System and method for managing trading orders with decaying reserves
AssigneeBGC Partners, Inc.
InventorJoseph C. Noviello
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Abstract
A system comprises a memory operable to store a trading order for a particular quantity of a trading product, wherein a first portion of the particular quantity is a displayed quantity and a second portion of the particular quantity is a reserved quantity. The system further comprises a processor communicatively coupled to the memory and operable to disclose the displayed quantity to one or more market centers. The processor is further operable to identify a decay rate associated with the trading order. The processor is further operable to cause the reserved quantity to decay based at least in part on the identified decay rate.
Claims20
A system, comprising:
- a memory operable to store a trading order for a particular quantity of a trading product, wherein:
- a first portion of the particular quantity is a displayed quantity;
- and
- a second portion of the particular quantity is a reserved quantity;
- a processor communicatively coupled to the memory and operable to:
- disclose the displayed quantity to one or more market centers;
- identify a decay rate associated with the trading order;
- and
- cause the reserved quantity to decay based at least in part on the identified decay rate.
A method, comprising:
- receiving from a trader a trading order for a particular quantity of a trading product, wherein:
- a first portion of the particular quantity is a displayed quantity;
- and
- a second portion of the particular quantity is a reserved quantity;
- disclosing the displayed quantity to one or more market centers;
- identifying a decay rule associated with at least one of the trading order and the trader, the decay rule comprising a decay rate associating at least one decay quantity with at least one time value;
- and
- causing the reserved quantity to decay based at least in part on the identified decay rate, in which decayed quantity of the reserved quantity is eliminated from the trading order according to the decay rate, wherein the decayed quantity is not matched or executed against any counter order.
A non-transitory computer-readable medium having instructions stored thereon that are configured to cause a processor to:
- receive a trading order for a particular quantity of a trading product, wherein:
- a first portion of the particular quantity is a displayed quantity;
- and
- a second portion of the particular quantity is a reserved quantity;
- disclose the displayed quantity to one or more market centers;
- identify a decay rate associated with the trading order;
- and
- cause the reserved quantity to decay based at least in part on the identified decay rate independent of any replenishing of the display quantity from the reserved quantity.
Dependencies are inferred from the claim text.