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Collective Investments
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re: Subscription/Redemption as ExecInst
Chris Lambert / EMX Company Limited
27 Sep 2001 12:36PM ET> As a mutual funds potentially can be either traded on the secondary market or with the fund provider directly a flag needs to be set by the client when sending the order to us as broker.
In earlier discussions we were unable to identify any market that trades in (closed-ended) mutual funds.
A Hub or Funds Supermarket that bulks and nets orders from multiple investors and then issues a subscription/redemption order for the balance with the Fund Manager is acting as an intermediary rather than as an exchange. (See PartyRole)
> Having looked at the specifications the most suitable tag for me seems to be no. 18 (ExecInst).
If it were needed (see above discussion) the tag to use would probably be no. 100 (ExDestination) "Execution destination as defined by institution when order is entered" - the specific exchange being identified by a MIC from Appendix C.
If it were needed a new value could be requested from the MIC Reg Authority to indicate "Deal directly with Issuer" - to prevent routing to an exchange.
However the question remains - "Are there exchanges that support trades in closed-ended Mutual Funds ?"
re: Subscription/Redemption as ExecInst
Chris Lambert / EMX Company Limited 27 Sep 2001 12:36PM ET
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