Diverse options order types in an electronic guaranteed entitlement environment

A method for trading automatically repriceable orders in an electronic options trading environment with market maker participation, comprising:

• providing a market center which lists options series, wherein the market center has an order book for each option series and a quote book for each option series, and wherein a plurality of the option series have an appointed lead market maker;
• receiving an incoming automatically repriceable order, retrieving the side of the NBBO opposite the incoming automatically repriceable order, and determining if the automatically repriceable order price is equal to or overlaps with the retrieved side of the NBBO;
• wherein if the automatically repriceable order price is equal to or overlaps with the retrieved side of the NBBO, determining if the automatically repriceable order is for an option series that has a lead market maker and, if so, determining if the lead market maker has a quote at the NBBO;
• wherein if the automatically repriceable order is marketable and the lead market maker has a quote at the NBBO, computing an allocation percentage for the lead market maker and matching the incoming automatically repriceable order up to the lesser of the total size of the automatically repriceable order or the computed allocation percentage amount for the lead market maker.

A market center which lists a plurality of options series and handles automatically repriceable order trading, comprising:

• an order book for each option series and a quote book for each option series, wherein the order book has a displayed interest component and a nondisplayed interest component;
• wherein a plurality of the option series have an appointed lead market maker;
• an interface for receiving orders and an interface for receiving quotes;
• a market center memory for storing code for analyzing and processing orders and quotes;
• a processor for interacting with the interfaces and executing the code for analyzing and processing quotes and orders, wherein the code, when executed:
• receives an incoming automatically repriceable order having a display order price;
• retrieves the side of the NBBO opposite the incoming automatically repriceable order;
• determines if the automatically repriceable order price is equal to or overlaps with the retrieved side of the NBBO;
• wherein if the automatically repriceable order price is equal to or overlaps with the retrieved side of the NBBO, determines if the automatically repriceable order is for an option series that has a lead market maker;
• determines if the lead market maker has a quote at the NBBO;
• wherein if the automatically repriceable order is marketable and the lead market maker has a quote at the NBBO, computes an allocation percentage for the lead market maker;
• and
• matches the incoming automatically repriceable order up to the lesser of the total size of the automatically repriceable order or the computed allocation percentage amount for the lead market maker.

A method for trading NOW orders in an electronic options trading environment with market maker participation, comprising:

• providing a market center which lists options series, wherein the market center has an order book for each option series and a quote book for each option series, and wherein a plurality of the option series have an appointed lead market maker;
• receiving an incoming NOW order;
• retrieving the side of the NBBO opposite the incoming NOW order;
• determining if the NOW order price is equal to or overlaps with the retrieved side of the NBBO;
• wherein if the NOW order price is equal to or overlaps with the retrieved side of the NBBO, determining if the NOW order is for an option series that has a lead market maker and, if so, determining if the lead market maker has a quote at the NBBO;
• wherein if the NOW order is marketable and the lead market maker has a quote at the NBBO, computing an allocation percentage for the lead market maker and matching the incoming NOW order up to the lesser of the total size of the NOW order or the computed allocation percentage amount for the lead market maker.

A market center which lists a plurality of options series and handles NOW order trading, comprising:

• an order book for each option series and a quote book for each option series, wherein the order book has a displayed interest component and a nondisplayed interest component;
• wherein a plurality of the option series have an appointed lead market maker;
• an interface for receiving orders and an interface for receiving quotes;
• a market center memory for storing code for analyzing and processing orders and quotes;
• a processor for interacting with the interfaces and executing the code for analyzing and processing quotes and orders, wherein the code, when executed:
• receives an incoming NOW order having a display order price;
• retrieves the side of the NBBO opposite the incoming NOW order;
• determines if the NOW order price is equal to or overlaps with the retrieved side of the NBBO;
• wherein if the NOW order price is equal to or overlaps with the retrieved side of the NBBO, determines if the NOW order is for an option series that has a lead market maker;
• determines if the lead market maker has a quote at the NBBO;
• wherein if the NOW order is marketable and the lead market maker has a quote at the NBBO, computes an allocation percentage for the lead market maker;
• and
• matches the incoming NOW order up to the lesser of the total size of the NOW order or the computed allocation percentage amount for the lead market maker.

A market center which lists a plurality of options series and handles automatically repriceable orders, comprising:

• an order book for each option series and a market maker quote book for each option series which are maintained by an order matching engine;
• an away market best bid and offer book that is separate from the order book and the market maker quote book and is maintained by an away market quote engine;
• an interface for receiving orders, an interface for receiving quotes and an interface for receiving a top-of-book best bid and offer disseminated quotation from a plurality of away market centers for each option series;
• a market center memory for storing code for analyzing and processing orders and quotes;
• a processor for interacting with the interfaces and the engines and executing the code for analyzing and processing quotes and orders, wherein the code, when executed:
• the interface for receiving a top-of-book best bid and offer disseminated quotation receives an away market quote from an away market center for a specified option series on the market center;
• the away market quote engine analyzes the received quote to determine if the away market quote has moved away from the price of an automatically repriceable order on the opposite side of the order book;
• wherein if the away market quote has moved away from the price of an automatically repriceable order on the opposite side of the order book, the quote engine notifies the order matching engine;
• and
• the order matching engine then evaluates the automatically repriceable order to determine if the automatically repriceable can be repriced more aggressively;
• and
• wherein if the evaluated automatically repriceable order can be repriced more aggressively, repricing the automatically repriceable order to the more aggressive price.

A market center which lists a plurality of options series and handles automatically repriceable orders, comprising:

• an order book for each option series and a market maker quote book for each option series which are maintained by an order matching engine;
• an away market best bid and offer book that is separate from the order book and the market maker quote book and is maintained by an away market quote engine;
• an interface for receiving orders, an interface for receiving quotes and an interface for receiving a top-of-book best bid and offer disseminated quotation from a plurality of away market centers for each option series;
• a market center memory for storing code for analyzing and processing orders and quotes;
• a processor for interacting with the interfaces and the engines and executing the code for analyzing and processing quotes and orders, wherein the code, when executed:
• the interface for receiving a top-of-book best bid and offer disseminated quotation receives an away market quote from an away market center for a specified option series on the market center;
• the away market quote engine analyzes the received quote to determine if the away market quote has moved into the price of an automatically priced order on the opposite side of the order book;
• wherein if the away market quote has moved into the price of an automatically repriceable order on the opposite side of the order book, the quote engine notifies the order matching engine;
• and
• the order matching engine then evaluates automatically repriceable order on the order book to determine if the automatically repriceable order needs to be repriced less aggressively;
• and
• wherein if the evaluated automatically repriceable order needs to be repriced less aggressively, repricing the automatically repriceable order to the less aggressive price.