System and method for preventing cross trading
AssigneeTrading Technologies International, Inc.
InventorsHarris C. Brumfield, Farley Owens
Life of this patent
Estimating the term…
Abstract
Information regarding the current state in the market is used to prevent orders from crossing. In an example provided herein, when an order is entered into a market, information regarding current positions in the market is taken into account to determine whether the order will cross with other orders. If the orders would cross, appropriate action is taken to prevent the crossing of orders in a way suitable for the person or persons trading. The teachings described herein may be used for any reason to prevent orders from crossing. Moreover, they may be used in other areas of trading to assist the trader in obeying any other rule or regulation that might involve analyzing current positions in the market before taking action.
Claims22
A method including:
- generating, by a computing device, an order to sweep one or more price levels for a tradeable object on behalf of a particular trading entity, wherein the one or more price levels are for a first side, wherein the first side is one of a bid side and an ask side, wherein the order to sweep is for a sweep quantity;
- identifying, by the computing device, one or more working orders at an electronic exchange for the tradeable object, wherein the one or more working orders were placed on behalf of the particular trading entity, wherein the one or more working orders are on a second side, wherein the second side is opposite from the first side, wherein the one or more working orders are at prices in the one or more price levels of the order to sweep;
- initiating, by the computing device, deletion of the one or more working orders prior to initiating placement of the order to sweep;
- adjusting, by the computing device, the sweep quantity for the order to sweep by subtracting a working quantity for each of the one or more working orders;
- and
- initiating, by the computing device, placement of the order to sweep with the adjusted sweep quantity.
A non-transitory computer readable medium having stored therein instructions executable by a processor, wherein the instructions are executable to:
- generate an order to sweep one or more price levels for a tradeable object on behalf of a particular trading entity, wherein the one or more price levels are for a first side, wherein the first side is one of a bid side and an ask side, wherein the order to sweep is for a sweep quantity;
- identify one or more working orders at an electronic exchange for the tradeable object, wherein the one or more working orders were placed on behalf of the particular trading entity, wherein the one or more working orders are on a second side, wherein the second side is opposite from the first side, wherein the one or more working orders are at prices in the one or more price levels of the order to sweep;
- initiate deletion of the one or more working orders prior to initiating placement of the order to sweep;
- adjust the sweep quantity for the order to sweep by subtracting a working quantity for each of the one or more working orders;
- and
- initiate placement of the order to sweep with the adjusted sweep quantity.
Dependencies are inferred from the claim text.