CME STP FIXML - Bilateral Trading

Bilateral trading is allowed in BrokerTec EU Repo and Gilt Repo markets. Bilateral trading allows permissioned firms to trade with other permissioned firms for the given bilateral product. Bilateral participants have the capability to accept/reject trade via iLink Execution Acknowledgment messages. Bilateral relationships are managed internal to CME Group.

This topic describes the CME STP FIXML messaging concepts for Bilateral Accept/Reject functionality.

BrokerTec Bilateral Trading - Accept/Reject

This section outlines Bilateral Trade Accept, Reject and Partial Reject scenarios.

Bilateral Trade Accept

In this example, an ask side aggressor order trades with a bid side order. Both market data participants receive Trade Capture Reports(/TrdCaptRpt) reflecting a new trade attribute @TransTyp=0 (New).

Bilateral Reject - Single Passive Counter-Party

In this example, an ask side aggressor order trades with a single bid side order. Both market data participants receive Trade Capture Reports (/TrdCaptRpt) acknowledging the new trade @TransTyp=0 (New).

The ask side aggressor then rejects the trade and both participants receive Trade Capture Reports (/TrdCaptRpt) acknowledging the trade cancellation @TransTyp=4 (Reverse).

Bilateral Partial Reject - Multiple Passive Counter-Parties

In this example, an ask side aggressor order trades with multiple bid side order. All market data participants receive Trade Capture Reports(/TrdCaptRpt) acknowledging the new trade @TransTyp=0 (New).

The bid side passive participant then rejects the trade causing a partial trade cancel. The aggressor and passive participant that initiated the trade reject will receive the Trade Capture Reports(/TrdCaptRpt) acknowledging the trade cancellation @TransTyp=4 (Reverse).