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-12380500-B2
Application number	US-202418438566-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 exclusively accessible by that hardware match engine and which stores data indicative of orders previously received thereby 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 each of the first and second hardware match engines' attempts to satisfy incoming orders received thereby for a transaction of at least one financial instrument, and store the received data in the memory as representative of all unsatisfied orders stored in the databases of the first and second hardware match engines;
identify, using the data stored in the memory when the received data is indicative of one of the first and second hardware match engines being unable to fully satisfy an incoming order received thereby, data stored in the memory indicative of any unsatisfied orders stored in the database of one or more of the other of the first and second match engines, where a transaction between the incoming order and any of the identified unsatisfied orders would at least partially satisfy the incoming order;
generate, based on the identification, at least one synthetic counter order for a transaction counter to the one or more of the identified unsatisfied orders, and communicate, via the electronic communications network, the generated at least one synthetic counter order to the one or more other of the first and second hardware match engines which is operative to process the synthetic counter order in a same manner as an incoming order received thereby, wherein the processing of the synthetic counter order against the one or more of the identified unsatisfied orders at least partially satisfies both the identified unsatisfied orders and the incoming order received by the one of the first and second hardware match engines; and
communicate a notification to the one of the first and second hardware match engines comprising data indicative of the at least partial satisfaction of the incoming order received thereby by the identified unsatisfied orders.

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 exclusively accessible by that hardware match engine and which stores data indicative of orders previously received thereby 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 operative to receive data indicative of each of the first and second hardware match engines' attempts to satisfy incoming orders received thereby for a transaction of at least one financial instrument, and store the received data in the memory as representative of all unsatisfied orders stored in the databases of the first and second hardware match engines and identify, using the data stored in the memory when the received data is indicative of one of the first and second hardware match engines being unable to fully satisfy an incoming order received thereby, data stored in the memory indicative of any unsatisfied orders stored in the database of one or more of the other of the first and second match engines, where a transaction between the incoming order and any of the identified unsatisfied orders would at least partially satisfy the incoming order; and
wherein the computer executable instructions are further executable by the processor to cause the processor to implement an order generator coupled with the implicator and operative to generate, based on the identification, at least one synthetic counter order for a transaction counter to the one or more of the identified unsatisfied orders, and communicate, via the electronic communications network, the generated at least one synthetic counter order to at least the other of the first and second hardware match engines which is operative to process the synthetic counter order in a same manner as an incoming order received thereby, wherein the processing of the synthetic counter order against the one or more of the identified unsatisfied orders at least partially satisfies both the identified unsatisfied orders and the incoming order received by the one of the first and second hardware match engines; and
wherein the implicator is further operative to communicate a notification to the one of the first and second hardware match engines comprising data indicative of the at least partial satisfaction of the incoming order received thereby by the identified unsatisfied orders.

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 at least one other of the first and second hardware match engines.

5. The system of claim 2 , wherein the financial instrument of the incoming order and/or identified unsatisfied orders comprises one or more component instruments.

6. The system of claim 2 , wherein the financial instrument of the incoming order and/or identified unsatisfied orders comprise one of a futures contract, an option contract, a spread contract, or combinations thereof, the incoming order further specifying a price, a quantity and an intent to one buy or sell the specified quantity of the financial instrument at the specified price.

7. The system of claim 2 , wherein each of the first and second hardware match engines processes incoming orders for a financial instrument different from a financial instrument processed by the other of the first and second hardware match engines, the order generator is further operative to submit each synthetic counter order to the match engine associated with the financial instrument processed thereby.

8. The system of claim 7 , wherein the implicator and order generator are operative to identify the unsatisfied orders, generate the at least one synthetic counter order and submit each synthetic counter order to the match engine associated with the financial instrument processed thereby, prior to receipt by the associated match engine of an order generated by any one of a plurality of market participants in response to the receipt of the data indicative of whether any of the first and second hardware match engines was unable to fully match an incoming order received thereby.

9. The system of claim 2 , wherein the order generator is further operative to, when the incoming order together with the identified unsatisfied orders, if the transactions for the residuals of the financial instruments thereof were completed there between, includes at least one fully unsatisfied order, cause the unsatisfied portion of the incoming order to be treated 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.

10. The system of claim 2 , wherein the implicator is operative to identify the unsatisfied orders based on an implied matching algorithm.

11. The system of claim 2 , wherein, upon the identification by the implicator of more than one unsatisfied order, the im

Assignees

• Chicago Mercantile Exchange Inc

Inventors

• Studnitzer Ari
• Bonig Zachary
• Eavy Ryan
• Kmiec Frank
• Galster Barry
• Callaway Paul

Classifications

• G06Q40/04 Primary

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