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How does SWITCH orders (SWITCH FROM and SWITCH TO) can be traded in FIX . This is related to Mutual and offshore fund orders.
i.e SWITCH FROM equivalent to MT502 SWIF , SWITCH TO equivalent to MT502 SWIT
Please help us with an answer
If I understand you correctly, you want to replace one order with another based on some condition. You can do this with a NewOrderList message and tag 1385 ContingencyType = 2 = “One Triggers the Other” (OTO). The message needs to contain both orders (from and to), your rules of engagement should state that the first order in ListOrdGrp is the primary (FROM) and the second is the secondary (TO) order. If you only have one triggering condition, e.g. cancellation/expiration of the primary order, you can simply document that in your rules without using explicit fields in the message. The latter would be covered by the order-specific TriggeringInstruction component block. An upcoming extension to FIX 5.0 SP2 will allow you to reference another order (http://www.fixprotocol.org/discuss/read/d48fc151).
Regards,
Hanno.
How does SWITCH orders (SWITCH FROM and SWITCH TO) can be traded in FIX
. This is related to Mutual and offshore fund orders.i.e SWITCH FROM equivalent to MT502 SWIF , SWITCH TO equivalent to
MT502 SWITPlease help us with an answer
Hello Hanno,
Thanks for your reply…
It helped a lot…
If i wanted to know about the market practice of using SWITCH orders in Mutual and offshore fund industry where i can find it…
With Regards
Navaneetha Krishnan
If I understand you correctly, you want to replace one order with
another based on some condition. You can do this with a NewOrderList
message and tag 1385 ContingencyType = 2 = “One Triggers the Other”
(OTO). The message needs to contain both orders (from and to), your
rules of engagement should state that the first order in ListOrdGrp is
the primary (FROM) and the second is the secondary (TO) order. If you
only have one triggering condition, e.g. cancellation/expiration of the
primary order, you can simply document that in your rules without using
explicit fields in the message. The latter would be covered by the order-
specific TriggeringInstruction component block. An upcoming extension to
FIX 5.0 SP2 will allow you to reference another order
(http://www.fixprotocol.org/discuss/read/d48fc151).Regards, Hanno.
How does SWITCH orders (SWITCH FROM and SWITCH TO) can be
traded in FIX
. This is related to Mutual and offshore fund orders.i.e SWITCH FROM equivalent to MT502 SWIF , SWITCH TO equivalent to
MT502 SWITPlease help us with an answer
Switches/rolls/swaps, at least for fixed income use, are modeled using the New Order Multileg. Your “from” is your sell leg and your “to” is your buy leg of the order. Switches and rolls are common in FI as well.
How does SWITCH orders (SWITCH FROM and SWITCH TO) can be traded in FIX
. This is related to Mutual and offshore fund orders.i.e SWITCH FROM equivalent to MT502 SWIF , SWITCH TO equivalent to
MT502 SWITPlease help us with an answer
Good point, I did not realize that this needs to be an atomic transaction. Do not use NewOrderList in this case.
Switches/rolls/swaps, at least for fixed income use, are modeled using
the New Order Multileg. Your “from” is your sell leg and your “to” is
your buy leg of the order. Switches and rolls are common in FI as well.How does SWITCH orders (SWITCH FROM and SWITCH TO) can be
traded in FIX
. This is related to Mutual and offshore fund orders.i.e SWITCH FROM equivalent to MT502 SWIF , SWITCH TO equivalent to
MT502 SWITPlease help us with an answer
[ original email was from Dean Kauffman - dean.kauffman@tradeweb.com ]
New Order Multileg would be used if the legs are to be traded as a set with a unified priced. In FI that includes rolls & switches (2 legs), butterflies (3 legs) and spread-spread switches (4 legs). But New Order List would be used for a basket of securities or “bid list” to be priced and traded individually perhaps by different dealers when sent to an ATS.
Good point, I did not realize that this needs to be an atomic
transaction. Do not use NewOrderList in this case.Switches/rolls/swaps, at least for fixed income use, are modeled
using the New Order Multileg. Your “from” is your sell leg and your
“to” is your buy leg of the order. Switches and rolls are common in
FI as well.How does SWITCH orders (SWITCH FROM and SWITCH TO) can be traded
in FIX
. This is related to Mutual and offshore fund orders.i.e SWITCH FROM equivalent to MT502 SWIF , SWITCH TO equivalent to
MT502 SWITPlease help us with an answer
New Order List has been extended in FIX 5.0 SP1 with ContingencyType (1385) to allow to express a closer coupling of the orders in the list. Your description is the reason why such orders were originally introduced (basket concept). There will be further extensions to this order type to express a small (typically 2) amount of orders that are linked to each other in a special way, i.e. an action/execution happening to one of them will automatically cause something to happen with the other one, e.g. OCO = One Cancels the Other.
New Order Multileg would be used if the legs are to be traded as a set
with a unified priced. In FI that includes rolls & switches (2 legs),
butterflies (3 legs) and spread-spread switches (4 legs). But New Order
List would be used for a basket of securities or “bid list” to be
priced and traded individually perhaps by different dealers when sent
to an ATS.Good point, I did not realize that this needs to be an atomic
transaction. Do not use NewOrderList in this case.Switches/rolls/swaps, at least for fixed income use, are modeled
using the New Order Multileg. Your “from” is your sell leg and your
“to” is your buy leg of the order. Switches and rolls are common in
FI as well.How does SWITCH orders (SWITCH FROM and SWITCH TO) can be traded
in FIX
. This is related to Mutual and offshore fund orders.i.e SWITCH FROM equivalent to MT502 SWIF , SWITCH TO equivalent to
MT502 SWITPlease help us with an answer