System and method for integrating a dark trading facility and a securities exchange
AssigneeNybx, LLC
InventorsTimothy J. Mahoney, Duncan L. Niederauer
Life of this patent
Estimating the term…
Abstract
A system and method are described for the providing securities exchange members increased liquidity for affecting trades. Securities exchange members will have access to both a Dark Trading Facility and securities exchange for trading. When trading on the security exchange, these members will be able to access the Dark Trading Facility using the security exchange infrastructure. Further, when such members enter orders onto the Dark Trading Facility, they will have access to the security exchange display book from the dark pool of the Dark Trading Facility. The trading transactions executed in the Dark Trading Facility or initiated by the Dark Trading Facility, preferably, are automatic and anonymous.
Claims19
A computer-based system for integrating a computer-based electronic securities exchange and a computer-based dark trading facility (DTF) into a single computer-based electronic marketplace for providing DTF system users access to the computerized electronic securities exchange and securities exchange system users access to the computer-based DTF, comprising:
- the single computer-based electronic marketplace including at least,
- (a) a DTF computer processor being configured to connect to an electronic securities exchange processor of the computer-based electronic securities exchange, and accessed by securities exchange system user electronic input devices through the electronic securities exchange processor and accessed by DTF system user electronic input devices for entering buy and sell orders in the DTF computer processor for trading, with the DTF computer processor having,
- (1) a first interface configured for connecting the DTF computer processor to a plurality of DTF system user electronic input devices, with the first interface configured for receiving and processing buy and sell orders submitted to the DTF computer processor by DTF system user electronic input devices,
- (2) a second interface configured for connecting the DTF computer processor and the electronic securities exchange processor, with the second interface configured for receiving and processing the order information from the electronic securities exchange processor for displayed and non-displayed orders in an order book for buy and sell orders input from a plurality of securities exchange system user electronic input devices, and transmitting and processing contra side buy and sell orders posted or stored on a DTF electronic database for executing trades with listed buy and sell orders for displayed and non-displayed orders in the order book,
- (3) the DTF electronic database configured for posting and storing buy and sell orders received from DTF system user electronic input devices,
- (4) a matching engine configured for simultaneously viewing the DTF electronic database and order information for displayed and non-displayed orders in the order book and for executing trades between contra side buy and sell orders posted and stored in the DTF electronic database if a contra side buy and sell order is not first identified and matched in the DTF electronic database, and determining from order information transmitted from the electronic securities exchange processor to the DTF computer processor trading opportunities between listed buy and sell orders for displayed and non-displayed orders in the order book and contra side buy and sell orders posted and stored in the DTF electronic database, and
- (5) an order router configured for routing to the electronic securities exchange processor for executing trades contra side posted or stored buy and sell orders in the DTF electronic database determined by the matching engine from order information to be trading opportunities with listed buy and sell orders for displayed and non-displayed orders in the order book listed on the computer-based electronic securities exchange;
- and
- (b) the electronic securities exchange processor configured to connect to the DTF computer processer and for receiving and listing in the order book that includes displayed and non-displayed buy and sell orders for securities entered on the computer-based electronic securities exchange by a plurality of securities exchange system user electronic input devices and executing trades between contra side buy and sell orders for securities according to predetermined trading rules of the computer-based electronic securities exchange.
A computer-implemented method for integrating a computer-based dark trading facility (DTF) and an computer-based electronic securities exchange to form a single electronic marketplace for providing DTF system users access to the computerized electronic securities exchange and securities exchange system users access to the computer-based DTF, comprising the steps of:
- (a) electronically transmitting from DTF system user electronic input devices to a DTF computer processor buy and sell orders;
- (b) determining that contra side buy and sell orders are matched in the DTF electronic database, and upon determining that a countryside buy and sell order is not identified and matched in the DTF database, posting and storing such buy and sell orders in a DTF electronic database;
- (c) electronically transmitting from the computer-based electronic security exchange to the DTF computer processor buy and sell order information regarding listed buy and sell orders for displayed and non-displayed orders in an order book on the electronic security exchange from a plurality of securities exchange system user electronic input devices;
- (d) the DTF computer processor simultaneously viewing the DTF electronic database and order information for displayed and non-displayed orders in the order book for determining trading opportunities between listed buy and sell orders for displayed and non-displayed orders in the order book and contra side buy and sell orders posted or stored in the DTF electronic database;
- (e) the DTF computer processor electronically transmitting contra side buy and sell orders posted or stored in the DTF electronic database determined at step (d) from the DTF to the electronic securities exchange for executing trades;
- and
- (f) executing trades between contra side buy and sell orders transmitted at step (e) and listed buy and sell orders for displayed and non-displayed orders in the order book.
Dependencies are inferred from the claim text.