[This message was posted by Vikash Jain of Citigroup <[EMAIL PROTECTED]> to the 
"India Forum" discussion forum at http://fixprotocol.org/discuss/54. You can 
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>  Hi,
> 
> I had doubt regarding the status of an Application message. Consider the
> following scenario:
> 1) FIX entity-A, that serves the application message, sends a Logout to
>    the other end due to loss of communication to the OMS Server.
> 
> 2) But at the same time FIX entity-A receives an application message,
> (E.g. New Order Request) which is in transit. This message was sent by
> the FIX entity-B before it received the Logout from the FIX entity-A.
> 
> What FIX entity-A is supposed to do in this case?
> a) Should FIX entity-A discard the received application message without
>    incrementing its incoming sequence number? OR
> b) Should FIX entity-A respond to the received application message by a
>    Business Message Reject and increment its incoming sequence number?
> 
> Thanks in advance, Vinay Meher

Vinay,

Probably someone from the FIX Engine development team may answer this in a 
better way.

In general when the Logout initiator sends a Logout message, it indicates the 
other side that the Logout is in process but the session has not yet been 
disconnected. It expects a Logout confirmation in response to the logout 
initiated message. In the scenario that you have described, my view is that the 
Initiator (Entity A) should discard the application message and not increment 
its sequence number (and keep waiting for the logout confirmation message if 
within the stipulatd wait time). This would ensure that when the next time the 
sessions re-connect the application message is sent as part of Gap-fill 
mechanism.

In the above case, when Entity B sends the logout confirmation message then 
Entity A will recognise that it has missed a message as the Logout message will 
come in with an incremented Sequence Number. Entity A may then use this 
opportunity to do a resend request - but at this time, the Entity B may have 
disconnected after sending the logout message - so this will be recovered only 
at the next logon.

In short, none of the application messages received by the Logout initiator 
should be processed.

Vikash

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