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US 10,475,120 B2Granted
Directed order
AssigneeNYSE Group, Inc.
InventorsMichael A. Cormack, Jennifer L. Drake, Thomas F. Haller, Robert A. Hill
Life of this patent
Estimating the term…
Abstract
A directed order process and related market center are disclosed, wherein a market center grants permission to order sending firms to send directed order flow to participating designated market makers. Such designated market makers create a virtual guarantee order book for each permissioned order sending firm. If an order sending firm sends a directed order to the market center that is marketable against a virtual guarantee order, then the market center automatically pairs the orders in a two-sided directed cross order instruction, which executes against any superior trading interest in the marketplace first before crossing.
Claims21
A method for integrating and processing different electronic order types together in a single system, comprising:
- creating, by a posting market center system, one or more electronic guarantee order books for a designated market maker, each electronic guarantee order book corresponding to a different order sending firm of one or more order sending firms that is permissioned to send directed orders to the designated market maker, wherein the posting market center system includes one or more computers, each computer comprising a non-transitory memory configured to store instructions for execution by a processor;
- creating, by the posting market center system, routing permissions that associate each electronic guarantee order book with a single order sending firm to form permissioned pairs that are permitted to exchange orders;
- receiving, by the posting market center system, a plurality of guarantee orders from the designated market maker, the plurality of guarantee orders intended for at least one order sending firm of the one or more order sending firms, wherein at least one guarantee order of the plurality of guarantee orders varies in at least one of a size, a price and a type;
- populating, by the posting market center system, the one or more electronic guarantee order books with the plurality of guarantee orders according to the routing permissions for each electronic guarantee order book;
- receiving, by the posting market center system, a directed order from a first order sending firm of the one or more order sending firms, the directed order intended for the designated market maker;
- determining, by the posting market center system, that a first electronic guarantee book is associated with the first order sending firm based on the routing permissions, wherein the first order sending firm and the first designated market maker are a permissioned pair;
- determining, by the posting market center system, that the directed order is marketable against a best contra guarantee order of the plurality of guarantee orders populated in the first electronic guarantee order book;
- automatically pairing, by the posting market center system, the directed order with the best contra guarantee order;
- and
- executing the directed order.
7 more elements
A posting market center system comprising:
- an interface for receiving orders;
- a non-transitory memory configured to store computer-readable instructions;
- and
- at least one processor coupled to the interface and the non-transitory memory, wherein the computer-readable instructions, when executed by the at least one processor, cause the at least one processor to:
- create one or more electronic guarantee order books for a designated market maker, each electronic guarantee order book corresponding to a different order sending firm of one or more order sending firms that is permissioned to send directed orders to the designated market maker;
- create routing permissions that associate each electronic guarantee order book with a single order sending firm to form permissioned pairs that are permitted to exchange orders;
- receive, via the interface, a plurality of guarantee orders from the designated market maker, the plurality of guarantee orders intended for at least one order sending firm of the one or more order sending firms, wherein at least one guarantee order of the received guarantee orders varies in at least one of a size, a price and a type;
- populate the one or more electronic guarantee order books with the received plurality of guarantee orders according to the routing permissions for each electronic guarantee order book;
- receive, via the interface, a directed order from a first order sending of the one or more order sending firms, the directed order intended for the designated market maker;
- determine that a first electronic guarantee book is associated with the first order sending firm based on the routing permissions, wherein the first order sending firm and the first designated market maker are a permissioned pair;
- determine that the directed order is marketable against a best contra guarantee order of the plurality of guarantee orders populated in the first electronic guarantee order book;
- automatically pair the directed order with the best contra guarantee order among guarantee;
- and
- execute the directed order.
11 more elements
Dependencies are inferred from the claim text.