Automated order protection trading system
AssigneeMarketAxess Holdings, Inc.
InventorRobert Levy
Life of this patent
Estimating the term…
Abstract
Methods and systems for trading financial or commodity assets are presented. In particular, the invention relates to a trading system and method that operates with third party data and a Third Party Inside Market to promote fair and orderly transactions. In some embodiments, a client order or client bid/offer is protected by automated order protection (AOP), which may be a set of rules or specifications that can modify a client's order. In certain embodiments, an average weighted price function is used to protect a client order that might be larger than the best bid/offer. In other embodiments, an autofill, a tie-breaking, and a wait-for-follow process can be used to promote trading opportunities for dealers and/or clients.
Claims33
A method of financial trading involving a client and at least one dealer comprising at least one of the sequential, sequence independent, and non-sequential steps of:
- receiving a client order;
- forwarding the client order to at least one exclusive dealer and where the client order remains active for an exclusive time for possible execution by the at least one exclusive dealer;
- upon expiration of the exclusive time and the client order remaining open, transitioning into an open phase where the client order is forwarded to at least one permissioned dealer and the client order remains active for an open period of time for execution by the at least one permissioned dealer;
- and
- upon expiration of the open period time and the client order remaining open, transitioning into a protected order phase where automatic order protection (AOP) rules protect the client order and the client order is responsive to the AOP rules.
A method of financial trading comprising at least one of the sequential, sequence independent, and non-sequential steps of:
- receiving a client order;
- forwarding the client order to at least one dealer;
- entering a protected order phase;
- determining whether to apply order protection to the client order based on Third Party Inside Market (TPIM) data;
- and
- modifying the client order based on at least one of the TPIM data and Third Party Data.
A system for financial trading comprising at least one of the sequential, sequence independent, and non-sequential steps of:
- a server, wherein the server receives Third Party Data;
- a client computer coupled to the server, wherein the server provides Third Party Data to the client computer and the server receives client orders;
- a dealer computer coupled to the server, wherein the server forwards client orders to the dealer computer;
- and
- an automated order protection processor implemented in the server, wherein the automated order protection processor determines whether to transition the client order to an order protection state based on Third Party Inside Market (TPIM) data, and wherein the order protection processor modifies the client order based on at least one of TPIM data and Third Party Data.
A system for financial trading comprising at least one of the sequential, sequence independent, and non-sequential steps of:
- a first means for providing a server, wherein the first means receives third party data;
- a second means for providing a client computer coupled to the first means, wherein the first means provides third party data to the second means and the first means receives client orders;
- a third means for providing a dealer computer coupled to the first means, wherein the first means places client orders with the third means;
- and
- a protection means for processing automatic order protection implemented in the first means, wherein the second means checks Third Party Inside Market (TPIM) data against the client order to determine whether to apply order protection to the client order, and wherein the order protection modifies a price level in the client order based on at least one of TPIM data and third party data.
A method of financial trading involving a client and at least one dealer comprising:
- receiving a client order;
- forwarding the client order to at least one exclusive dealer and where the client order remains active for an exclusive time for possible execution by the at least one exclusive dealer;
- upon expiration of the exclusive time and the order remaining open, transitioning into a protected order phase where automatic order protection (AOP) rules protect the client order and the client order is responsive to the AOP rules and at least one of Third Party Inside Market data and Third Party Data.
A method for providing computer-implemented trading for financial securities or commodity assets, comprising at least one of the sequential, sequence independent, and non-sequential steps of:
- providing a computer-generated interface screen for display to a client;
- receiving a client order via said interface screen and price information from a third party market for said securities or assets in a trading system;
- forwarding the client order to one or more selected dealers;
- processing the client order in a price engine of said trading system, utilizing said price information from said electronic market, while applying order protection rules to the client order;
- determining the optimal dealer match and transaction for the client among the one or more selected dealers;
- initiating a transaction based on the matching of the client order and said matched dealer;
- and
- notifying the client of the initiated transaction.
Dependencies are inferred from the claim text.