) message ?

4

FIX 5.0 introduced such a message, called Execution Acknowledgement that does precisely what Franck is looking for. There is some overlap in functionality of this new message type and the DK Trade message.

From the FIX spec:

    Message Acknowledgment: The FIX session protocol is based on an
    optimistic model; normal delivery of data is assumed (i.e. no
    acknowledgment of individual messages) with errors in delivery
    identified by message sequence number gaps. Each message is
    identified by a unique sequence number. It is the receiving
    application's responsibility to monitor incoming sequence
    numbers to identify message gaps for response with resend
    request messages.

    The FIX protocol does not support individual message
    acknowledgment. However, a number of application messages
    require explicit application level acceptance or rejection.
    Orders, cancel requests, cancel/replace requests and allocation
    require specific application level response, executions can be
    rejected with the DK message but do not require explicit
    acceptance.

In the context of an ECN that has Market Maker Participants
offering QUOTES to the market (Tradeable quoting). How can a Market
Maker (Quoting party) Ack that he received an execution report from
the ECN ?

In other words, if the ECN wants to be 100% sure that the Market Maker
has received an Execution, is there an “Execution report Ack” message
that would serve the opposite function of the “Don’t Know Trade” (DK)
message ?