Order Risk Management for Derivative Products

A computing apparatus for protecting against in-flight fills at an exchange, the apparatus comprising:

• a processor;
• a tangible computer memory storing computer-executable instructions, which include at least an order risk management module, that, when executed by the processor, cause the computing apparatus to perform steps comprising:
• (a) receiving order risk data including at least one threshold value corresponding to at least one order parameter;
• (b) receiving, from a computing device of a user, an order for a product;
• (c) calculating utilization data using the order for the product and a current order risk utilization state of the user;
• and
• (d) processing the order for the product in a manner that is a function of order risk data and the utilization data, wherein the processing comprises determining that the current order risk utilization state of the user exceeds a threshold value of the at least one threshold value, and then cancelling all resting orders of the user to protect against in-flight fills.

A computing apparatus comprising:

• a processor;
• a tangible computer memory storing computer-executable instructions that, when executed by the processor, cause the computing apparatus to perform steps comprising:
• (a) receiving, at an order risk management module, data comprising at least one threshold value corresponding to at least one order risk parameter;
• (b) receiving, at the order risk management module from a computing device of a user, an order for a product;
• (c) determining, at the order risk management module, a current order risk parameter utilization value of the computing device of the user;
• (d) after determining that the current order risk parameter utilization value exceeds a threshold value of the at least one threshold value, cancelling resting orders associated with the user to protect against in-flight fills;
• and
• (e) at the order risk management module, executing the order for the product when the current order risk parameter utilization value does not exceed the threshold value.