ShortSaleExemptionReason <1688> field
FIX 5.0 SP2 EP269
Indicates the reason a short sale order is exempted from applicable regulation (e.g. Reg SHO addendum (b)(1) in the U.S.).
0 = Exemption reason unknown
An exemption reason not provided or received.
1 = Income sell short exempt
Agency broker has the customer's exemption reason, which is not explicitly provided to executing broker.
2 = Above national best bid (broker/dealer provision)
Broker / dealer responsible for enforcing exemption rule has determined that the order is priced one or more ticks above the nation best bid of the security to be traded.
3 = Delayed delivery
The broker-dealer has a reasonable basis to believe the seller owns the covered security (pursuant to Rule 200 in the U.S.), but is subject to restrictions on delivery, provided that the seller intends to deliver the security as soon as all restrictions on delivery have been removed.
4 = Odd lot
The broker-dealer has a reasonable basis to believe the sale is by a market maker to offset customer odd-lot orders or to liquidate an odd-lot position that changes such broker’s or dealer’s position by no more than a unit of trading.
5 = Domestic arbitrage
The sale is connected to a bona-fide domestic arbitrage transaction.
6 = International arbitrage
The sale is connected to an international arbitrage transaction.
7 = Underwriter or syndicate distribution
The short sale is (i) by an underwriter or member of a syndicate or group participating in the distribution of a security in connection with an over-allotment of securities; or (ii) is for purposes of a lay-off sale by an underwriter or member of a syndicate or group in connection with a distribution of securities through a rights or standby underwriting commitment.
8 = Riskless principal
The short sale is by a broker or dealer effecting the execution of a customer purchase or the execution of a customer “long” sale on a riskless principal basis.
9 = VWAP
The short sale order is for the sale of a covered security at the volume weighted average price (VWAP) meeting certain criteria.