PRODUCTS AND PROCESSES FOR ORDER DISTRIBUTION

• US 20100036763A1
• Filed: 08/11/2008
• Published: 02/11/2010
• Est. Priority Date: 08/11/2008
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Driscoll, James R.
• Granted Patent: US 8,170,949 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Systems and methods for trading financial instruments through multiple trading intermediaries are described.

Claims

1. A method comprising:

receiving an indication of a first order, in which the first order includes an instrument to be traded, a quantity of the instrument to be traded, and a side of a trade for the instrument;

receiving an indication of a rate at which orders for the side of the trade for the financial instrument are expected to be fulfilled by at least one first exchange of a plurality of exchanges;

receiving an indication of at least one quantity, in which each quantity of the at least one quantity includes sum of quantities associated with second orders pending on at least one second exchange of the plurality of exchanges, in which the second orders include the instrument and the side of trades for the instrument;

receiving an indication of a method used by at least one third exchange of the plurality of exchanges to fulfill orders pending on the exchange when matching orders received by the exchange;

based at least in part on the rate, the at least one quantity, and the method, determining an distribution for the first order among the plurality of exchanges; and

facilitating execution of the order on the plurality of exchanges according to the distribution.

2. The method of claim 1, in which the first exchange, second exchange, and third exchange are the same exchange.

3. The method of claim 1, in which facilitating execution includes placing a plurality of orders, in which each of the plurality of orders is placed on one of the plurality of exchanges in accordance with the second distribution.

4. The method of claim 1, in which at least one of the plurality of exchanges fulfills orders in at least a partially pro-rata fashion.

5. The method of claim 4, in which the at least one of the plurality of exchanges fulfills orders in a hybrid pro-rata and FIFO fashion.

6. The method of claim 4, in which at least one other of the plurality of exchanges fulfills orders in a FIFO fashion.

7. The method of claim 4, in which the at least one of the plurality of exchanges fulfills orders in a pro-rata fashion that includes business logic elements.

8. The method of claim 1, in which determining the distribution includes determining the distribution based at least in part on an expected size of a third order expected to be received by at least one of the plurality of exchanges, in which the third order includes the instrument and the opposite side of a trade for the instrument.

9. The method of claim 1, in which the indication of the method of fulfilling orders includes at least one of an indication of a history of orders fulfilled on the at least one exchange, and a description of the method of fulfilling orders.

10. The method of claim 1, in which the indication of the rate includes a history of orders fulfilled on the at least one exchange.

11. The method of claim 1, in which determining the distribution includes determining the distribution based at least in part on a chance that at least one second order pending on the at least one of the plurality of exchanges will not be fulfilled by a third order received by the at least one of the plurality of exchanges because a quantity associated with the at least one second order is small.

12. The method of claim 1, in which at least one of the plurality of exchanges includes a computer system configured to receive indications of orders, determine if any of the indicated orders match, and facilitate execution of at least some of the matching orders.

13. The method of claim 1, in which the distribution includes a determination of a portion of the quantity associated with the first order to be placed as an order on each of the plurality of exchanges.

14. At least one machine readable medium having stored thereon a plurality of instructions configured to cause a processor to perform the method of claim 1.

15. An apparatus comprising:

one or more processors;

one or more machine readable medium having stored thereon a plurality of instructions that when executed by the one or more processors cause the one or more processors to perform the method of claim 1.

16. A method comprising:

submitting an order to the apparatus of claim 15.

17. A method comprising:

determining a first distribution for a first order among a plurality of exchanges, in which the first order includes an instrument to be traded, a quantity of the instrument to be traded, and a side of trades for the instrument;

receiving an indication of a change to a sum of quantities associated with second orders pending on at least one exchange of the plurality of exchanges, in which the second orders include the instrument and the side of trades for the instrument, and

determining a second distribution for the first order among the plurality of exchanges based at least in part on the indication; and

facilitating execution of the order through at least one of the plurality of exchanges based on the second distribution.

18. The method of claim 17, in which the indication of the change of the sum of quantities associated with the second orders includes an indication of an execution of a trade that fulfills at least a portion of at least one of the second orders.

19. The method of claim 18, in which the indication of the change includes an indication of an execution of a trade that fulfills at least a portion of the first order.

20. The method of claim 17, in which facilitating execution includes placing a plurality of orders, in which each of the plurality of orders is placed on one of the plurality of exchanges in accordance with the second distribution.

21. The method of claim 17, in which at least one of the plurality of exchanges fulfills orders in at least a partially pro-rata fashion.

22. The method of claim 21, in which the at least one of the plurality of exchanges fulfills orders in a hybrid pro-rata and FIFO fashion.

23. The method of claim 21, in which at least one other of the plurality of exchanges fulfills orders in a FIFO fashion.

24. The method of claim 21, in which the at least one of the plurality of exchanges fulfills orders in a pro-rata fashion that includes business logic elements.

25. The method of claim 17, in which determining the second distribution includes determining the second distribution based at least in part on an expected size of a third order expected to be received by at least one of the plurality of exchanges, in which the third order includes the instrument and the opposite side of a trade for the instrument.

26. The method of claim 17, in which determining the second distribution includes determining the second distribution based on an expected rate of order fulfillment of at least one of the plurality of exchanges.

27. The method of claim 26, further comprising receiving an indication of the at least one rate.

28. The method of claim 27, further comprising:

receiving an indication of a change to the at least one rate; and

determining a third distribution for the first order among the plurality of exchanges based at least in part on the change to the at least one rate; and

facilitating execution of the order through at least one of the plurality of exchanges based on the third distribution.

29. The method of claim 17, in which determining the second distribution includes determining the second distribution based on a method of fulfilling orders performed by at least one of the plurality of exchanges.

30. The method of claim 29, further comprising receiving an indication of the method of fulfilling orders.

31. The method of claim 30, in which the indication of the method of fulfilling orders includes at least one of an indication of a history of orders fulfilled on the at least one exchange, and a description of the method of fulfilling orders.

32. The method of claim 17, in which determining the second distribution includes determining the second distribution based at least in part on a chance that at least one second order pending on the at least one of the plurality of exchanges will not be fulfilled by a third order received by the at least one of the plurality of exchanges because a quantity associated with the at least one second order is small.

33. The method of claim 17, in which the at least one of the plurality of exchanges includes a computer system configured to receive indications of orders, determine if any of the indicated orders match, and facilitate execution of at least some of the matching orders.

34. The method of claim 17, in which the distribution includes a determination of a portion of the quantity associated with the first order to be placed as an order on each of the plurality of exchanges.

35. At least one machine readable medium having stored thereon a plurality of instructions configured to cause a processor to perform the method of claim 17.

36. An apparatus comprising:

one or more processors;

one or more machine readable medium having stored thereon a plurality of instructions that when executed by the one or more processors cause the one or more processors to perform the method of claim 17.

37. A method comprising:

submitting an order to the apparatus of claim 36.