Imported from previous forum
Dear Sir/Madam,
I would like to know the explanation of TAG 76 in FIX 4.2 version, about its importance and if possible with an example w.r.t trading how it works.
Thanks and Regards,
Mayuresh,
Hi Mayuresh,
Call me a cynic, my interpretation of this is when a client wants to avoid paying Stamp Duty (oops) for an exchange e.g. UK.
The idea/workaround is you send an order into Broker (A) and specify a Pre Agreed Give Up Broker (B). I have seen this mainly done in Tag 1 and Broker A’s OMS holds a key as to which Give up broker they require against the account. Personally I have not see this been used however I imagine you would have a Standard NASD Market Maker mnemonic to identify that give up broker if you wanted to do it properly via tag 76…
Anyway, Broker A takes the order and executes it against the exchange, Light or Dark pools (or even internally if they have an internal crossing engine). Either way Broker A has the trade executed.
When the trade has been executed Broker A sends Broker B the Order settlement instructions and Broker B gets in touch with the client with a nice fat cheque and says sign your commission for this order over to us please minus Stamp Duty…
Broker A, Broker B, C-Z scratch each others back and everyone gets their turn as Give Up Broker - Clients execution costs are down, Brokers still get their commission and the world keeps spinning.
Pls correct me if I am wrong…
Dear Sir/Madam,
I would like to know the explanation of TAG 76 in FIX 4.2 version, about its importance and if possible with an example w.r.t trading how it works.
Thanks and Regards,
Mayuresh,
Hi Mayuresh,
Call me a cynic, my interpretation of this is when a client wants to avoid paying Stamp Duty (oops) for an exchange e.g. UK.
The idea/workaround is you send an order into Broker (A) and specify a Pre Agreed Give Up Broker (B). I have seen this mainly done in Tag 1 and Broker A’s OMS holds a key as to which Give up broker they require against the account. Personally I have not see this been used however I imagine you would have a Standard NASD Market Maker mnemonic to identify that give up broker if you wanted to do it properly via tag 76…
Anyway, Broker A takes the order and executes it against the exchange, Light or Dark pools (or even internally if they have an internal crossing engine). Either way Broker A has the trade executed.
When the trade has been executed Broker A sends Broker B the Order settlement instructions and Broker B gets in touch with the client with a nice fat cheque and says sign your commission for this order over to us please minus Stamp Duty…
Broker A, Broker B, C-Z scratch each others back and everyone gets their turn as Give Up Broker - Clients execution costs are down, Brokers still get their commission and the world keeps spinning.
Pls correct me if I am wrong…
Dear Sir/Madam,
I would like to know the explanation of TAG 76 in FIX 4.2 version, about its importance and if possible with an example w.r.t trading how it works.
Thanks and Regards,
Mayuresh,
Hi Mayuresh,
I think this TAG 76 is not used in FIX 4.4