[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/a8751a6f - PLEASE DO NOT REPLY BY MAIL.]

> > Andrei,
> >
> > I do not think there is a standard behaviour although the verbiage of
> > FIX 5.0 SP2 is quite clear on the case you mention:
> >
> > 40 OrdType K = Market With Left Over as Limit (market order with
> > unexecuted quantity becoming limit order at last price)
> >
> > However, FIX 5 also allows you to make the behaviour explicit for any
> > order type change by using the following fields:
> >
> > 1101 TriggerAction = 2 = Modify 1100 TriggerType = 1 = Partial
> > Execution 1111 TriggerOrderType = 2 = Limit (or whatever you need it
> > to become)
> >
> > The question becomes what value it is to always know the initial type
> > of an order. Would it help to have a field like InitialOrdType that
> > reflects the value during order entry? This could also cover the case
> > of a triggered stop order becoming a regular (market/limit) order.
> > ExecType
> > = L = Triggered will only cover the event when it changed. Tag 636
> > WorkingIndicator is intended only for OrdStatus=New.
> >
> > My view is that it is better to change the order type if the order
> > also behaves differently. A market order is no longer a market order
> > but a limit order if the price is taken into account for matching. A
> > stop order is no longer a stop order but a regular order if it can
> > participate in matching.
> >
> > Regards, Hanno.
> 
> Ok then, I got your point.
> 
> Regarding Stop orders, which is the preferable way to do it? ExecType =
> L (Triggered) or WorkingIndicator = Y?

ExecType describes an event that occurred as opposed to WorkingIndicator being 
an attribute of the order. One could argue that WorkingIndicator can be used to 
always communicate that this order was once "not working" and then became 
active. This would violate the current spec that tells you to only use it for 
OrdStatus="New". It is the older field of the two and currently has a somewhat 
limited scope.

ExecType "Triggered" was introduced together with the new component block 
<TriggeringInstruction> and is intended to communicate that the triggering 
condition (which could be complex, not just a stop order) was met. I believe it 
is the better way to communicate a stream of events. It gets tricky if an order 
is triggered and immediately matched. If you want to send a singel message for 
this event, you can only put the last event "Trade" into ExecType and need to 
defer the fact that is must have been triggered prior to being matched. or you 
send out two messages, one with "Triggered" and the other with "Trade".

Maybe it would make sense to add a TriggerIndicator into the trigger block to 
convey on subsequent ExecutionReports that this order has been triggered. 
WorkingIndicator was not really meant for this purpose.

Regards,
Hanno.


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