Usage of ExecBroker (Tag 76)

, ,
1

Imported from previous forum

2

Can ExecBroker (Tag 76) be used to indicate the trading member for which an order is placed by clearing member?

I am talking about the scenario where a single connection is established between clearing member and FIX gateway and on this connection clearing member places orders for different members which are mapped to it.

To indicate the member for which the order is placed by clearing member, can we use ExecBroker (Tag 76)?

Tks in advance…

3

The scenario you desscribe corresponds to a business on-behalf activity (has nothing to do with the on behalf in the standard header which is about technical routing of an order). In your case it happens to be the clearing firm that enters an order on behalf of the broker. But it could be any type of firm that is authorized to do so. It could also be the Market Supervision of the marketplace that acts on behalf of its members.
As you mention ExecBroker, I assume you are still in the FIX 4.2 world. The problem has been solved as of FIX 4.3 and above where the Parties block has been introduced.

You would use PartyRoles 1=Executing Firm for the broker and 7=Entering Firm for the clearing firm. Note that it is about the role in which the clearing firm does soemthing and therefore you would not use 4=Clearing Firm. You might use it additionally (with the same value) to convey the clearing firm for any trades resulting from the order.
You have the option for two more levels of the hierarchy by using 59=Executing Unit vs 58=Entering Unit and 12=Executing Trader vs 36=Entering Trader.

FIX 4.2 is quite limited in its abilities and your scenario shows that once again.

Regards,
Hanno.

Can ExecBroker (Tag 76) be used to indicate the trading member for which an order is placed by clearing member?

I am talking about the scenario where a single connection is established between clearing member and FIX gateway and on this connection clearing member places orders for different members which are mapped to it.

To indicate the member for which the order is placed by clearing member, can we use ExecBroker (Tag 76)?

Tks in advance…