OTC Trading

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Imported from previous forum

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[ original email was from Lazrak Mohamed - mlazrak@net2s.com ]
Hi,
I would like to know if FIX protocol supports trades such as OTC Block trade and Basis trade.

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[ original email was from Jim Northey - jnorthey@jandj.com ]
> Hi, I would like to know if FIX protocol supports trades such as OTC

Block trade and Basis trade.

Not a short answer.

  1. We do support block trades for FIX instruments. This is being used now by the listed derivatives clearing houses (privately negotiated trades) via the Trade Capture Report message.

  2. Regarding OTC instruments - if you provide a symbol (as opposed to an ISDA product specification in FpML) you could report block trades.

Going to have to defer on the basis trades to someone else on the list to answer.

  1. We are also working closely with ISDA and FpML via the FIX - FpML Interoperability Working Group to be able to do all trade, post trade processing for OTC derivatives specified as an FpML Product (deal).

We also have extended the Instrument definition quite a bit which would likely enable rudimentary representation of OTC instruments - but we would likely suggest you use FpML to describe the deal(s) and FIX (either TAG=Value or FIXML) to report the trade.

Hope this helps. Hope someone else will comment on the basis trade reporting. If not I might research it a bit over the next few days.