Method and arrangement for changing market model in an automated exchange

• US 8,489,493 B2
• Filed: 04/07/2011
• Issued: 07/16/2013
• Est. Priority Date: 04/07/2011
• Status: Active Grant

• Current Assignee: Nasdaq Technology AB (Nasdaq, Inc.)
• Original Assignee: OMX Technology AB
• Inventors: Nager, Torbjrn
• Primary Examiner(s): Shrestha, Bijendra K
• Application Number:
  US13/081,796
• Publication Number:
  US 20120259757A1
• Time in Patent Office: 831 Days
• Field of Search: 705/36, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

In an automated exchange comprising a matching module and a dissemination module a market model state is controlled in the matching module and in the dissemination module, respectively. Hereby it is made possible to, during ongoing trading, change market model for the automated exchange.

Claims

1. An automated exchange comprising one or more processors:

a matching module executable by the one or more processors to match bids and offers, received via an external interface, the matching processor being operatively coupled to a memory configured to store an order book and configured to store the received bids and offers if not matched by the matching processor,

a dissemination module executable by the one or more processors to disseminate market data via an external interface; and

a session handling module executable by the one or more processors to;

set a market model state in the matching module and in the dissemination module to one of the following market models;

an order-driven market, a quote-driven market, or a hybrid market, and

intraday change, during ongoing trading, the set market model for a particular financial instrument traded on the automated exchange to be the market model best suited for the particular financial instrument at a particular time.

2. The automated exchange according to claim 1, wherein the session handling module is executable by the one or more processors to control the market model state by providing control parameters to the matching module and the dissemination module, respectively.

3. The automated exchange according to claim 1, wherein the session handling module is executable by the one or more processors to determine the market model in response to an external input signal.

4. The automated exchange according to claim 3, wherein the external input signal is a timer signal or a manual control signal.

5. The automated exchange according to claim 1, wherein the session handling module is executable by the one or more processors to determine the market model in response to an internal trigger event.

6. The automated exchange according to claim 5, wherein the triggering event is trading activity being above or below a pre-determined threshold.

7. The automated exchange according to claim 1, wherein the session handling module is executable by the one or more processors to determine the market model individually for a financial instrument traded in the automated exchange.

8. A method in automated exchange having one or more processors, the method comprising:

matching, by a matching module executed by the one or more processors, bids and offers received via an external interface,

storing in a memory received bids and offers not matched by the matching module executed by the one or more processors,

disseminating market data by a dissemination module executed by the one or more processors; and

controlling, by a session handling module executed by the one or more processors, a market model state in the matching module and in the dissemination module to a selected one of the following market models;

an order-driven market, a quote-driven market, or a hybrid market, and

intraday changing, during ongoing trading, by the session handling module executed by the one or more processors, the selected market model for a particular financial instrument traded on the automated exchange to be the market model best suited for the particular financial instrument at a particular time.

9. The method according to claim 8, wherein the market model state is controlled by providing control parameters to the matching module executed by the one or more processors and the dissemination module executed by the one or more processors, respectively.

10. The method according to claim 8, wherein the market model state is determined in response to an external input signal.

11. The method according to claim 10, wherein the external input signal is a timer signal or a manual control signal.

12. The method according to claim 8, wherein the market model state is determined in response to an internal trigger event.

13. The method according to claim 12, wherein the triggering event is trading activity being above or below a pre-determined threshold.

14. The method according to claim 8, wherein the market model state is determined individually for a financial instrument traded in the automated exchange.