Large liquidity seeking trading platform

Patent metadata

Field	Value
Publication number	US-2016005123-A1
Application number	US-201514857538-A
Country	US
Kind code	A1
Filing date	Sep 17, 2015
Priority date	Dec 31, 2013
Publication date	Jan 7, 2016
Grant date	—

Abstract

An electronic trading system implements a display price that guarantees a minimum available quantity for trade. The electronic trading system determines a quantity of financial instruments available at various prices for incoming orders. A display bid price and display offer price are determined so that the quantity available at the display prices exceeds a display quantity threshold. The electronic trading system receives orders designated fast and slow. Fast orders are used for large, rapid trades at known prices. Slow orders trade with a delay for a price improvement auction. Orders meeting a minimum order quantity threshold may participate in an auction for incoming orders that offers price improvement to the execution price of aggressively priced orders. The electronic trading system implements risk management measures based on order size and percentage filled for individual trades and series of trades. The electronic trading system supports orders having multiple legs.

First claim

1 . An electronic trading system for executing trades, comprising:
one or more specialized computers comprising computer-readable instructions stored on a non-transitory computer-readable storage medium and executed by at least one processor, said computer-readable instructions, when executed, causing the one or more computers to: receive, at the electronic trading system, a plurality of orders, each order specifying at least a financial instrument, a quantity, a side, and a limit price; determine, from the received plurality of orders, a display price for the side based at least in part on the quantity and the limit price of at least one of the plurality of orders; receive, at the electronic trading system, an inbound order specifying at least the financial instrument, an inbound quantity, an inbound side, and an inbound limit price, the inbound side opposite from the side of the received plurality of orders; compare the inbound quantity to an order quantity threshold; determine an execution price for one or more trades based on at least one of the comparison, the order quantity threshold, the display price, the inbound limit price and the limit price of each order of the plurality of orders; match one or more orders from the plurality of orders to the inbound order, the match based, at least in part, on limit prices of the received plurality of orders; and execute the one or more trades between the inbound order and the one or more matched orders, the trade being executed at the execution price.

2 . The electronic trading system of claim 1 , further comprising computer-readable instructions that, when executed, cause the one or more computers to:
monitor one or more away BBO prices at one or more external exchanges; determine that an away BBO price is better for the inbound order at at least one external exchange of the one or more external exchanges; and route at least a portion of the order to the at least one external exchange.

3 . The electronic trading system of claim 2 , wherein the inbound order comprising an execution instruction, the electronic trading system further comprising computer-readable instructions that, when executed, cause the one or more computers to:
select the at least one external exchange based at least in part on the execution instruction.

4 . The electronic trading system of claim 3 , wherein the execution instruction specifies fast execution, and wherein:
the execution price is based on limit prices and quantities of the received plurality of orders, the inbound limit price, and the inbound quantity if the inbound quantity is being greater than or equal to the order quantity threshold, or the execution price is based on the determined display price if the inbound quantity is less than the order quantity threshold.

Assignees

• Nyse Group Inc

Inventors

• Farnstrom Amy Joy
• Crutchfield Steven G
• Hyde James

Classifications

• G06Q40/04 Primary

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

• G06Q40/045

  Accepting or processing orders in an exchange · CPC title

• G06Q40/0451 Primary

  Prioritising, queuing or matching trade orders in an exchange · CPC title