Aged Transactions in a Trading System
AssigneeNYFIX, Inc.
InventorsPaolo Aloe, Brian Carr, Dan Weingarten
Life of this patent
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Abstract
A method and system for aging orders, increasing securities market liquidity.
Claims20
A method for generating an indication-of-interest (“IOI”) with respect to a particular security in an Pass-Through Alternative Trading System (“ATS”), and transacting upon contra-flow with respect to said Indication of Interest (“IOI”), said method comprising the steps of:
- obtaining at least one pass-through order and/or immediate execution order to buy or sell a particular security within a price range having an ultimate destination other than the alternative trading system initially receiving it;
- aging the pass-through order(s) and/or immediate execution orders for a period of time before passing through the pass-through order to its ultimate destination or canceling the order;
- if a preset trade amount of a particular security is attainable from said pass-through orders or immediate execution orders during their aging period, generating from one or more of said pass-through orders and/or immediate execution orders that are executable within an advantageous spread to the alternative trading system at time x, an IOI to buy or sell a specified amount of the particular security in a specified price range;
- transmitting the IOI to one or more of IOI subscriber(s) to the ATS system;
- and
- upon receipt of contra-flow from one or more IOI, transacting at a time y upon at least a portion of the IOI during the aging period if contra-flow is received when the spread is favorable to the ATS, and canceling any remaining portion of the indication-of-interest not transacted upon after the aged period of time.
A method for handling an indication-of-interest with respect to a particular security in an alternative trading system configured to prohibit display of security interest or orders to a user of the system, said method comprising the steps of:
- obtaining at least one immediate-or-cancel or pass-through order to buy or sell said particular security in said price range and aging said immediate-or-cancel or pass-through order for a period of time;
- generating an indication-of-interest to buy or sell a specified amount of said particular security in a specified price range and transmitting said indication-of-interest to a set group of institutional users;
- transacting upon at least one of said at least one immediate-or-cancel or pass-through order provided during said aged period of time by satisfying at least a portion of said indication-of-interest and canceling any remaining portion of the indication-of-interest not transacted upon after said aged period of time.
A computer-enabled system designed to generate an indication-of-interest with respect to a particular security in an pass-through alternative trading system (“ATS”) designed to transact upon a securities order to buy or sell, comprising:
- a user module operatively configured to transmit a pass-through order to buy or sell a particular security within a price range from a user;
- a database operatively connected to said user module configured for holding a plurality of pass-through orders to buy or sell a particular security within a particular price range generated by one or more of said user modules;
- a timer module operatively connected to said data base, said timer module configured to permit and to control aging of said pass-through orders;
- and
- a transaction module operatively connected to said database, said transaction module configured to generate an indication-of-interest with respect to a particular security based upon the aggregation of two or more of said pass-through orders.
A system for controlling the aging of pass-through orders to buy or sell a particular security within a price range, said system comprising:
- a database configured for holding a plurality of pass-through orders to buy or sell a particular security within a particular price range;
- and
- a timer module operatively connected to said data base, said timer module configured to allow variable aging times of said pass through orders.
Dependencies are inferred from the claim text.