Electronic communication network ranking for automated market system

• US 20030126066A1
• Filed: 10/18/2002
• Published: 07/03/2003
• Est. Priority Date: 09/23/1999
• Status: Active Grant

• Current Assignee: Nasdaq, Inc.
• Original Assignee: Nasdaq OMX Group Incorporated (Nasdaq, Inc.)
• Inventors: Malitzis, John, Ketchum, Richard G., Moore, Daniel F., Denat, Mark, Ewing, Anna, Furbush, Dean, Nunes, Adam, Peterson, Karen, Randich, Steven J., Folkemer, Christopher
• Granted Patent: US 7,801,795 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0627 using item specifications
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method for trading a security in an electronic market includes entering an order at a client station for executing against any market participant that can at least in part satisfy the order, and matching the entered order at a server system against interest in the market based on how the market participant participates in the market with a portion of the interest in the market being prioritized according to price priority among displayed quotes/orders of market makers, ECNs that do not charge a separate quote-access fee, and non-attributable agency orders of UTP Exchanges, and subsequently by displayed quotes/orders of ECNs that charge a separate quote-access fee, with the quotes/orders of the ECNs that charge a separate quote-access fee being ranked by the amount of the quote-access fee charged.

Claims

1. A method for trading securities in an electronic market, the method comprises:

entering an order at a client station for executing against any market participant that can at least in part satisfy the order; and

matching the entered order at a server system against interest in the market based on how the market participant participates in the market with a portion of the interest in the market being prioritized according to;

price priority among displayed quotes/orders of market makers, ECNs that do not charge a separate quote-access fee, and non-attributable agency orders of UTP Exchanges, and

subsequently by displayed quotes/orders of ECNs that charge a separate quote-access fee, with the quotes/orders of the ECNs that charge a separate quote-access fee being ranked by the amount of the quote-access fee charged.

2. The method of claim 1 wherein the displayed quotes/orders of the market makers, the ECNs that do not charge a separate quote-access fee, and the non-attributable agency orders of the UTP Exchanges are time prioritized if there is a tie in price priority.

3. The method of claim 1 wherein the displayed quotes/orders of the ECNs that charge a separate quote-access fee are time prioritized if there is a tie in the amount of the quote-access fee charged.

4. The method of claim 1 wherein one ECN that charges no quote-access fee is assigned a higher priority than another ECN that charges a quote-access fee.

5. The method of claim 1 wherein one ECN that charges a quote-access fee is assigned a higher priority than another ECN that charges a larger quote-access fee.

6. The method of claim 1 wherein each ECN that charges a separate quote-access fee enters, into the server system, a summary order that includes the quote-access fee associated with the ECN.

7. The method of claim 1 wherein the entered order is rounded up in price to the nearest cent and displayed to a user.

8. The method of claim 1 wherein the entered order is rounded down in price to the nearest cent and displayed to a user.

9. A method for trading securities in an electronic market, the method comprises:

entering an order at a client station for executing against any market participant that can at least in part satisfy the order; and

matching the entered order at a server system against interest in the market based on how the market participant participates in the market with a portion of the interest in the market being prioritized according to;

price priority among displayed quotes/orders of market makers, ECNs, and non-attributable agency orders of UTP Exchanges, with each ECN order and quote-access fee charged by the respective ECN aggregated to produce the respective price used for determining price priority.

10. The method of claim 9 wherein the interest in the market is subsequently further prioritized according to time priority of the displayed quotes/orders of the market makers, the ECNs, and the non-attributable agency orders of the UTP Exchanges if there is a tie in price priority.

11. The method of claim 9 wherein one ECN is assigned a higher priority than another ECN that has a larger aggregate price.

12. The method of claim 9 wherein each ECN enters into the server system a summary order that includes the quote-access fee, if any, associated with the ECN.

13. The method of claim 9 wherein the entered order is rounded up in price to the nearest cent and displayed to a user.

14. The method of claim 9 wherein the entered order is rounded down in price to the nearest cent and displayed to a user.

15. A computer program product residing on a computer readable medium comprises instructions for trading a security in an electronic market causes a computer to:

enter an order at a client station for executing against any market participant that can at least in part satisfy the order; and

match the entered order at a server system against interest in the market based on how the market participant participates in the market with a portion of the interest in the market being prioritized according to;

price priority among displayed quotes/orders of market makers, ECNs that do not charge a separate quote-access fee, and non-attributable agency orders of UTP Exchanges, and

subsequently by displayed quotes/orders of ECNs that charge a separate quote-access fee, with the quotes/orders of the ECNs that charge a separate quote-access fee being ranked by the amount of the quote-access fee charged.

16. The computer program product of claim 15 wherein the displayed quotes/orders of the market makers, the ECNs that do not charge a separate quote-access fee, and the non-attributable agency orders of the UTP Exchanges are time prioritized if there is a tie in price priority.

17. The computer program product of claim 15 wherein the displayed quotes/orders of the ECNs that charge a separate quote-access fee are time prioritized if there is a tie in the amount of the quote-access fee charged.

18. The computer program product of claim 15 wherein one ECN that charges no quote-access fee is assigned a higher priority than another ECN that charges a quote-access fee.

19. The computer program product of claim 15 wherein one ECN that charges a quote-access fee is assigned a higher priority than another ECN that charges a larger quote-access fee.

20. The computer program product of claim 15 wherein each ECN that charges a separate quote-access fee enters, into the server system, a summary order that includes the quote-access fee associated with the ECN.

21. The computer program product of claim 15 wherein the entered order is rounded up in price to the nearest cent and displayed to a user.

22. The computer program product of claim 15 wherein the entered order is rounded down in price to the nearest cent and displayed to a user.

23. A computer program product residing on a computer readable medium comprises instructions for trading a security in an electronic market causes a computer to:

enter an order at a client station for executing against any market participant that can at least in part satisfy the order; and

match the entered order at a server system against interest in the market based on how the market participant participates in the market with a portion of the interest in the market being prioritized according to;

price priority among displayed quotes/orders of market makers, ECNs, and non-attributable agency orders of UTP Exchanges, with each ECN order and quote-access fee charged by the respective ECN aggregated to produce the respective price used for determining price priority.

24. The computer program product of claim 23 wherein the interest in the market is subsequently further prioritized according to time priority of the displayed quotes/orders of the market makers, the ECNs, and the non-attributable agency orders of the UTP Exchanges if there is a tie in price priority.

25. The computer program product of claim 23 wherein one ECN is assigned a higher priority than another ECN that has a larger aggregate price.

26. The computer program product of claim 23 wherein each ECN enters into the server system a summary order that includes the quote-access fee, if any, associated with the ECN.

27. The computer program product of claim 23 wherein the entered order is rounded up in price to the nearest cent and displayed to a user.

28. The computer program product of claim 23 wherein the entered order is rounded down in price to the nearest cent and displayed to a user.

29. A trading process, for trading a security in an electronic market, the trading process comprises:

an order entering process to enter an order at a client station for executing against any market participant that can at least in part satisfy the order; and

a matching process to match the entered order at a server system against interest in the market based on how the market participant participates in the market with a portion of the interest in the market being prioritized according to;

price priority among displayed quotes/orders of market makers, ECNs that do not charge a separate quote-access fee, and non-attributable agency orders of UTP Exchanges, and

subsequently by displayed quotes/orders of ECNs that charge a separate quote-access fee, with the quotes/orders of the ECNs that charge a separate quote-access fee being ranked by the amount of the quote-access fee charged.

30. The trading process of claim 29 wherein the displayed quotes/orders of the market makers, the ECNs that do not charge a separate quote-access fee, and the non-attributable agency orders of the UTP Exchanges are time prioritized if there is a tie in price priority.

31. The trading process of claim 29 wherein the displayed quotes/orders of the ECNs that charge a separate quote-access fee are time prioritized if there is a tie in the amount of the quote-access fee charged.

32. The trading process of claim 29 wherein one ECN that charges no quote-access fee is assigned a higher priority than another ECN that charges a quote-access fee.

33. The trading process of claim 29 wherein one ECN that charges a quote-access fee is assigned a higher priority than another ECN that charges a larger quote-access fee.

34. The trading process of claim 29 wherein each ECN that charges a separate quote-access fee enters, into the server system, a summary order that includes the quote-access fee associated with the ECN.

35. The trading process of claim 29 wherein the entered order is rounded up in price to the nearest cent and displayed to a user.

36. The trading process of claim 29 wherein the entered order is rounded down in price to the nearest cent and displayed to a user.

37. A trading process, for trading a security in an electronic market, the trading process comprises:

an order entering process to enter an order at a client station for executing against any market participant that can at least in part satisfy the order; and

a matching process to match the entered order at a server system against interest in the market based on how the market participant participates in the market with a portion of the interest in the market being prioritized according to;

price priority among displayed quotes/orders of market makers, ECNs, and non-attributable agency orders of UTP Exchanges, with each ECN order and quote-access fee charged by the respective ECN aggregated to produce the respective price used for determining price priority.

38. The trading process of claim 37 wherein the interest in the market is subsequently further prioritized according to time priority of the displayed quotes/orders of the market makers, the ECNs, and the non-attributable agency orders of the UTP Exchanges if there is a tie in price priority.

39. The trading process of claim 37 wherein one ECN is assigned a higher priority than another ECN that has a larger aggregate price.

40. The trading process of claim 37 wherein each ECN enters into the server system a summary entered order that includes the quote-access fee, if any, associated with the ECN.

41. The trading process of claim 37 wherein the entered order is rounded up in price to the nearest cent and displayed to a user.

42. The trading process of claim 37 wherein the entered order is rounded down in price to the nearest cent and displayed to a user.