Trading system with ELFs and umpires
First Claim
1. A computer-implemented method of pricing a security, comprising:
- under control of instructions that are executed by one or more computer processors of a computing system;
registering a first computer program for trading activity in the security,receiving a price inquiry for the security from a second computer program that is executing separate from the first computer program,as a result of registering the first computer program, providing the first computer program with a price improvement opportunity based on the price inquiry received from the second computer program,wherein said providing the first computer program with a price improvement opportunity includes providing a proposed buy or sell price for the security to the first computer program and determining if the first computer program is willing to provide an improved price,wherein the improved price is a price that is higher than the proposed buy price or lower than the proposed sell price and is a price at which the first computer program is willing to trade for the security, andwherein the improved price is not entered into an order book that includes publicly disclosed buy or sell orders for the security, andin response to the price inquiry received from the second computer program;
if an improved price is received from the first computer program, then providing the improved price to the second computer program, andif an improved price is not received from the first computer program, then providing the proposed buy or sell price to the second computer program.
2 Assignments
0 Petitions
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
20 Claims
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1. A computer-implemented method of pricing a security, comprising:
under control of instructions that are executed by one or more computer processors of a computing system; registering a first computer program for trading activity in the security, receiving a price inquiry for the security from a second computer program that is executing separate from the first computer program, as a result of registering the first computer program, providing the first computer program with a price improvement opportunity based on the price inquiry received from the second computer program, wherein said providing the first computer program with a price improvement opportunity includes providing a proposed buy or sell price for the security to the first computer program and determining if the first computer program is willing to provide an improved price, wherein the improved price is a price that is higher than the proposed buy price or lower than the proposed sell price and is a price at which the first computer program is willing to trade for the security, and wherein the improved price is not entered into an order book that includes publicly disclosed buy or sell orders for the security, and in response to the price inquiry received from the second computer program; if an improved price is received from the first computer program, then providing the improved price to the second computer program, and if an improved price is not received from the first computer program, then providing the proposed buy or sell price to the second computer program. - View Dependent Claims (2, 3, 4, 5, 6)
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7. A computing system configured for pricing a security, comprising:
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a registration component executing on at least one computer processor, wherein the registration component is configured to register a first computer program for trading activity in the security, and a communication component executing on at least one computer processor, wherein the communication component is configured to receive a price inquiry for the security from a second computer program that is executing separate from the first computer program, and as a result of registration of the first computer program, provide the first computer program with a price improvement opportunity based on the price inquiry received from the second computer program, wherein providing the price improvement opportunity includes providing a proposed buy or sell price for the security to the first computer program and determining if the first computer program is willing to provide an improved price, wherein the improved price is a price that is higher than the proposed buy price or lower than the proposed sell price and is a price at which the first computer program is willing to trade for the security, and wherein the improved price is not entered into an order book that includes publicly disclosed buy or sell orders for the security, and in response to the price inquiry received from the second computer program, the communication component is further configured to; provide the improved price to the second computer program if an improved price is received from the first computer program, and if an improved price is not received from the first computer program, then provide the proposed buy or sell price to the second computer program. - View Dependent Claims (8, 9, 10, 11, 12)
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13. A computer-accessible storage medium having executable instructions stored thereon for pricing a security, wherein in response to execution, the instructions cause the computer to:
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register a first computer program for trading activity in the security, receive a price inquiry for the security from a second computer program that is executing separate from the first computer program, provide the first computer program with a price improvement opportunity as a benefit of being registered for trading activity in the security, wherein providing the price improvement opportunity is triggered by receipt of the price inquiry and includes providing a proposed buy or sell price for the security to the first computer program and determining if the first computer program is willing to submit an improved price in reply, and wherein the improved price is a price that is higher than the proposed buy price or lower than the proposed sell price and is a price at which the first computer program is willing to trade for the security, and in response to the price inquiry received from the second computer program; provide the improved price to the second computer program if an improved price is received from the first computer program, wherein the improved price is provided only to the second computer program, and if an improved price is not received from the first computer program, then provide the proposed buy or sell price to the second computer program. - View Dependent Claims (14, 15, 16, 17, 18)
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19. A computing system configured for pricing a security, comprising:
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means for registering a first computer program for trading activity in the security, means for receiving a price inquiry for the security from a second computer program that is executing separate from the first computer program, means for providing the first computer program with a price improvement opportunity based on the price inquiry received from the second computer program, wherein providing the price improvement opportunity includes providing a proposed buy or sell price for the security to the first computer program and determining if the first computer program is willing to provide an improved price, wherein the improved price is a price that is higher than the proposed buy price or lower than the proposed sell price and is a price at which the first computer program is willing to trade for the security, and wherein the improved price is not entered into an order book that includes publicly disclosed buy or sell orders for the security, and in response to the price inquiry received from the second computer program; means for providing the improved price to the second computer program if an improved price is received from the first computer program, and means for providing the proposed buy or sell price to the second computer program if an improved price is not received from the first computer program. - View Dependent Claims (20)
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Specification