Imported from previous forum
Hi,
We’ve been using exeuction messages for some time fairly successfully. We’ve run into a more messaging centric implementation where a customer would like to use FIX prior to the trade process. The message they would like to send by business definition is an indication of interest. Basically, for those not familiar with the details (as IOI has a few different connotations), This would be if you and I had a chance to buy GOOGLE when it went public. We might be interested in 500 hundred shares. Someone then decides we get 100 shares. The messaging indicating that I was interested, including my specific demand and account etc. Is the message I need to send here. This is actual for an equity / fixed income implmentation.
Has anyone used the 4.4 IOI message for this purpose? Some people I’ve spoken to are skeptical about the IOI message meeting the above use case.
Thanks!
Dave
Hi David,
I think the “IOI” you’re talking about is within the primary market space, correct? If so, FPL’s Global Fixed Income Committee’s e-Syndicate Working Group is currently working on a technical gap analysis to enhance the FIX protocol to support primary market syndication.
That said, the term IOI also has another connotation in FIX within the secondary market pre-trade space. It is used by dealers to send out “indications of interest” to trade specific securities that they may have on hand or in inventory (in the case of FI). As it stands the current IOI message does not meet all of the requirements of the above primary market syndication use.
If you are interested in the e-Syndicate WG, please contact me offline.
Lisa Taikitsadaporn
GFIC Technical Sub-committee co-chair
Hi,
We’ve been using exeuction messages for some time fairly successfully.
We’ve run into a more messaging centric implementation where a customer
would like to use FIX prior to the trade process. The message they would
like to send by business definition is an indication of interest.
Basically, for those not familiar with the details (as IOI has a few
different connotations), This would be if you and I had a chance to buy
GOOGLE when it went public. We might be interested in 500 hundred
shares. Someone then decides we get 100 shares. The messaging indicating
that I was interested, including my specific demand and account etc. Is
the message I need to send here. This is actual for an equity / fixed
income implmentation.Has anyone used the 4.4 IOI message for this purpose? Some people
I’ve spoken to are skeptical about the IOI message meeting the
above use case.Thanks! Dave
Hi Lisa,
I am definitely talking about the primary market space. I would be intetested in closing the gap, because in essence I am going to try and use another FIX message instead. I am either going to use in 4.4 the AE message or the D message and neither really is correct. I was intending more to use AE only because I have some light exposure to it, but as I think more on it, the AE message could probably have some other more practical uses so I am leaning more towards using the D message.
Any suggestions or advice would be appreciated.
Dave
Hi David,
I think the “IOI” you’re talking about is within the primary market
space, correct? If so, FPL’s Global Fixed Income Committee’s e-Syndicate
Working Group is currently working on a technical gap analysis to
enhance the FIX protocol to support primary market syndication.That said, the term IOI also has another connotation in FIX within the
secondary market pre-trade space. It is used by dealers to send out
“indications of interest” to trade specific securities that they may
have on hand or in inventory (in the case of FI). As it stands the
current IOI message does not meet all of the requirements of the above
primary market syndication use.If you are interested in the e-Syndicate WG, please contact me offline.
Lisa Taikitsadaporn GFIC Technical Sub-committee co-chair
Hi,
We’ve been using exeuction messages for some time fairly successfully.
We’ve run into a more messaging centric implementation where a
customer would like to use FIX prior to the trade process. The message
they would like to send by business definition is an indication of
interest. Basically, for those not familiar with the details (as IOI
has a few different connotations), This would be if you and I had a
chance to buy GOOGLE when it went public. We might be interested in
500 hundred shares. Someone then decides we get 100 shares. The
messaging indicating that I was interested, including my specific
demand and account etc. Is the message I need to send here. This is
actual for an equity / fixed income implmentation.Has anyone used the 4.4 IOI message for this purpose? Some people
I’ve spoken to are skeptical about the IOI message meeting the above
use case.Thanks! Dave
[ original email was from Rikard Hedberg - rikard.hedberg@omxgroup.com ]
I agree the IOI message (6) should not be used and that the New Order Single (D) is the one closest to the functionality needed. I believe this type of order could be classified as a “Subcription Requests” (or “Redemption Requests” if you are selling in a buy-back situation). Similar orders are also used e.g. in the CIV-space, but practice there is a bit different from issues in equity, bonds etc.
Considering that there is both a primary and secondary market in your case, how do you define the order so it can only be executed in the primary market (and not in the secondary one)? This could be a problem if the issue is an “on tap” one, i.e. the security is traded in both the primary and secondary markets. Maybe you are using different security identifiers for the primary and secondary markets? If not you may consider using the Side (54) value of D (Subscribe). There is also an E (Redeem) value there. Such practice is however not documented for equity or fixed income, so I would welcome comments on this business practice idea.
Regards
Rikard
Hi Lisa,
I am definitely talking about the primary market space. I would be
intetested in closing the gap, because in essence I am going to try and
use another FIX message instead. I am either going to use in 4.4 the AE
message or the D message and neither really is correct. I was intending
more to use AE only because I have some light exposure to it, but as I
think more on it, the AE message could probably have some other more
practical uses so I am leaning more towards using the D message.Any suggestions or advice would be appreciated.
Dave
Hi David,
I think the “IOI” you’re talking about is within the primary market
space, correct? If so, FPL’s Global Fixed Income Committee’s e-
Syndicate Working Group is currently working on a technical gap
analysis to enhance the FIX protocol to support primary market
syndication.That said, the term IOI also has another connotation in FIX within the
secondary market pre-trade space. It is used by dealers to send out
“indications of interest” to trade specific securities that they may
have on hand or in inventory (in the case of FI). As it stands the
current IOI message does not meet all of the requirements of the above
primary market syndication use.If you are interested in the e-Syndicate WG, please contact me
offline.Lisa Taikitsadaporn GFIC Technical Sub-committee co-chair
Hi,
We’ve been using exeuction messages for some time fairly
successfully. We’ve run into a more messaging centric implementation
where a customer would like to use FIX prior to the trade process.
The message they would like to send by business definition is an
indication of interest. Basically, for those not familiar with the
details (as IOI has a few different connotations), This would be if
you and I had a chance to buy GOOGLE when it went public. We might
be interested in 500 hundred shares. Someone then decides we get 100
shares. The messaging indicating that I was interested, including my
specific demand and account etc. Is the message I need to send here.
This is actual for an equity / fixed income implmentation.Has anyone used the 4.4 IOI message for this purpose? Some people
I’ve spoken to are skeptical about the IOI message meeting the above
use case.Thanks! Dave
Rikard,
The order is never actually executed. It is just used to build Demand of an issuance of a security. The Demand will be allocated against. Subsequently confirmed allocations will be executed as trades.
Dave
[ original email was from Rikard Hedberg - rikard.hedberg@omxgroup.com ]
Dave,
…seems very similar to what the eSyndicate group is working on (the ICMA Gap Analysis). My previous statement was from an execution venue point of view.
Good luck!
Rikard
Rikard,
The order is never actually executed. It is just used to build Demand of
an issuance of a security. The Demand will be allocated against.
Subsequently confirmed allocations will be executed as trades.Dave
Thanks!
I did speak with people from the eSyndicate working group.
Dave