[This message was posted by FPL Program Office of FIX Protocol Ltd. <[EMAIL PROTECTED]> to the "General Q/A" discussion forum at http://fixprotocol.org/discuss/22. You can reply to it on-line at http://fixprotocol.org/discuss/read/a36d1a3a - PLEASE DO NOT REPLY BY MAIL.]
For your information, this is the document that FPL published which details the high-level mapping of changes that were made to FIX in order to comply with Regulation SHO: http://www.fixprotocol.org/documents/1004/FPL%20Americas%20REG%20SHO%20(2).pdf. > One more update after looking at this further - > > There were some discussions regarding the concept of affirmative > determination. Generally, "affirmative determination" means that your > client affirms the ability to borrow securities in good deliverable > form within three business days. I brought this up a long time ago, see > also here: > > http://www.fixprotocol.org/discuss/read/87f2eaa5 > > Having said that, Instinet, at some point, had an option to send 54=7 to > denote a short sell without affirmative determination, which sounds like > a naked short to me. Therefore, 54=5 would imply the short is covered. > This is of course a matter of agreement, and 54=7 is not actually > intended for this purpose either. > > --ws > > > Tom, > > > > I cannot speak for the actual spirit of the recent short selling ban; > > I don't know if simply submitting 54=5 and 114 (not 113 by the way) > > would satisfy the regulation. > > > > Ideally, when shorting (let's leave the naked scenario out for now) > > and having an agreement with a broker or two in place I would send: > > > > 54 = 5 114 = N 5700 = [broker who located] > > > > This is a common implementation of Reg SHO. > > > > If you get 114=Y, 5700 should not be required as you are now asked > > (required?) to provide the merchandise. > > > > Tag 203 is indeed meant for Options, but maybe it could be > > "repurposed" in your environment? > > > > I have seen a few cases where the customer simply states "covered > > short sell" in the text field. > > > > --ws > > > > > > > > > > > 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 [You can unsubscribe from this discussion group by sending a message to mailto:[EMAIL PROTECTED] --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Financial Information eXchange" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/FIX-Protocol?hl=en -~----------~----~----~----~------~----~------~--~---
