FIX Tag 87, specifically CommType, indicates the commission type applied to a financial transaction within the Financial Information eXchange (FIX) protocol. This tag provides a standardized identifier for how a commission is calculated or charged, such such as per share, percentage of value, or per unit. It is a critical data point for accurate trade accounting and post-trade reconciliation in institutional crypto trading, ensuring transparency in transaction costs.
Mechanism
When an order is executed or confirmed, the 87=CommType field is populated within the FIX message, conveying the agreed-upon commission structure. This information travels alongside other trade details from the execution venue or broker to the institutional client’s back-office systems. Automated parsing of this tag enables internal systems to apply the correct commission calculation logic for comprehensive reporting and precise settlement purposes.
Methodology
The strategic methodology for utilizing FIX Tag 87 focuses on establishing clear and consistent commission structures with trading counterparties, facilitating automated and precise cost attribution. Proper implementation ensures compliance with financial regulations regarding transaction cost reporting and streamlines reconciliation processes across various systems. This standardized approach significantly reduces operational errors and disputes, thereby enhancing efficiency and trustworthiness in institutional crypto trade processing.
The AllocationInstructionAck message transforms post-trade reliability by providing a verifiable, machine-readable confirmation of an instruction's status.
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