[This message was posted by Pravin Pillai of  <[email protected]> to the "4.2 
Changes" discussion forum at http://fixprotocol.org/discuss/5. You can reply to 
it on-line at http://fixprotocol.org/discuss/read/335fa97f - PLEASE DO NOT 
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I have a few BASIC questions bothering me and would like to understand if I am 
on the right track. Can you please confirm/answer the following:

(1) FIX is primarily used for buy-side to sell-side communication.

(2) FIX is also used for sell-side to exchange communication.

(3) For FIX communication between buy-side and sell-side, we would need a FIX 
engine on both sides and a session needs to be maintained between the 2 engines 
for any communication to happen.

(4) For FIX communication between sell-side and exchange, we would need a FIX 
engine on both sides and a session needs to be maintained between the 2 engines 
for any communication to happen.

(5) Assuming the above is true, I believe the sell-side can use a single FIX 
engine for communication with buy-side as well as exchange.

(6) Most of the sample code that I see is a buy-side communicating with a 
sell-side wherein the sell-side simulates a response. I want to understand the 
end-to-end scenario with an exchange also in picture. Lets say buy-side places 
an order. Sell-side receives the order and instead of simulating a response 
needs to send the order to the exchange. I am imagining that the sell-side 
application picks up the order from buy-side-sell-side-session, probably makes 
changes to the sendercompid and targetcompid, and sends the order on the 
sell-side-exchange session to the exchange. Thus an end-to-end scenario will 
always involve 2 FIX sessions. Is this correct?

(7) I have some folks telling me that "buy sides will not have a FIX engine but 
they will be able to send FIX messages using some adapter. Only the sell side 
will have a fix engine to receive and process these messages.". 
I believe this is incorrect. Am I correct?

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