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Staging Orders to Execution Traders Who Use TTORD 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 TTORD-type credentials and share an order book. Therefore, the TTORD credentials of the trader who originates the staged order must have the same Member and Group IDs as the execution traders.

Sample Scenario 1: Internal Execution Trader Using TTORD Credentials Works the Order

For example, assume a portfolio manager at a buy-side firm needs to stage orders for CME contracts to an internal execution desk at the same firm. The portfolio manager and execution trader must share an order book. In this scenario, the internal execution desk works the staged order.

For this scenario, assume a portfolio manager and the execution traders who will work the staged orders use the credentials shown in the following table. Note that execution traders ET1 and ET2 use TTORD-style credentials, while execution traders ET3 and ET4 use exchange trader credentials.

Role

Username

Gateway

TT Routing Credentials

Exchange Credentials

Account

Execution Trader

ET1

SSE-A

TTORDAB/001/002

TTSSE/SE1/001

CME-A

TTORDAB/001/002

ABC/ABC/ABC

Execution Trader

ET2

SSE-A

TTORDAB/001/003

TTSSE/SE1/001

CME-A

TTORDAB/001/003

ABC/ABC/ABC

Execution Trader

ET3

SSE-A

TTSSE/SE1/001

TTSSE/SE1/001

CME-A

ABC/ABC/ABC

ABC/ABC/ABC

Execution Trader

ET4

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

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

Execution traders who are mapped to TTORD MGTs on Synthetic SE must define at least one X_TRADER Customer Defaults entry that identifies a valid Account number for Synthetic SE. When creating or updating a child order of a staged order, Synthetic SE always uses the Customer Defaults Account field, not the value entered in the order request.

For more information, refer to the X_TRADER Help system.

Scenario 1: 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 manager PM1 submits an INTERNAL 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 and ET2, because they share an order book with PM1 for both SSE-A and CME-A
    Note

    SSE-A does not send an order acknowledgement to ET3 and ET4 because INTERNAL staged orders are not visible to users who are mapped to exchange trader credentials on the TT Gateway to which child orders will be routed

  3. Either 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.
  4. For each child order the execution trader (ET1 or ET2) submits, the TT CME-A Gateway sends an order acknowledgment to all of the execution traders (ET1, ET2, ET3, and ET4) and to the portfolio manager who created the order (PM1). Standard order visibility rules apply to child orders of staged order.
  5. For each child order fill:
    • The TT CME-A Gateway sends a child order fill to all of the execution traders (ET1, ET2, ET3, and ET4) 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.

Sample Scenario 2: Internal Execution Trader Re-Stages the Order to an External Execution Desk

Continuing with the prior scenario, assume the internal execution trader cannot work the order or does not have the time to complete the order. He can re-stage the order to the sell-side firm’s Execution Desk so an external execution trader can work the full or partially-filled staged order.

Note

X_TRADER provides a mechanism for an execution trader with TTORD-style credentials to change an INTERNAL staged order to a BROKER staged order. Synthetic SE does not, however, permit anyone to change a BROKER staged order to an INTERNAL staged order.

For more information about re-staging an order, refer to the X_TRADER Help System.

This scenario assumes that all participants use the same credentials as mentioned in the scenario 1.

Scenario 2: 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 manager PM1 submits an INTERNAL 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 and ET2, because they share an order book with PM1 for both SSE-A and CME-A
    Note

    SSE-A does not send an order acknowledgement to ET3 and ET4 because INTERNAL staged orders are not visible to users who are mapped to exchange trader credentials on the TT Gateway to which child orders will be routed.

  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. Assume Trader ET1 claims the staged order. Trader ET1 doesn’t have the time to work the staged order, so he re-stages it to the external execution desk by changing it to a BROKER staged order.
    Note

    EFT1 and EFT2 will no longer be able to claim and work the staged order after it is promoted.

  5. When the TT SSE-A Gateway receives the change, it sends order acknowledgments to:
    • PM1, because this user created the order.
    • ET1 and ET2, because they share an order book with PM1 for both SSE-A and CME-A
    • ET3, because PM1’s credentials map to ET3’s exchange trader credentials for both SSE-A (TTSSE/SE1/001) and CME-A (ABC/ABC/ABC)
    • ET4, because he shares an order book with ET3 for both SSE-A and CME-A
  6. Either ET3 or ET4 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.
  7. For each child order the execution trader (ET1 or ET2) submits, the TT CME-A Gateway sends an order acknowledgment to all of the execution traders (ET1, ET2, ET3, and ET4) and to the portfolio manager who created the order (PM1). Standard order visibility rules apply to child orders of staged order.
  8. For each child order fill:
    • The TT CME-A Gateway sends a child order fill to all of the execution traders (ET1, ET2, ET3, and ET4) 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, ET2, ET3, and ET4.