[This message was posted by Hanno Klein of Deutsche Börse Systems 
<[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/b84b42e2 - PLEASE DO NOT REPLY BY MAIL.]

John,

my view is the following. Only systems that keep entity state should be the 
source of messages defining states. An intermediary responding to an order 
carrying "New" with an ExecutionReport carrying "Pending New" has to maintain 
state of all orders passing through. Specifically, he has to synchronize his 
order states with those of the venue to which he then forward the orders. The 
venue might not support pending states, i.e. the intermediary has to respond to 
order status inquiries by accessing his own database (not the venue's). The 
venue might have deleted an order through verbal communication and not sent out 
a corresponding message. This all creates additional complexities that I would 
avoid if possible.

Therefore I favor a solution where only the venue maintains order states for 
all cases where the intermediary does not create new order entities by bundling 
orders from multiple customers. The intermediary then simply acts as a hop 
towards the venue even if he does some risk management when he sees the orders 
and trades passing through.

Regards,
Hanno.

> I have a question concerning generation of "pending" messages.
> 
> I define "pending" messages as ExecReport with ExecType containing one
> of: o Pending New o Pending Replace o Pending Cancel
> 
> Imagine there is a customer who sends orders to various execution venues
> through an intermediary. The intermediary may act as a dumb FIX router
> or could take order routing decisions.
> 
> Should only the venues generate pending messages and the intermediary
> route them back to the customer? Or should the intermediary generate and
> send pending messages back to the customer, while discarding any pending
> messages received from the execution venues?
> 
> While I have supplied two possible answers, I suspect the answer lies
> somewhere in between: "it depends on several factors...."
> 
> Thanks in advance for your opinions.
> 
> JohnP


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