Imported from previous forum
[ original email was from Francesc Prats - fprats@meff.com ]
Here in MEFF, an electronic market, we have this situation:
One trader wants to sell 50 contracts for an specific instrument. In response to that request (this is always only indicative, there’s no obligation), a market-maker (or another counterparty) sends to the market a NEW ORDER message with a buy limit order for that volume (or more).
My question is: What message is more suitable?. I think the answer could be an Indication of Interest message (in part because there is an “expiration” value very useful for us). There is not any diagram or flux message in the documentation, so I don’t know if the response to an Indication of Interest message could be a New Order message as is explained in the example above.