Automated synchronization of orders represented in multiple markets

• US 7,783,561 B1
• Filed: 08/31/2006
• Issued: 08/24/2010
• Est. Priority Date: 04/10/2000
• Status: Expired due to Term

• Current Assignee: Xylon LLC (Intellectual Ventures LLC)
• Original Assignee: Stikine Technology LLC (Intellectual Ventures LLC)
• Inventors: Keith, Christopher
• Primary Examiner(s): Subramanian; Narayanswamy
• Application Number:
  US11/515,231
• Time in Patent Office: 1,454 Days
• Field of Search: 705 35- 37, 370/252, 370/238, 370/351, 370/400
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An market process internal to a platform is configured to operate with a market external to the platform. Generally, the market process first attempts to reflect an order related action at the external market, and if successful, internally commits the order related action. In some situations, such as when trading becomes fast or when the external market expects to have control over all orders posted thereat, the market acts as a router for orders received from trading processing on the platform. When the external market elects to return to the try-commit operational protocol, the order file of the market process is resynchronized with the order file of the external market.

Claims

1. A computer-implemented method of synchronizing order files at two markets, comprising:

under control of instructions that are executed by one or more processors in a computer system;

transmitting an indication from one of the two markets to the other of the two markets that the one of the two markets will operate according to a two phase protocol for handling trading activity between market participants of the respective two markets, wherein in a first phase of the two phase protocol, permission is requested by the one of the two markets to execute an order, and in a second phase of the two phase protocol, the order is executed by the one of the two markets only if permission is obtained from the other of the two markets;

transmitting an order file from the one of the two markets to the other of the two markets to replace an order file at the other of the two markets, wherein both of the markets facilitate trading activity between market participants and the order files at both of the two markets include orders received from the market participants; and

after transmitting the order file, transmitting an order file update from the one of the two markets to the other of the two markets that updates the order file in the other of the two markets to reflect trading activity that occurred in the one of the two markets while the order file was being transmitted.

2. The method of claim 1, wherein after the order file is transmitted, both of the two markets operate according to the two phase protocol for handling trading activity between market participants of the respective two markets.

3. The method of claim 1, further comprising:

at either of the two markets, receiving an order from a market participant;

in the first phase of the two phase protocol, conditionally performing an action according to the order at the market receiving the order and communicating a report to the other non-receiving market that reports the action being conditionally performed; and

in the second phase of the two phase protocol, committing the conditionally performed action at the market receiving the order after receiving acknowledgment from the other non-receiving market that the report has been received by the other non-receiving market.

4. The method of claim 1, wherein the one of the two markets is a market process comprising a software program executing on a platform on which software processes representing orders are also executing.

5. The method of claim 1, wherein prior to transmitting the order file, the one of the two markets is operating in a fast symbol mode in which all of the orders in the order file, including orders received from the other of the two markets, are immediately available for execution by the one of the two markets.

6. The method of claim 5, wherein prior to transmitting the order file, the method further comprises transmitting an indication from the one of the two markets to the other of the two markets that the one of the two markets is about to exit the fast symbol mode.

7. A system configured for synchronizing order files at multiple markets that include a first market and a second market, wherein each of the first and second markets is comprised of one or more software processes executing on a computing device, the system comprising:

the computing device; and

a communication interface,

wherein the computing device is operably connected to the communication interface and is configured to;

transmit an indication from the first market to the second market that the first market will operate according to a two phase protocol for handling trading activity between market participants of the respective first and second markets, wherein in a first phase of the two phase protocol, permission is requested by the first market to execute an order, and in a second phase of the two phase protocol, the order is executed by the first market only if permission is obtained from the second market;

transmit an order file from the first market to the second market via the communication interface to replace an order file at the second market, wherein both of the first and second markets facilitate trading activity between market participants and the order files at the first and second markets include orders received from the market participants; and

after transmitting the order file to the second market, transmit an order file update from the first market to the second market that updates the order file at the second market to reflect trading activity that occurred in the first market while the order file was being transmitted.

8. The system of claim 7, wherein after the order file is transmitted, the software processes providing the first and second markets are configured to operate according to the two phase protocol for handling trading activity between market participants of the respective markets.

9. The system of claim 7, wherein the software processes providing the first and second markets are further configured to:

receive an order from a market participant;

in the first phase of the two phase protocol, conditionally perform an action according to the order at the first or second market that received the order and communicate a report to the other of the first or second market that reflects the action being conditionally performed; and

in the second phase of the two phase protocol, commit the conditionally performed action at the first or second market that received the order after receiving acknowledgment from the other of the first or second market that the report has been received by the other market.

10. The system of claim 7, wherein the software process providing at least one of the first and second markets is executing on a platform on which software processes representing orders are also executing.

11. The system of claim 7, wherein prior to transmission of the order file, the software process providing the first market is operating in a fast symbol mode in which all of the orders in the order file, including orders received from the second market, are immediately available for execution by the first market.

12. The system of claim 11, wherein prior to transmission of the order file, the computing device is further configured to transmit an indication from the first market to the second market that the first market is about to exit the fast symbol mode.

13. A tangible computer-accessible medium having executable instructions stored thereon for synchronizing order files at multiple markets that include a first market and a second market, wherein the instructions, in response to being executed, cause a computing device to:

transmit an indication from the first market to the second market that the first market will operate according to a two phase protocol for handling trading activity between market participants of the respective first and second markets, wherein in a first phase of the two phase protocol, permission is requested by the first market to execute an order, and in a second phase of the two phase protocol, the order is executed by the first market only if permission is obtained from the second market;

transmit an order file from the first market to the second market to replace an order file at the second market, wherein both of the first and second markets facilitate trading activity between market participants and the order files at the first and second markets include orders received from the market participants; and

after transmitting the order file to the second market, transmit an order file update from the first market to the second market that updates the order file at the second market to reflect trading activity that occurred in the first market while the order file was being transmitted.

14. The computer-accessible medium of claim 13, wherein after the order file is transmitted, both of the first and second markets are configured to operate according to the two phase protocol for handling trading activity between market participants of the respective first and second markets.

15. The computer-accessible medium of claim 13, wherein the first and second markets are further configured to:

receive an order from a market participant;

in the first phase of the two phase protocol, conditionally perform an action according to the order at the first or second market that received the order and communicate a report to the other of the first or second market that reflects the action being conditionally performed; and

in the second phase of the two phase protocol, commit the conditionally performed action at the market at the first or second market that received the order after receiving acknowledgment from the other of the first or second market that the report has been received by the other market.

16. The computer-accessible medium of claim 13, wherein at least one of the first and second markets is executable on a platform on which software processes representing orders are also executing.

17. The computer-accessible medium of claim 13, wherein prior to transmission of the order file, the first market is operating in a fast symbol mode in which all of the orders in the order file, including orders received from the second market, are immediately available for execution by the first market.

18. The computer-accessible medium of claim 17, further comprising instructions that, in response to being executed, cause the computing device to transmit an indication from the first market to the second market prior to transmission of the order file, the indication indicating that the first market is about to exit the fast symbol mode.

19. The computer-accessible medium of claim 17, wherein the first market, while operating in the fast symbol mode, is configured to control execution of orders received at either of the first and second markets and the second market is configured to route orders to the first market without maintaining an order file that is synchronized with the order file at the first market.

20. A computer system configured to synchronize order files at two markets that include a first market and a second market, the computer system comprising:

means for transmitting an indication from one of the two markets to the other of the two markets that the one of the two markets will operate according to a two phase protocol for handling trading activity between market participants of the respective two markets;

in a first phase of the two phase protocol, means for requesting permission by the one of the two markets to execute an order;

in a second phase of the two phase protocol, means for executing the order by the one of the two markets only if permission is obtained from the other of the two markets;

means for transmitting an order file from the first market to the second market to replace an order file at the second market;

means for transmitting an order file update from the first market to the second market after transmitting the order file; and

means for updating the order file in the second market to reflect trading activity that occurred in the first market while the order file was being transmitted.