System and method for internally matching electronic trade orders originated by a preselected group of traders

• US 20080010186A1
• Filed: 07/06/2007
• Published: 01/10/2008
• Est. Priority Date: 07/07/2006
• Status: Abandoned Application

• Current Assignee: RTS Realtime Systems Software GmbH
• Original Assignee: RTS Realtime Systems Software GmbH
• Inventors: Weimer, Frank, Gemuenden, Steffen, Rosca, Dacian
• Application Number:
  US11/825,453
• Publication Number:
  US 20080010186A1
• 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 system and method for internally matching an electronic trade order originated by a trader of a pre-selected group of traders is provided. The system includes an internal provider server including an internal order matcher function, and a gateway communicatively coupled to the internal provider server and an external host system. The gateway is configured to provide a translation interface between the internal provider server and an external host system, and the internal provider server is configured to match the electronic trade order to another electronic trade order placed by another trader of the pre-selected group of traders.

Claims

1. A system for internally matching a plurality of electronic trade orders originated by a pre-selected group of traders, the system comprising:

an internal provider server;

an internal order matcher communicatively coupled to the internal provider server;

a gateway communicatively coupled to the internal provider server and an external host system, the gateway configured to provide a translation interface between the internal provider server and an external host system; and

a client terminal communicatively coupled to the internal provider server, the client terminal enabling origination of a first electronic trade order by a first trader of the pre-selected group of traders,

wherein the internal order matcher is configured to match the first electronic trade order to a second electronic trade order to form a matched electronic trade order.

2. The system of claim 1, wherein the external host system comprises an electronic exchange.

3. The system of claim 1, wherein each of the plurality of electronic trade orders is at least one selected from the group consisting of an order to sell a quantity of a tradable instrument and an order to buy a quantity of the tradable instrument.

4. The system of claim 3, wherein the tradable instrument is at least one selected from the group consisting of an equity, an option, a future, a warrant, a bond, a commodity and a currency.

5. The system of claim 1, wherein the gateway is resident in the external host system.

6. The system of claim 1, wherein the gateway is resident in the internal provider server.

7. The system of claim 1, wherein the second electronic trade order comprises an IOM-generated quote message associated with an internal quote generated based on parameters and associated values selected by a second trader of the pre-selected group of traders.

8. The system of claim 1, wherein the second electronic trade order is originated by a second trader of the pre-selected group of traders.

9. A system for internally matching an electronic trade order originated by a trader of a pre-selected group of traders, the system comprising:

an internal provider server including an internal order matcher function; and

a gateway communicatively coupled to the internal provider server and an external host system, the gateway configured to provide a translation interface between the internal provider server and an external host system,

wherein the internal provider server is configured to match the electronic trade order to another electronic trade order to form a matched electronic trade order.

10. The system of claim 9, wherein the external host system comprises an electronic exchange.

11. The system of claim 9, wherein the electronic trade order is at least one selected from the group consisting of an order to sell a quantity of a tradable instrument and an order to buy a quantity of the tradable instrument.

12. The system of claim 11, wherein the tradable instrument is at least one selected from the group consisting of an equity, an option, a future, a warrant, a bond, a commodity and a currency.

13. The system of claim 9, wherein the gateway is resident in the external host system.

14. The system of claim 9, wherein the gateway is resident in the internal provider server.

15. The system of claim 9, wherein the another electronic trade order comprises an IOM-generated quote message associated with an internal quote generated based on parameters and associated values selected by another trader of the pre-selected group of traders.

16. The system of claim 9, wherein the another electronic trade order is originated by another trader of the pre-selected group of traders.

17. In an internal provider server including an internal order matcher (IOM) function, a method for internally matching at least a first electronic trade order, the internal provider server communicatively coupled to a gateway, the gateway configured to provide a translation interface between the internal provider server and an external host system, the method comprising:

receiving a first order message representing the first electronic trade order, the first electronic trade order is originated via a trader of a pre-selected group of traders;

providing a first internal identifier in an internal identifier field of the first order message;

enabling a first indication in the first internally identified first order message to form a first IOM-controlled order message, the first indication indicating that the first electronic trade order is eligible for internal matching;

comparing the first IOM-controlled order message to a number of entries of an internal order book of the internal provider server, each of the number of entries corresponding to a pending electronic trade order; and

if the first IOM-controlled order message can be matched to one of the entries, internally matching the first electronic trade order to a pending electronic trade order represented by the one of the entries.

18. The method of claim 17, further comprising:

updating the first IOM-controlled order message to reflect the internal match;

sending a first copy of the updated first IOM-controlled order message to an internal database of the internal provider server; and

sending a second copy of the updated first IOM-controlled order message to a client terminal used by the trader to place the first electronic trade order.

19. The method of claim 17, further comprising, if the first IOM-controlled order message can not be matched to one of the entries,

creating a copy of the first IOM-controlled order message;

adding a first time-stamp to the copy of the first IOM-controlled order message to form a first time-stamped copy of the first IOM-controlled order message; and

adding the first time-stamped copy of the first IOM-controlled order message as an additional entry into the internal order book.

20. The method of claim 19, further comprising:

disabling the first indication and enabling a second indication and removing the first internal identifier in the first IOM-controlled order message to form a first IOM-generated order message;

inserting the first internal identifier of the first order message into a linked identity field of the first IOM-generated order message;

providing a second internal identifier in an internal identifier field of the first IOM-generated order message to form a first pending order message;

creating and retaining a copy of the first pending order message in a memory location; and

sending the first pending order message to the external host system.

21. The method of claim 20, further comprising:

inserting the second internal identifier of the first pending order message into a linked identity field of the time-stamped copy of the first IOM-controlled order message, the second identifier linking the time-stamped copy of the first IOM-controlled order message to the copy of the first pending order message to form a linked time-stamped copy of the first IOM-controlled order message.

22. The method of claim 21, further comprising:

causing the first pending order message to be deleted at the external host system if a comparison between a second IOM-controlled order message and the linked time-stamped copy of the first IOM-controlled order message yields a match, the second IOM-controlled order message associated with a second electronic trade order originated by another trader of the pre-selected group of traders; and

internally matching the first electronic trade order with the second electronic trade order upon verification of successful deletion of the first pending order message.

23. The method of claim 17, wherein each of the number of entries of the internal order book is at least one selected from the group consisting of a copy of an external order message associated with an electronic trade order not originated by the pre-selected group of traders, a copy of an order message associated with an electronic trade order originated by a trader of the pre-selected group of traders, and an order message associated with an electronic trade order originated by a trader of the pre-selected group of traders.

24. The method of claim 17, wherein the number of entries further comprise at least one IOM-generated quote message associated with an internal quote generated by the internal provider server based on parameters and associated values selected by a market maker of the pre-selected group of traders.

25. The method of claim 17, wherein the external host system comprises an electronic exchange.

26. The method of claim 17, wherein the first electronic trade order is at least one selected from the group consisting of an order to sell a quantity of a tradable instrument and an order to buy a quantity of the tradable instrument.

27. The method of claim 26, wherein the tradable instrument is at least one selected from the group consisting of an equity, an option, a future, a warrant, a bond, a commodity and a currency.

28. In an internal provider server including an internal order matcher (IOM) function, a method for internally matching at least a first electronic trade order, the internal provider server communicatively coupled to a gateway, the gateway configured to provide a translation interface between the internal provider server and an external host system, the method comprising:

receiving a first order message representing the first electronic trade order, the first electronic trade order placed by a trader of a pre-selected group of traders;

providing a first internal identifier in an internal identifier field of the first order message;

enabling a first indication in the first internally identified first order message to form a first IOM-controlled order message, the first indication indicating that the first electronic trade order is eligible for internal matching;

comparing the first IOM-controlled order message to an IOM-generated quote message associated with an internal quote generated by the internal provider server based on parameters and associated values selected by another trader of the pre-selected group of traders; and

if the first IOM-controlled order message can be matched to the IOM-generated quote message, internally matching the first electronic trade order to the internal quote, the IOM-generated quote message included as at least one of a number of entries of an internal order book of the internal provider server.

29. The method of claim 28, further comprising adjusting at least one field of the IOM-generated quote message to reflect the internal match.

30. The method of claim 28, further comprising:

updating the first IOM-controlled order message to reflect the internal match;

sending a first copy of the updated first IOM-controlled order message to an internal database of the internal provider server; and

sending a second copy of the updated first IOM-controlled order message to a client terminal used by the trader to place the first electronic trade order.

31. The method of claim 28, further comprising, if the first IOM-controlled order message cannot be matched to the IOM-generated quote message,

creating a copy of the first IOM-controlled order message;

adding a first time-stamp to the copy of the first IOM-controlled order message to form a first time-stamped copy of the first IOM-controlled order message; and

adding the first time-stamped copy of the first IOM-controlled order message as an additional entry into the internal order book.

32. The method of claim 31, further comprising:

disabling the first indication and enabling a second indication and removing the first internal identifier in the first IOM-controlled order message to form a first IOM-generated order message;

inserting the first internal identifier of the first order message into a linked identity field of the first IOM-generated order message;

providing a second internal identifier in an internal identifier field of the first IOM-generated order message to form a first pending order message;

creating and retaining a copy of the first pending order message in a memory location; and

sending the first pending order message to the external host system.

33. The method of claim 32, further comprising:

inserting the second internal identifier of the first pending order message into a linked identity field of the time-stamped copy of the first IOM-controlled order message, the second identifier linking the time-stamped copy of the first IOM-controlled order message to the copy of the first pending order message to form a linked time-stamped copy of the first IOM-controlled order message.

34. The method of claim 28, wherein the number of entries of the internal order book includes at least one copy of an external order message associated with an electronic trade order not originated by the pre-selected group of traders.

35. The method of claim 28, wherein the external host system comprises an electronic exchange.

36. The method of claim 28, wherein the first electronic trade order is at least one selected from the group consisting of an order to sell a quantity of a tradable instrument and an order to buy a quantity of the tradable instrument.

37. The method of claim 36, wherein the tradable instrument is at least one selected form the group consisting of an equity, an option, a future, a warrant, a bond, a commodity and a currency.