Transactionally deterministic high speed financial exchange having improved, efficiency, communication, customization, performance, access, trading opportunities, credit controls, and fault tolerance

Patent metadata

Field	Value
Publication number	US-12380499-B2
Application number	US-202418438562-A
Country	US
Kind code	B2
Filing date	Feb 12, 2024
Priority date	Nov 7, 2013
Publication date	Aug 5, 2025
Grant date	Aug 5, 2025

Abstract

The disclosed embodiments relate to implementation of a trading system, which may also be referred to as a trading system architecture, having improved performance which further assures transactional determinism under increasing processing transaction loads while providing improved trading opportunities, fault tolerance, low latency processing, high volume capacity, risk mitigation and market protections with minimal impact, as well as improved and equitable access to information and opportunities.

First claim

What is claimed is:

1. A system comprising:
a processor external to first and second hardware match engines and coupled therewith via an electronic communications network, each of the first and second hardware match engines comprising a database to which that match engine has exclusive access among the other of the first and second match engines and which stores data indicative of orders previously received exclusively by that match engine which remain unsatisfied, the processor further coupled with a memory which stores computer executable instructions which, when executed by the processor, cause the processor to:
receive data indicative of results of the first and second hardware match engines' attempts to satisfy received incoming orders for a transaction of at least one financial instrument, and store the received data in the memory as representative of a current status of the databases of the first and second hardware match engines;
determine, based on the data stored in the memory when the received data is indicative of the first hardware match engine being unable to fully satisfy an incoming order received thereby, when the incoming order received by the first hardware match engine can be at least partially satisfied by one or more orders received by the second hardware match engine which remain unsatisfied, and generate, based on the determination that the incoming order received by the first hardware match engine can be at least partially satisfied by one or more orders received by the second hardware match engine which remain unsatisfied, a first at least one synthetic solicitation, each for a counter order to transact the one or more orders received by the second hardware match engine which remain unsatisfied and communicate the first at least one generated synthetic solicitation to the second hardware match engine;
determine, based on the data stored in the memory when the received data is indicative of the first hardware match engine being unable to fully satisfy an incoming order received thereby, when the incoming order received by the first hardware match engine cannot be at least partially satisfied by one or more orders received by the second hardware match engine which remain unsatisfied;
generate, based on the determination that the incoming order received by the first hardware match engine cannot be at least partially satisfied by one or more orders received by the second hardware match engine which remain unsatisfied, a second at least one synthetic solicitation, each for a counter order to transact one or more of the plurality of financial instruments, whose receipt by the second hardware match engine would enable the incoming order to be fully satisfied; and
communicate the second at least one generated synthetic solicitation to the second hardware match engine, wherein the submission thereof causes the receiving match engine to electronically communicate with the plurality of market participants to solicit an order counter to the synthetic solicitation.

2. A system comprising:
a processor external to first and second hardware match engines and coupled therewith via an electronic communications network, each of the first and second hardware match engines comprising a database to which that match engine has exclusive access among the other of the first and second match engines and which stores data indicative of orders previously received exclusively by that match engine which remain unsatisfied, the processor further coupled with a memory which stores computer executable instructions which, when executed by the processor, cause the processor to implement an implicator external to and coupled with each of the plurality of hardware match engines, the implicator being operative to:
receive data indicative of results of the first and second hardware match engines' attempts to satisfy received incoming orders for a transaction of at least one financial instrument, and store the received data in the memory as representative of a current status of the databases of the first and second hardware match engines;
determine, based on the data stored in the memory when the received data is indicative of the first hardware match engine being unable to fully satisfy an incoming order received thereby, when the incoming order received by the first hardware match engine can be at least partially satisfied by one or more orders received by the second hardware match engine which remain unsatisfied, and generate, based on the determination that the incoming order received by the first hardware match engine can be at least partially satisfied by one or more orders received by the second hardware match engine which remain unsatisfied, a first at least one synthetic solicitation, each for a counter order to transact the one or more orders received by the second hardware match engine which remain unsatisfied and communicate the first at least one generated synthetic solicitation to the second hardware match engine;
determine, based on the data stored in the memory when the received data is indicative of the first hardware match engine being unable to fully satisfy an incoming order received thereby, when the incoming order received by the first hardware match engine cannot be at least partially satisfied by one or more orders received by the second hardware match engine which remain unsatisfied;
generate, based on the determination that the incoming order received by the first hardware match engine cannot be at least partially satisfied by one or more orders received by the second hardware match engine which remain unsatisfied, a second at least one synthetic solicitation, each for a counter order to transact one or more of the plurality of financial instruments, whose receipt by the second hardware match engine would enable the incoming order to be fully satisfied; and
communicate the second at least one generated synthetic solicitation to the second hardware match engine, wherein the submission thereof causes the receiving match engine to electronically communicate with the plurality of market participants to solicit an order counter to the synthetic solicitation.

3. The system of claim 2 , wherein the processor is geographically remote from the first and second hardware match engines.

4. The system of claim 2 , wherein at least one of the first and second hardware match engines is geographically remote from the other of the first and second hardware match engines.

5. The system of claim 2 , wherein the financial instrument comprises more than one component instrument.

6. The system of claim 2 , wherein the financial instrument comprises one of a futures contract, an option contract, a spread contract, or combinations thereof.

7. The system of claim 2 , wherein the incoming order further specifies a price, a quantity and an intent to one buy or sell the specified quantity of the financial instrument at the specified price.

8. The system of claim 2 , wherein the order generator is further operative to, treat any unsatisfied portion of the incoming order as a previously received but unsatisfied order to await another subsequently received incoming order counter thereto for the associated financial instrument, in at least partial satisfaction of one or both of the subsequently received incoming order or the unsatisfied portion of the incoming order.

9. The system of claim 2 , wherein when the implicator identifies more than one set of one or more orders that were previously received by the second hardware match engine but not fully satisfied which, in combination, would at least partially satisfy the incoming order, the implicator is further operative to select the set of one or more orders which contains the fewest number of orders which most s

Assignees

• Chicago Mercantile Exchange Inc

Inventors

• Studnitzer Ari
• Bonig Zachary
• Eavy Ryan
• Kmiec Frank

Classifications

• G06Q40/04 Primary

  Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange · CPC title