Market participant issue selection system and method
First Claim
1. An option class selection system for authorizing market participants to disseminate quotes on a trading facility for at least one option class, the option class selection system comprising:
- an option class selection database, the option class selection database comprising a listing of a plurality of option classes available for trading on the trading facility, wherein each option class is associated with a numeric value based on a trading parameter associated with the option class;
a communication module configured for communicating with a trade engine of an exchange; and
a processor in communication with the trade engine and in communication with the option class selection database, the processor configured to;
receive a request to obtain rights to submit quotes in a subset of the plurality of available option classes from a market participant having a quoting privilege at the exchange, wherein the quoting privilege of the market participant is less than an amount necessary to obtain rights to submit quotes in all available option classes;
calculate a total of the numeric values associated with the option classes in the subset;
determine if the total of the numeric values is less than or equal to a value of the quoting privilege associated with the market participant; and
authorize the market participant to submit quotes in the subset if the total of the numeric values is less than or equal to the value of the quoting privilege.
2 Assignments
0 Petitions
Accused Products
Abstract
A system and method of allocating rights for quoting issues on a trading facility such as an exchange is described. The method may include providing market participants such as remote market makers with a listing of issues available for remote quote streaming where the available issues are ranked according to predetermined trading parameters. A market participant requests allocations of rights to certain issues and the request is filtered according to a value associated with the ranking of the selected issues. The system includes an issue selection database having a listing of issues available for trading where each issue is ranked based on a trading parameter. An issue selection communication module communicates with the issue selection database and is configured to list available issues and rankings. An issue allocation filter receives a market participant request and compares the selected issues in that request to one or more exchange-based rules.
173 Citations
20 Claims
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1. An option class selection system for authorizing market participants to disseminate quotes on a trading facility for at least one option class, the option class selection system comprising:
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an option class selection database, the option class selection database comprising a listing of a plurality of option classes available for trading on the trading facility, wherein each option class is associated with a numeric value based on a trading parameter associated with the option class; a communication module configured for communicating with a trade engine of an exchange; and a processor in communication with the trade engine and in communication with the option class selection database, the processor configured to; receive a request to obtain rights to submit quotes in a subset of the plurality of available option classes from a market participant having a quoting privilege at the exchange, wherein the quoting privilege of the market participant is less than an amount necessary to obtain rights to submit quotes in all available option classes; calculate a total of the numeric values associated with the option classes in the subset; determine if the total of the numeric values is less than or equal to a value of the quoting privilege associated with the market participant; and authorize the market participant to submit quotes in the subset if the total of the numeric values is less than or equal to the value of the quoting privilege. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A computer-implemented method for authorizing market participants to disseminate quotes on a trading facility for a particular option class, the method comprising:
in an option class selection system having an option class selection database of a plurality of option classes available for trading, a communication module configured for communicating with a trade engine of an exchange and a computer processor in communication with the trade engine the option class selection database, the computer processor; receiving a request to obtain rights to submit quotes in a subset of the plurality of available option classes from a market participant having a quoting privilege at the exchange, wherein the quoting privilege of the market participant is less than an amount necessary to obtain rights to submit quotes in all available option classes; calculating a total of numeric values in the option class selection database associated with the option classes in the subset, wherein each numeric value is based on a trading parameter associated with the option class; determining if the total of the numeric values is less than or equal to a value of the quoting privilege associated with the market participant; and authorizing the market participant to submit quotes in the subset if the total of the numeric values is less than or equal to the value of the quoting privilege. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19, 20)
Specification