[This message was posted by John Prewett of Lava Trading 
<[email protected]> to the "4.2 Changes" discussion forum at 
http://fixprotocol.org/discuss/5. You can reply to it on-line at 
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This model is somewhat dangerous when it comes to covering all the state 
transitions, but I don't see why it couldn't be made to work with some leniency 
from the entities that send you orders.

Having already issued ExecReport(ExecType=Replaced), it would not be 
appropriate to subsequently issue an ExecReport(ExecType=Rejected) as you 
stated.  I believe that an unsolicited cancel of the order would be the only 
option under these circumstances.

Please beware that some buy-side software gets upset when it receives an 
unsolicited cancel as this is generally an abnormal situation.

What I'm wondering about is why you acknowledge the orders.
Have you considered using ExecReport(ExecType=Pending New) as a response for 
the original order and ExecReport(ExecType=Pending Replace) as a response for 
the replacement order?
If you did this, you could then forward the orders and replace requests when 
the execution venue subsequently becomes available and relay the responses back 
to your buy side customers.  In this respect, you would be acting as a FIX 
store-and-forward device.

Lastly, you haven't mentioned how you handle what happens when:
1. The orders are still flowing and the market now becomes available.  Do you 
still pre-acknowledge orders?
2. The buy-side sends two (or twenty-two) replace requests prior to market open.
3. Handling of cancel requests.

I hope this helps.

JohnP

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