[This message was posted by Mahesh Kumaraguru of  <[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/4fb1906c - PLEASE DO 
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Trading application means 

For Buy side - its portfolio management system - the source of orders and 
destination of executions. 

For Sell side / ECNs - its Trade execution engine - destination of orders and 
source of executions. 

> No, after handing the business message to the trading application, the
> FIX engine will be free to accept the next inbound message. When the
> trading application produces a response to the application message which
> it received, trading application will hand over the response to the FIX
> engine and the FIX engine will send it over the wire to the
> counterparty.
> 
> > so my question still remains..if engine identifies it as an
> > application bound message and it hands it over to the trading app,then
> > will the FIX engine be blocked i.e. it won't accept any more messages
> > till the trading app finishes its processing of the message? wouldn't
> > this be a serious performance issue.
> >
> > > FIX messages are accepted and processed sequentially (Ordered
> > > Message Processing), but keep in mind that "processing" can mean
> > > different things for different messages.
> > >
> > > I see the architecture of FIX applications logically as two tier
> > >
> > > Tier 1 - FIX Engine - transports business data without understanding
> > > the meaning of data.
> > >
> > > Tier 2 - Trading Application - produces and consumes business data
> > > without understanding how the data is moved.
> > >
> > > FIX Engine will accept messages and apply Session level validation.
> > > If the message received is a Session message, the FIX Engine itself
> > > will perform the appropriate action. Else if the message received is
> > > a application / business message, the FIX Engine will hand it over
> > > to the Trading Application and the trading application will apply
> > > application level validations and perform appropriate action.
> > >
> > > > You will process the messages based on incrementing sequence
> > > > numbers (tag 34). Each FIX message will have unique sequence
> > > > number and it will keep incrementing throuhgout the day. Try to
> > > > read more about FIX message format, key FIX fields and FIX session
> > > > handling, that will help you understand more.
> > > >
> > > > > does FIX engines act like JMS servers e..g quickFix/j. in other
> > > > > words, does the messages accepted sequentially?
> > > > >
> > > > > if so, how do you manage your incoming messages. for .e.g if you
> > > > > get a 1000 incoming messages say 5 seonds, you really can't
> > > > > process those messages when you receive them. i usually would
> > > > > spawn out a new thread to process that so i can keep accepting
> > > > > the messages [also increase the threadpool a little].


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