Trading application program interface

Abstract

An electronic trading system including various rules is described herein. Many of the rules relate to implementing periods of exclusive priority in trading. For example, in one of the rules, an exclusive period of trading may be controlled by an aggressor and a designated passive participant. The aggressor may have exclusive rights on his side of the trade at a particular price point for a particular time. The aggressor may elect to change the price point at which he controls the trade to a new price point which is more favorable to him. Thereafter, another participant may assume the exclusivity of the trade by entering the trade on the same side of the aggressor at the old price point. In so doing, the other participant also preferably truncates the aggressor's exclusivity at the new price point.

1 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (c) during the period of exclusivity, allows participants other than the aggressor participant and the designated passive participant to hit or lift a bid or offer at a price other than the defined price.    
   
   
       2 . The system of  claim 1 , wherein the bids and offers, except for the best bid and best offer, are capable of being displayed at a non-standard price increment.  
   
   
       3 . The system of  claim 1 , further comprising, during the period of exclusivity, the programmed computer that provides an opportunity for the participants other than the aggressor participant and the designated passive participant to hit or lift one of the bids or offers, wherein the one of the bids or offers was displayed before the trade transaction occurred.  
   
   
       4 . The system of  claim 1 , further comprising, during the period of exclusivity, the programmed computer that provides an opportunity for the participants other than the aggressor participant and the designated passive participant to hit or lift one of the bids or offers, wherein the one of the bids or offers was displayed after the trade transaction occurred.  
   
   
       5 . The system of  claim 1 , wherein, upon termination of the period of exclusivity, the programmed computer executes new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       6 . The system of  claim 1 , further comprising, upon termination of the period of exclusivity, the programmed computer that provides an opportunity for other participants to hit or lift one of the bids or offers having a different price than the defined price.  
   
   
       7 . The system of  claim 6 , wherein, upon termination of the period of exclusivity, new trade transactions involving the other participants are tested for and executed at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       8 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) to transition to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (c) during the period of exclusivity, allows participants other than the aggressor participant and the designated passive participant to hit or lift a bid or offer at a price other than the defined price.    
   
   
       9 . The method of  claim 8 , further comprising displaying one of the bids and offers at a non-standard price increment.  
   
   
       10 . The method of  claim 8 , further comprising, during the period of exclusivity, using the programmed computer to provide an opportunity for the participants other than the aggressor participant and the designated passive participant to hit or lift one of the bids or offers, wherein the one of the bids or offers was displayed after the trade transaction occurred.  
   
   
       11 . The method of  claim 8 , further comprising, during the period of exclusivity, using the programmed computer to provide an opportunity for the participants other than the aggressor participant and the designated passive participant to hit or lift one of the bids or offers, wherein the one of the bids or offers was displayed before the trade transaction occurred.  
   
   
       12 . The method of  claim 8 , wherein, upon termination of the period of exclusivity, using the programmed computer to execute new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       13 . The method of  claim 8 , further comprising, upon termination of the period of exclusivity, using the programmed computer to provide an opportunity for other participants to hit or lift one of the bids or offers having a different price than the defined price.  
   
   
       14 . The method of  claim 13 , wherein, upon termination of the period of exclusivity, implementing the programmed computer to test for and execute new trade transactions involving the other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       15 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item, the bids and offers, except for the best bid and best offer, capable of being displayed at a non-standard price increment and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift.    
   
   
       16 . The system of  claim 15 , wherein, the system trading state provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading.  
   
   
       17 . The system of  claim 16 , during the period of exclusivity, queues participants that enter a hit or lift with respect to a bid or offer at a price other than the defined price and guarantees the completion of the queued hit or lift.  
   
   
       18 . The system of  claim 15 , wherein, when a bid or offer is being displayed at a non-standard price increment, this bid or offer is only displayed to the trade participants.  
   
   
       19 . The system of  claim 15 , wherein, when a bid or offer is being displayed at a non-standard price increment, this bid or offer is only displayed to select trade participants.  
   
   
       20 . The system of  claim 15 , wherein, the bids and offers that are capable of being displayed at a non-standard price increment may only be viewed participants who qualify as market makers.  
   
   
       21 . The system of  claim 15 , wherein, when a bid or offer is being displayed at a non-standard price increment, this bid or offer is only displayed to the participants who had entered a bid or offer prior to the transitioning to the trade state.  
   
   
       22 . The system of  claim 15 , wherein, when a bid is being displayed at a non-standard price increment, this bid is only displayed to the participants who had entered the best offer.  
   
   
       23 . The system of  claim 15 , wherein, when an offer is being displayed at a non-standard price increment, this offer is only displayed to the participants who had entered the best bid.  
   
   
       24 . The system of  claim 15 , wherein, when a bid is being displayed at a non-standard price increment, and the bid being displayed at a non-standard price is the best bid, then the bid being displayed at a non-standard price is displayed at a standard price by reducing the bid to the next best standard price.  
   
   
       25 . The system of  claim 15 , wherein, when an offer is being displayed at a non-standard price increment, and the offer being displayed at a non-standard price is the best offer, then the offer being displayed at a non-standard price is displayed at a standard price by increasing the offer to the next best standard price.  
   
   
       26 . The system of  claim 15 , wherein, the bid or offer is capable of being displayed at a non-standard price increment only when the bid or offer at a non-standard price is between the best bid and the best offer.  
   
   
       27 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item, the bids and offers, except for the best bid and best offer, capable of being displayed at a non-standard price increment and that, in response to a hit or lift of one or more of the entered bids or offers, and to (2) transition to a system trading state which executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift.    
   
   
       28 . The method of  claim 27 , wherein, the system trading state provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading.  
   
   
       29 . The method of  claim 28 , during the period of exclusivity, queueing participants that enter a hit or lift with respect to a bid or offer at a price other than the defined price and guaranteeing the completion of the queued hit or lift.  
   
   
       30 . The method of  claim 27 , wherein, when a bid or offer is being displayed at a non-standard price increment, displaying the bid or offer at a non-standard price increment only to the trade participants.  
   
   
       31 . The method of  claim 27 , wherein, when a bid or offer is being displayed at a non-standard price increment, displaying the bid or offer at a non-standard price increment only to select trade participants.  
   
   
       32 . The method of  claim 27 , wherein, displaying the bid or offer at a non-standard price increment only to participants who qualify as market makers.  
   
   
       33 . The method of  claim 27 , wherein, when a bid or offer is being displayed at a non-standard price increment, displaying the bid or offer at a non-standard price increment only to the participants who had entered a bid or offer prior to the transitioning to the trade state.  
   
   
       34 . The method of  claim 27 , wherein, when a bid or offer is being displayed at a non-standard price increment, displaying the bid or offer at a non-standard price increment only to the participants who had entered the best offer.  
   
   
       35 . The method of  claim 27 , wherein, when a bid or offer is being displayed at a non-standard price increment, displaying the bid or offer at a non-standard price increment only to the participants who had entered the best bid.  
   
   
       36 . The method of  claim 27 , wherein, when a bid is being displayed at a non-standard price increment, and the bid being displayed at a non-standard price is the best bid, then reducing the bid being displayed at a non-standard price increment to the next best standard price.  
   
   
       37 . The method of  claim 27 , wherein, when an offer is being displayed at a non-standard price increment, and the offer being displayed at a non-standard price is the best offer, then increasing the offer being displayed at a non-standard price increment to the next best standard price.  
   
   
       38 . The method of  claim 27 , wherein, the bid or offer being capable of being displayed at a non-standard price increment only when the bid or offer at a non-standard price is between the best bid and the best offer.  
   
   
       39 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item, the bids and offers capable of being displayed together with an indication of price improvement, the bids and offers capable of being displayed to a select group of participants, (2) transitions to a system trading state which (a) executes a trade transaction in accordance with a hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading.    
   
   
       40 . The system of  claim 39 , wherein, the indication of price improvement is viewable only by the trade participants.  
   
   
       41 . The system of  claim 39 , wherein, the indication of price improvement is viewable only by select trade participants.  
   
   
       42 . The system of  claim 39 , wherein, the indication of price improvement is viewable only by participants who qualify as market makers.  
   
   
       43 . The system of  claim 39 , wherein, the indication of price improvement is viewable only by participants who had entered a bid or offer prior to the transitioning to the trade state.  
   
   
       44 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item, the bids and offers capable of being displayed together with an indication of price improvement, the bids and offers capable of being displayed to a select group of participants, (2) transitions to a system trading state which (a) executes a trade transaction in accordance with a hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading.    
   
   
       45 . The method of  claim 44 , further comprising displaying the indication of price improvement only to the aggressor participant and a designated passive participant.  
   
   
       46 . The method of  claim 44 , further comprising displaying the indication of price improvement only to select trade participants.  
   
   
       47 . The method of  claim 44 , further comprising displaying the indication of price improvement only to participants who qualify as market makers.  
   
   
       48 . The method of  claim 44 , further comprising displaying the indication of price improvement only to participants who had entered a bid or offer prior to the transitioning to the trade state.  
   
   
       49 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, and (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (3) communicates a computer readable message to each of the workstations wherein the computer readable message includes an indication that a buy, sell, bid or offer is clear only to a designated user for a predetermined time period.    
   
   
       50 . The system of  claim 49 , wherein the computer readable message includes an indication that the item is available at a particular price.  
   
   
       51 . The system of  claim 49 , wherein the computer readable message includes an indication that the item is available at a particular size.  
   
   
       52 . The system of  claim 49 , wherein the computer readable message is communicated to an application programming interface that is resident in each of the workstations.  
   
   
       53 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, and (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (3) communicate a computer readable message to each of the workstations wherein the computer readable message includes an indication that a buy, sell, bid or offer is clear only to a designated user for a predetermined time period.    
   
   
       54 . The method of  claim 53 , further comprising including an indication in the computer readable message, the indication that indicates the item is available at a particular price.  
   
   
       55 . The method of  claim 53 , further comprising including an indication in the computer readable message, the indication that indicates the item is available at a particular size.  
   
   
       56 . The method of  claim 53 , further comprising communicating the computer readable message to an application programming interface that is resident in at least one of the workstations.  
   
   
       57 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, and (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (3) communicates a computer readable message to each of the workstations wherein the computer readable message includes an indication that a buy, sell, bid or offer will be available at a particular price to a designated user within a pre-determined time.    
   
   
       58 . The system of  claim 57 , wherein the computer readable message includes an indication that the item is available at a particular price.  
   
   
       59 . The system of  claim 57 , wherein the computer readable message includes an indication that the item is available at a particular size.  
   
   
       60 . The system of  claim 57 , wherein the computer readable message is communicated to an application programming interface that is resident in each of the workstations.  
   
   
       61 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, and (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (3) communicate a computer readable message to each of the workstations wherein the computer readable message includes an indication that a buy, sell, bid or offer will be available at a particular price to a designated user within a pre-determined time.    
   
   
       62 . The system of  claim 61 , wherein the computer readable message includes an indication that the item is available at a particular price.  
   
   
       63 . The system of  claim 61 , wherein the computer readable message includes an indication that the item is available at a particular size.  
   
   
       64 . The system of  claim 61 , wherein the computer readable message is communicated to an application programming interface that is resident in each of the workstations.  
   
   
       65 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (c) during the period of exclusivity, queues participants that enter a hit or lift with respect to a bid or offer at a price other than the defined price and guarantees the completion of the queued hit or lift.    
   
   
       66 . The system of  claim 65 , wherein, upon termination of the period of exclusivity, the programmed computer executes new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       67 . The system of  claim 65 , wherein, the trading system state guarantees the completion of the queued hit or lift at a price no worse than the price of the queued hit or lift.  
   
   
       68 . The system of  claim 65 , wherein, the trading system state guarantees the completion of the queued hit or lift at a price between the price of the queued hit or lift and the defined price.  
   
   
       69 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (c) during the period of exclusivity, queue participants that enter a hit or lift with respect to a bid or offer at a price other than the defined price and guarantees the completion of the queued hit or lift.    
   
   
       70 . The method of  claim 69 , further comprising, upon termination of the period of exclusivity, executing new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       71 . The method of  claim 69 , guaranteeing the completion of the queued hit or lift at a price no worse than the price of the queued hit or lift.  
   
   
       72 . The method of  claim 69 , guaranteeing the completion of the queued hit or lift at a price between the price of the queued hit or lift and the defined price.  
   
   
       73 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift when the defined price is within a predetermined delta of the highest priced passive participant's bid or the lowest priced passive participant's offer, and (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading.    
   
   
       74 . The system of  claim 73 , wherein, upon termination of the period of exclusivity, the programmed computer executes new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       75 . The system of  claim 73 , further comprising, upon termination of the period of exclusivity, providing an opportunity for other participants to hit or lift one of the bids or offers having a different price than the defined price.  
   
   
       76 . The system of  claim 73 , wherein, upon termination of the period of exclusivity, new trade transactions involving the other participants are tested for and executed at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       77 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift when the defined price is within a predetermined delta of the highest priced passive participant's bid or the lowest priced passive participant's offer, and (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading.    
   
   
       78 . The method of  claim 77  wherein, upon termination of the period of exclusivity, executing new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       79 . The method of  claim 77 , further comprising, upon termination of the period of exclusivity, providing an opportunity for other participants to hit or lift one of the bids or offers having a different price than the defined price.  
   
   
       80 . The method of  claim 77 , upon termination of the period of exclusivity, testing for and executing new trade transactions involving the other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       81 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (c) during the period of exclusivity, allows the aggressor participant to transfer exclusivity to a different price.    
   
   
       82 . The system of  claim 81 , wherein, upon transfer of exclusivity of the aggressor participant, the system trading state allows for truncation of the aggressor participant's exclusivity at the defined price by a participant other than the aggressor participant.  
   
   
       83 . The system of  claim 81 , wherein, upon transfer of exclusivity of the aggressor participant, the system trading state allows for assumption of the aggressor participant's exclusivity at the defined price by a participant other than the aggressor participant.  
   
   
       84 . The system of  claim 81 , wherein, upon termination of the period of exclusivity, the programmed computer executes new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       85 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (c) during the period of exclusivity, allow the designated passive participant to transfer exclusivity to a different price.    
   
   
       86 . The method of  claim 85 , further comprising, upon transfer of exclusivity of the designated passive participant, allowing for truncation of the designated passive participant's exclusivity at the defined price by a participant other than the aggressor participant.  
   
   
       87 . The method of  claim 85 , wherein, upon transfer of exclusivity of the designated passive, allowing for assumption of the designated passive participant's exclusivity at the defined price by a participant other than the designated passive participant.  
   
   
       88 . The system of  claim 85 , wherein, upon termination of the period of exclusivity, executing new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       89 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (c) during the period of exclusivity, allows the aggressor participant to transfer exclusivity to a different price.    
   
   
       90 . The method of  claim 89 , further comprising, upon transfer of exclusivity of the aggressor participant, allowing for truncation of the aggressor participant's exclusivity at the defined price by a participant other than the aggressor participant.  
   
   
       91 . The method of  claim 89 , further comprising, upon transfer of exclusivity of the aggressor participant, allowing for assumption of the aggressor participant's exclusivity at the defined price by a participant other than the aggressor participant.  
   
   
       92 . The method of  claim 89 , further comprising, upon termination of the period of exclusivity, executing new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       93 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which (a) executes a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift, (b) provides a period of exclusivity enabling the aggressor participant and a designated passive participant to control subsequent trading by executing transactions between the aggressor and designated passive participant of additional volume of the item at the defined price to the exclusion of other participants desiring to participate in the trading, and (c) during the period of exclusivity, allow the designated passive participant to transfer exclusivity to a different price.    
   
   
       94 . The system of  claim 93 , further comprising, upon transfer of exclusivity of the designated passive participant, allowing for truncation of the designated passive participant's exclusivity at the defined price by a participant other than the aggressor participant.  
   
   
       95 . The system of  claim 93 , further comprising, upon transfer of exclusivity of the designated passive, allowing for assumption of the designated passive participant's exclusivity at the defined price by a participant other than the designated passive participant.  
   
   
       96 . The system of  claim 93 , further comprising, upon termination of the period of exclusivity, executing new trade transactions involving other participants at the defined price without providing the other participants a period of exclusivity to control trading.  
   
   
       97 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which guarantees the execution of a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift without confirming a passive participant.    
   
   
       98 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which guarantees the execution of a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift without identifying a passive participant.    
   
   
       99 . A system for trading an item between an aggressor participant and one or more passive participants, comprising: 
 a first workstation that receives bids or offers from the passive participants for the item at select prices and volumes;    a second workstation that receives a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    a programmed computer, coupled to the workstations, that (1) provides a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transitions to a system trading state which guarantees the execution of a trade transaction in accordance with the hit or lift without confirming the price of the trade.    
   
   
       100 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which guarantees the execution of a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift without confirming a passive participant.    
   
   
       101 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which guarantees the execution of a trade transaction in accordance with the hit or lift at a defined price set by the hit or lift without identifying a passive participant.    
   
   
       102 . A method for trading an item between an aggressor participant and one or more passive participants, the method comprising: 
 receiving on a first workstation bids or offers from the passive participants for the item at select prices and volumes;    receiving on a second workstation a trade command from the aggressor participant to hit or lift one or more of the bids or offers in order to sell or buy a desired volume of the item at a desired price; and    using a programmed computer, the programmed computer coupled to the workstations, to (1) provide a system bid/offer state enabling the passive participants to participate by entering bids or offers with respect to the item and that, in response to a hit or lift of one or more of the entered bids or offers, (2) transition to a system trading state which guarantees the execution of a trade transaction in accordance with the hit or lift without confirming the price of the trade.