[This message was posted by Saikiran Ramesh of Ace Consulting 
<[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/470c8d66 - PLEASE DO NOT REPLY BY MAIL.]

thats perfect. so basically the buy/sell side app have some sort of callback 
with the engine so when its done, fix engine gets it back
thanks again for your quick reply..

> 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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