Method and system for broker trading in a hybrid trading system for concurrently trading securities or derivatives through both electronic and open-outcry trading mechanisms

• US 20060167788A1
• Filed: 12/29/2005
• Published: 07/27/2006
• Est. Priority Date: 04/24/2003
• Status: Abandoned Application

• Current Assignee: Chicago Board Options Exchange Incorporated (Cboe Global Markets, Inc.)
• Original Assignee: Chicago Board Options Exchange Incorporated (Cboe Global Markets, Inc.)
• Inventors: Tilly, Edward T., Smith, Eileen C.
• Application Number:
  US11/321,062
• Publication Number:
  US 20060167788A1
• 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 method of broker trading in an exchange configured for trading securities or derivatives by a combination of electronic and open-outcry trading mechanisms is disclosed. The method includes receiving an order in a public automated routing system workstation, accessing the public automated routing system workstation by a broker with a broker-specific identifier, selecting the order, indicating at least a portion of the order to be executed, booked and/or maintained by a trade engine, and transmitting the at least a portion of the order to the trade engine to be executed or booked, wherein the executed, booked and/or maintained order is marked with the broker-specific identifier by the trade engine.

Claims

1. A method of broker trading in an exchange operative to trade securities or derivatives by a combination of electronic and open-outcry trading mechanisms, the method comprising:

receiving an order in a public automated routing system workstation;

receiving a broker-specific identifier;

receiving a selection of the order;

receiving an indication of at least a portion of the order to be executed or booked by a trade engine; and

transmitting the at least a portion of the order to the trade engine to be executed or booked, and to be marked with the broker-specific identifier.

2. The method according to claim 1 wherein the public automated routing system workstation receives the order from an order routing system.

3. The method according to claim 1 wherein the broker-specific identifier is a personal identification number.

4. The method according to claim 1 wherein the broker-specific identifier is received from a broker attempting to gain access to the public automated routing system workstation.

5. An exchange for identifying a broker in a purchase or sale of securities or derivatives, the exchange operative to trade securities or derivatives by a combination of electronic and open-outcry trading mechanisms, the exchange comprising:

a public automated routing system workstation operative to receive an incoming order or quotation to trade at least one security or derivative, and operative to receive a broker-specific identifier;

a trade engine in communication with the public automated routing system workstation, the trade engine operative to analyze and execute orders according to matching rules; and

an electronic template presented at the public automated routing system workstation for a broker to input trade information indicative of at least a portion of the order to be executed or booked by the trade engine;

wherein the trade engine marks the executed or booked order with the broker-specific identifier.

6. The exchange according to claim 5, wherein the broker-specific identifier is a personal identification number.

7. The exchange according to claim 6, wherein the public automated routing system workstation receives the broker-specific identifier from the broker when the broker attempts to gain access to the public automated routing system workstation.

8. The exchange according to claim 5, wherein the trade information further comprises volume data.

9. The exchange according to claim 5, wherein the trade information further comprises price data.

10. The exchange according to claim 5, wherein the trade information further comprises opposing market maker data.

11. The exchange according to claim 5, wherein the trade engine is in further communication with an order routing system.

12. The exchange according to claim 5, wherein the trade engine comprises a trade processor and the trade processor is operative to analyze and execute orders according to matching rules.

13. The exchange according to claim 12, wherein the matching rules are stored in a database in communication with the trade engine.

14. The exchange according to claim 5, wherein the electronic template is generated in response to the broker selecting the order or quotation.