Directed order
First Claim
1. A method for crossing a directed order, comprising:
- providing a posting market center having an internal book and having a guarantee order book populated with a plurality of guarantee orders;
receiving a directed order on the posting market center;
retrieving a marketable contra side guarantee order from the plurality of guarantee orders on the guarantee order book and pairing the received directed order with the retrieved guarantee order;
ranking the retrieved guarantee order in the internal book;
presenting the received directed order to the internal book; and
matching the received directed order with the retrieved guarantee order in price and time priority on the internal book, whereby the received directed order interacts with the internal book and does not cross at a price that trades through the market.
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Accused Products
Abstract
A directed order process and related market center are disclosed, wherein a market center grants permission to order sending firms to send directed order flow to participating designated market makers. Such designated market makers create a virtual guarantee order book for each permissioned order sending firm. If an order sending firm sends a directed order to the market center that is marketable against a virtual guarantee order, then the market center automatically pairs the orders in a two-sided directed cross order instruction, which executes against any superior trading interest in the marketplace first before crossing.
174 Citations
25 Claims
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1. A method for crossing a directed order, comprising:
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providing a posting market center having an internal book and having a guarantee order book populated with a plurality of guarantee orders;
receiving a directed order on the posting market center;
retrieving a marketable contra side guarantee order from the plurality of guarantee orders on the guarantee order book and pairing the received directed order with the retrieved guarantee order;
ranking the retrieved guarantee order in the internal book;
presenting the received directed order to the internal book; and
matching the received directed order with the retrieved guarantee order in price and time priority on the internal book, whereby the received directed order interacts with the internal book and does not cross at a price that trades through the market. - View Dependent Claims (2, 3)
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4. A method for crossing a directed order, comprising:
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providing a posting market center having an internal book and having a guarantee order book, wherein the guarantee order book is specified for a designated market maker to populate the guarantee order book with guarantee orders for a specific order sending firm that is permissioned to send directed orders to the designated market maker;
receiving a plurality of guarantee orders on the posting market center from the designated market maker intended for a specific order sending firm;
validating the received guarantee orders;
populating the guarantee order book with the validated guarantee orders;
receiving a directed order on the posting market center from an order sending firm directed to a specific designated market maker;
determining if the order sending firm is permissioned to send directed orders to the specified market maker;
where the order sending firm is permissioned to send directed orders to the specified market maker, retrieving the best contra side guarantee order from the plurality of guarantee orders on the guarantee order book;
determining the marketability, including determining routing restrictions, of the directed order in relation to the retrieved best guarantee order;
for marketable directed orders, setting the price at which the directed cross is to execute;
determining the maximum size of a potential directed cross;
generating a match instruction for the directed order that pairs the directed order with the retrieved guarantee order and includes parameters for the determined directed cross price and the determined maximum size of the potential directed cross;
ranking the retrieved guarantee order in the internal book;
presenting the received directed order to the internal book;
retrieving the best contra side interest from the internal book;
determining if the retrieved best contra side interest is the guarantee order paired with the directed order in the match instruction;
wherein if the retrieved best contra side interest is the paired guarantee order, matching the received directed order with the paired guarantee order at the determined directed cross price and at the determined maximum size. - View Dependent Claims (5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20)
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21. A method of providing an order sending firm and a designated market maker anonymity in a directed cross, comprising:
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providing a posting market center having an internal book and having a guarantee order book, wherein the guarantee order book is specified for a designated market maker to populate the guarantee order book with guarantee orders for a specific order sending firm that is permissioned to send directed orders to the designated market maker;
receiving a plurality of guarantee orders on the posting market center from the designated market maker intended for a specific order sending firm without the order sending firm knowing of the guarantee orders;
populating the guarantee order book with the received plurality of guarantee orders;
receiving a directed order on the posting market center directed to the designated market maker from the order sending firm permissioned to send directed orders to the designated market maker;
retrieving a marketable guarantee order from the guarantee order book;
pairing the received directed order with the retrieved guarantee order;
ranking the retrieved guarantee order in the internal book;
presenting the received directed order to the internal book;
matching the received directed order with the retrieved guarantee order in price and time priority on the internal book without the designated market maker having any notification of the incoming directed order and only seeing the execution of the retrieved guarantee order. - View Dependent Claims (22)
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23. A method for populating a guarantee order book, comprising:
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providing a posting market center having a guarantee order book, wherein the guarantee order book is specified for a designated market maker to populate the guarantee order book with guarantee orders for a specific order sending firm that is permissioned to send directed orders to the designated market maker;
receiving a plurality of guarantee orders on the posting market center from the designated market maker intended for a specific order sending firm and wherein the received guarantee orders vary in size, price and type; and
populating the guarantee order book with the received plurality of guarantee orders.
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24. A posting market center, comprising:
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an internal book and a guarantee order book populated with a plurality of guarantee orders;
an interface for receiving orders, including directed orders;
a posting market center memory for storing code for analyzing and matching directed orders;
a processor for interacting with the interface and executing the code for analyzing and matching directed orders, wherein the code, when executed;
receives the directed order;
retrieves a marketable contra side guarantee order from the plurality of guarantee orders on the guarantee order book and pairs the received directed order with the retrieved guarantee order;
ranks the retrieved guarantee order in the internal book;
presents the received directed order to the internal book; and
matches the received directed order with the retrieved guarantee order in price and time priority on the internal book, whereby the received directed order interacts with the internal book and does not cross at a price that trades through the market.
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25. A posting market center, comprising:
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an internal book and a guarantee order book, wherein the guarantee order book is specified for a designated market maker to populate the guarantee order book with guarantee orders for a specific order sending firm that is permissioned to send directed orders to the designated market maker;
an interface for receiving orders, including guarantee orders and directed orders;
a posting market center memory for storing code for analyzing and matching guarantee orders and directed orders;
a processor for interacting with the interface and executing the code for analyzing and matching guarantee orders and directed orders, wherein the code, when executed;
receives a plurality of guarantee orders from the designated market maker intended for a specific order sending firm;
validates the received guarantee orders;
populates the guarantee order book with the validated guarantee orders;
receives a directed order from an order sending firm directed to a specific designated market maker;
determines if the order sending firm is permissioned to send directed orders to the specified market maker;
where the order sending firm is permissioned to send directed orders to the specified market maker, retrieves the best contra side guarantee order from the plurality of guarantee orders on the guarantee order book;
determines the marketability, including determining routing restrictions, of the directed order in relation to the retrieved best guarantee order;
for marketable directed orders, sets the price at which the directed cross is to execute;
determines the maximum size of a potential directed cross;
generates a match instruction for the directed order that pairs the directed order with the retrieved guarantee order and includes parameters for the determined directed cross price and the determined maximum size of the potential directed cross;
ranks the retrieved guarantee order in the internal book;
presents the received directed order to the internal book;
retrieves the best contra side interest from the internal book;
determines if the retrieved best contra side interest is the guarantee order paired with the directed order in the match instruction;
wherein if the retrieved best contra side interest is the paired guarantee order, matches the received directed order with the paired guarantee order at the determined directed cross price and at the determined maximum size.
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Specification