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Staging Orders to Execution Traders Who Use Exchange Trader Credentials

Overview

In this scenario, a trader who is mapped to TTORD-type credentials needs to stage orders to an Execution Desk. All traders at the Execution Desk are mapped to exchange trader credentials and share an order book. Therefore, the TTORD credentials of the trader who originates the staged order must be mapped to the exchange trader credentials of one of the execution traders.

Sample Scenario

For example, assume two portfolio managers at different buy-side firms need to stage orders for CME contracts to an execution desk at a sell-side firm. These portfolio managers do not share an order book.

For this example, assume a portfolio manager and the execution traders who will work the staged orders use the credentials shown in the following table.

Role

Username

Gateway

TT Routing Credentials

Exchange Credentials

Account

Execution Trader

ET1

SSE-A

TTSSE/SE1/001

TTSSE/SE1/001

CME-A

ABC/ABC/ABC

ABC/ABC/ABC

Execution Trader

ET2

SSE-A

TTSSE/SE1/002

TTSSE/SE1/002

CME-A

ABC/ABC/ABF

ABC/ABC/ABF

Portfolio Manager

PM1

SSE-A

TTORDAB/001/001

TTSSE/SE1/001

123

CME-A

TTORDAB/001/001

ABC/ABC/ABC

123

Portfolio Manager

PM2

SSE-A

TTORDAB/002/001

TTSSE/SE1/001

456

CME-A

TTORDAB/002/001

ABC/ABC/ABC

456

Note

This scenario assumes the TT User Setup Administrator configured the staged order support settings as follows:

  • For Execution Traders, Staged Order Management Allowed=True
  • For Portfolio Managers, Staged Order Creation Allowed=True

Typical Staged Order Workflow

To illustrate how order routing credentials affect staged orders, follow a staged order as it progresses through its workflow with the users listed in the previous table.

  1. Portfolio Manger PM1 submits a BROKER staged order for a CME contract. The TT system routes the staged order to the TT SSE-A Gateway.
  2. When the TT SSE-A Gateway receives the order, it sends order acknowledgments to:
    • PM1, because this user created the order
    • ET1, because PM1’s credentials (TTORDAB/001/001) map to ET1’s exchange trader credentials for both SSE-A (TTSSE/SE1/001) and CME-A (ABC/ABC/ABC)
    • ET2, because he shares an order book with ET1 for both SSE-A and CME-A.
    Note

    SSE-A does not send an order acknowledgement to PM2 because PM1 and PM2 do not share an order book.

  3. Either ET1 or ET2 can claim and begin working the staged order after it appears in their X_TRADER Orders and Fills Window. After one of them claims the staged order, no one else may work it.
  4. For each child order the execution trader (ET1 or ET2) submits, the TT CME-A Gateway sends an order acknowledgments to both execution traders (ET1 and ET2) and to the portfolio manager who created the order (PM1).
  5. For each child order fill:
    • The TT CME-A Gateway sends a child order fill to all of the execution traders (ET1 and ET2) and to the portfolio manager who created the order (PM1). Standard order visibility rules apply to child orders of staged order.
    • The Synthetic SE Server sends a partial fill for the parent staged order associated with the child order to PM1, ET1, and ET2.

Alternate Staged Order Workflow

In the event that a Portfolio Manager is unable to enter the staged order himself, either execution trader can enter a staged order on his behalf. Before the execution trader can submit a staged order, the TT User Setup Administrator must enable the Staged Order Creation Allowed setting for him. Using the same personnel as before, follow the staged order as it progresses through this alternate workflow:

  1. Portfolio Manger PM1 calls Execution Trader ET1 and asks the trader to enter a staged order for a CME contract on his behalf.
  2. Trader ET1 submits a BROKER staged order with the PM1’s account number. The TT system routes the staged order to the TT SSE-A Gateway.
  3. When the TT SSE-A Gateway receives the order, it sends order acknowledgments to:
    • PM1, because ET1 used PM1’s account number
    • ET1, because PM1’s credentials map to ET1’s exchange trader credentials for both SSE-A (TTSSE/SE1/001) and CME-A (ABC/ABC/ABC)
    • ET2, because he shares an order book with ET1 for both SSE-A and CME-A.
    Note

    SSE-A does not send an order acknowledgement to PM2 because PM1 and PM2 do not share an order book.

  4. Either trader ET1 or ET2 can claim and begin working the staged order after it appears in their X_TRADER Order and Fills Window. After one of them claims the staged order, no one else may work it.
  5. For each child order the execution trader (ET1 or ET2) submits, the TT CME-A Gateway sends an order acknowledgments to both execution traders (ET1 and ET2) and to the portfolio manager who created the order (PM1).
  6. For each child order fill:
    • The TT CME-A Gateway sends a child order fill to all of the execution traders (ET1 and ET2) and to the portfolio manager who created the order (PM1).
    • The Synthetic SE Server sends a partial fill for the parent staged order associated with the child order to PM1, ET1, and ET2.