TRADING AT A PRICE WITHIN A SPREAD MARKET
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Accused Products
Abstract
A system and method is provided to allow traders to submit midprice orders to trade at a price within a spread of a market, preferably at the midpoint of a spread market, while maintaining anonymity of the midprice order. A midprice order is anonymous because other traders do not know whether the submitted midprice orders are orders to buy or orders to sell. A midprice order may remain active until it is traded with a contra midprice order or until a parameter associated with the order is breached, thereby resulting in cancellation of the midprice order.
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Citations
60 Claims
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1-40. -40. (canceled)
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41. An apparatus comprising:
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at least one processor; and at least one memory having instructions stored thereon which, when executed by the at least one processor, direct the at least one processor to; receive from a first user of an electronic trading system a first order to buy or sell an item conditioned on an execution price of the first order being between a best bid price and a best offer price for the item, in which the first order comprises a buy/sell orientation defining whether the first order is a bid to purchase the item or an offer to sell the item; communicate information about the first order to a plurality of market participants without disclosing the buy/sell orientation of the order to the plurality of market participants, such that the plurality of market participants are not made aware whether the order is an order to buy the item or an order to sell the item; receive from a second user of the electronic trading system a second order to buy or sell the item conditioned on an execution price of the second order being between a best bid price and a best offer price for the item, in which the second order to buy or sell the item comprises a buy/sell orientation that is contra to the buy/sell orientation of the first order; match at least a portion of the first order with at least a portion of the second order; and cause a trade to be executed for at least a portion of the first order against at least a portion of the second order at a price between a best bid price and a best offer price for the item. - View Dependent Claims (42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56)
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57. A method comprising:
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receiving, by at least one processor in communication with at least one memory, from a first user of an electronic trading system a first order to buy or sell an item conditioned on an execution price of the first order being between a best bid price and a best offer price for the item, in which the first order to buy or sell the item comprises a buy/sell orientation defining whether the first order is a bid to purchase the item or an offer to sell the item; communicating, by the at least one processor, information about the first order to a plurality of market participants without disclosing the buy/sell orientation of the order to the plurality of market participants, such that the plurality of market participants are not made aware whether the order is an order to buy the item or an order to sell the item; receiving, by the at least one processor, from a second user of the electronic trading system a second order to buy or sell the item conditioned on execution price of the second order being between a best bid price and a best offer price for the item, in which the second order to buy or sell the item comprises a buy/sell orientation that is contra to the buy/sell orientation of the first order; matching, by the at least one processor, at least a portion of the first order with at least a portion of the second order; and causing to be executed, by the at least one processor, a trade for at least a portion of the first order against at least a portion of the second order at a price between a best bid price and a best offer price for the item. - View Dependent Claims (58, 59)
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60. A non-transitory machine-readable medium having instructions stored thereon which, when executed by at least one processor, direct the at least one processor to:
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receive from a first user of an electronic trading system a first order to buy or sell an item conditioned on an execution price of the first order being between a best bid price and a best offer price for the item, in which the first order comprises a buy/sell orientation defining whether the first order is a bid to purchase the item or an offer to sell the item; communicate information about the first order to a plurality of market participants without disclosing the buy/sell orientation of the order to the plurality of market participants, such that the plurality of market participants are not made aware whether the order is an order to buy the item or an order to sell the item; receive from a second user of the electronic trading system a second order to buy or sell the item conditioned on an execution price of the second order being between a best bid price and a best offer price for the item, in which the second order to buy or sell the item comprises a buy/sell orientation that is contra to the buy/sell orientation of the first order; match at least a portion of the first order with at least a portion of the second order; and cause a trade to be executed for at least a portion of the first order against at least a portion of the second order at a price between a best bid price and a best offer price for the item.
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Specification