I am currently having a discussion with a BuySide about the Pending New messages that we send and the boundaries of our legal responsability of their orders.
As a result of the double layer of controls in place, our OMS send the “Pending New” to the SS if the order has passed the first layer of checks, and then the “New” only if the order has entered the Market.This is the most common practice I have seen also digging this forum.
The BS argue that the “Pending New” status do not imply that the SS has taken the legal responsability of an order.
I answered that within the “Pending New” the SS can find the OrderID that we have assigned to its order, and this is the point that sign our reponsability.
The BS is not happy with my answer because, in its opinion, is “contrary to the FIX definition”.
I will be more than happy to get any legal note or best practice about this matter.