US2012330811A1PendingUtilityA1

Systems and methods for establishing first on the follow trading priority in electronic trading systems

66
Individually held — no corporate assignee on recordPriority: Jan 9, 2006Filed: Feb 17, 2012Published: Dec 27, 2012
Est. expiryJan 9, 2026(expired)· nominal 20-yr term from priority
Inventors:Howard W. LutnickJoseph C. NovielloMichael Sweeting
G06Q 40/00G06Q 40/04
66
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Claims

Abstract

A trading system transitions from a first state to a second state and may award a participant, when one or more criteria and/or a status of trading rights are met, with an exclusive and/or semi-exclusive right in the second state to trade on an incoming contra order.

Claims

exact text as granted — not AI-modified
1 . A method comprising:
 transitioning, by at least one processor, a trading system from a first state to a second state;   awarding, by the at least one processor, a first participant and a second participant with trading priority in the second state with respect to an incoming contra order when the second participant satisfies a status of trading rights in the first state and when the second participant satisfies one or more predetermined criteria in the first state; and   providing, by the at least one processor, the second participant with an option to obtain exclusive trading priority in the second state with respect to the incoming contra order.   
     
     
         2 . The method of  claim 1 , in which the second participant satisfies the status of trading rights in the first state when the second participant has no existing best order and made a trade in the first state. 
     
     
         3 . The method of  claim 1 , in which the one or more predetermined criteria includes the trade satisfying a minimum size requirement. 
     
     
         4 . The method of  claim 1 , in which awarding the first participant and the second participant with trading priority comprises awarding the first participant and the second participant with a semi-exclusive right to trade on the incoming contra order, and
 in which providing the second participant with the option to obtain exclusive trading priority comprises providing the second participant with the option to obtain an exclusive right to trade on the incoming contra order.   
     
     
         5 . The method of  claim 1 , in which awarding the first participant and the second participant with trading priority in the second state comprises awarding the first participant and the second participant with trading priority for at least one of:
 a predetermined time period, and   a time up to the second participant accepting the option to obtain exclusive trading priority in the second state.   
     
     
         6 . The method of  claim 1 , further comprising awarding the first participant with exclusive trading priority in the second state if the second participant does not accept the option to obtain exclusive trading priority in the second state. 
     
     
         7 . The method of  claim 1 , in which the second participant has a predetermined time period to accept the option to obtain exclusive trading priority in the second state. 
     
     
         8 . The method of  claim 1 , in which the second participant may accept the option to obtain exclusive trading priority in the second state by subsequently entering an order. 
     
     
         9 . The method of  claim 1 , in which the second participant may accept the option to obtain exclusive trading priority in the second state by subsequently entering, in the second state, an order that satisfies one or more predetermined criteria. 
     
     
         10 . The method of  claim 1 , in which the second participant may accept the option to obtain exclusive trading priority in the second state by subsequently entering, in the second state, an order that satisfies a minimum size requirement. 
     
     
         11 . The method of  claim 1 , in which the second participant may accept the option to obtain exclusive trading priority in the second state without entering an order. 
     
     
         12 - 13 . (canceled) 
     
     
         14 . A method comprising:
 transitioning, by at least one processor, a trading system from a first state to a second state;   awarding, by the at least one processor, a first participant and a second participant with trading priority in the second state with respect to an incoming contra order when the second participant satisfies a status of trading rights in the first state; and   awarding, by the at least one processor, the second participant with exclusive trading priority in the second state with respect to the incoming contra order if the second participant subsequently enters, in the second state, an order that satisfies one or more predetermined criteria.   
     
     
         15 . The method of  claim 14 , in which the second participant satisfies the status of trading rights in the first state when the second participant has no existing best order and made a trade in the first state. 
     
     
         16 . The method of  claim 14 , in which the second participant satisfies the status of trading rights in the first state when the second participant has no existing best order and made, in the first state, a trade that also satisfies a minimum size requirement. 
     
     
         17 . The method of  claim 14 , in which awarding the first participant and the second participant with trading priority comprises awarding the first participant and the second participant with a semi-exclusive right to trade on the incoming contra order, and
 in which awarding the second participant with exclusive trading priority comprises awarding the second participant with an exclusive right to trade on the incoming contra order if the second participant subsequently enters the order that satisfies the one or more predetermined criteria.   
     
     
         18 . The method of  claim 14 , in which awarding the first participant and the second participant with trading priority in the second state comprises awarding the first participant and the second participant with trading priority for at least one of:
 a predetermined time period, and   a time up to the second participant entering, in the second state, the order that satisfies the one or more predetermined criteria.   
     
     
         19 . The method of  claim 14 , further comprising awarding the first participant with exclusive trading priority in the second state if the second participant does not subsequently enter the order that satisfies the one or more predetermined criteria. 
     
     
         20 . The method of  claim 14 , in which the second participant has a predetermined time period to subsequently enter the order that satisfies the one or more predetermined criteria. 
     
     
         21 - 22 . (canceled) 
     
     
         23 . A computer readable medium comprising a program that when executed performs the method of  claim 14 . 
     
     
         24 . An apparatus, comprising:
 at least one processor; and   at least one memory having instructions stored thereon which, when executed by the at least one processor, direct the at least one processor to perform a method comprising:
 transitioning a trading system from a first state to a second state; 
 awarding a first participant and a second participant with trading priority in the second state with respect to an incoming contra order when the second participant satisfies a status of trading rights in the first state and when the second participant satisfies one or more predetermined criteria in the first state; and 
 providing the second participant with an option to obtain exclusive trading priority in the second state with respect to the incoming contra order.

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