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US 10,540,716 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 automatically converting a directed order to a non-directed order, comprising:
- in a network comprising a plurality of servers communicatively coupled via wired or wireless communications links, at least one of said servers comprising a posting market center defining an internal book that stores orders, best bids, and best offers associated with one or more external electronic markets,
- said posting market center further defining a guarantee order book that is independent of the internal book, said guarantee order book being specified for a designated market maker to populate the guarantee order book with guarantee orders for one or more order sending firms that are permissioned to send directed orders to the designated market maker:
- receiving a plurality of guarantee orders on the posting market center from the designated market maker intended for the one or more order sending firms:
- validating the received guarantee orders;
- populating the guarantee order book with the validated guarantee orders;
- receiving a directed order on the posting market center from an order sending firm, said directed order comprising directed order instructions specifying the designated market maker as a counterparty;
- responsive to receiving the directed order, activating a plurality of routines, comprising:
- determining that the order sending firm is one of the one or more order sending firms permissioned to send directed orders to the designated market maker;
- retrieving a best contra side guarantee order from the plurality of guarantee orders in the guarantee order book to create a directed cross;
- determining routing restrictions of the directed order in relation to the retrieved best guarantee order;
- setting the price at which the directed cross is to execute;
- retrieving a best contra side interest from the internal book:
- determining that the best contra side interest is superior to the best contra side guarantee order;
- automatically overriding the directed order instructions and converting the directed order to a non-directed order by matching the directed order with the best contra side interest using a continuous order matching process;
- and
- executing the non-directed order.
13 more elements
A posting market center, comprising:
- at least one server executing computer-readable instructions that define an internal book and a guarantee order book independent of the internal book, wherein the guarantee order book is specified for a designated market maker to populate the guarantee order book with guarantee orders for one or more order sending firms that are permissioned to send directed orders to the designated market maker and the internal book stores orders, best bids, and best offers associated with one or more external electronic markets;
- an interface for receiving orders, including guarantee orders and directed orders;
- a posting market center memory for storing code for analyzing and matching guarantee orders and directed orders;
- a processor for interacting with the interface and executing the code for analyzing and matching guarantee orders and directed orders, wherein the code, when executed:
- receives a plurality of guarantee orders from the designated market maker intended for the one or more order sending firms;
- validates the received guarantee orders;
- populates the guarantee order book with the validated guarantee orders;
- receives a directed order from an order sending firm, said directed order comprising directed order instructions specifying the designated market maker as a counterparty;
- activates, responsive to receiving the directed order, a plurality of routines, which, when executed by the processor:
- determines that the order sending firm is one of the one or more order sending firms permissioned to send directed orders to the designated market maker;
- retrieves a best contra side guarantee order from the plurality of guarantee orders en in the guarantee order book to create directed cross;
- determines routing restrictions of the directed order in relation to the retrieved best guarantee order;
- sets the price at which the directed cross is to execute;
- retrieves a best contra side interest from the internal book;
- determines that the best contra side interest is superior to the best contra side guarantee order;
- automatically overrides the directed order instructions and converts the directed order to a non-directed order by matching the directed order with the best contra side interest using a continuous order matching process;
- and
- executing the non-directed order.
15 more elements
Dependencies are inferred from the claim text.