[This message was posted by Scott Atwell of American Century Investments <[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/029be1fc - PLEASE DO NOT REPLY BY MAIL.]
Girish, I believe Hanno's definition of a "Cross Order" is correct (a single firm's desire to cross two sides of their own order), and that what you are describing is a "crossing facility" (or "internalization"). I would expect users of such would simply send New Order - Single messages for their individual orders (and may designate that they want to access or participate in the crossing service via attributes on the New Order Single message). > > Hanno, > > Cross trade doesnot only refer to the trade which are subimitted by > single buy side, the orders will come from different buyside side firm > and then it get internally matched with the sell side hub, if this > matched then the trade will get executed with out reporting to exchange. > > For example, If A,B,C,D are the buy side firm using E as their sellside > firm for executing the orders then A may send a buy order which matches > with the sell order of B, so in this phase the E sellside broker matches > this order internally and send the ER to both the counter parties. > > Regards, Girish > > I have a different view and would call what you describe > > "internalization". The definition you give is confusing for me as it > > does not seem to fit with the way it is used by FIX. I thought that > > cross trades were when both sides of a trade come from a single > > submitter. That would only fit if the sellside internally "matches" > > two orders and then sends both sides to an exchange for execution. In > > this case the sellside is the single submitter. > > > > FIX provides messages NewOrderSingle and NewOrderCross and I see the > > difference on the input side (providing one or two sides) and not on > > the execution side (match internally or forward to an exchange). > > > > NewOrderCross allows to send in both sides within a single message, > > i.e. you provide a potential match. Regulatory rules for exchanges > > might require the exchange to make this public before executing it so > > that others can step in. If nobody steps in (no other qualifying > > orders), the cross can be executed as provided. Wouldn't the buyside > > typically only send in one side (using NewOrderSingle), asking the > > sellside to look for the best execution? In that sense, the buyside > > cannot "send in a cross trade", it can only send in an order and it is > > the sellside that makes this into a cross trade when it comes up with > > the other side (and sends this to an exchange). > > > > Regards, Hanno. > > > > >Guys, > > > > > > Just to simplfy the answer, Cross trade means, it is the trade which > > > is sent by buyside to the sellside were the sellside will try to > > > match the order internally with in their inventory and if the order > > > matches then he will execute this internally and will not send to > > > exchange. In other case if the order parameter are not matching with > > > the internal orders then the sellside firm will send the order to > > > exchange. > > > > > > Correct me if i am wrong. > > > > > > Regards, Girish > > > [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 -~----------~----~----~----~------~----~------~--~---
