Selective suppression of implied contract generation

A system for improving the efficiency of a trading system, the system comprising:

• an order receiver implemented by a processor and operative to receive from at least one market participant of a plurality of market participants, a first order for a first instrument and a second order for a second instrument, the first and second orders having a relationship there between from which at least a third order for a third instrument may be implied;
• an implied order generator implemented by the processor and operative to determine liquidity of the third instrument based on how many price ticks that a best bid price in a market for the third instrument is within a best ask price in the market for the third instrument, a delivery month of the third instrument, a likelihood of receiving an order, at a better price with respect to a resting counter order thereto, for the third instrument satisfying the relationship between the first and second orders from one of the plurality of market participants, and/or whether the implied third order will not improve a spread between the best bid price and the best ask price in the market for the third instrument and selectively generate, based on determination, the implied third order from the first and second orders, the implied order generator not generating the implied third order when the best bid price in the market for the third instrument is within a threshold number of price ticks of the best ask price in the market for the third instrument, when the delivery month of the third instrument is a defined delivery month, when the delivery month for the third instrument is the current month, when the likelihood of receiving an order, at a better price with respect to a resting counter order thereto, for the third instrument satisfying the relationship between the first and second orders from one of the plurality of market participants exceeds a threshold, and/or when the implied third order will not improve a spread between the best bid price and the best ask price in the market for the third instrument, and the implied order generator generating the implied third order when the best bid price in the market for the third instrument is not within a threshold number of price ticks of the best ask price in the market for the third instrument, when a delivery month of the third instrument is not the defined delivery month, when a delivery month for the third instrument is not the current month, when a likelihood of receiving an order, at a better price with respect to a resting counter order thereto, for the third instrument satisfying the relationship between the first and second orders from one of the plurality of market participants does not exceed the threshold, and when the implied third order will improve the spread between the best bid price and the best ask price in the market for the third instrument;
• and
• the implied order generator being further operative to, subsequent to the generation of the implied third order, list the generated implied third order to make it available in the market for the third instrument for trading by the plurality of market participants and otherwise not listing it in the market for the third instrument for trading by the plurality of market participants.

A system for improving the efficiency of a trading system, the system comprising a processor and memory coupled therewith, the system further comprising:

• first logic stored in the memory and executable by the processor to receive from at least one market participant of a plurality of market participants, a first order for a first instrument and a second order for a second instrument, the first and second orders having a relationship there between from which at least a third order for a third instrument may be implied;
• second logic stored in the memory, coupled with the first logic and executable by the processor to determine liquidity of the third instrument based on how many price ticks that a best bid price in a market for the third instrument is within a best ask price in the market for the third instrument, a delivery month of the third instrument, a likelihood of receiving an order, at a better price with respect to a resting counter order thereto, for the third instrument satisfying the relationship between the first and second orders from one of the plurality of market participants, and/or whether the implied third order will not improve a spread between the best bid price and the best ask price in the market for the third instrument and selectively generate, based on determination, the implied third order from the first and second orders, the second logic is further executable by the processor to not generate the implied third order when the best bid price in the market for the third instrument is within a threshold number of price ticks of the best ask price in the market for the third instrument, when the delivery month of the third instrument is a defined delivery month, when the delivery month for the third instrument is the current month, when the likelihood of receiving an order, at a better price with respect to a resting counter order thereto, for the third instrument satisfying the relationship between the first and second orders from one of the plurality of market participants exceeds a threshold, and/or when the implied third order will not improve a spread between the best bid price and the best ask price in the market for the third instrument, and generate the implied third order when the best bid price in the market for the third instrument is not within a threshold number of price ticks of the best ask price in the market for the third instrument, when a delivery month of the third instrument is not the defined delivery month, when a delivery month for the third instrument is not the current month, when a likelihood of receiving an order, at a better price with respect to a resting counter order thereto, for the third instrument satisfying the relationship between the first and second orders from one of the plurality of market participants does not exceed the threshold, and when the implied third order will improve the spread between the best bid price and the best ask price in the market for the third instrument;
• and
• the second logic being further executable by the processor to, subsequent to the generation of the implied third order, list the generated implied third order to make it available in the market for the third instrument for trading by the plurality of market participants and otherwise not listing it in the market for the third instrument for trading by the plurality of market participants.