Liability of the Sell Side

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Imported from previous forum

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If you could help us on the following query

If an order is acked by the sell side FIX but is not acted upon by the trading system ( ie not sent to market or worked upon) what is the liability of the sell side.

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[ original email was from John Harris - john.harris@bondmart.com ]
Amit,

Respectfully, you do not frame this question in a way that allows a reasonable answer in this forum. Or rather, a reasonable answer would require a dissertation, covering all manner of conditions and qualifications your question lacks.

To wit:

What type of order?
From whom?
Under implicit or explicit agreement (e.g., Common law? Written agreement?)?
What regulatory or legal regime applies?
What are the reasonable expectations of the submitter?
What are the promises of the receiver?
What is signified by an ack?

If you can be more specific, using at least some of the above items as a guide, I will endeavor to answer you.

Or perhaps my list will help you see the answer for yourself.

Best,
John

If you could help us on the following query

If an order is acked by the sell side FIX but is not acted upon by the trading system ( ie not sent to market or worked upon) what is the liability of the sell side.

4

Amit,

Respectfully, you do not frame this question in a way that allows a reasonable answer in this forum. Or rather, a reasonable answer would require a dissertation, covering all manner of conditions and qualifications your question lacks.

To wit:

What type of order?
From whom?
Under implicit or explicit agreement (e.g., Common law? Written agreement?)?
What regulatory or legal regime applies?
What are the reasonable expectations of the submitter?
What are the promises of the receiver?
What is signified by an ack?

If you can be more specific, using at least some of the above items as a guide, I will endeavor to answer you.

Or perhaps my list will help you see the answer for yourself.

Best,
John

If you could help us on the following query

If an order is acked by the sell side FIX but is not acted upon by the trading system ( ie not sent to market or worked upon) what is the liability of the sell side.
Hi Amit, if Trading system of Sell side has not acknowledge the order on FIX ( i.e Order Status Tag 39 =0 and TAG 150=0), broker has no liability of execution since they have the option of rejecting the order back to Buy side ( TAG 150=8 and TAG 39=8). Sell side once acknowledge the order then also their trading system can REJECT the order or send Unsolicited Cancel msg back to buy side.