MATCH-OFF OF ORDER FLOW IN ELECTRONIC MARKET SYSTEM

• US 20020161687A1
• Filed: 09/23/1999
• Published: 10/31/2002
• Est. Priority Date: 09/23/1999
• Status: Active Grant

• Current Assignee: Nasdaq, Inc.
• Original Assignee: Nasdaq OMX Group Incorporated (Nasdaq, Inc.)
• Inventors: MALITZIS, JOHN, SERKIN, STUART
• Granted Patent: US 8,239,303 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A market system that includes an internal execution process is described. The system includes an order execution process that receives orders and matches orders against quotes posted in the system on a time priority basis and an order match-off process that checks if a market participant identification associated with a received order matches a market participant identification representing a quote in the system that is at the best bid or best offer price in the system.

Claims

1. A method of executing an order in a market system comprises:

receiving an order from a market participant; and

for the order, checking if a market participant identification associated with the order matches a market participant identification representing a quote in the system which is at the best bid or best offer price in the system.

2. The method of claim 1 further comprising:

matching-off the order against the one of the best bid or best offer that is at the opposite side of the market.

3. The method of claim 1 further comprises:

matching-off the order without regard to a time priority of other quotes in the system, against the one of the best bid or best offer that is at the opposite side of the market.

4. The method of claim 1 further comprising:

calling a cancel request to cancel a quote at the side of the market in which a matched off order will be executed.

5. The method of claim 1 further comprising:

calling a cancel request prior to matching off the order to cancel a quote at the side of the market at which an matched off order will be executed.

6. The method of claim 1 further comprises routing the order to a market participant corresponding to said participant that has the one of the best bid or best offer that is at the opposite side of the market.

7. The method of claim 1 wherein the order received from the market participant is checked against proprietary quotes and agency quotes of said market participant.

8. The method of claim 1 further comprising:

receiving the internal book of the market participant to match-off against the market participant'"'"'s posted agency or proprietary quotes.

9. The method of claim 1 wherein receiving an order from a market participant further comprises:

receiving the order from the market participant via an order execution system.

10. The method of claim 1 wherein receiving an order from a market participant further comprises:

receiving the order from the market participant via a negotiation order entry system.

16. The system of claim 1 further comprising:

a process to request a cancellation of a quote at the side of the market in which an internalized order will be executed.

17. The system of claim 1 further comprising:

a routing process to route an order to a market participant corresponding to the participant that has the one of the best bid or best offer that is at the opposite side of the market.

11. A market system comprises:

an order execution process that receives orders and matches orders against quotes posted in the system on a time priority basis;

an order match-off process that checks if a market participant identification associated with a received order matches a market participant identification representing a quote in the system that is at the best bid or best offer price in the system.

12. A system of claim 11 wherein the order match-off process further comprises:

a process to execute the order against the one of the best bid or best offer that is at the opposite side of the market.

13. The system of claim 11 further comprising:

a process to request a cancellation of a quote at the side of the market in which an internalized order will be executed.

14. The system of claim 11 further comprising:

a routing process to route an order to a market participant corresponding to the participant that has the one of the best bid or best offer that is at the opposite side of the market.

15. The system of claim 11 wherein the match-off process further comprises:

a process to execute the order against the one of the best bid or best offer that is at the opposite side of the market.

18. A computer program product for operating a market system comprises instructions for causing a computer to:

receive orders and matches orders against quotes posted in the system on a time priority basis;

check if a market participant identification associated with a received order matches a market participant identification representing a quote in the system that is at the best bid or best offer price in the system.