Apparatus and methods for automatic trade execution in a trading system

• US 8,121,929 B2
• Filed: 01/09/2007
• Issued: 02/21/2012
• Est. Priority Date: 01/09/2006
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Lutnick, Howard W., Noviello, Joseph C., Sweeting, Michael
• Primary Examiner(s): Kyle, Charles R
• Assistant Examiner(s): Wood, David L
• Application Number:
  US11/621,547
• Publication Number:
  US 20070244796A1
• Time in Patent Office: 1,869 Days
• Field of Search: 705/37
• 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

A trading system transitions from a first state to a second state and may award a participant, when one or more criteria and/or a status of trading rights are met, with an exclusive and/or semi-exclusive right in the second state to trade on an incoming contra order.

Claims

1. A method, comprising:

transitioning, by at least computing device, a trading system from a first trading state to a second trading state;

determining, by the at least one computing device, from among a plurality of orders that are pending at a completion of the first trading state, a best order,

wherein the best order comprises a first order having a best price from among the plurality of orders, and

wherein the best order is associated with a participant;

determining, by the at least one computing device, that at least one of the best order and the participant associated with the best order met at least one criterion in the first trading state;

based at least in part on determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state, awarding, by the at least one computing device, the participant with a potential trading priority in the second trading state with respect to at least one order received in the second trading state;

receiving, by the at least one computing device, an order in the second trading state;

based at least in part on awarding the participant with the potential trading priority, determining, by the at least one computing device, that the participant has a right to trade exclusively against the order received in the second trading state;

determining, by the at least one computing device, that a different participant indicates a willingness to trade against the order received in the second trading state; and

based at least in part on (i) determining that the participant has the right to trade exclusively against the order received in the second trading state and (ii) determining that the different participant indicates the willingness to trade against the order received in the second trading state, automatically executing, by the at least one computing device, on behalf of the participant, a trade against the order received in the second trading state.

2. The method of claim 1, wherein the order received in the second trading state comprises an offer.

3. The method of claim 1,

wherein the plurality of orders that are pending at the completion of the first trading state comprises a plurality of bids that are pending at the completion of the first trading state;

and

wherein the best order comprises a best bid of the plurality of bids.

4. The method of claim 3, wherein the order received in the second trading state comprises an offer.

5. The method of claim 4, wherein determining that the different participant indicates the willingness to trade against the order comprises:

determining, by the at least one computing device, that the different participant has a bid among the plurality of bids that are pending at the completion of the first trading state.

6. The method of claim 3, further comprising:

determining, by the at least one computing device, from among a plurality of offers that are pending at the completion of the first trading state, a best offer,

wherein the best offer comprises an offer having a best price from among the plurality of offers, and

wherein the best offer is associated with another participant;

determining, by the at least one computing device, that at least one of the best offer and the another participant associated with the best offer met a second criterion in the first trading state; and

based at least in part on determining that at least one of the best offer and the another participant associated with the best offer met the second criterion in the first trading state, awarding, by the at least one computing device, the another participant with a potential right to trade exclusively against at least one bid received in the second trading state.

7. The method of claim 6, further comprising:

based at least in part on awarding the another participant with the potential right to trade exclusively, modifying, by the at least one computing device, the best offer,

wherein modifying the best offer does not affect the potential right to trade exclusively of the another participant, and

wherein modifying the best offer comprises at least one of;

reducing, by the at least one computing device, a size of the best offer, and

increasing, by the at least one computing device, a price of the best offer, and

removing, by the at least one computing device, the best offer.

8. The method of claim 6, wherein determining that at least one of the best offer and the another participant associated with the best offer met the second criterion in the first trading state comprises:

determining, by the at least one computing device, that the another participant associated with the best offer sold at least a minimum size in the first trading state.

9. The method of claim 1,

wherein the plurality of orders that are pending at the completion of the first trading state comprises a plurality of offers that are pending at the completion of the first trading state;

and

wherein the best order comprises a best offer of the plurality of offers.

10. The method of claim 9, wherein the order received in the second trading state comprises a bid.

11. The method of claim 10, wherein determining that the different participant indicates the willingness to trade against the order comprises:

determining, by the at least one computing device, that the different participant has an offer among the plurality of offers that are pending at the completion of the first trading state.

12. The method of claim 9, further comprising:

determining, by the at least one computing device, from among a plurality of bids that are pending at the completion of the first trading state, a best bid,

wherein the best bid comprises a bid having a best price from among the plurality of bids, and

wherein the best bid is associated with another participant;

determining, by the at least one computing device, that at least one of the best bid and the another participant associated with the best bid met a second criterion in the first trading state; and

based at least in part on determining that at least one of the best bid and the another participant associated with the best bid met the second criterion in the first trading state, awarding, by the at least one computing device, the another participant with a potential right to trade exclusively against at least one offer received in the second trading state.

13. The method of claim 12, further comprising:

based at least in part on awarding the another participant with the potential right to trade exclusively, modifying, by the at least one computing device, the best bid,

wherein modifying the best bid does not affect the potential right to trade exclusively of the another participant, and

wherein modifying the best bid comprises at least one of;

reducing, by the at least one computing device, a size of the best bid, and

increasing, by the at least one computing device, a price of the best bid, and

removing, by the at least one computing device, the best bid.

14. The method of claim 12, wherein determining that at least one of the best bid and the another participant associated with the best bid met the second criterion in the first trading state comprises:

determining, by the at least one computing device, that the another participant associated with the best bid sold at least a minimum size in the first trading state.

15. The method of claim 1, further comprising:

based at least in part on awarding the participant with the potential trading priority, modifying, by the at least one computing device, the best order, wherein modifying the best order does not affect the potential trading priority of the participant.

16. The method of claim 15, wherein modifying the best order comprises at least one of:

reducing, by the at least one computing device, a size of the best order, and

decreasing, by the at least one computing device, a price of the best order.

17. The method of claim 15, wherein modifying the best order comprises:

removing, by the at least one computing device, the best order.

18. The method of claim 15, wherein modifying the best order comprises:

modifying the best order based at least in part on a value preconfigured by the participant.

19. The method of claim 15, wherein modifying the best order comprises:

modifying the best order based at least in part on a preset default of the at least one computing device.

20. The method of claim 1, wherein automatically executing the trade against the order comprises:

automatically executing, by the at least one computing device, on behalf of the participant, the trade against the order based at least in part on a preset default position of the participant.

21. The method of claim 1, wherein automatically executing the trade against the order comprises:

automatically executing, by the at least one computing device, on behalf of the participant, the trade against the order based at least in part on a preset default of the at least one computing device.

22. The method of claim 1, further comprising:

based at least in part on determining that the participant has the right to trade exclusively against the order, modifying, by the at least one computing device, the best order.

23. The method of claim 22, wherein modifying the best order comprises at least one of:

reducing, by the at least one computing device, a size of the best order, and

decreasing, by the at least one computing device, a price of the best order.

24. The method of claim 22, wherein modifying the best order comprises:

removing, by the at least one computing device, the best order.

25. The method of claim 1, further comprising:

determining, by the at least one computing device, that a size of the best order exceeds a predetermined percentage of a size of the order;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining, by the at least one computing device, that the participant has the right to trade exclusively against the order based at least in part on determining that the size of the best order exceeds the predetermined percentage of the size of the order.

26. The method of claim 1, further comprising:

determining, by the at least one computing device, that a price of the best order is within a predetermined delta of a price of the order;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining, by the at least one computing device, that the participant has the right to trade exclusively against the order based at least in part on determining that the price of the best order is within the predetermined delta of the price of the order.

27. The method of claim 1, further comprising:

determining, by the at least one computing device, that a size of the order satisfies a minimum size requirement;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining, by the at least one computing device, that the participant has the right to trade exclusively against the order based at least in part on determining that the size of the order satisfies the minimum size requirement.

28. The method of claim 1, further comprising:

determining, by the at least one computing device, that a size of the order exceeds a predetermined percentage of a size of the best order;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining, by the at least one computing device, that the participant has the right to trade exclusively against the order based at least in part on determining that the size of the order exceeds the predetermined percentage of the size of the best order.

29. The method of claim 1, further comprising:

based at least in part on determining that the participant has the right to trade exclusively against the order, presenting, by the at least computing device, the order exclusively to the participant.

30. The method of claim 29, wherein presenting the order exclusively to the participant comprises at least one of:

causing, by the at least one computing device, the order to be shown only to the participant; and

making, by the at least one computing device, the order available to be traded against only by the participant.

31. The method of claim 1, further comprising:

determining that the order has at least one of a best price and a time priority from among a plurality of orders pending in the second trading state;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining, by the at least one computing device, that the participant has the right to trade exclusively against the order based at least in part on determining that the order has at least one of the best price and the time priority from among the plurality of orders pending in the second trading state.

32. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that a size of the best order satisfies a minimum size requirement.

33. The method of claim 22,

wherein the best order comprises (i) a hidden size not shown to other participants and (ii) a displayed size shown to other participants;

and

wherein determining that the size of the best order satisfies the minimum size requirement comprises;

determining, by the at least one computing device, that the size of the best order satisfies the minimum size requirement based on the hidden size of the best order and the displayed size of the best order.

34. The method of claim 32,

wherein the best order comprises (i) a hidden size not shown to other participants and (ii) a displayed size shown to other participants;

and

wherein determining that the size of the best order satisfies the minimum size requirement comprises;

determining, by the at least one computing device, that the size of the best order satisfies the minimum size requirement based only on the displayed size of the best order.

35. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that a price of the best order satisfies a price criterion with respect to a price of a trade made in the first state.

36. The method of claim 35, wherein determining that the price of the best order satisfies the price criterion comprises:

determining, by the at least one computing device, that the price of the best order is within a predetermined delta of the price of the trade made in the first state.

37. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order purchased at least a minimum size in the first trading state.

38. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order sold at least a minimum size in the first trading state.

39. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order made a purchase in the first trading state that was first in time among a plurality of purchases in the first trading state.

40. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order made a purchase in the first trading state that was last in time among a plurality of purchases in the first trading state.

41. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order made a purchase in the first trading state at a price that satisfies a minimum price requirement.

42. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order made a purchase in the first trading state at a largest size among a plurality of purchases in the first trading state.

43. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order made a sale in the first trading state that was first in time among a plurality of sales in the first trading state.

44. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order made a sale in the first trading state that was last in time among a plurality of sales in the first trading state.

45. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order made a sale in the first trading state at a price that satisfies a minimum price requirement.

46. The method of claim 1, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining, by the at least one computing device, that the participant associated with the best order made a sale in the first trading state at a largest size among a plurality of sales in the first trading state.

47. The method of claim 1, wherein awarding the participant with the potential trading priority in the second trading state comprises:

awarding, by the at least one computing device, the participant with a potential right to trade exclusively against the at least one order received in the second trading state.

48. The method of claim 1, wherein automatically executing the trade against the order comprises:

automatically executing, by the at least one computing device, on behalf of the participant, the trade against the order even though the participant has no pending order.

49. The method of claim 1, wherein receiving the order in the second trading state comprises:

receiving the order from a workstation coupled to the at least one computing device via a communications network.

50. An apparatus, comprising:

at least one processor; and

at least one memory device electronically coupled to the at least one processor, wherein the at least one memory device stores instructions which, when executed by the at least one processor, direct the at least one processor to;

transition a trading system from a first trading state to a second trading state;

determine from among a plurality of orders that are pending at a completion of the first trading state, a best order,

wherein the best order comprises a first order having a best price from among the plurality of orders, and

wherein the best order is associated with a participant;

determine that at least one of the best order and the participant associated with the best order met at least one criterion in the first trading state;

based at least in part on determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state, award the participant with a potential trading priority in the second trading state with respect to at least one order received in the second trading state;

receive an order in the second trading state;

based at least in part on awarding the participant with the potential trading priority, determine that the participant has a right to trade exclusively against the order received in the second trading state;

determine that a different participant indicates a willingness to trade against the order received in the second trading state; and

based at least in part on (i) determining that the participant has the right to trade exclusively against the order received in the second trading state and (ii) determining that the different participant indicates the willingness to trade against the order received in the second trading state, automatically execute, on behalf of the participant, a trade against the order received in the second trading state.

51. The apparatus of claim 50, wherein the order received in the second trading state comprises an offer.

52. The apparatus of claim 50,

wherein the plurality of orders that are pending at the completion of the first trading state comprises a plurality of bids that are pending at the completion of the first trading state;

and

wherein the best order comprises a best bid of the plurality of bids.

53. The apparatus of claim 52, wherein the order received in the second trading state comprises an offer.

54. The apparatus of claim 53, wherein determining that the different participant indicates the willingness to trade against the order comprises:

determining that the different participant has a bid among the plurality of bids that are pending at the completion of the first trading state.

55. The apparatus of claim 52, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

determine from among a plurality of offers that are pending at the completion of the first trading state, a best offer,

wherein the best offer comprises an offer having a best price from among the plurality of offers, and

wherein the best offer is associated with another participant;

determine that at least one of the best offer and the another participant associated with the best offer met a second criterion in the first trading state; and

based at least in part on determining that at least one of the best offer and the another participant associated with the best offer met the second criterion in the first trading state, award the another participant with a potential right to trade exclusively against at least one bid received in the second trading state.

56. The apparatus of claim 55, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

based at least in part on awarding the another participant with the potential right to trade exclusively, modify the best offer,

wherein modifying the best offer does not affect the potential right to trade exclusively of the another participant, and

wherein modifying the best offer comprises at least one of;

reducing a size of the best offer, and

increasing a price of the best offer, and

removing the best offer.

57. The apparatus of claim 55, wherein determining that at least one of the best offer and the another participant associated with the best offer met the second criterion in the first trading state comprises:

determining that the another participant associated with the best offer sold at least a minimum size in the first trading state.

58. The apparatus of claim 50,

wherein the plurality of orders that are pending at the completion of the first trading state comprises a plurality of offers that are pending at the completion of the first trading state;

and

wherein the best order comprises a best offer of the plurality of offers.

59. The apparatus of claim 58, wherein the order received in the second trading state comprises a bid.

60. The apparatus of claim 59, wherein determining that the different participant indicates the willingness to trade against the order comprises:

determining that the different participant has an offer among the plurality of offers that are pending at the completion of the first trading state.

61. The apparatus of claim 58, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

determine from among a plurality of bids that are pending at the completion of the first trading state, a best bid,

wherein the best bid comprises a bid having a best price from among the plurality of bids, and

wherein the best bid is associated with another participant;

determine that at least one of the best bid and the another participant associated with the best bid met a second criterion in the first trading state; and

based at least in part on determining that at least one of the best bid and the another participant associated with the best bid met the second criterion in the first trading state, award the another participant with a potential right to trade exclusively against at least one offer received in the second trading state.

62. The apparatus of claim 61, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

based at least in part on awarding the another participant with the potential right to trade exclusively, modify the best bid,

wherein modifying the best bid does not affect the potential right to trade exclusively of the another participant, and

wherein modifying the best bid comprises at least one of;

reducing a size of the best bid, and

increasing a price of the best bid, and

removing the best bid.

63. The apparatus of claim 61, wherein determining that at least one of the best bid and the another participant associated with the best bid met the second criterion in the first trading state comprises:

determining that the another participant associated with the best bid sold at least a minimum size in the first trading state.

64. The apparatus of claim 50, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

based at least in part on awarding the participant with the potential trading priority, modify the best order, wherein modifying the best order does not affect the potential trading priority of the participant.

65. The apparatus of claim 64, wherein modifying the best order comprises at least one of:

reducing a size of the best order, and

decreasing a price of the best order.

66. The apparatus of claim 64, wherein modifying the best order comprises:

removing the best order.

67. The apparatus of claim 64, wherein modifying the best order comprises:

modifying the best order based at least in part on a value preconfigured by the participant.

68. The apparatus of claim 64, wherein modifying the best order comprises:

modifying the best order based at least in part on a preset default of the apparatus.

69. The apparatus of claim 50, wherein automatically executing the trade against the order comprises:

automatically executing, on behalf of the participant, the trade against the order based at least in part on a preset default position of the participant.

70. The apparatus of claim 50, wherein automatically executing the trade against the order comprises:

automatically executing, on behalf of the participant, the trade against the order based at least in part on a preset default of the apparatus.

71. The apparatus of claim 50, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

based at least in part on determining that the participant has the right to trade exclusively against the order, modify the best order.

72. The apparatus of claim 71, wherein modifying the best order comprises at least one of:

reducing a size of the best order, and

decreasing a price of the best order.

73. The apparatus of claim 71, wherein modifying the best order comprises:

removing the best order.

74. The apparatus of claim 50, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

determine that a size of the best order exceeds a predetermined percentage of a size of the order;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining that the participant has the right to trade exclusively against the order based at least in part on determining that the size of the best order exceeds the predetermined percentage of the size of the order.

75. The apparatus of claim 50, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

determine that a price of the best order is within a predetermined delta of a price of the order;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining that the participant has the right to trade exclusively against the order based at least in part on determining that the price of the best order is within the predetermined delta of the price of the order.

76. The apparatus of claim 50, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

determine that a size of the order satisfies a minimum size requirement;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining that the participant has the right to trade exclusively against the order based at least in part on determining that the size of the order satisfies the minimum size requirement.

77. The apparatus of claim 50, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

determine that a size of the order exceeds a predetermined percentage of a size of the best order;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining that the participant has the right to trade exclusively against the order based at least in part on determining that the size of the order exceeds the predetermined percentage of the size of the best order.

78. The apparatus of claim 50, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

based at least in part on determining that the participant has the right to trade exclusively against the order, present the order exclusively to the participant.

79. The apparatus of claim 78, wherein presenting the order exclusively to the participant comprises at least one of:

causing the order to be shown only to the participant; and

making the order available to be traded against only by the participant.

80. The apparatus of claim 50, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:

determine that the order has at least one of a best price and a time priority from among a plurality of orders pending in the second trading state;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining that the participant has the right to trade exclusively against the order based at least in part on determining that the order has at least one of the best price and the time priority from among the plurality of orders pending in the second trading state.

81. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that a size of the best order satisfies a minimum size requirement.

82. The apparatus of claim 81,

wherein the best order comprises (i) a hidden size not shown to other participants and (ii) a displayed size shown to other participants;

and

wherein determining that the size of the best order satisfies the minimum size requirement comprises;

determining that the size of the best order satisfies the minimum size requirement based on the hidden size of the best order and the displayed size of the best order.

83. The apparatus of claim 81,

wherein the best order comprises (i) a hidden size not shown to other participants and (ii) a displayed size shown to other participants;

and

wherein determining that the size of the best order satisfies the minimum size requirement comprises;

determining that the size of the best order satisfies the minimum size requirement based only on the displayed size of the best order.

84. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that a price of the best order satisfies a price criterion with respect to a price of a trade made in the first state.

85. The apparatus of claim 84, wherein determining that the price of the best order satisfies the price criterion comprises:

determining that the price of the best order is within a predetermined delta of the price of the trade made in the first state.

86. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order purchased at least a minimum size in the first trading state.

87. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order sold at least a minimum size in the first trading state.

88. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a purchase in the first trading state that was first in time among a plurality of purchases in the first trading state.

89. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a purchase in the first trading state that was last in time among a plurality of purchases in the first trading state.

90. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a purchase in the first trading state at a price that satisfies a minimum price requirement.

91. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a purchase in the first trading state at a largest size among a plurality of purchases in the first trading state.

92. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a sale in the first trading state that was first in time among a plurality of sales in the first trading state.

93. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a sale in the first trading state that was last in time among a plurality of sales in the first trading state.

94. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a sale in the first trading state at a price that satisfies a minimum price requirement.

95. The apparatus of claim 50, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a sale in the first trading state at a largest size among a plurality of sales in the first trading state.

96. The apparatus of claim 50, wherein awarding the participant with the potential trading priority in the second trading state comprises:

awarding the participant with a potential right to trade exclusively against the at least one order received in the second trading state.

97. The apparatus of claim 50, wherein automatically executing the trade against the order comprises:

automatically executing, on behalf of the participant, the trade against the order even though the participant has no pending order.

98. The apparatus of claim 50, wherein the apparatus is operable to receive the order in the second trading state from a workstation coupled to the apparatus via a communications network.

99. A non-transitory tangible computer readable medium comprising a program that, when executed by at least one computing device, directs the at least one computing device to:

transition a trading system from a first trading state to a second trading state;

determine from among a plurality of orders that are pending at a completion of the first trading state, a best order,

wherein the best order comprises a first order having a best price from among the plurality of orders, and

wherein the best order is associated with a participant;

determine that at least one of the best order and the participant associated with the best order met at least one criterion in the first trading state;

based at least in part on determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state, award the participant with a potential trading priority in the second trading state with respect to at least one order received in the second trading state;

receive an order in the second trading state;

based at least in part on awarding the participant with the potential trading priority, determine that the participant has a right to trade exclusively against the order received in the second trading state;

determine that a different participant indicates a willingness to trade against the order received in the second trading state; and

based at least in part on (i) determining that the participant has the right to trade exclusively against the order received in the second trading state and (ii) determining that the different participant indicates the willingness to trade against the order received in the second trading state, automatically execute, on behalf of the participant, a trade against the order received in the second trading state.

100. The computer readable medium of claim 99, wherein the order received in the second trading state comprises an offer.

101. The computer readable medium of claim 99,

wherein the plurality of orders that are pending at the completion of the first trading state comprises a plurality of bids that are pending at the completion of the first trading state;

and

wherein the best order comprises a best bid of the plurality of bids.

102. The computer readable medium of claim 101, wherein the order received in the second trading state comprises an offer.

103. The computer readable medium of claim 102, wherein determining that the different participant indicates the willingness to trade against the order comprises:

determining that the different participant has a bid among the plurality of bids that are pending at the completion of the first trading state.

104. The computer readable medium of claim 101, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

determine from among a plurality of offers that are pending at the completion of the first trading state, a best offer,

wherein the best offer comprises an offer having a best price from among the plurality of offers, and

wherein the best offer is associated with another participant;

determine that at least one of the best offer and the another participant associated with the best offer met a second criterion in the first trading state; and

based at least in part on determining that at least one of the best offer and the another participant associated with the best offer met the second criterion in the first trading state, award the another participant with a potential right to trade exclusively against at least one bid received in the second trading state.

105. The computer readable medium of claim 104, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

based at least in part on awarding the another participant with the potential right to trade exclusively, modify the best offer,

wherein modifying the best offer does not affect the potential right to trade exclusively of the another participant, and

wherein modifying the best offer comprises at least one of;

reducing a size of the best offer, and

increasing a price of the best offer, and

removing the best offer.

106. The computer readable medium of claim 104, wherein determining that at least one of the best offer and the another participant associated with the best offer met the second criterion in the first trading state comprises:

determining, by the at least one computing device, that the another participant associated with the best offer sold at least a minimum size in the first trading state.

107. The computer readable medium of claim 99,

wherein the plurality of orders that are pending at the completion of the first trading state comprises a plurality of offers that are pending at the completion of the first trading state;

and

wherein the best order comprises a best offer of the plurality of offers.

108. The computer readable medium of claim 107, wherein the order received in the second trading state comprises a bid.

109. The computer readable medium of claim 108, wherein determining that the different participant indicates the willingness to trade against the order comprises:

determining that the different participant has an offer among the plurality of offers that are pending at the completion of the first trading state.

110. The computer readable medium of claim 107, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

determine from among a plurality of bids that are pending at the completion of the first trading state, a best bid,

wherein the best bid comprises a bid having a best price from among the plurality of bids, and

wherein the best bid is associated with another participant;

determine that at least one of the best bid and the another participant associated with the best bid met a second criterion in the first trading state; and

based at least in part on determining that at least one of the best bid and the another participant associated with the best bid met the second criterion in the first trading state, award the another participant with a potential right to trade exclusively against at least one offer received in the second trading state.

111. The computer readable medium of claim 110, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

based at least in part on awarding the another participant with the potential right to trade exclusively, modify the best bid,

wherein modifying the best bid does not affect the potential right to trade exclusively of the another participant, and

wherein modifying the best bid comprises at least one of;

reducing a size of the best bid, and

increasing a price of the best bid, and

removing the best bid.

112. The computer readable medium of claim 110, wherein determining that at least one of the best bid and the another participant associated with the best bid met the second criterion in the first trading state comprises:

determining, by the at least one computing device, that the another participant associated with the best bid sold at least a minimum size in the first trading state.

113. The computer readable medium of claim 99, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

based at least in part on awarding the participant with the potential trading priority, modify the best order, wherein modifying the best order does not affect the potential trading priority of the participant.

114. The computer readable medium of claim 113, wherein modifying the best order comprises at least one of:

reducing a size of the best order, and

decreasing a price of the best order.

115. The computer readable medium of claim 113, wherein modifying the best order comprises:

removing the best order.

116. The computer readable medium of claim 113, wherein modifying the best order comprises:

modifying the best order based at least in part on a value preconfigured by the participant.

117. The computer readable medium of claim 113, wherein modifying the best order comprises:

modifying the best order based at least in part on a preset default of the at least one computing device.

118. The computer readable medium of claim 99, wherein automatically executing the trade against the order comprises:

automatically executing, on behalf of the participant, the trade against the order based at least in part on a preset default position of the participant.

119. The computer readable medium of claim 99, wherein automatically executing the trade against the order comprises:

automatically executing, on behalf of the participant, the trade against the order based at least in part on a preset default of the at least one computing device.

120. The computer readable medium of claim 99, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

based at least in part on determining that the participant has the right to trade exclusively against the order, modify the best order.

121. The computer readable medium of claim 120, wherein modifying the best order comprises at least one of:

reducing a size of the best order, and

decreasing a price of the best order.

122. The computer readable medium of claim 120, wherein modifying the best order comprises:

removing the best order.

123. The computer readable medium of claim 99, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

determine that a size of the best order exceeds a predetermined percentage of a size of the order;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining that the participant has the right to trade exclusively against the order based at least in part on determining that the size of the best order exceeds the predetermined percentage of the size of the order.

124. The computer readable medium of claim 99, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

determine that a price of the best order is within a predetermined delta of a price of the order;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determine that the participant has the right to trade exclusively against the order based at least in part on determining that the price of the best order is within the predetermined delta of the price of the order.

125. The computer readable medium of claim 99, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

determine that a size of the order satisfies a minimum size requirement;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining that the participant has the right to trade exclusively against the order based at least in part on determining that the size of the order satisfies the minimum size requirement.

126. The computer readable medium of claim 99, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

determine that a size of the order exceeds a predetermined percentage of a size of the best order;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining that the participant has the right to trade exclusively against the order based at least in part on determining that the size of the order exceeds the predetermined percentage of the size of the best order.

127. The computer readable medium of claim 99, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

based at least in part on determining that the participant has the right to trade exclusively against the order, present the order exclusively to the participant.

128. The computer readable medium of claim 127, wherein presenting the order exclusively to the participant comprises at least one of:

causing the order to be shown only to the participant; and

making the order available to be traded against only by the participant.

129. The computer readable medium of claim 99, wherein the instructions, when executed by the at least one computing device, further direct the at least one computing device to:

determine that the order has at least one of a best price and a time priority from among a plurality of orders pending in the second trading state;

and

wherein determining that the participant has the right to trade exclusively against the order comprises;

determining that the participant has the right to trade exclusively against the order based at least in part on determining that the order has at least one of the best price and the time priority from among the plurality of orders pending in the second trading state.

130. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that a size of the best order satisfies a minimum size requirement.

131. The computer readable medium of claim 130,

wherein the best order comprises (i) a hidden size not shown to other participants and (ii) a displayed size shown to other participants;

and

wherein determining that the size of the best order satisfies the minimum size requirement comprises;

determining that the size of the best order satisfies the minimum size requirement based on the hidden size of the best order and the displayed size of the best order.

132. The computer readable medium of claim 130,

wherein the best order comprises (i) a hidden size not shown to other participants and (ii) a displayed size shown to other participants;

and

wherein determining that the size of the best order satisfies the minimum size requirement comprises;

determining that the size of the best order satisfies the minimum size requirement based only on the displayed size of the best order.

133. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that a price of the best order satisfies a price criterion with respect to a price of a trade made in the first state.

134. The computer readable medium of claim 133, wherein determining that the price of the best order satisfies the price criterion comprises:

determining that the price of the best order is within a predetermined delta of the price of the trade made in the first state.

135. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order purchased at least a minimum size in the first trading state.

136. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order sold at least a minimum size in the first trading state.

137. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a purchase in the first trading state that was first in time among a plurality of purchases in the first trading state.

138. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a purchase in the first trading state that was last in time among a plurality of purchases in the first trading state.

139. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a purchase in the first trading state at a price that satisfies a minimum price requirement.

140. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a purchase in the first trading state at a largest size among a plurality of purchases in the first trading state.

141. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a sale in the first trading state that was first in time among a plurality of sales in the first trading state.

142. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a sale in the first trading state that was last in time among a plurality of sales in the first trading state.

143. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a sale in the first trading state at a price that satisfies a minimum price requirement.

144. The computer readable medium of claim 99, wherein determining that at least one of the best order and the participant associated with the best order met the at least one criterion in the first trading state comprises:

determining that the participant associated with the best order made a sale in the first trading state at a largest size among a plurality of sales in the first trading state.

145. The computer readable medium of claim 99, wherein awarding the participant with the potential trading priority in the second trading state comprises:

awarding the participant with a potential right to trade exclusively against the at least one order received in the second trading state.

146. The computer readable medium of claim 99, wherein automatically executing the trade against the order comprises:

automatically executing, on behalf of the participant, the trade against the order even though the participant has no pending order.