Imported from previous forum
I have heard of several initiatives to provide infrastructures & messaging to locate sources of stock borrowing. Is anything like this being considered for inclusion in the FIX protocol?
Regards,
Andy.
We have not had a request or proposal to include support for a Stock Locate Request and Stock Locate Response in the FIX Protocol. I think the FIX Technical Committee would be interested in seeing such a proposal and understanding the FIX community’s level of interest in that functionality.
The FIX spec does currently support the ability to provide LocateID and LocateFirm (in Parties block) information (after the locate request/response) on the order message, though. It also supports the ability to request a locate for a specific order via the LocateReqd field.
> I have heard of several initiatives to provide infrastructures & messaging to locate sources of stock borrowing. Is anything like this being considered for inclusion in the FIX protocol?
>
> Regards,
> Andy.
>
Good day, since 2002, was something standard added to FIX protocol to request a stock locate? I didn’t find anything really appropriate but I may be wrong.
Hi Xavier, if by a “request” you mean a request/response workflow, nothing has been added. In the NewOrderSingle today there is an ability for the order submitter to indicate to the broker that receives the short sell order to also do a locate (or not), using the LocateReqd(114).
Thank you Lisa, I was indeed looking for a request/response workflow. I think we have two options. Either use a custom message type or forward the order with a custom field (like HandleInst=locate or Side= or something else). However I’m afraid that using an order can interfere with systems which already handle orders but don’t notice the custom field.
In a request/response flow are you looking to send to one or more dealers asking if they have a specific stock to lend and the price for the lend, and then the best “price” is selected? In other words, like a request for quote model?
We communicate with a system which manages the locate for us. We just have to send the security code and its quantity and the system replies with a reject or a confirmation of the located quantity and its rate. We may also need to cancel our request.
Sounds like a staged “order” but I feel there’s probably some nuances here that needs a discussion 