[This message was posted by Ryan Pierce of CME Group <ryan.pie...@cmegroup.com> 
to the "Information Security" discussion forum at 
http://fixprotocol.org/discuss/3. You can reply to it on-line at 
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> FIX 4.4 spec (vol. 2) says, that if "receive message with a SecureData value 
> that cannot be decrypted" then acceptor should send Reject message in 
> response. But should it be encrypted Reject (SessionRejectReason, RefSeqNum, 
> etc. tags) or should it be unencrypted?
> 
> My vision is as next: if side A sends msg with incorrect SecureData, then, 
> most likely, it will not be able to decode encrypted Reject and understand 
> the reason of this reject.

My understanding is that the spec calls out a very limited number of fields 
that must be unencrypted, and these are all in StandardHeader and 
StandardTrailer. Now there is disagreement over some of them; FIXimate says 
that for FIX 4.4 and FIXT.1.1, SenderCompID and TargetCompID must remain 
unencrypted, while the security document defining PGP/DES-MD5 encryption 
requires that they be encrypted. Still, I wouldn't see any reason why you 
couldn't encrypt SessionRejectReason and RefSeqNum. 

Now there is a practical consideration with your example that may make this 
impossible. MsgSeqNum is supposed to be encrypted. It follows that if your 
engine can't decrypt a message, it can't extract MsgSeqNum, so it can't send a 
Reject at all!

PGP/DES-MD5 has a number of issues and failure modes; this is just one of them. 
It also isn't very secure, since each message is encrypted with 56-bit DES. Any 
determined adversary with even relatively modest funds would have little 
trouble breaking DES.

FPL recommended against usage of this kind of FIX encryption in a white paper:

http://www.fixprotocol.org/documents/3569/FIX%20Security%20White%20Paper-1.8-FINAL.pdf

If you want encryption, you should probably avoid PGP/DES-MD5, and either:

A. Wrap the session in SSL/TLS, or 
B. Use an encrypted VPN, IPSec, etc.

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