EP127 Specific Lot Allocation Proposal

Ability to transmit instructions for specific-lot allocations. Specific-lot trade allocations are a key benefit provided by Wealth Managers who provide advisory services to retail customers.

One of the key issues with specific-lot trading is determining how to identify the lot. This issue requires common methods for custodians and Wealth Managers to synchronize on lots, making it both a trading and custodial reconciliation problem. Additionally, this issue became even more critical due to the Cost Basis Regulations requirement by the Emergency Economic Stabilization Act in the US. This act requires that custodians maintain and report to investors and the IRS accurate cost basis on trades. One of the allocation methods explicitly required by the act is the support lot-specific allocation instructions.

Update History

[Updated 2013-12-09] The FIXML Schema and FIX Repository files have been updated for the following changes: an update to the base FIX 5.0 SP2 (See 20131209 Errata Release Notes); an update to EP105 to correct an issue with incorrect coding of UndInstrmtGrp and InstrmtLegGrp components in the Repository; an error in EP106 was also corrected to resolve FIXML Schema validation issues with components assigned to incorrect component categories.

[Updated 2012-12-03] FIXML Schema and FIX Repository updated to resolve schema validation errors reported.

[Updated 2012-05-30] Update of repository and FIXML Schema due to correction of EP125.

[Updated 2012-01-12] Added repository and FIXML Schema. ASBUILT document updated.