US2011302073A1PendingUtilityA1

Method and apparatus for price improvement, participation, and internalization

55
Individually held — no corporate assignee on recordPriority: Jul 21, 2000Filed: Jul 12, 2011Published: Dec 8, 2011
Est. expiryJul 21, 2020(expired)· nominal 20-yr term from priority
Inventors:Anthony J. Saliba
G06Q 40/06G06Q 40/04G06Q 40/00
55
PatentIndex Score
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Claims

Abstract

A method for stock option trading includes receiving an option order at a market, contemporaneously receiving a copy of the option order at an electronic drop (EDrop) system, which is separate and distinct from the market, obtaining a potential cross quantity and a potential cross price based on the option order at the EDrop system, and submitting, through the EDrop system, a contra-order, with respect to the option order, to the market for fulfillment, wherein the contra-order specifies at least one of an underlying security potential cross quantity, and the potential cross price.

Claims

exact text as granted — not AI-modified
1 . A method for stock option trading comprising:
 receiving an option order at a server;   contemporaneously receiving the option order at an electronic drop (EDrop) system; and   automatically generating a match with respect to the option order, wherein the match specifies at least one of an underlying security potential cross quantity, and the potential cross price.   
     
     
         2 . The method of  claim 1 , wherein the contemporaneously receiving comprises receiving an option order selected from the group of option orders consisting of buy calls, sell calls, buy puts, and sell puts. 
     
     
         3 . The method of  claim 1 , wherein the automatically generating comprises automatically generating a sell call when the option order is a buy call option order, and automatically generating a buy call when the option order is a sell call option order. 
     
     
         4 . The method of  claim 1 , wherein the automatically generating comprises automatically generating a sell put when the option order is a buy put option order, and automatically generating a buy put when the option order is a sell put option order. 
     
     
         5 . The method of  claim 1 , further comprising displaying at least an underlying security, am option quantity, at least one of an option bid price and option ask price, and an ask price at a trader terminal, and monitoring the trader terminal for a submit indicator. 
     
     
         6 . The method of  claim 5 , wherein the displaying further comprises displaying underlying security bid and ask prices at the market. 
     
     
         7 . The method of  claim 5 , wherein the displaying further comprises displaying risk management variables. 
     
     
         8 . The method of  claim 1 , wherein the EDrop system is remotely located from the market. 
     
     
         9 . A method of trading in a securities trading network having a market, the method comprising:
 receiving an order sent to a market at a first server;   automatically obtaining a contra-order based on the order at the first server; and   submitting a match of the order and contra-order to a second server.   
     
     
         10 . The method of  claim 9 , wherein the first server is separate and distinct from the market. 
     
     
         11 . The method of  claim 9 , wherein the order is one of a stock and index option order. 
     
     
         12 . The method of  claim 9 , wherein the receiving comprises receiving an order selected from a group of option orders consisting of buy calls, sell calls, buy puts, and sell puts. 
     
     
         13 . The method of  claim 9 , wherein the submitting comprises submitting a sell call when the order is a buy call order, and submitting a buy call when the order is a sell call order. 
     
     
         14 . The method of  claim 9 , wherein the submitting comprises submitting a sell put when the order is a buy put order, and submitting a buy put when the order is a sell put order. 
     
     
         15 . The method of  claim 9 , wherein the market matches the order and contra-order before submitting the order to the second server for fulfillment. 
     
     
         16 . The method of  claim 15 , wherein the second server is at an exchange. 
     
     
         17 . A trading network system, comprising:
 a market in communication with an electronic order flow provider through a network, the market configured to receive the order from the electronic order flow provider; and   a server in communication with the market, the server contemporaneously receiving the order, and wherein the server obtains a contra-order based on the order.   
     
     
         18 . The trading network system of  claim 17 , wherein the server is remote from the market. 
     
     
         19 . The trading network system of  claim 17 , wherein the server is separate and distinct from the market. 
     
     
         20 . The trading network system of  claim 17 , wherein the market matches the order and contra-order.

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