[This message was posted by John Harris of BondMart Technologies, Inc. <[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/710d10e3 - PLEASE DO NOT REPLY BY MAIL.]
>From a business perspective, what distinguishes a "cross" from regular >transaction is that the orders are matched at an externally-sourced price, by >prior agreement. That is, a cross differs from an ordinary trade by the >method of price agreement. Physical-world example: A broker has in hand at the same time a buyer and seller of XYZ stock, which happens to be listed on NYSE. Presuming the rules of the exchange permit such behavior, he could say to each of the buyer and seller: "XYZ is bid at 25, offered at 26 on the exchange. I am in touch with a buyer (seller) in the size you wish to sell (buy). Rather than introducing your orders to the exchange, I can facilitate a trade between you at the mid-point between the bid and offer, or $25.50. Shall I do that?" If he obtains agreement from both, he will effect the trade. > No, a cross involves a simultaneous trade between two orders. You enter > both orders in a single message (NewOrderCross). Often there are a > number of regulatory rules around such orders in order to prevent market > abuse, e.g. having to expose them to the entire market for a number of > seconds to allow price improvement. > > > Hi , > > > > Could someone please let me know what is Cross Order. Does it by any > > means specify a Cross Currency Trade, Wherein Client in US buys a > > Stock in LSE and Settles the same in USD with certain Exchange Rate? > > > > Thanks Sridhar [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 -~----------~----~----~----~------~----~------~--~---
