System and method for providing latency protection for trading orders

An apparatus comprising:

• a memory;
• at least one processor configured to:
• calculate a latency value that represents delays in transmission or processing of trading orders;
• receive an order;
• receive a counter-order;
• identify a potential trade associated with the order and the counter-order;
• determine whether the latency value satisfies a threshold time period;
• responsive to determining that the latency value satisfies the threshold time period and responsive to identifying the potential trade, initiate a timer;
• determine whether the potential trade is valid upon expiration of the timer;
• and
• responsive to determining that the potential trade is not valid upon expiration of the timer, prevent execution of the potential trade.

A method comprising:

• calculating, by at least one processor, a latency value that represents delays in transmission or processing of trading orders;
• receiving, by the at least one processor, an order;
• receiving, by the at least one processor, a counter-order;
• identifying, by the at least one processor, a potential trade associated with the order and the counter-order;
• determining, by the at least one processor, whether the latency value satisfies a threshold time period;
• responsive to determining that the latency value satisfies the threshold time period and responsive to identifying the potential trade, initiating, by the at least one processor, a timer;
• determining, by the at least one processor, whether the potential trade is valid upon expiration of the timer;
• and
• responsive to determining that the potential trade is not valid upon expiration of the timer, preventing, by the at least one processor, execution of the potential trade.