Method and system for facilitating automated interaction of marketable retail orders and professional trading interest at passively determined prices

An automated trading system comprising:

• a processor;
• a memory storing instructions adapted to be executed by said processor to:
• receive an active binding non-retail indication to trade a security primarily against retail orders;
• receive a binding retail order to trade said security, said binding retail order to trade said security being a marketable order;
• determine whether said binding retail order to trade said security is on an opposite side of said active binding non-retail indication to trade said security;
• and
• execute a trade defined by said active binding non-retail indication to trade said security and said binding retail order to trade said security, if said binding retail order to trade said security is on an opposite side of said active binding non-retail indication to trade said security, said trade being executed so that a source of said active binding non-retail indication to trade said security and a source of said binding retail order to trade are anonymous to each other.

An automated trading system comprising:

• a processor;
• a memory storing instructions adapted to be executed by said processor to:
• receive a first active binding indication to trade a security at a non-discrete price from at least one institution, said first active binding indication to trade is said security being a non-retail order to trade primarily against retail orders and said non-discrete price being determined using national best bid and offer (NBBO) data;
• store said first active binding indication to trade said security;
• transmit information on said first active binding indication to trade said security at non-discrete prices to a source of binding orders;
• receive as a result of said transmitted information a query from said source of binding orders to request an instruction regarding a binding order to trade said security, said binding order to trade being a retail marketable order;
• transmit said instruction to said one source of binding orders, said instruction being to transmit said binding order to trade said security, if said binding order is an opposite side binding order to trade said security which is on an opposite side of said first active binding indication to trade said security, or to decline said binding order to trade said security;
• receive at said automated trading system said opposite side binding order to trade said security from said source of binding orders, if said instruction was to transmit said opposite side binding order to trade said security;
• and
• execute at said automated trading system an institution-to-retail trade defined by said first active binding indication to trade said security and said opposite side binding order to trade said security immediately upon receipt of said opposite side binding order to trade said security, said institution-to-retail trade being executed so that said first active binding indication to trade and said opposite side binding order to trade are invisible to other market participants and said at least one institution and said source of binding orders are anonymous to each other.

An automated trading system comprising:

• a processor;
• a memory storing instructions adapted to be executed by said processor to:
• receive a first active binding indication to trade a security at a non-discrete price from an institution, said first active binding indication to trade said security being a non-retail order to trade primarily against retail orders and said non-discrete price being determined using a passive pricing mechanism;
• store said first active binding indication to trade said security;
• transmit information on said first active binding indication to trade said security to a source of binding orders;
• receive a binding order to trade said security from said source of binding orders as a result of said transmitted information, if said binding order to trade said security is on an opposite side of said first active binding indication to trade said security, said binding order to trade said security being a retail marketable order;
• and
• execute an institution-to-retail trade defined by said first active binding indication to trade said security and said binding order to trade said security immediately upon receipt of said binding order to trade said security, said institution-to-retail trade being executed so that said first active binding indication to trade and said binding order to trade are invisible to other market participants and said institution and said source of binding orders are anonymous to each other.

An automated trading system comprising:

• a processor;
• a memory storing instructions adapted to be executed by said processor to:
• receive a first active binding indication to trade a security at non-discrete prices from at least one institution, said first active binding indication to trade said security being a non-retail order to trade primarily against retail orders and said non-discrete prices being determined using national best bid and offer (NBBO) data;
• store said first active binding indication to trade said security;
• transmit information regarding said first active binding indication to trade said security to a module integrated into the internal systems of a source of binding orders, said module to dynamically monitor said binding orders prior to their routing to one or more market centers for execution and said binding orders being retail orders to trade;
• receive an opposite-side binding order to trade said security from said source of binding orders, said opposite-side binding order being an order to trade said security which is on an opposite side of said first active binding indication to trade said security, said opposite side binding order to trade said security being identified by said module;
• use said NBBO data to determine whether said opposite-side binding order to trade said security is a match-eligible binding order to trade said security, said match-eligible binding order being an opposite-side binding order to trade said security that is marketable;
• and
• execute an institution-to-retail trade defined by said first active binding indication to trade said security and said opposite-side binding order to trade said security, if said opposite-side binding order is a match-eligible binding order to trade said security, said institution-to-retail trade being executed so that said first active binding indication to trade and said match-eligible binding order to trade are not displayed to other market participants and said at least one institution and said source of binding orders are anonymous to each other.

An automated trading system comprising:

• a processor;
• a memory storing instructions adapted to be executed by said processor to:
• receive a first active binding indication to trade a security from a source of non-retail orders, said first active binding indication to trade said security being a non-retail order to trade primarily against retail orders;
• store said first active binding indication to trade said security;
• transmit information regarding said first active binding indication to trade said security to a module integrated into the internal systems of a source of binding orders, said module to dynamically monitor said binding orders prior to their routing to one or more market centers for execution and said binding orders being retail orders to trade;
• receive an opposite-side binding order to trade said security from said source of binding orders, said opposite-side binding order being an order to trade said security which is on an opposite side of said first active binding indication to trade said security, said opposite side binding order to trade said security being identified by said module;
• determine whether said opposite-side binding order to trade said security is a match-eligible binding order to trade said security, said match-eligible binding order being an opposite-side binding order to trade said security that is marketable;
• execute a trade defined by said first active binding indication to trade said security and said opposite-side binding order to trade said security, if said opposite-side binding order is a match-eligible binding order to trade said security, said trade being executed so that said first active binding indication to trade and said match-eligible binding order to trade are not displayed to other market participants and said source of non-retail orders and said source of binding orders are anonymous to each other.