[This message was posted by John Prewett of Lava Trading (Citi) 
<[email protected]> to the "4.4 Changes" discussion forum at 
http://fixprotocol.org/discuss/17. You can reply to it on-line at 
http://fixprotocol.org/discuss/read/75fb1e0a - PLEASE DO NOT REPLY BY MAIL.]

> Interesting question...yes, I'm lurking, too :-)
> 
> Taking your hypothetical literally (entity receives iceberg order with 
> instructions to send the order to a specific venue that does not support 
> iceberg orders), I might have made a different business decision with respect 
> to order handling.
> 
> I would wonder, "Does the sender fail to understand that his intended 
> destination provides no support for these order types or did he simply 
> specify the wrong destination, intending this order instead for a venue that 
> does support iceberg orders?"
> 
> Further, as the SOR operator, I would be concerned about exercising 
> discretion not granted to me.  Simulating the behavior of an iceberg at the 
> SOR level may produce different business results than would be obtained were 
> the order handled as instructed.  For example, what if the undisplayed 
> liquidity counts toward a liquidity-provision requirement that would not be 
> satisfied by the drip handling of the SOR.
> 
> My inclination would be to reject an order that cannot be handled as 
> instructed, providing an appropriate reject code.
> 
> Just another perspective...
> 
> Best,
> John

All valid points.

I would hope that a SOR that behaved in the manner I described was well 
document to its customers so that its behavior was precisely what should be 
expected.

Thanks

JohnP

[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.

Reply via email to