Representation of order in multiple markets

• US 7,890,415 B1
• Filed: 08/31/2006
• Issued: 02/15/2011
• 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): Kalinowski; Alexander
• Assistant Examiner(s): GRAHAM, CLEMENT B
• Application Number:
  US11/515,502
• Time in Patent Office: 1,629 Days
• Field of Search: 705 35- 38
• 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 40/03 Credit; Loans; Processing thereof
• 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

A trading process represents an order that it is handling at multiple market processes simultaneously. Each of the market processes and the trading process follow a two-phase commit protocol, wherein permission to execute the order is obtained from the process controlling the order, and then the order is executed. Accordingly, multiple executions of an order are prevented. The control process is typically the trading process that originated the order. However, in some market methodologies, the market process may assume control over the order. Permission to execute the order is explicitly given by a trading process. Permission to execute the order may be inferred after a market process determines that no other market processes have control over the order.

Claims

1. A method of processing a cancel order message to cancel an order that is simultaneously available for execution in both a first market and a second market, wherein the order specifies a number of items for a trade that, if executed at the first or second market, results in a trade of the items specified in the order, the method comprising, at the first market:

electronically receiving a cancel order message from the second market via a representation process that communicatively couples the first market and the second market, wherein the cancel order message specifies the order and a number of items in the order to be canceled;

electronically determining the number of items in the order that are available for cancellation and the number of items in the order that are held in process by the first market and not available for cancellation;

conditionally canceling the lesser of the number of items specified in the cancel order message and the number of items in the order that are available for cancellation; and

electronically returning a result from the first market to the second market via the representation process, wherein the result reports the number of items in the order that were canceled and the number of items being held in process by the first market.

2. The method of claim 1, wherein said conditionally canceling comprises marking the items in the order as being held in process and intended for permanent cancellation.

3. The method of claim 1, further comprising, prior to returning the result from the first market:

determining whether the first market is in a fast symbol mode in which the order is immediately available for execution at the first market without regard to the status of the order at the second market; and

when the first market is in a fast symbol mode, permanently canceling at the first market the number of items in the order that were previously conditionally canceled.

4. The method of claim 3, further comprising, when the first market is not in a fast symbol mode:

sending a cancel response message to the representation process indicating the number of items in the order that were conditionally canceled and the number of items being held in process by the first market; and

receiving a cancel acknowledgement from the representation process, wherein the cancel acknowledgement specifies the number of items in the order that were canceled by the second market and the number of items being held in process by the second market.

5. The method of claim 4, further comprising:

in response to receiving said cancel acknowledgement, permanently canceling at the first market the number of items that were specified as canceled by the second market; and

backing out from conditional cancellation any items in the order at the first market that were previously conditionally canceled by the first market but not canceled by the second market.

6. The method of claim 5, wherein when the cancel order message is received from the second market due to cancellation of the order by an owner of the order and not for execution of the order, the method further comprises:

determining at the first market the difference between the number of items in the order that are available for cancellation and the number of items specified in the order;

determining the lesser of the difference and the number of items held in process by the first market; and

placing the lesser of the difference and the number of items held in process by the first market in a pending queue for cancellation at a later time when the items in process are released from in process status without being subject to an executed trade.

7. The method of claim 3, wherein when the first market is not in a fast symbol mode, then:

sending a cancel response message to the representation process indicating the number of items in the order that were conditionally canceled and the number of items being held in process by the first market; and

in response to receiving a cancel acknowledgement from the representation process, permanently canceling at the first market the number of items that were previously conditionally canceled.

8. A computer system for processing, at a first market, a cancel order message for canceling an order that is simultaneously available for execution in both the first market and a second market, wherein the order specifies a number of items for a trade that, if executed at the first or second market, results in a trade of the items specified in the order, the system comprising:

a processing component configured to receive the cancel order message from the second market via a representation process that communicatively couples the first market and the second market, wherein the cancel order message specifies the order and a number of items in the order to be canceled, and wherein the processing component is configured to determine the number of items in the order that are available for cancellation and the number of items in the order that are held in process by the first market and not available for cancellation;

said processing component being further configured to conditionally cancel the lesser of the number of items specified in the cancel order message and the number of items in the order that are available for cancellation and return a result to the second market via the representation process that reports the number of items in the order that were canceled and the number of items being held in process by the first market.

9. The system of claim 8, wherein the processing component is configured to conditionally cancel by marking the items in the order as being held in process and intended for permanent cancellation.

10. The system of claim 8, wherein the processing component is further configured, prior to returning the result to the second market, to:

determine whether the first market is in a fast symbol mode in which the order is immediately available for execution at the first market without regard to the status of the order at the second market; and

when the first market is in a fast symbol mode, then permanently cancel at the first market the number of items in the order that were previously conditionally canceled.

11. The system of claim 10, wherein when the first market is not in a fast symbol mode, the processing component is further configured to:

send a cancel response message to the representation process indicating the number of items in the order that were conditionally canceled and the number of items being held in process by the first market; and

receive a cancel acknowledgement from the representation process, wherein the cancel acknowledgement specifies the number of items in the order that were canceled by the second market and the number of items being held in process by the second market.

12. The system of claim 11, wherein, in response to receiving said cancel acknowledgement, the processing component is further configured to:

permanently cancel at the first market the number of items that were specified as canceled by the second market; and

back out from conditional cancellation any items in the order at the first market that were previously conditionally canceled by the first market but not canceled by the second market.

13. The system of claim 12, wherein when the cancel order message is received from the second market due to cancellation of the order by an owner of the order and not for execution of the order, the processing component is further configured to:

determine at the first market the difference between the number of items in the order that are available for cancellation and the number of items specified in the order;

determine the lesser of the difference and the number of items held in process by the first market; and

place the lesser of the difference and the number of items held in process by the first market in a pending queue for cancellation at a later time when the items in process are released from in process status without being subject to an executed trade.

14. The system of claim 10, wherein when the first market is not in a fast symbol mode, the processing component is further configured to:

send a cancel response message to the representation process indicating the number of items in the order that were conditionally canceled and the number of items being held in process by the first market; and

in response to receiving a cancel acknowledgement from the representation process, permanently cancel at the first market the number of items that were previously conditionally canceled.

15. A computer-accessible medium having executable instructions stored thereon for processing, at a first market, a cancel order message for canceling an order that is simultaneously available for execution in both the first market and a second market, wherein the order specifies a number of items for a trade that if executed at the first or second market, results in a trade of the items specified in the order, and wherein the instructions, when executed, cause a computer to:

receive the cancel order message electronically from the second market via a representation process that communicatively couples the first market and the second market, wherein the cancel order message specifies the order and a number of items in the order to be canceled;

determine the number of items in the order that are available for cancellation and the number of items in the order that are held in process by the first market and not available for cancellation;

conditionally cancel the lesser of the number of items specified in the cancel order message and the number of items in the order that are available for cancellation; and

return a result to the second market via the representation process that reports the number of items in the order that were canceled and the number of items being held in process by the first market.

16. The computer-accessible medium of claim 15, wherein the instructions cause the computer to conditionally cancel by marking the items in the order as being held in process and intended for permanent cancellation.

17. The computer-accessible medium of claim 15, wherein, prior to returning the result to the second market, the instructions further cause the computer to:

determine whether the first market is in a fast symbol mode in which the order is immediately available for execution at the first market without regard to the status of the order at the second market; and

when the first market is in a fast symbol mode, then permanently cancel at the first market the number of items in the order that were previously conditionally canceled.

18. The computer-accessible medium of claim 17, wherein when the first market is not in a fast symbol mode, the instructions, when executed, cause the computer to:

send a cancel response message to the representation process indicating the number of items in the order that were conditionally canceled and the number of items being held in process by the first market; and

receive a cancel acknowledgement from the representation process, wherein the cancel acknowledgement specifies the number of items in the order that were canceled by the second market and the number of items being held in process by the second market.

19. The computer-accessible medium of claim 18, wherein, in response to receiving said cancel acknowledgement, the instructions further cause the computer to:

permanently cancel at the first market the number of items that were specified as canceled by the second market; and

back out from conditional cancellation any items in the order at the first market that were previously conditionally canceled by the first market but not canceled by the second market.

20. The computer-accessible medium of claim 19, wherein when the cancel order message is received from the second market due to cancellation of the order by an owner of the order and not for execution of the order, the instructions further cause the computer to:

determine at the first market the difference between the number of items in the order that are available for cancellation and the number of items specified in the order;

determine the lesser of the difference and the number of items held in process by the first market; and

place the lesser of the difference and the number of items held in process by the first market in a pending queue for cancellation at a later time when the items in process are released from in process status without being subject to an executed trade.

21. The computer-accessible medium of claim 17, wherein when the first market is not in a fast symbol mode, the instructions, when executed, cause the computer to:

send a cancel response message to the representation process indicating the number of items in the order that were conditionally canceled and the number of items being held in process by the first market; and

in response to receiving a cancel acknowledgement from the representation process, permanently cancel at the first market the number of items that were previously conditionally canceled.

22. A method of canceling an order that is simultaneously available for execution in both a first market and a second market, wherein the order specifies a number of items for a trade that, if executed at any of the first or second market, results in a trade of the items specified in the order, the method comprising:

at the second market, electronically sending a cancel order message to the first market via a representation process that communicatively couples the first market and the second market, wherein the cancel order message specifies the order and a number of items in the order to be canceled;

electronically receiving a cancel response message from the representation process that indicates the number of items in the order that were canceled by the first market and the number of items in the order that are held in process by the first market;

electronically determining whether the first market is in a fast symbol mode in which the order that is simultaneously available for execution at both the first and second markets is immediately available for execution at the first market without regard to the status of the order at the second market; and

when the first market is in a fast symbol mode, electronically canceling at the second market the number of items that were canceled by the first market.

23. The method of claim 22, further comprising:

prior to sending the cancel order message to the first market, conditionally canceling at the second market the number of items in the order to be canceled; and

when the first market is not in a fast symbol mode, then permanently canceling at the second market the number of items that were canceled by the first market and backing out from conditional cancellation any items in the order at the second market that were previously conditionally canceled but not canceled by the first market.

24. A computer-implemented system for processing a cancel order message to cancel an order that is simultaneously available for execution in both a first market and a second market, wherein the order specifies a number of items for a trade that, if executed at the first or second market, results in a trade of the items specified in the order, the system comprising, at the first market:

means for electronically receiving a cancel order message from the second market via a representation process that communicatively couples the first market and the second market, wherein the cancel order message specifies the order and a number of items in the order to be canceled;

means for electronically determining the number of items in the order that are available for cancellation and the number of items in the order that are held in process by the first market and not available for cancellation;

means for conditionally canceling the lesser of the number of items specified in the cancel order message and the number of items in the order that are available for cancellation; and

means for electronically returning a result from the first market to the second market via the representation process, wherein the result reports the number of items in the order that were canceled and the number of items being held in process by the first market.