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Hybrid trading system for concurrently trading securities or derivatives through both electronic and open-outcry trading mechanisms

  • US 10,417,708 B2
  • Filed: 12/14/2012
  • Issued: 09/17/2019
  • Est. Priority Date: 04/24/2003
  • Status: Active Grant
First Claim
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1. A method of trading derivatives in a hybrid exchange system comprising:

  • collecting orders, via a communication network and order routing system, for derivatives and placing them in an electronic book database;

    identifying at an electronic trade engine a new quote from a first in-crowd market participant, wherein one of a bid or an offer price in the new quote matches a respective price in an order in the electronic book database from a public customer;

    removing at least a portion of the order in the electronic book database, delaying automatic execution of the new quote and the order, and starting a timer;

    reporting, via the communication network and an electronic reporting system, a market quote indicative of execution of the at least a portion of the order while delaying automatic execution;

    receiving at the electronic trade engine a second quote from a second in-crowd market participant after receiving the new quote from the first in-crowd market participant and before an expiration of the timer, wherein the second quote matches the respective price of the public customer order in the electronic book database; and

    allocating the order between the first and second in-crowd market participants at the electronic trade engine, wherein the order is not executed until expiration of the timer.

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