Imported from previous forum
Excuse me for being so dense, but from an
exchange centric point of view. How would these messsage be used?
Thanks.
It seems to me that an IOI message is a way of broadcasting a desire to buy or sell an instrument (as opposed to a Quote request which would be directed at a particular destination). Could not an IOI message therefore be submitted to an Exchange/ECN?
Advertisments announce completed trades, it would seem that Exchanges/ECN could send advertisements so that people could track the trading taking place on the exchange.
It seems to me that the advertisement message in that context is a bit mis-named.
>
> Excuse me for being so dense, but from an
> exchange centric point of view. How would these messsage be used?
>
> Thanks.
>
[ original email was from Ryan Pierce - rpierce@taltrade.com ]
> It seems to me that an IOI message is a way of broadcasting a desire to buy or sell an instrument (as opposed to a Quote request which would be directed at a particular destination). Could not an IOI message therefore be submitted to an Exchange/ECN?
My understanding of IOIs is that as their name states, they are indications of interest, and are not an order to buy or sell. Exchanges and ECNs generally wamt to receive orders, which can be immediately traded, not indications.
There’s been a trend of ECNs/Exchanges sending IOIs to broadcast one’s full book or top of book, for lack of a better way to do it in FIX. Using IOIs to do this is rather inefficient, as an IOI can only show one side of the market for one security. The ECNs and Exchanges working group is working on a general way to send market data like one’s full book, or the top of one’s book. The Book draft on the web site is an early attempt at this, and is currently undergoing revision by the working group.
> Advertisments announce completed trades, it would seem that Exchanges/ECN could send advertisements so that people could track the trading taking place on the exchange.
> It seems to me that the advertisement message in that context is a bit mis-named.
Again, the Book draft (which in all likelihood will be renamed Market Data) provides a way to send bid/offer data, as well as trades.
[ original email was from John Lopez - john.e.lopez@usa.net ]
I’m building a ECN service for auctions. Auctions are initiated by clients. I was planning on using the IOI as a mechanism for advertising auctions.
Would this be the right thing to do?
John
> It seems to me that an IOI message is a way of broadcasting a desire to buy or sell an instrument (as opposed to a Quote request which would be directed at a particular destination). Could not an IOI message therefore be submitted to an Exchange/ECN?
>
> Advertisments announce completed trades, it would seem that Exchanges/ECN could send advertisements so that people could track the trading taking place on the exchange.
> It seems to me that the advertisement message in that context is a bit mis-named.
>
> >
> > Excuse me for being so dense, but from an
> > exchange centric point of view. How would these messsage be used?
> >
> > Thanks.
> >
>