[This message was posted by Ryan Pierce (FPL Technical Director) 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/427f8dec - PLEASE DO NOT REPLY BY MAIL.]
Hello, John. I've moved your post from FIXML Schema to General Q/A because this question goes well beyond FIXML in scope. > Has anyone, using the FIX4.2 version, any idea how corporate action > notices can be processed? Simple corporate actions (TAG378) look pretty > straight forward, but the free-form nature of Dividend Notices and > offerings carry more information that FIX4.2 can account for. The CMS > system that FIX is replacing was more conducive to this type of > messaging. Any suggestions? FIX, at least as it exists today, isn't intended to address the full scope of corporate action processing. FIX has always supported GTC orders. Certain corporate actions can result in modification of open GTC orders. Stock splits or reverse splits change open quantities and prices, dividends may change limit prices, etc. Prior to FIX 4.2, this information could not be communicated between parties. A 100 share order might turn into a 300 share order due to a 3:1 split; the party who sent the order may be expecting 100 shares and could be filled for 300, which could cause unexpected behavior. FIX 4.2 introduced the concept of "Restatement" whereby the party who received the order indicates that it has changed certain parameters of the order itself. In the example above, that party may send an Execution Report with ExecType=Restated and ExecRestatementReason=0 (Corporate Action) with OrderQty=300 and Price=1/3 of the original limit price. The intent of this is to allow both parties to the FIX session to reconcile the state of their open orders. It is *NOT* intended as a means of fully describing a corporate action. FIX 4.2 also introduced tag 292 (CorporateAction) which is used in the Market Data, Security Definition, Security List, and Security Status suites of messages. This can identify types of corporate actions performed, but does not contain detailed information about them. So no, I don't believe FIX currently addresses this functionality. [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 -~----------~----~----~----~------~----~------~--~---
