Imported from previous forum
Hi,
Scott, thanks for your answer about reset.
I am wondering how long a “order flow” will last in American Century’s dealing?
(Order flow: from Institutional client sends out an order=>Broker=>… …Broker=>Institutional Client:bought/sold response.)
Thanks a lot.
Cindy
The answer (applicable to more than just American Century) is that it varies and depends. It depends on when you send the order and also more significantly it depends on the security (e.g. stock) you are trading and size of your order. It also depends on the counterparty’s system and capabilities (e.g. are you interfacing with an electronic direct execution system of the market).
When we trade Foreign Exchange (F/X) in which there is tremendous liquidity instantly available, we can send the order, receive the ack, receive the fill, send our Allocation, receive the Allocation Ack within a matter of seconds. If we send a small sized order for a relatively liquid stock directly into a market (e.g. facilitating "DOT" with NYSE or simply executing on an ECN), the send order, get ack, get fill can be as quick as a second or two.
Larger "block orders" which need to be "worked" by a broker tend to take as long as it takes to work/trade the stock. Illiquid orders take longer to fill as well.
The key is that we see FIX as an extension to how we would otherwise trade via the telephone or other means and an extension to our relationships with brokers (vs. replacing them). We expect brokers to provide acknowledgement of orders and send us partial fills in a timely fashion (as close to real-time as possible). Our firm’s orders are day orders thus we have to send/place them again the following day if not filled and presuming we still want to complete the trade. Some firms place “Good till” orders or multi-day orders in which a single order can span multiple trading days.
> Hi,
>
> Scott, thanks for your answer about reset.
> I am wondering how long a “order flow” will last in American Century’s dealing?
> (Order flow: from Institutional client sends out an order=>Broker=>… …Broker=>Institutional Client:bought/sold response.)
> Thanks a lot.
>
> Cindy
>