Method and apparatus for trading securities or other instruments

Abstract

A method and apparatus for trading securities trades on behalf of customers expressing orders in both share and dollar amounts. Where a brokerage receives orders from customers in both dollar and share amounts, the brokerage can combine the orders, e.g., by aggregating and netting, and executing the outstanding orders through a market maker. The number of shares to order through the market maker depends on the price at which the market maker can execute. By capturing the spread, the spread can be equitably distributed among buyers and sellers without regard for whether the order was received as a value-based order or a share-based order.

1 . A method for processing a plurality of trading orders for at least one instrument comprising: 
 combining a value-based order for the at least one instrument and a share-based order for at least one instrument to form a final order for the at least one instrument.    
   
   
       2 . A computer readable medium storing instructions that, when executed by a processor, cause the processor to: 
 combine a value-based order for the at least one instrument and a share-based order for at least one instrument to form a final order for the at least one instrument.    
   
   
       3 . A method for processing a plurality of orders for at least one instrument comprising: 
 receiving a plurality of value-based orders for the at least one instrument from a first plurality of investors; and    receiving a plurality of share-based orders for the at least one instrument from a second plurality of investors.    
   
   
       4 . A method for allocating price among a plurality of investors that include at least one buyer and at least one seller of a security, comprising: 
 receiving a plurality of trading orders from the plurality of investors, some of which plurality of trading orders are expressed as value-based orders and some of which plurality of trading orders are expressed as share-based orders; and    assigning a midpoint price between an ask price and a bid price to each trading order.    
   
   
       5 . A method for processing a plurality of trading orders for an instrument comprising: 
 receiving a plurality of currency-based trading orders;    receiving a plurality of share-based trading orders;    netting all currency-based trading orders in a similar currency to create a plurality of single-similar-currency-based trading orders;    converting the plurality of single-similar-currency-based trading orders into a plurality of standard-currency-based trading orders using a predetermined currency exchange rate;    netting the plurality of standard-currency-based trading orders to create a single standard-currency-based trading order;    converting the single standard-currency-based trading order to a share-based trading order using a predetermined price for the instrument in the standard currency; and    netting the converted single standard-currency-based trading order and the single share-based trading order to form a final trading order.    
   
   
       6 . A method for processing a plurality of trading orders for an instrument comprising: 
 receiving a plurality of value-based trading orders, each specified in a particular value basis;    receiving a plurality of share-based trading orders;    netting all value-based trading orders in a similar value basis to create a plurality of single-similar-value-basis-value-based trading orders;    converting the plurality of single-similar-value-basis-value-based trading orders into a plurality of standard-currency-based trading orders using a predetermined exchange rate with regard to the value basis in the standard currency;    netting the plurality of standard-currency-based trading orders to create a single standard-currency-based trading order;    converting the single standard-currency-based trading order to a share-based trading order using a predetermined price for the instrument in the standard currency; and    netting the converted single standard-currency-based trading order and the single share-based trading order to form a final trading order.    
   
   
       7 . A method for trading a plurality of orders for at least one instrument comprising the steps of: 
 receiving a plurality of value-based orders for the at least one instrument, wherein the plurality of value-based orders are specified in a value basis different from that in which the instrument is otherwise priced;    receiving a plurality of share-based orders for the at least one instrument from a second plurality of investors; and    executing at least one trade in the at least one instrument.    
   
   
       8 . A method for expressing a trading order for an instrument that is traded and priced in a first value basis comprising: 
 expressing a quantity of an order for the instrument in a second value basis, wherein the second value basis is different that the first value basis.    
   
   
       9 . A method for expressing a trading order for an instrument comprising: 
 expressing an order for the instrument based on a cumulative effect execution of the order will have on an existing portfolio of investments; and    transmitting the order to a third party for execution.