Systems and methods for using secondary market for primary creation and redemption activity in securities

Patent metadata

Field	Value
Publication number	US-12555165-B2
Application number	US-202519237451-A
Country	US
Kind code	B2
Filing date	Jun 13, 2025
Priority date	Jul 24, 2014
Publication date	Feb 17, 2026
Grant date	Feb 17, 2026

Abstract

Systems and methods for transforming an electronic portfolio. A system includes an electronic crossing platform that receives data defining trade orders of the electronic portfolio during an initial time period; compares portions of the data to determine an imbalance of the trade orders remaining after the initial time period and receives, during a final time period, a final trade order from a fund agent device to offset the remaining imbalance. The platform receives, after the final time period, a benchmark value of the electronic portfolio from a fund device; compares the final trade order with the remaining imbalance to determine an adjustment value; converts the benchmark value to a final value by applying the adjustment value to the benchmark value; and transforms the electronic portfolio into the transformed portfolio by creating paired buy and sell orders among the trade orders received during the initial time period at the final value.

First claim

The invention claimed is:

1 . A system comprising:
an electronic crossing platform comprising at least one processor executing computer-readable instructions that cause the electronic crossing platform to: initiate a first period, and during the first period:
receive, over a communication network, order data from among one or more computing devices,
monitor changes in an order imbalance, in response to the order data as received over the first period, and
transmit, over the communication network, to the one or more computing devices, one or more indications of the monitored changes over the first period;
transmit, to the one or more computing devices, an indication of an initial order imbalance among the order data remaining after the first period; initiate a second period, and during the second period:
accept, over the communication network, additional order data from among the one or more computing devices that contributes to offsetting the initial order imbalance;
identify a remaining imbalance after the second period responsive to applying the additional order data to the order data to at least partially offset the initial order imbalance; initiate a third period, and during the third period:
accept, over the communication network, only further order data that, collectively, fully offsets the remaining imbalance, thereby creating a fully balanced order data set; and
generate and process pairable trade orders from the fully balanced order data set.

2 . The system of claim 1 , wherein the order data defines a combination of trade orders, order modifications, and order cancelations.

3 . The system of claim 1 , wherein the electronic crossing platform is configured to reject, during the third period, a portion of the further order data that does not contribute to fully offsetting the remaining imbalance.

4 . The system of claim 3 , wherein the portion of the further order data includes any final trade orders, final modifications and final cancelations that do not contribute to fully offsetting the remaining imbalance.

5 . The system of claim 1 , wherein, responsive to the accepting of only the further order data that fully offsets the remaining imbalance, only the pairable trade orders remain in the fully balanced order data set after the third period.

6 . The system of claim 1 , wherein the one or more computing devices comprise one or more external market participant computers and a fund agent computing device, wherein, during the third period, the electronic crossing platform is configured to reject trade orders received from the one or more external market participant computers and only receive the further order data from the fund agent computing device.

7 . The system of claim 1 , wherein the order data defines one or more trade orders that correspond to at least one of an actively managed exchange-traded fund (ETF), an index-based ETF, a passively managed ETF and a security associated with a benchmark value.

8 . The system of claim 1 , wherein the indication of the initial order imbalance comprises at least one of an extent of the initial order imbalance among the order data and an existence of the initial order imbalance.

9 . The system of claim 1 , wherein the electronic crossing platform is configured to:
monitor changes to the initial order imbalance, over the second period, in response to the additional order data; and transmit, to the one or more computing devices, at least one indication of the monitored changes over the second period.

10 . The system of claim 1 , wherein the electronic crossing platform is configured to reject any remaining data received during the second period that does not contribute to offsetting the initial order imbalance.

11 . The system of claim 1 , wherein the electronic crossing platform is configured to:
transmit, over the communication network, prior to the third period, the remaining imbalance to the one or more computing devices; and receive, over the communication network, the further order data from among the one or more computing devices responsive to the transmitted remaining imbalance.

12 . The system of claim 11 , wherein the one or more computing devices comprise at least one fund agent computing device, wherein the electronic crossing platform is configured to:
receive a benchmark value from the at least one fund agent computing device over the communication network; determine an adjustment value; convert the benchmark value to a final value by applying the adjustment value to the benchmark value; and execute paired buy and sell orders from among data defining the pairable trade orders at the final value, such that the pairable trade orders track the benchmark value.

13 . The system of claim 12 , wherein the adjustment value is determined to:
decrease the benchmark value when the further order data defines at least one buy order and the remaining imbalance is a sell imbalance, and increase the benchmark value when the further order data defines at least one sell order and the remaining imbalance is a buy imbalance.

14 . The system of claim 12 , wherein the benchmark value includes a net asset value (NAV).

15 . The system of claim 12 , wherein the at least one fund agent computing device is configured to generate, as part of the further order data, one or more final trade orders responsive to trading with a secondary market, by at least one of creation activity or redemption activity, to completely offset the remaining imbalance.

16 . The system of claim 15 , wherein the at least one of the creation activity or the redemption activity includes creation unit size activity or non-creation unit size activity.

17 . The system of claim 1 , wherein the additional order data comprises a combination of offsetting trade orders, offsetting order modifications, and offsetting order cancelations.

18 . The system of claim 1 , wherein the further order data comprises a combination of final trade orders, final order modifications and final order cancelations.

Assignees

• Nyse Group Inc

Inventors

• Weber Clifford
• Champion Thomas
• Morrison Laura V

Classifications

• G06Q40/04 Primary

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