Borsa Italiana will implement a new order message tag in February that will allow participants in IDEM, its futures and options market, to indicate the type of execution method used at the point of order entry. The exchange, which is a subsidiary of London Stock Exchange Group, will introduce the new functionality when it moves to version 14 of its SOLA trading system, which is scheduled to go live on Feb. 3, 2020. It will be the fourth exchange to support this new standard, which was developed by FIA and FIA Tech to ensure that brokerage is correctly calculated and paid.
Borsa Italiana said use of the code will not be mandatory, but cautioned that orders with invalid values will be rejected, and orders with blank values will be defaulted to the code for "high-touch" execution through a broker. Firms that decide to use the code will be able to add it to order entry, order modification, bulk quote data and related execution notice and execution report messages in both messaging protocols used by the exchange: its native protocol, called SAIL, and the FIX protocol used industry-wide. The execution source code will also be passed to IDEM’s central counterparty, CC&G, so that it will be available to clearing firms through CC&G’s clearing systems.
The execution source code schema was published by FIA and FIA Tech in December 2018 and has been implemented at CME Group, Eurex and Intercontinental Exchange.
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