Fair and scalable trading system and method

A program product stored on a recordable medium for implementing an electronic marketplace via a network, comprising:

• means for receiving orders for a series of call auctions via a plurality of nodes in the network, wherein each of the orders includes a time stamp from one of a plurality of agents residing within the network, and wherein each call auction is implemented at an end of a trading interval;
• means for setting prices and processing orders for each call auction;
• and
• means for examining timing information for each order submitted during a current trading interval to determine if the submitted order qualifies for the call auction at the end of the current trading interval.

An electronic exchange implemented over a network that processes a series of call auctions, each call auction occurring at an end of a trading interval, comprising:

• a plurality of network nodes that communicate market information, wherein the market information includes orders submitted from market participants;
• a plurality of gateway agents that timestamp orders after they are submitted by the market participants to the network;
• and
• a market maker system that receives and executes orders over the network, wherein the market maker system determines if each order qualifies for the call auction at the end of a current trading interval by examining the timestamp for the order.

A method of implementing an electronic exchange over a network, wherein the exchange executes a series of call auctions during sequential trading intervals, comprising the steps of:

• broadcasting a price quote from a market maker over the network at a beginning of a current trading interval;
• distributing the price quote over a plurality of network nodes within the network;
• receiving an order submitted from a participant who is in communication with one of the network nodes;
• time stamping the order when the order passes through a trusted node;
• delivering the order to the market maker;
• and
• examining the time stamp of the order to determine if the order qualifies for processing during the current trading interval.

A method for implementing an electronic exchange over a network, wherein the electronic exchange executes a series of auctions at sequential time points, comprising the steps of:

• broadcasting a price quote at a beginning of a trading interval;
• receiving an order, wherein the order includes a timestamp received from a network agent;
• comparing the timestamp with a first predetermined time set during the trading interval;
• comparing a time the order was received with a second predetermined time set during the current trading interval;
• and
• qualifying the order if both the timestamp is less than the first predetermined time and the time the order was received is less than the second predetermined time.