Hidden book trading system and method

Abstract

Presented is a system and method for performing crossing of institutional security orders. The system includes a first server interconnected to a second server and client stations across a communication network. The first server includes a database and is configured to receive institutional orders from the client station, which are stored in the database. The first server includes operating instructions operable to determine whether a match exists between contra institutional orders based on predetermined criteria. Upon determination of a match, the first server forwards a child order composed of at least a portion of one of the contra orders to the second server. At a fraction of a second later, the first server forwards the other of the contra orders to the second server followed by the remaining portion of the contra order.

1 - 12 . (canceled) 
   
   
       13 . A system for performing crossing of institutional security orders comprising:
 a first server connected across a communication network to at least one second server and at least one client station;   the first server including a database, and configured to receive at least first and second institutional orders from the client station, the first and second institutional orders being stored in the database, wherein the first and second institutional orders are contra orders;   the first server further including operating instructions operable to determine whether a match exists between the contra orders, wherein the match determination is based on predetermined criteria;   the operating instructions, upon the determination of a match, being further operable to instruct the first server to forward a child order composed of at least a portion of one of the contra orders to the second server, and further operable to subsequently instruct the first server to forward a portion of the other of the contra orders to the second server;   wherein the system is further configured to recall liquid portions of the child order so as to return liquidity a in the contra orders to the system, so that the liquidity is used to create at least one match within the system; and   the operating instructions being further operable to forward the system created match to one or more of the at least one second servers for execution.