[This message was posted by Witold Sames of Portware <[email protected]> to the 
"4.2 Changes" discussion forum at http://fixprotocol.org/discuss/5. You can 
reply to it on-line at http://fixprotocol.org/discuss/read/69654ab1 - PLEASE DO 
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Mahendra,

buy-to-cover, in most cases, is a pure business transaction. As you correctly 
noted, the order to the broker is simply to buy (no side "buy to cover" exists 
in the specs), but the effect on your position or account with a broker may be 
different based on whether you create or add to a long position, or decrease or 
close a short one.

To decide whether to add a (new) long position or close / decrease a shot one 
you could look at the balance of shares in a certain portfolio as a signed 
value. Say you are short 100 shares of VOD LN - you portfolio now has -100 
shares. On receipt of an executed buy order for 50 shares, you simply add to 
the current position, and end up with -50 (short 50 shares still). If there are 
0 shares currently in the portfolio, you are adding a (new) long position with 
the execution report. If you have more than 0 already, you are increasing an 
existing position.

In your system, you can go further, and create a unique pattern of ClOrdID, for 
example. Say all your ClOrdIDs are of YYYYMMDD-1234567 type right now. You 
could introduce a "side" token, and make the pattern like this: 
YYYYMMDD-BTC-1234567 (BTC here is buy-to-cover; you could have BY, SL, SS, 
etc.) Now you know right away which execution was for an order "buy-to-cover".

--ws



> Hi, is there support for this time of action. Currently, in spec 4.2, it
> does not indcate support for such a thing.
> 
> I realize that this is simply considered a "Buy", but the problem we are
> running into is when we recieve the execution reporting telling us that
> the order has been filled, we have no idea at that point if we need to
> add a position to a user's portfolio or remove a short position.
> 
> thanks


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