Systems and methods to implement an exchange messaging policy

• US 10,037,569 B2
• Filed: 09/21/2012
• Issued: 07/31/2018
• Est. Priority Date: 10/21/2011
• Status: Active Grant

• Current Assignee: Intercontinental Exchange Holdings, Inc. (Intercontinental Exchange, Inc.)
• Original Assignee: Intercontinental Exchange Holdings, Inc. (Intercontinental Exchange, Inc.)
• Inventors: Wassersug, Mark, Vice, Charles, Kapani, Mayur
• Primary Examiner(s): Coulter, Kenneth R
• Application Number:
  US13/624,163
• Publication Number:
  US 20130018973A1
• Time in Patent Office: 2,139 Days
• Field of Search: 709204-207, 709203, 709236, 709246, 715751-759, 434350, 434351, 705 37, 705 262
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Systems for and methods of evaluating messaging, comprising, receiving, via at least one server device, one or more messages, and said at least one server device processing at least one of the one or more messages by grading content included in said at least one message, applying a weighting factor to said at least one message according to said grading, thereby determining a weighted message count for said at least one message, aggregating the weighted message count for said at least one message, and initiating an action if the aggregated weighted message count meets or exceeds a predetermined count threshold.

Claims

1. A computer-implemented method of evaluating electronic messaging, the method comprising:

receiving, in an electronic exchange system comprising at least one server device in communication with one or more electronic exchanges and one or more client terminals over at least one network, from the one or more client terminals, via the at least one server device, one or more messages; and

said at least one server device comprising a non-transitory memory storing program instructions and at least one processor executing said program instructions, said at least one server device processing at least one message of the one or more messages by performing the steps of;

grading content included in said at least one message by extracting a portion of the content from the at least one message and comparing said portion to a predetermined metric;

applying a weighting factor to said at least one message according to said grading, thereby determining a weighted message count for said at least one message;

aggregating the weighted message count for said at least one message; and

initiating an action when the aggregated weighted message count meets or exceeds a predetermined count threshold, said action comprising at least one of determining a financial penalty, modifying a messaging cost and modifying future messaging privileges.

2. The method of claim 1, wherein the action further comprises one or more of:

assessing the financial penalty,

increasing the messaging cost,

suspending the future messaging privileges,

generating a report that includes a summary of said weighted message count, and

generating and transmitting a notice.

3. The method of claim 1, wherein said processing steps are performed only if a total number of messages received meets or exceeds a predetermined message threshold.

4. The method of claim 1, further comprising categorizing the one or more messages, and performing the processing steps on only those messages pertaining to categories having received over a predetermined number of messages.

5. The method of claim 1, wherein when the grading of the at least one message results in the weighting factor being zero, the weighted message count comprises zero for said at least one message.

6. The method of claim 1, wherein the grading step comprises:

assigning a grading value based on said comparing of said portion to the predetermined metric, wherein said grading value is used to determine said weighting factor.

7. The method of claim 6, wherein the comparing of said portion to the predetermined metric comprises determining a proximity between said portion and said predetermined metric, and wherein said grading value is based on said proximity.

8. The method of claim 1, further comprising:

calculating a divisor representative of a quality of the one or more messages; and

dividing the aggregated weighted message count by said divisor to determine a ratio,

wherein the action is initiated if the ratio meets or exceeds a predetermined ratio threshold.

9. The method of claim 1, wherein the electronic exchange system comprises an exchange trading system, wherein said one or more messages include message content relating to exchange trading activities, and wherein said one or more client terminals comprise one or more trading computer terminals in communication with said at least one server device.

10. The method of claim 9, wherein said message content comprises at least one of market order data, bid data, offer data, order revision data, hold order data, cancel and replace order data, trade consummation data, and cancel order data.

11. The method of claim 9, wherein said grading comprises comparing the portion of the content from the at least one message to the predetermined metric, said portion comprising price data and said predetermined metric comprising at least one of a live market price and a predetermined numeric scale.

12. The method of claim 9, further comprising:

categorizing the one or more messages by commodities market; and

performing the processing steps on only those messages pertaining to categories having received over a predetermined number of messages.

13. The method of claim 9, further comprising:

calculating a total number of executed lots resulting from said one or more messages; and

dividing the aggregated weighted message count by said total number of executed lots to determine a ratio,

wherein the action is initiated if the ratio meets or exceeds a predetermined ratio threshold.

14. The method of claim 9, further comprising:

calculating a total number of executed trades resulting from said one or more messages; and

dividing the aggregated weighted message count by said total number of executed trades to determine a ratio,

wherein the action is initiated if the ratio meets or exceeds a predetermined ratio threshold.

15. The method of claim 1, wherein the one or more client terminals comprise at least one of a personal computer (PC), a mobile communication device, a smart phone, a server, a personal device assistant (PDA), a kiosk, an automatic teller machine (ATM), a wireless fidelity (Wi-Fi) access point, a router, a database device, a multi-media device, and a gaming device.

16. A computerized system of evaluating electronic messaging, comprising:

one or more electronic exchanges;

one or more client terminals; and

a computer server, in communication with the one or more electronic exchanges and the one or more client terminals over at least one network, the computer server comprising a non-transitory memory storing program instructions and at least one processor executing said program instructions, said computer server configured to;

receive one or more messages from the one or more client terminals; and

process at least one message of the one or more messages by executing the program instructions to;

grade content included in said at least one message by extracting a portion of the content from the at least one message and comparing said portion to a predetermined metric;

apply a weighting factor to said at least one message according to said grading, thereby determining a weighted message count for said at least one message;

aggregate the weighted message count for said at least one message; and

initiate an action when the aggregated weighted message count meets or exceeds a predetermined count threshold, said action comprising at least one of determining a financial penalty, modifying a messaging cost and modifying future messaging privileges.

17. The system of claim 16, wherein the action further comprises one or more of:

assessing the financial penalty,

increasing the messaging cost,

suspending the future messaging privileges,

generating a report that includes a summary of said weighted message count, and

generating and transmitting a notice.

18. The system of claim 16, wherein the computer server is configured to process the at least one message only if a total number of messages received meets or exceeds a predetermined message threshold.

19. The system of claim 16, wherein the computer server is further configured to categorize the one or more messages, and process only those messages pertaining to categories having received over a predetermined number of messages.

20. The system of claim 16, wherein when the grading of the at least one message results in the weighting factor being zero, the weighted message count comprises zero for said at least one message.

21. The system of claim 16, wherein the computer server is further configured to:

assign a grading value based on said comparing of said portion to the predetermined metric, wherein said grading value is used to determine said weighting factor.

22. The system of claim 21, wherein the computer server is further configured to determine a proximity between said portion and said predetermined metric, and wherein said grading value is based on said proximity.

23. The system of claim 16, wherein the computer server is further configured to:

calculate a divisor representative of a quality of the one or more messages; and

divide the aggregated weighted message count by said divisor to determine a ratio,

wherein the action is initiated if the ratio meets or exceeds a predetermined ratio threshold.

24. The system of claim 16, wherein the computer server is a part of an exchange trading system, wherein the one or more received messages include message content relating to exchange trading activities, and wherein said one or more client terminals comprise one or more trading computer terminals in communication with the computer server.

25. The system of claim 24, wherein said the content of the at least one message comprises at least one of market order data, bid data, offer data, order revision data, hold order data, cancel and replace order data, trade consummation data, and cancel order data.

26. The system of claim 24, wherein the computer server is further configured to compare the portion of the content from the at least one message to the predetermined metric, said portion comprising price data and said predetermined metric comprising at least one of a live market price and a predetermined numeric scale.

27. The system of claim 24, wherein the computer server is further configured to:

categorize the one or more messages by commodities market; and

perform the processing steps on only those messages pertaining to categories having received over a predetermined number of messages.

28. The system of claim 24, wherein the computer server is further configured to:

calculate a total number of executed lots resulting from said one or more messages; and

divide the aggregated weighted message count by said total number of executed lots to determine a ratio,

wherein the action is initiated if the ratio meets or exceeds a predetermined ratio threshold.

29. The system of claim 24, wherein the computer server is further configured to:

calculate a total number of executed trades resulting from said one or more messages; and

divide the aggregated weighted message count by said total number of executed trades to determine a ratio,

wherein the action is initiated if the ratio meets or exceeds a predetermined ratio threshold.

30. The system of claim 16, wherein the one or more client terminals comprise at least one of a personal computer (PC), a mobile communication device, a smart phone, a server, a personal device assistant (PDA), a kiosk, an automatic teller machine (ATM), a wireless fidelity (Wi-Fi) access point, a router, a database device, a multi-media device, and a gaming device.