Usage of PartyRole "1" versus PartyRole "7"

1

Hello!

While reviewing FIX specifications from a number of trading venues, I see that two values of the PartyRole (Tag 452) field are often used interchangeably -

Value “1” : Executing Firm (formerly FIX 4.2 ExecBroker)
Value “7” : Entering Firm

I am in the process of defining a specification of my own and would like to understand what is the difference between the two values. Also, are there any recommended practices around their usage?

Thanks,

Prateek

2

Executing is the party who stands to benefit from the profit (or take the loss) of the order or quote being traded. Entering can be different and identifies the party who actually “pushes the button” to send an order or quote. Normally, executing and entering party are identical but it could be a service provider or market operations that enters an order on behalf of the executing party.