PUBLIC COMMENT PERIOD – Master SPSA

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The Global Technical Committee has reviewed and preliminarily approved the Master SPSA (Master Special Segregated Account) Extension proposal submitted by the GTC. The Master SPSA (Master Special Segregated Account) Service is an optional service introduced to facilitate the trading efficiency of the Shanghai and Shenzhen Connect. It requires a number of identifiers for investors and their accounts that are assigned by the central clearing and settlement system (CCASS) of Hong Kong Exchanges and Clearing Limited (HKEX). It is proposed to extend FIX to natively support additional identifier sources. Please also refer to the related recommended practices document.

The document now enters a public comment period in which public review and feedback is encouraged. Once the public comment period closes, the Global Technical Governance Board will meet to review public comments before final approval.

Please post feedback, comments, and questions as replies to this discussion thread.
A link to the proposal can be found at: https://www.fixtrading.org/packages/fix-protocol-ga-master-spsa-v0-2/

The public comment period ends on September 10, 2020.

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Two questions:

  1. Once we have new enum values assigned for the SPSA ID and Master SPSA ID in the tag PartyIDSource(447), will the existing enum value ‘5’ (Chinese Investor ID) continue to exist?
    If it continues to exist, it would be good to specify in the recommended practices document on how to use it in the future such that it wouldn’t be instead misused to specify the SPSA ID or the Master SPSA ID.

  2. A Master SPSA ID could be setup even at a Fund level rather than at a Fund Manager level. So, it might be needed to allow specifying even a Master SPSA ID in the AllocAccount (79) tag, thereby requiring to add a new value TBD = Master SPSA ID to AllocAcctIDSource(661).

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Hi Ramjee,

Thanks for your comment and question.

We will add a note to the recommended practices such that new enum SPSA ID and Master SPSA ID will be used for Stock Connect trading while ‘5’ (Chinese Investor ID) will be kept for other China market A/B shares trading.

And technically speaking, a Master SPSA is not set up at either the Fund Level or Fund Manager Level. Rather, it is the underlying SPSA accounts that are linked to the MSPSA ID that can either be set up at the Fund Level or Fund Manager Level (and by extension, the BCAN).

SPSAs that are set up at either the Fund Level or the Fund Manager Level can be linked to a Master SPSA ID, however, they cannot be mixed. For example, if 10 SPSAs are being linked to one Master SPSA ID, all 10 SPSA accounts have to be set up at either the Fund Level or the Fund Manager Level, but they cannot be 5 at the Fund Level and 5 at the Fund Manager Level.

Based on the idea above, AllocAccount(79) tag will be SPSA ID for pre-trade allocation. Whereas the Master SPSA ID is used when trading on exchange.

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Understood… thanks for the clarification…