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Handle Incoming Messages for Orders not Originating from CDOTE

Another process supported by Commodity Derivative Order and Trade Execution is handling of fill messages for order requests which do not originate from CDOTE.

This is the case when the order is placed via phone or directly in the broker or trading system.

Without CDOTE you would need to build an additional interface on your own to import the trades or you would have a complex manual process that needs to be performed:

  • A trader calls the broker and requests an order
  • After some time, the broker works the order and informs the trader about filling the order
  • Most likely the trader than forwards the details to a back-office worker
  • The back-office worker creates manually a future transaction in SAP Commodity Risk Management

A process with lots of manual and time-consuming steps that ultimately might lead to errors.

With CDOTE the process could look like the following

  • A trader calls the broker and requests an order
  • After the broker has executed the order he sends a FIX message using the provided FIX messaging interface
  • CDOTE interprets the provided message and creates an order request with the according data. Then, immediately or after an additional manual order data enrichment step, the future transaction in SAP Commodity Risk Management can be created automatically

So with CDOTE it is possible to have the system setup in a way that no manual interaction is required to create future transactions resulting from orders placed via phone or in directly in the broker system.

You might now ask yourself the following questions and therefore I would like and try to answer them:

Q: Why is an order request created in that case?
This has two reasons.
Number one is consistency. Each transaction that is handled through CDOTE should be visible in the orders app. That way a consistent overview can be granted.
And secondly it could be that the broker only sends a partial fill for a certain order request arranged via phone. In that case by creating an order request it can be made sure that as soon as the first fill comes in for that order request the request can be tracked in the system.

Q: What if I do not want to accept everything that I receive from my broker?
Actually, it can be customized whether the order request and fill processing should directly happen in case no order request could be assigned to a fill. If that is not the case a manual approval step is required. In my given example I was talking about a system that has that approval step turned off.

 

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