Method of matching orders on an electronic trading system and an electronic trading system for matching orders

• US 8,781,944 B2
• Filed: 04/23/2007
• Issued: 07/15/2014
• Est. Priority Date: 06/15/2006
• Status: Active Grant

• Current Assignee: Nasdaq Technology AB (Nasdaq, Inc.)
• Original Assignee: OMX Technology AB
• Inventors: Olsson, Johan L., Jensen, Daniel, Ahlenius, Ulf, llebrand, Sven
• Primary Examiner(s): Lemieux, Jessica
• Application Number:
  US11/790,075
• Publication Number:
  US 20080046354A1
• Time in Patent Office: 2,640 Days
• Field of Search: 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Matching orders on an electronic trading system is disclosed. Information is broadcasted regarding the current order status of an order book of the electronic trading system The order status includes a queue of orders. An order is received to trade that selects or indicates an order in the order book having queue number two or higher. If the received order has one or more properties matching the selected order, the received order is matched with the selected order.

Claims

1. Method of matching orders on an electronic trading system in an open trading market, including the steps of:

non-anonymously broadcasting to market users, by electronic broadcasting circuitry, information regarding current order status of an order book of the electronic trading system including identities of parties having placed orders stored in the order book, said order status comprising a queue of orders stored in the order book, each stored order having associated properties and an associated queue number, where a higher queue number indicates a lower trading priority than a lower queue number;

receiving, by electronic receiving circuitry, an order to trade selecting a lower priority order stored in the order book having a queue number of two or higher than a higher priority order stored in the order book having a lower queue number, said received order having properties matching both the selected order and the higher priority order;

identifying that the received order includes information that selects the lower priority order stored in the order book; and

matching, by electronic matching circuitry, the received order with the selected lower priority order stored in the order book without matching the higher priority order with the lower queue number, wherein the higher priority order remains stored in the order book after the matching.

2. Method according to claim 1, wherein the step of matching the received order with the selected order includes a partial matching, wherein a remaining part of the partially matched order forms a new order in the order book.

3. Method according to claim 1, wherein the properties matching the selected order can be based on one or more of submitter name, order number, queue number, price and volume.

4. Method according to claim 1, wherein the broadcasted order status further comprises identity information identifying each submitter of each order in the queue, and wherein the order is selected from the order book based on the identity of the submitter.

5. An open electronic trading system comprising:

an electronic matching unit arranged to match orders submitted by users;

a memory storing an order book associated with the matching unit and arranged to store and organize unmatched orders in queues,

an electronic broadcasting unit arranged to non-anonymously broadcast to market users information regarding current order status of the order book including identities of parties having placed orders stored in the order book, said order status comprising a queue of orders stored in the order book, each stored order having associated properties and an associated queue number, where a higher queue number indicates a lower trading priority than a lower queue number, and

an electronic identification unit arranged to identify that the received order includes information that selects the lower priority order stored in the order book,

wherein the electronic matching unit includes a controller arranged to match an incoming designated order selecting a lower priority order in the order book having a queue number of two or higher than a higher priority order stored in the order book having a lower queue number with the lower priority order without matching the higher priority order with the lower queue number, wherein the higher priority order remains stored in the order book after the matching.

6. Electronic trading system of claim 5, wherein the matching unit further comprises:

a selector for selecting a particular order in the order book, and

a comparator for comparing one or more properties of the designated order and the particular order,

wherein the controller is arranged to match the designated order with the particular order to a degree of correlation between the designated order and the selected order.

7. Electronic trading system according to claim 6, wherein the selecting of a particular order is based on one or more of an order submitter name, an order number, a queue number, a price, and a volume.

8. Electronic trading system according to claim 5, wherein the selecting of a particular order is based on one or more of an order submitter name, an order number, a queue number, a price, and a volume.