Trade2Trade

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Imported from previous forum

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Hi all,
I am using FIX.4.2 protocol. I have to identify a contract as T2T (Trade2Trade Settlement) in my “Security Definition” message. Is there a Tag available to identify the same?

Thanks in Advance,
Vinay Meher

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Please explain the business background and workflow of T2T. Is it Trade at Settlement (TAS)? Then it would be InstrAttribType(871) = 33 (TAS eligibility).

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Hi Hanno,
T2T is a type of settlement wherein at the end, client level settlement is not done on the net position of the client in the product; it is done separately for buy and sell positions. Each trade is compulsorily marked for delivery and settlement is done trade wise.

Regards,
Vinay Meher

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Hi Vinay & Hanno,

whilst I cannot reply directly to Vinay’s question, I would like to point that since FIX 4.3 ClearingInstructions were added with the possibility to define: ClearingInstruction(577)=Exclude from all netting(1)

I hope this helps,
Yuval

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ClearingInstruction(577)=Exclude from all netting(1) expresses the requirement but I would question its usage in the reference data of an instrument. It is currently only available as part of the allocation and trade capture messages. As you are using FIX 4.2 I suggest to go for the user-defined field NettingLevel(5145) and set it to “NONE”.