Reprice-to-block order

• US 20110082784A1
• Filed: 12/08/2010
• Published: 04/07/2011
• Est. Priority Date: 05/05/2005
• Status: Active Grant

• Current Assignee: NYSE Group, Inc. (Intercontinental Exchange, Inc.)
• Original Assignee: Archipelago Holdings, Inc. (Intercontinental Exchange, Inc.)
• Inventors: Haller, Thomas F., Adcock, Paul D., Cormack, Michael A., Hill, Robert A.
• Granted Patent: US 8,301,542 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• 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

A reprice-to-block order and related market center and process are disclosed which automatically reprice a posted limit order to the price of a block trade executed at an inferior price on a market away from the market center that posted the limit order.

Claims

1. (canceled)

2. (canceled)

3. (canceled)

4. (canceled)

5. (canceled)

6. (canceled)

7. A method for repricing a posted limit order on a posting market center in view of a block trade executed on an away market center at an inferior price, the method comprising:

posting a limit order on the posting market center with an identifier to reprice the limit order if an away market block trade executes at an inferior price to the limit order on the posting market center;

receiving data by a computing system regarding a trade executed (a) on an away market center (b) after posting the limit order on the posting market center;

determining by the computing system if the away market center trade was a block trade;

wherein if the away market center trade is a block trade, determining by the computing system if the block trade executed at an inferior price to the limit order posted on the posting market center; and

wherein if the block trade executed at an inferior price to the limit order posted on the posting market center, repricing by the computing system the limit order on the posting market center to the price of the block trade.

8. The method of claim 7, wherein the posted limit order is a buy order.

9. The method of claim 8, wherein the posted buy order is repriced lower to equal the price of the block trade.

10. The method of claim 7, wherein the posted limit order is a sell order.

11. The method of claim 10, wherein the posted sell order is repriced higher to equal the price of the block trade.

12. The method of claim 7, wherein the posted limit order is a reserve order having non-displayed reserve shares or contracts that are displayed according to predefined rules.

13. The method of claim 12, wherein when the reserve shares or contracts are displayed according to the predefined rules, the reserve shares or contracts are repriced to the price of the block trade.

14. The method of claim 7, wherein the posting market center operates in an equities marketplace.

15. The method of claim 7, wherein the posting market center operates in an options marketplace.

16. The method of claim 7, further comprising determining by the computing system if the trade that executed on the away market was a regular-way trade.

17. The method of claim 7, wherein the trade that executed on the away market center is a block trade if a predefined minimum block volume parameter is not greater than the volume of the trade.

18. The method of claim 7, wherein the trade that executed on the away market center is a block trade if a predefined minimum block value parameter is not greater than the value of the trade.

19. The method of claim 7, wherein the trade that executed on the away market center is a block trade if a predefined minimum block volume parameter is not greater than the volume of the trade and if a predefined minimum block value parameter is not greater than the value of the trade.

20. A posting market center, comprising:

an internal order book and a public order book;

an interface for receiving orders, including reprice-to-block orders;

means for monitoring trade data marketwide;

a posting market center memory for storing code for analyzing and processing reprice-to-block orders;

a processor for executing the stored code for analyzing and processing reprice-to-block orders when the interface receives a reprice-to-block order, wherein the code, when executed;

posts the reprice-to-block order on the internal order book and the public order book;

monitors trade data market wide;

determines from the trade data if a trade executed on an away market center is a block trade;

wherein if the away market center trade is a block trade, determines if the block trade executed at an inferior price to the reprice-to-block order; and

wherein if the block trade is executed at an inferior price to the reprice-to-block order, reprices the reprice-to-block order to the price of the block trade.

21. The posting market center of claim 20, wherein the reprice-to-block order is a buy order.

22. The posting market center of claim 20, wherein the reprice-to-block order is a sell order.

23. The posting market center of claim 20, wherein the reprice-to-block order is a reserve order.

24. The posting market center of claim 20, wherein the posting market center operates in an equities marketplace.

25. The posting market center of claim 20, wherein the posting market center operates in an options marketplace.

26. (canceled)

27. (canceled)

28. (canceled)

29. (canceled)

30. (canceled)

31. (canceled)

32. (canceled)

33. (canceled)

34. A system, comprising:

a computing system including at least one processor for executing code stored in at least one memory, wherein the code when executed;

posts a limit order on the posting market center with an identifier to reprice the limit order if an away market block trade executes at an inferior price to the limit order posted on the posting market center;

receives data regarding a trade executed (a) on an away market center (b) after posting the limit order on the posting market center;

determines if the away market center trade was a block trade;

wherein if the away market center trade is a block trade, determines if the block trade executed at an inferior price to the limit order posted on the posting market center; and

wherein if the block trade executed at an inferior price to the limit order posted on the posting market center, reprices the limit order on the posting market center to the price of the block trade.

35. The system of claim 34, wherein the computing system is one or more programmed computers.

36. The system of claim 34, wherein the computing system is distributed over several physical locations.