# US 2014/0156488 A1 · Method and apparatus for a fair exchange

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- Number: US 2014/0156488 A1
- Document ID: US20140156488A1
- Status: Published application
- Kind: A1
- Application number: 13/924,763
- Filed: 2013-06-24
- Published: 2014-06-05
- Earliest claimed: 2002-10-02
- Assignees: Trading Technologies International, Inc.
- Applicants: Trading Technologies International Inc.
- Inventors: Jens-Uwe Schluetter
- Web page: https://patentgrep.com/patent/US20140156488A1

## CPC

- G06Q 40/04: Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
- G06Q 20/10: specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
- G06Q 30/0601: Electronic shopping [e-shopping]
- G06Q 40/00: Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR

## Abstract

A fair exchange is disclosed to reduce potential inequities in an electronic trading environment. Market data is sent from a host system to client devices through one or more synchronized local communication servers such that the data can be displayed simultaneously or nearly simultaneously at each client device. Market data sent to client devices might include price information. Likewise, a host system may transaction data sent from client devices via the local communication servers. The ordering of transaction data is based, at least in part, on when the local communication servers received the transaction data from the client devices. Transaction data sent to a host system might include order information.

## Claims

### Claim 1

(canceled)

### Claim 2

A method including:
determining by a host exchange a first time based on a first travel time and a first receipt time, wherein the first time is determined by subtracting the first travel time from the first receipt time, wherein the first travel time is a travel time from a first network device to the host exchange, wherein the first receipt time is a time a first transaction message is received by the host exchange, wherein the first transaction message is received by the host exchange from a first client device through the first network device, wherein the first time is an approximation of the time at which the first client device sent the first transaction message;
determining by the host exchange a second time based on a second travel time and a second receipt time, wherein the second time is determined by subtracting the second travel time from the second receipt time, wherein the second travel time is a travel time from a second network device to the host exchange, wherein the second receipt time is a time a second transaction message is received by the host exchange, wherein the second transaction message is received by the host exchange from a second client device through the second network device, wherein the second time is an approximation of the time at which the second client device sent the second transaction message; and
prioritizing by the host exchange the first transaction message and the second transaction message based on the first time and the second time.

### Claim 3 (depends on 2)

The method of claim 2, wherein the first transaction message includes an order.

### Claim 4 (depends on 2)

The method of claim 2, wherein the first network device is geographically positioned at approximately the same location as the first client device and wherein the second network device is geographically positioned at approximately the same location as the second client device.

### Claim 5 (depends on 2)

The method of claim 2, wherein the first network device and the second network device are under control of the host exchange.

### Claim 6 (depends on 2)

The method of claim 2, wherein the first travel time and the second travel time are determined by the host exchange.

### Claim 7 (depends on 2)

The method of claim 2, wherein the first travel time and the second travel time are stored in a look-up table.

### Claim 8 (depends on 2)

The method of claim 2, wherein the first and second transaction messages are prioritized by ordering the first and second transaction messages for processing from earliest to latest.

### Claim 9 (depends on 2)

The method of claim 2, wherein the first time is determined before the second transaction message is received by the host exchange.

### Claim 10 (depends on 2)

The method of claim 2, wherein the prioritizing of the first transaction message and the second transaction message is not completed until after a delay period has elapsed.

### Claim 11 (depends on 10)

The method of claim 10, wherein the delay period is based on at least one of the first travel time and the second travel time.

### Claim 12 (depends on 10)

The method of claim 10, wherein the delay period is preselected.

### Claim 13 (depends on 10)

The method of claim 10, wherein the delay period is based on a longest travel time from each of a plurality of network devices to the host exchange, wherein the plurality of network devices includes the first network device and the second network device.

### Claim 14 (depends on 13)

The method of claim 13, wherein the delay period is based on a difference between the longest travel time and at least one of the first travel time and the second travel time.