LocateReqd ( Tag114 ) And MOO

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Imported from previous forum

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I have 2 questions :

  1. Fix.4.0 specifications for short sells states that tag-114 ( i.e. LocateReqd ) is required ( in case the order is a short sell ).
    So far the absence of this tag for short sells has not been a problem for the brokers that we have tested against. But I was wondering whether it meant something from the trading’s perspective.

  2. How do u specify Market On Open orders in fix.4.0? To my understanding u set the OrdType tag to "market(0)" and TimeInForce tag to "At the opening(2)". Is this assumption correct ?

Thanks.

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[ original email was from Ryan Pierce - rpierce@taltrade.com ]
> 1. Fix.4.0 specifications for short sells states that tag-114 ( i.e. LocateReqd ) is required ( in case the order is a short sell ).
> So far the absence of this tag for short sells has not been a problem for the brokers that we have tested against. But I was wondering whether it meant something from the trading’s perspective.

When a customer shorts a stock, it must be borrowed from somewhere. If set to N, this field indicates that the customer has already located stock to borrow. If set to Y, it indicates that the customer expects the firm receiving the order to locate the stock. This means more work on the part of the receiver; the receiver needs to check to verify that they can indeed borrow the stock before executing the trade.

Since this is a required field, it must be specified on every order. Some firms may accept your business if the field isn’t specified, but you can’t count on it.

In all likelihood, the responsibility for locating stock will be dictated by the business agreements between firms. Often, this doesn’t vary on a per-order basis, so you might be lucky and be able to set a configurable boolean parameter on a per-session basis which is sent on every sell short, sell short exempt, cross short, and cross short exempt order, and cancel/replaces of these order sides.

> 2. How do u specify Market On Open orders in fix.4.0? To my understanding u set the OrdType tag to "market(0)" and TimeInForce tag to "At the opening(2)". Is this assumption correct ?

That is correct.

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[ original email was from Ryan Pierce - rpierce@taltrade.com ]
> Since this is a required field, it must be specified on every order. Some firms may accept your business if the field isn’t specified, but you can’t count on it.

Correction: It is conditionally required for short sell orders.

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[ original email was from Ryan Pierce - rpierce@taltrade.com ]
> 2. How do u specify Market On Open orders in fix.4.0? To my understanding u set the OrdType tag to "market(0)" and TimeInForce tag to "At the opening(2)". Is this assumption correct ?

Sorry, I looked at the words, not the numbers.

Market is OrdType=1, not 0. (Thanks to John Prewett for catching this!)

Other than that, you are correct.