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Routing of orders in equity options by means of a parameterized rules-based routing table

  • US 20090070250A1
  • Filed: 07/24/2007
  • Published: 03/12/2009
  • Est. Priority Date: 07/28/2006
  • Status: Active Grant
First Claim
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1. A method for options order routing, comprising:

  • providing a market center which lists a plurality of options series, wherein the market center has an order book for each option series and a market maker quote book for each option series, and wherein the market center has intermarket linkages and direct connections to a plurality of away market centers and receives a top-of-book best bid and offer disseminated quotation from the plurality of away market centers for each option series and wherein the market center has at least one configurable routing table including a set of routing rules that specify intermarket linkage and direct connection parameters for each away market center;

    receiving an incoming order, and determining if the order can execute at the NBBO or better;

    wherein if the order can execute at the NBBO or better, retrieving the best bid and offer disseminated quotation from each away market center;

    determining if a disseminated quotation of any away market center is superior to the orders and market maker quotes resident on the market center;

    wherein if the disseminated quotation of any away market center is superior, retrieving the set of routing rules from the routing table for the away market center having the superior disseminated quotation;

    determining if the incoming order can be routed to the away market center having the superior disseminated quotation; and

    wherein if the incoming order can be routed to the away market center having the superior disseminated quotation, determining an appropriate routing protocol and generating an outbound order based on the routing rules for the specified away market center; and

    routing the generated outbound order to the away market center having the superior disseminated quotation over the selected routing protocol.

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