Method and system for canceling orders for financial articles of trades

• US 8,386,371 B2
• Filed: 01/31/2011
• Issued: 02/26/2013
• Est. Priority Date: 02/02/2010
• Status: Active Grant

• Current Assignee: FTEN, Inc. (Nasdaq, Inc.)
• Original Assignee: FTEN, Inc. (Nasdaq, Inc.)
• Inventors: Kittelsen, Douglas G., Cole, Lee Arthur, Kain, John
• Primary Examiner(s): JOHNSON, GREGORY L
• Application Number:
  US13/018,014
• Publication Number:
  US 20110225081A1
• Time in Patent Office: 757 Days
• Field of Search: None
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Market data is monitored for purposes of canceling orders for financial articles of trade. Real-time data is collected from multiple liquidity destinations trading at least one financial article of trade. The real-time data comprises disparate data corresponding to associated liquidity destinations. The collected real-time data is normalized into a standardized form. A condition is defined of a trading market that includes one or both of submitted and executed transactions of financial articles of trade over the multiple liquidity destinations. The condition is associated with an entity. Through monitoring of the normalized real-time data, an event is identified in the trading market that matches the condition. Upon identification of the condition, at least one communication session between the entity and a corresponding liquidity destination is terminated causing a process at the corresponding liquidity destination to cancel pending or outstanding orders for financial articles of trades from the entity.

Claims

1. A method for cancelling pending orders for financial articles of trade, comprising:

collecting, by one or more collection controllers, data from a plurality of liquidity destinations trading at least one financial article of trade, wherein the data comprises disparate data corresponding to associated liquidity destinations;

normalizing, by one or more processors, the collected data into a standardized form;

defining, by one or more processors, a condition of a trading market comprising one or both submitted and executed transactions of financial articles of trade over the plurality of liquidity destinations;

associating, by one of more processors, the defined condition with an entity;

identifying, by one or more processors, an event in the trading market matching the condition from the normalized data;

based on the matching, terminating, by one or more switches, at least one communication session between the entity and a corresponding liquidity destination; and

cancelling, by one or more processors, pending orders from the entity.

2. The method of claim 1, further comprising initiating a process at the corresponding liquidity destination to cancel the pending transactions.

3. The method of claim 1, wherein the collected data is real-time data.

4. The method of claim 1, wherein the terminating at least one communication session comprises:

physically de-coupling a connection between the entity and the corresponding liquidity destination, wherein the connection enables the communication session.

5. The method of claim 1, wherein the terminating at least one communication session comprises:

logically de-coupling a connection between the entity and the corresponding liquidity destination, wherein the connection enables the communication session.

6. The method of claim 1, wherein the terminating at least one communication session comprises:

invoking a Transmission Control Protocol (TCP) teardown over at least one communication session.

7. The method of claim 1, wherein the terminating at least one communication session comprises:

terminating a plurality of communication sessions between the entity and the plurality of liquidity destinations.

8. The method of claim 7, wherein the terminating the plurality of communication sessions comprises:

physically de-coupling a plurality of connections between the entity and the plurality of liquidity destinations, wherein the plurality of connections enables the plurality of communication sessions.

9. The method of claim 8, further comprising:

determining the plurality of connections between the entity and the plurality of liquidity destinations.

10. The method of claim 7, wherein the terminating the plurality of communication sessions comprises:

terminating all communication sessions between the entity and the plurality of liquidity destinations.

11. The method of claim 1, wherein the terminating at least one communication session further comprises:

activating a switch configured to operate in a connection between the entity and the corresponding liquidity destination to physically de-couple the connection between the entity and the corresponding liquidity destination.

12. The method of claim 1, wherein the cancelling comprises:

forcing a cancel-on-disconnect process at the corresponding liquidity destination.

13. The method of claim 1, wherein the condition is based on transactions of financial articles of trade related to the entity.

14. The method of claim 1, wherein the condition includes transactions of financial articles of trade not related to the entity.

15. The method of claim 7, further comprising:

determining, from the data, canceled orders related to the entity over the plurality of liquidity destinations;

determining an open order base of the entity based on the real-time data;

comparing the open order base to the canceled orders; and

determining that orders for transactions of financial articles of trade are not submitted through the plurality of communication sessions when the canceled orders do not correspond to the open order base.

16. The method of preceding claim 1, further comprising:

restoring the at least one communication session through a pre-trade gateway to the corresponding liquidity destination.

17. A method for cancelling pending financial article of trade orders, comprising:

collecting, by one or more collection controllers, data from a plurality of liquidity destinations trading at least one financial article of trade, wherein the data comprises disparate data corresponding to associated liquidity destinations;

normalizing, by one or more processors, the collected data collected into a standardized form;

defining, by one or more processors, a condition of a trading market comprising one or both submitted and executed transactions of financial articles of trade over the plurality of liquidity destinations;

associating, by one or more processors, the condition defined with an entity;

identifying, by one or more processors, an event in the trading market matching the condition from the normalized data;

wherein at least one switch is configured to operate between the entity and the plurality of liquidity destinations over a plurality of connections between the entity and the plurality of liquidity destinations, wherein the plurality of connections facilitate a plurality of sessions between the entity and the plurality of liquidity destinations; and

stopping, by one or more processors, most or all future trading activity of the entity over the plurality of sessions by the activating the at least one switch.

18. The method of claim 17, wherein the stopping all future trading activity further comprises:

invoking a single action to stop all future trading activity of the entity over the plurality of sessions.

19. The method of any of claim 17, further comprising:

terminating the plurality of communication session between the entity and the plurality of liquidity destinations; and

forcing a process at each of the plurality of liquidity destinations to initiate cancelling of pending transactions from the entity.

20. A method for cancelling pending financial article of trade orders, comprising:

collecting, by one or more collection controllers, data from a plurality of sources trading at least one financial article of trade with a plurality of liquidity destinations;

normalizing, by or more processors, the collected data into a standardized form;

defining, by one or more processors, a condition of a trading market comprising submitted transactions of financial articles of trade over the plurality of liquidity destinations;

associating, by one or more processors, the defined condition with an entity;

identifying, by one or more processors, an event in the trading market matching the condition from the normalized data;

based on the matching, terminating, by one or more switches, at least one communication session between the entity and a corresponding liquidity destination; and

triggering, by one or more processors, an action at the corresponding liquidity destination that cancels pending transactions from the entity.

21. The method of claim 20, wherein the event is based on transactions of financial articles of trade related to the entity.

22. The method of claim 20, wherein the event is based on transactions of financial articles of trade not related to the entity.

23. A system configured to cancel pending financial article of trade orders, comprising:

a communication device configured to set up a communication session between an entity and a liquidity destination, wherein the communication session facilitates trading of at least one financial article of trade;

a connection between the entity and the liquidity destination;

a gateway associated with the connection;

a collector configured to collect data including transactions of financial articles of trade;

an event identifier configured to identify an event matching a defined condition in a trading market comprising one or both of submitted and executed transactions of financial articles of trade over a plurality of liquidity destinations from the collected data, wherein the condition is associated with the entity;

a controller configured to terminate the connection using the gateway when the event is identified.

24. The system of claim 23, wherein the gateway comprises a logical switch.

25. The system of claim 23, wherein the gateway comprises a physical switch.

26. The system of claim 23, wherein the collector is configured to collect real-time data from the plurality of liquidity destinations, wherein the real-time data comprises disparate data corresponding to associated liquidity destinations.

27. The system of claim 23, wherein the collector is configured to collect real-time data from a plurality of sources trading the at least one financial article of trade over the plurality of liquidity destinations.

28. Apparatus configured to cancel pending orders for financial articles of trade, comprising electronic circuitry configured to:

establish a communication session between an entity and a liquidity destination, wherein the communication session facilitates trading of at least one financial article of trade and associate the communication session to a connection between the entity and the liquidity destination, where a switch is associated with the connection;

collect data including transactions of financial articles of trade;

identify an event matching a defined condition in a trading market comprising one or both of submitted and executed transactions of financial articles of trade over a plurality of liquidity destinations from the collected data, wherein the condition is associated with the entity; and

cancel multiple pending transactions from the entity as soon as the event is identified.

29. The apparatus of claim 28, wherein the electronic circuitry is configured to cancel the multiple pending transactions at each of multiple liquidity destinations using a single command.

30. The apparatus of claim 28, wherein the switch is a logical switch or a physical switch, and wherein the collected data is real-time data.