System and method for trading derivatives in penny increments while disseminating quotes for derivatives in nickel/dime increments
First Claim
6. A trading engine for handling trading information in standard price increments and reduced price increments, wherein standard price increments are greater than reduced price increments, the trading engine comprising:
- a communication module for receiving quotes for derivatives in reduced price increments;
a rounding module in communication with the communication module for receiving the quotes for derivatives in reduced price increments and rounding out the quotes to quotes for the derivative in standard price increments;
an aggregating module in communication with the rounding module for receiving the quotes for the derivative in standard price increments and aggregating the quotes; and
a dissemination quote module in communication with the aggregating module to receive and disseminate the aggregated quotes for the derivative in standard price increments.
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0 Petitions
Accused Products
Abstract
A system and method for trading derivatives in penny increments while disseminating quotes for derivatives in nickel/dime increments is disclosed. A trading engine receives quotes for a derivative in penny increments from at least one entity. The trading engine rounds out the quotes for the derivative in penny increments to quotes for the derivative in nickel/dime increments. The quotes in nickel/dime increments are aggregated and disseminated. The trading engine receives bids and offers to take positions in the derivative based on the aggregate quotes for the derivative in nickel/dime increments and executes trades for the derivative by matching bids and offers to buy and sell positions in the derivative.
116 Citations
16 Claims
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6. A trading engine for handling trading information in standard price increments and reduced price increments, wherein standard price increments are greater than reduced price increments, the trading engine comprising:
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a communication module for receiving quotes for derivatives in reduced price increments;
a rounding module in communication with the communication module for receiving the quotes for derivatives in reduced price increments and rounding out the quotes to quotes for the derivative in standard price increments;
an aggregating module in communication with the rounding module for receiving the quotes for the derivative in standard price increments and aggregating the quotes; and
a dissemination quote module in communication with the aggregating module to receive and disseminate the aggregated quotes for the derivative in standard price increments. - View Dependent Claims (7, 8, 9, 10)
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11. A method for trading derivatives, comprising:
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receiving quotes for a derivative received from at least one entity, the quotes comprising reduced price increments, the reduced price increments comprising an increment less than a standard price increment;
rounding out the received quotes to quotes comprising prices in the standard price increments;
aggregating the quotes for the derivative in the standard price increments; and
disseminating the aggregated quotes for the derivative in standard price increments. - View Dependent Claims (1, 2, 3, 4, 5, 12, 13, 15, 16)
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13-1. The method of claim 11, wherein the reduced price increments comprises a penny increment and the standard price increment comprises at least a nickel price increment.
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14. A computer readable medium comprising instructions for executing the following steps:
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receiving quotes for a derivative in increments of hundredths of a monetary unit from at least one entity;
rounding out the quotes for the derivative in increments of hundredths of a monetary unit to quotes for the derivative in increments of twentieths/tenths of the monetary unit;
aggregating the quotes for the derivative in increments of twentieths/tenths of the monetary unit; and
disseminating the aggregated quotes for the derivative in increments of twentieths/tenths of the monetary unit.
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Specification