Order execution processing for automated market system

Abstract

An electronic market for trading of securities includes a plurality of client stations for entering quotes for securities and a server process that receives quotes from the clients, aggregates the quotes and causes a total of all aggregated quotes to be displayed for a plurality of price levels on the client systems. The market uses a graphical user that depicts aggregated quotes in an aggregate window a plurality of price levels of a product traded in the market. The market also includes processes to handle lock/cross market conditions, match-off of order flow and provides a central quote/order collector that interfaces to disparate order delivery systems to minimize dual liability of market makers.

What is claimed is:  
     
         1 . An electronic market for trading of securities comprises: 
 a client station for entering an order for executing against any market participant that can at least in part satisfy the order; and    a server system including a server process that executes the received order against interest in the market based on how the receiving market participant participates in the market with interest in the market being prioritized according to: 
 first displayed quotes/order of market makers, ECNs, and non-attributable agency orders of UTP Exchanges, in time priority between such interest; and  
 subsequently against principal quotes of UTP Exchanges, in price/size/time priority between such interest.  
   
     
     
         2 . The market of  claim 1  wherein if the order is not satisfied at the first level of priority, the server, 
 executes the order against the reserve size of market makers and ECNs in time priority between such interest; and  
 if the order still is not satisfied, server  
 executes the order against principal quotes of UTP Exchanges, in time priority between such interest.  
 
     
     
         3 . The market of  claim 1  wherein if the order is not satisfied by subsequent interest of principal quotes of UTP Exchanges, the server executes the order against displayed quotes and then reserve size, and then time if there is a tie in size.  
     
     
         4 . The market of  claim 1  wherein the server executes the order against a first level of displayed quotes/orders of market makers, and ECNs that do not charge a separate quote-access fee, and non-attributable agency orders of UTP Exchanges with the execution being in time priority between such interest.  
     
     
         5 . The market of  claim 4  wherein the server executes the order at the same level as ECNs that do not charge a separate quote-access fee against the quotes/orders of ECNs that charge a separate quote-access fee where the ECN that charges indicates that price improvement offered by the quote/order is equal to or exceeds the quote-access fee with the execution being in time priority between such interest.  
     
     
         6 . The market of  claim 4  wherein if the order is not satisfied at the first level of priority the server executes the order against a second level of priority that is displayed quotes/orders of ECNs that charge a separate quote-access fee to non-subscribers.  
     
     
         7 . The market of  claim 1  wherein if the order is not satisfied at the second level of priority the server executes the order against a third level of priority that is reserve size of market makers and ECNs that do not charge a separate quote-access fee to non-subscribers, as well as reserve size of quotes/orders from ECNs that charge a separate quote-access fee to non-subscribers where the ECN entering such quote/order has indicated that price improvement offered is equal to or exceeds the quote-access fee.  
     
     
         8 . The market of  claim 7  wherein if the order is not satisfied at the third level of priority the server executes the order against a fourth level of priority that is reserve size of ECNs that charge a separate quote-access fee to non-subscribers, in time priority between such interest.  
     
     
         9 . The market of  claim 8  wherein if the order is not satisfied at the fourth level of priority the server executes the order against a fifth level of priority that is principal interest of UTP Exchanges, in time priority between such interest.  
     
     
         10 . A method for trading of securities in an electronic market, the method comprises: 
 entering at a client station for executing against any market participant that can at least in part satisfy the order; and    matching the received order at a server system against interest in the market based on how the receiving market participant participates in the market with interest in the market being prioritized according to: 
 first displayed quotes/order of market makers, ECNs, and non-attributable agency orders of UTP Exchanges, in time priority between such interest; and  
 subsequently against principal quotes of UTP Exchanges, in price/size/time priority between such interest.  
   
     
     
         11 . The method of  claim 10  wherein if the order is not satisfied at the first level of priority, the method further comprises: 
 executing the received order against the reserve size of market makers and ECNs in time priority between such interest; and  
 if the order still is not satisfied,  
 executing the order against principal quotes of UTP Exchanges, in time priority between such interest.  
 
     
     
         12 . The method of  claim 11  wherein if the order is not satisfied by subsequent interest of principal quotes of UTP Exchanges, further comprising: 
 executing the order against displayed quotes and then reserve size, and then time if there is a tie in size.  
 
     
     
         13 . The method of  claim 12  further comprising: 
 executing the order against a first level of displayed quotes/orders of market makers, and ECNs that do not charge a separate quote-access fee, and non-attributable agency orders of UTP Exchanges with the execution being in time priority between such interest.  
 
     
     
         14 . The method of  claim 13  further comprising: 
 executing the order at the same level as ECNs that do not charge a separate quote-access fee against the quotes/orders of ECNs that charge a separate quote-access fee where the ECN that charges indicates that price improvement offered by the quote/order is equal to or exceeds the quote-access fee with the execution being in time priority between such interest.  
 
     
     
         15 . The method of  claim 14  wherein if the order is not satisfied at the first level of priority further comprising: 
 executing the order against a second level of priority that is displayed quotes/orders of ECNs that charge a separate quote-access fee to non-subscribers.  
 
     
     
         16 . The market of  claim 10  wherein if the order is not satisfied at the second level of priority further comprising: 
 executing the order against a third level of priority that is reserve size of market makers and ECNs that do not charge a separate quote-access fee to non-subscribers, as well as reserve size of quotes/orders from ECNs that charge a separate quote-access fee to non-subscribers where the ECN entering such quote/order has indicated that price improvement offered is equal to or exceeds the quote-access fee.  
 
     
     
         17 . The market of  claim 16  wherein if the order is not satisfied at the third level of priority further comprising: 
 executing the order against a fourth level of priority that is reserve size of ECNs that charge a separate quote-access fee to non-subscribers, in time priority between such interest.  
 
     
     
         18 . The method of  claim 17  wherein if the order is not satisfied at the fourth level of priority further comprising: 
 executing the order against a fifth level of priority that is principal interest of UTP Exchanges, in time priority between such interest.  
 
     
     
         19 . The method of  claim 18  wherein the order is a nondirected order designated as a market order or a marketable limit order and is a liability order for the receiving market participant.  
     
     
         20 . The method of  claim 18  wherein the nondirected order has priorities including price/time, or price/size/time, or price/time that accounts for ECN access fees execution priority.  
     
     
         21 . The method of  claim 18  wherein one of the priorities is that the order executes against displayed contra side interest in price/time priority.