tag21 = 1, How Private?

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Imported from previous forum

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Hi,

We have a question regarding the tag21=1 - Automated execution order, private, no Broker intervention.

How private the order needs to be?

Upon receiving an order with tag21=1, we’d like to know which action below is more in line with the general practice:

1, To send the order directly to the market automatically without broker intervention, totally bypass the broker’s desk, not allow the sales/trader at the broker side to even view the order through their OMS.

2, To send the order directly to the market automatically without broker intervention, yet, allow the Sales/Trader to view the order through their OMS, and act on it on exceptional cases under the agreement with the client.
(e.g when the Buy-Side client experienced system problem, the trader can cancel the order on behalf of the client)

Any thoughts/comments on above would be greatly apprieciated.

Many Thanks,
Roseate

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From a sell side the option 2 is better for different reasons:
1, As a sell side I appreciate that my broker can have some control on my order flow, i.e. maximum order size, credit limits… Which is usually done through an OMS.
2, When problem occurs I do need my buy side to eventually cancel my order ASAP, which should only be done by a trading desk. If I only need to make one call and the resolution time is minimum then this is 1st class service.

Traders are bound to respect Chinese wall rules, if they are caught taking advantage of client order flow they put themselves and their firm in serious trouble. The norm is that traders should be trusted.

Benjamin

> Hi,
>
> We have a question regarding the tag21=1 - Automated execution order, private, no Broker intervention.
>
> How private the order needs to be?
>
> Upon receiving an order with tag21=1, we’d like to know which action below is more in line with the general practice:
>
> 1, To send the order directly to the market automatically without broker intervention, totally bypass the broker’s desk, not allow the sales/trader at the broker side to even view the order through their OMS.
>
> 2, To send the order directly to the market automatically without broker intervention, yet, allow the Sales/Trader to view the order through their OMS, and act on it on exceptional cases under the agreement with the client.
> (e.g when the Buy-Side client experienced system problem, the trader can cancel the order on behalf of the client)
>
> Any thoughts/comments on above would be greatly apprieciated.
>
> Many Thanks,
> Roseate
>
>