Pass through liquidity in a multi-tiered trading system and method

An electronic trading system in communication with a plurality of dealers and a plurality of customers to provide said customers with conditional access to an inter-dealer exchange utilized by said dealers to facilitate the trading of financial instruments, comprising:

• a central computer including a memory;
• a customer interface in communication with said central computer wherein a customer order for a financial instrument is entered by or for a customer in said memory;
• and
• a dealer interface in communication with said central computer for enabling a first dealer to choose to fill said customer order directly or to send said customer order to said inter-dealer exchange on behalf of said first dealer such that second dealer within said inter-dealer exchange filling said order would appear to be transacting with said first dealer and not said customer.