[This message was posted by Tom Vasak of Citigroup Global Markets <[EMAIL 
PROTECTED]> to the "General Q/A" discussion forum at 
http://fixprotocol.org/discuss/22. You can reply to it on-line at 
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In the current environment where regulators of equities markets are imposing 
constraints on short selling (naked and/or covered), we are looking at 
mechanisms within FIX that allow buy-side clients to specify that their equity 
order is covered by a lending agreement.

One option we see is:
- Using Tag 54 (side) = 5 sell short
- Using Tag 113 (LocateReqd) = Y/N

Where 54=5 and 113=Y, this would imply that the short sell is covered (at least 
if the receiving broker can locate the stock).

Where 54=5 and 113=N, this doesn't disambiguate naked short selling from the 
case of covered short selling where the receiving broker does not need to 
provide stock borrow (i.e. seller has other lending agreement in place).

Is there another option? Tag 203 (CoveredOrUncovered) doesn't appear applicable 
to cash equities.

--
Tom

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