Trading system with elfs and umpires
First Claim
1. A computer-implemented method, the method comprising:
- under control of a second computer process executed by one or more processors in a computer system;
notifying a set of first computer processes of a proposed price for buying or selling a security, wherein the set of first computer processes represents a subset of market participants that is less than all of a plurality of market participants participating in a market, and wherein a trade for the security at the proposed price is not executable at the market,receiving an improved price for the security from at least one of the first computer processes, wherein the improved price is received in response to the notifying the set of first computer processes of the proposed price, wherein the improved price is higher than the proposed price for buying the security or lower than the proposed price for selling the security, andin response to receiving the improved price from the at least one of the first computer processes, providing the improved price as a published price, wherein the plurality of market participants can execute a trade for the security at the published price.
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Accused Products
Abstract
Price setting for a security occurs by automatically engaging in a price discovery procedure before responding to a request for a current buy or sell price of the security to provide an automatically discovered price that is better than a book price. The book price is the best price in an order book including orders to buy or sell specified quantities of the security at respective prices, the lowest sell order price of the booked orders being the book sell price, the highest buy order price of the booked orders being the book buy order price. The price discovery procedure includes providing the book buy or sell price to at least one entity registered to participate in the price discovery procedure. The entity automatically provides an improved price relative to the book price based on a predetermined strategy that is determined independently of the strategies for other entities. The temporal duration of the price discovery procedure can be predetermined or based on an amount of activity occurring during the price discovery procedure.
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Citations
39 Claims
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1. A computer-implemented method, the method comprising:
under control of a second computer process executed by one or more processors in a computer system; notifying a set of first computer processes of a proposed price for buying or selling a security, wherein the set of first computer processes represents a subset of market participants that is less than all of a plurality of market participants participating in a market, and wherein a trade for the security at the proposed price is not executable at the market, receiving an improved price for the security from at least one of the first computer processes, wherein the improved price is received in response to the notifying the set of first computer processes of the proposed price, wherein the improved price is higher than the proposed price for buying the security or lower than the proposed price for selling the security, and in response to receiving the improved price from the at least one of the first computer processes, providing the improved price as a published price, wherein the plurality of market participants can execute a trade for the security at the published price. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9)
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10. A computer-implemented method, the method comprising:
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under control of a first computer process executed by one or more processors in a computer system; receiving a proposed price for buying or selling a security from a second computer process, wherein the second computer process is providing a market, and wherein a trade for the security at the proposed price is not executable at the market, in response to receiving the proposed price, determining whether to improve upon the proposed price for the security by offering an improved price that is higher than the proposed price for buying the security or lower than the proposed price for selling the security, and in response to an affirmative determination, offering the improved price to the second computer process to be provided by the second computer process as a published price to a plurality of market participants at the market, wherein a trade at the published price is executable by the plurality of market participants at the market. - View Dependent Claims (11, 12, 13, 14, 15)
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16. A computer-implemented method, the method comprising:
under control of a second computer process executed by one or more processors in a computer system; maintaining an order book for a market at which trades are made with respect to a security, said order book including orders to buy or sell specified quantities of the security at respective prices, a lowest sell order price of the orders included in the order book being a book sell price, a highest buy order price of the orders included in the order book being a book buy price, engaging in a price discovery procedure with a set of first computer processes before responding to a request for a current buy or sell price of the security, wherein the price discovery procedure produces a discovered price for the security, and providing the discovered price as the current buy or sell price of the security in response to the request, wherein the discovered price is a price that is not included in the order book and is higher than the book buy price or lower than the book sell price. - View Dependent Claims (17, 18, 19, 20, 21, 22, 23, 24)
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25. A computing system, the system comprising:
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a notification component executing on at least one computer processor, wherein the notification component is configured to notify a set of market participants of a proposed price for buying or selling a security, wherein the set of market participants is a subset of a plurality of market participants participating in a market that is less than all of the plurality of market participants participating in the market, and wherein a trade for the security at the proposed price is not executable at the market, and a pricing component executing on at least one computer processor, wherein the pricing component is configured to receive an improved price for the security from at least one of the market participants in the set of market participants, wherein the improved price is received in response to notifying the set of market participants of the proposed price, wherein the improved price is higher than the proposed price for buying the security or lower than the proposed price for selling the security, and in response to receiving the improved price from the at least one of the market participants in the set of market participants, provide the improved price as a published price, wherein the notification component is configured to notify the set of market participants of the proposed price prior to the pricing component providing the published price, and wherein the plurality of market participants can execute a trade for the security at the published price. - View Dependent Claims (26, 27, 28, 29, 30, 31)
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32. A non-transitory computer-accessible storage medium containing computer program instructions that, in response to execution by a computer, cause the computer to perform operations comprising:
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receiving a proposed price for buying or selling a security from a computer process, wherein the computer process is providing a market at which trades are made with respect to the security, and wherein a trade for the security at the proposed price is not executable at the market, in response to receiving the proposed price, determining whether to improve upon the proposed price for the security by offering an improved price that is higher than the proposed price for buying the security or lower than the proposed price for selling the security, and in response to an affirmative determination, offering the improved price to the computer process to be provided by the computer process as a published price to a plurality of market participants at the market, wherein a trade at the published price is executable by the plurality of market participants at the market. - View Dependent Claims (33, 34, 35)
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36. A computing system, the system comprising:
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means for notifying a set of first computer processes of a proposed price for buying or selling a security, wherein the set of first computer processes represents a subset of market participants that is less than all of a plurality of market participants participating in a market, wherein said notifying occurs prior to providing the published price, and wherein a trade for the security at the proposed price is not executable at the market, means for determining whether any of the first computer processes has offered an improved price for the security, wherein the improved price is received in response to the notifying the set of first computer processes of the proposed price, and wherein the improved price is higher than the proposed price for buying or lower than the proposed price for selling, and means for providing the improved price as a published price to the plurality of market participants in response to determining that the improved price has been offered, wherein the plurality of market participants can execute a trade for the security at the published price.
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37. A computing system comprising:
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means for maintaining an order book for a market at which trades are made with respect to a security, said order book including orders to buy or sell specified quantities of the security at respective prices, a lowest sell order price of the booked orders being a book sell price, and a highest buy order price of the booked orders being a book buy price, means for engaging in a price discovery procedure with a set of first computer processes before responding to a request for a current buy or sell price of the security, wherein the price discovery procedure produces a discovered price for the security, and means for providing the discovered price as the current buy or sell price of the security to a plurality of market participants participating in the market, wherein the discovered price is a price that is not included in the order book and is higher than the book buy price or lower than the book sell price.
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38. A non-transitory computer-accessible storage medium containing computer program instructions, wherein the instructions, in response to execution by a computer, cause the computer to:
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notify a set of first computer processes of a proposed price for buying or selling a security, wherein the set of first computer processes represents a subset of market participants that is less than all of a plurality of market participants participating in a market, and wherein a trade for the security at the proposed price is not executable at the market, receive an improved price for the security from at least one of the first computer processes, wherein the improved price is received in response to notifying the set of first computer processes of the proposed price, and wherein the improved price is higher than the proposed price for buying or lower than the proposed price for selling, and in response to receiving the improved price from the at least one of the first computer processes, provide the improved price as a published price, wherein the plurality of market participants can execute a trade for the security at the published price. - View Dependent Claims (39)
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Specification