System and method for direct client access for management of securities transactions

Abstract

A computer implemented system and method provides for transmission of a parent shell order of which no portion is placed for execution until a respective child order is obtained. The shell order can be received from a device of an exchange member on behalf of a member's customer and the child orders can be received directly from a device operated by the customer.

1 . A computer-implemented method, comprising:
 storing a predefined algorithm;   obtaining, by a computer processor, a parent order identifying the predefined algorithm;   responsive to the parent order, in accordance with the stored predefined algorithm, recording, by the processor, the parent order without placing the parent order for execution;   obtaining, by the processor, a child order identifying the parent order; and   responsive to the child order, placing, by the processor, a first portion of the parent order for execution;   wherein, in accordance with the stored predefined algorithm, all portions of the parent order that do not correspond to any child order associated with the parent order remain unexecuted.   
     
     
         2 . The method of  claim 1 , wherein the parent order is a day order, all portions of which that are unfilled by an end of a defined trading day, are canceled. 
     
     
         3 . The method of  claim 1 , wherein the parent order is obtained directly from a first device associated with a trading representative and the child order is obtained directly from a second device associated with and controlled by a customer for whom the parent and child orders are placed. 
     
     
         4 . The method of  claim 1 , further comprising:
 responsive to the obtaining the parent order, in accordance with the stored predefined algorithm, splitting the parent order into a buy parent order for a number of shares and a sell parent order for the number of shares.   
     
     
         5 . The method of  claim 4 , wherein the number of shares is specified in the obtained parent order. 
     
     
         6 . The method of  claim 1 , wherein the child order is one of a plurality of child orders identifying the parent order, different portions of the parent order being placed for execution in response to different ones of the obtained child orders. 
     
     
         7 . The method of  claim 1 , wherein the parent order is obtained in a Financial Information Exchange (FIX) protocol session. 
     
     
         8 . The method of  claim 7 , wherein the child order is obtained in a FIX protocol session separate from the FIX protocol session in which the parent order is obtained. 
     
     
         9 . The method of  claim 8 , wherein the FIX protocol session in which the parent order is obtained is between a device of a customer trading representative and a device housing the computer processor, and the FIX protocol session in which the child order is obtained is between a device operated by a customer for whom the child order is placed for execution. 
     
     
         10 . The method of  claim 9 , wherein the FIX protocol session in which the parent order is obtained is initiated by the device of the customer trading representative and is usable for entering orders for a plurality of customers throughout a trading day in which the respective FIX protocol session was initiated, and the FIX protocol session in which the child order is obtained is initiated by the device operated by the customer and is usable throughout the trading day in which the respective FIX protocol session was initiated for entering only child orders of parent orders previously placed by one or more customer trading representative devices. 
     
     
         11 . The method of  claim 10 , further comprising:
 upon execution of the child order, transmitting a report of the execution of the child order to the device operated by the customer in a FIX protocol session between the device operated by the customer and a device housing the computer processor, initiated separate from the FIX protocol session in which the child order is transmitted from the device operated by the customer.   
     
     
         12 . The method of  claim 1 , wherein the parent order and the child order are obtained directly from one of (a) a same device and (b) devices associated with a same trading representative. 
     
     
         13 . The method of  claim 1 , further comprising:
 responsive to the child order, decrementing, by the processor, an amount of the parent order remaining for placement for execution.   
     
     
         14 . A computer-implemented method, comprising:
 obtaining, by a computer processor, a parent order with a placement instruction;   responsive to the parent order and in accordance with the placement instruction, recording, by the processor, the parent order without placing the parent order for execution;   obtaining, by the processor, a child order identifying the parent order; and   responsive to the child order, placing, by the processor, a first portion of the parent order for execution;   wherein, in accordance with the placement instruction, execution of each portion of the parent order is conditional upon receipt of a respective child order associated with the respective portion of the parent order.   
     
     
         15 . The method of  claim 14 , wherein the parent order is obtained directly from a device registered with a trading representative on behalf of a customer, and the child order is obtained directly from a device operated by the customer. 
     
     
         16 . A computer-implemented method, comprising:
 transmitting, by a computer processor, a parent order and an associated non-execution instruction, on behalf of a customer to a server of an order placement entity, the non-execution instruction indicating that the parent order is to be queued without placement of any portion thereof for execution sans a follow-up trigger; and   transmitting, by the computer processor, a child order to the server of the order placement entity, the child order being a follow-up trigger identifying the parent order, a portion of the parent order being placed for execution by the server responsive to the child order;   wherein, in accordance with the non-execution instruction, none of the parent order is placed for execution prior to receipt by the server of the order placement entity of any follow-up trigger.   
     
     
         17 . The method of  claim 16 , wherein the computer processor executes an algorithm to automatically generate a plurality of child orders of the parent order throughout a predefined trading period. 
     
     
         18 . The method of  claim 17 , wherein obtained market conditions, which vary throughout the trading period, are used as triggers for generating the child orders. 
     
     
         19 . A computer-implemented method, comprising:
 transmitting, by a computer processor and directly to a server at which a parent security transaction order is recorded, child orders identifying the parent security transaction order, the child orders causing the server to place respective portions of the parent security transaction order for execution;   wherein, for each portion of the parent security transaction order, placement of the respective portion is conditional upon receipt by the server of a respective child order.   
     
     
         20 . The method of  claim 19 , wherein the computer processor is operated by a customer for whom shares of a security identified in the parent security transaction order are bought or sold in response to the child orders. 
     
     
         21 . The method of  claim 20 , wherein the parent security transaction order is placed by a device registered to a trading representative entity directly to the server. 
     
     
         22 . The method of  claim 21 , wherein each portion of the parent security transaction order placed for execution in response to respective child orders received from the computer processor is provided an order matching priority of the trading representative entity.