OrderQty vs CashOrderQty

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Imported from previous forum

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[ original email was from Cynthia Chaplin - cchaplin@exchange.ml.com ]
The spec states that either tag 38, OrderQty, or tag 152, CashOrderQty, is required in several message types including New Order - Single. As long as the calculation works out to be the same values, can both tags be present in the message or is a rejection called for?

Thanks
Cynthia Chaplin

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I think it would be odd for both calculations to work out to be the same value, especially if the security is actively trading. The idea is that an order may be expressed as buy 50,000 shares of XYZ or buy $500,000 worth of XYZ. If XYZ’s current value was $10.125/share, I don’t think one would express an order to buy $506,250. The idea behind CashOrderQty (introduced in 4.1, I believe) was to enable the customer to express the amount of their order in total monetary units with pre-arranged lot-size-aware rounding rules in place. Once the broker receives the order, it would be converted to shares and the ExecutionRpt sent back would provide the client-specified CashOrderQty and the broker-calculated OrderQty.

I don’t know why one would express both. If you know the number of shares you want, you can simply express that. The presumption is that if you are specifying CashOrderQty, you do not know the number of shares. It would seem to me that you would have business rules in place w/ customers re: the use of CashOrderQty and one valid rule may be to simply reject the order if both are specified. If not, you will need to have business rules which dictate which one has precedence (especially if the security’s price moves).

Note that if you are simply looking to provide a "sanity check" as to which security you are dealing with and its associated value, you can use PrevClosePx (140).

> The spec states that either tag 38, OrderQty, or tag 152, CashOrderQty, is required in several message types including New Order - Single. As long as the calculation works out to be the same values, can both tags be present in the message or is a rejection called for?
>
> Thanks
> Cynthia Chaplin
>