Short Sale Affirmative Determination

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Imported from previous forum

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[ original email was from Witold Sames - witold@javtech.com ]
This is an attempt to solicit feedback on how to handle short sale affirmative determination.

Quick history on how I understand it:

  1. Short sale affirmative determination only applies to non-broker/dealers.

  2. The short selling non-broker/dealer uses a firm other than the broker receiving the order to borrow merchandise from (and to pay the associated fees to, etc).

  3. NASD Regulation requires such non-broker/dealers (hedge fund, for example) to state, on a per order basis:

a) Has the merchandise been located?
b) If so, is it in "good" (borrowable, and deliverable within 3 days) condition?
c) Is the location you are borrowing from an Agent or Custodian?

  1. NASD Regulation requires you to keep record of those affirmative determinations in some acceptable format.

Having said that, it seems that tag 47 (OrderCapacity / Rule80a) does not lend itself for usage in this scenario, and neither does a combination of 47 and 114 (LocateReqd).

Does anyone have any experience transmitting this information within a FIX message? Would we want to introduce new fields in order to serve this purpose?

Any suggestions and comments welcome.