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

Abstract

Various systems and methods are provided for enabling one or more participants in an electronic trading system to have exclusive trading privileges. When one or more criteria and/or a status of trading rights are met, a trading system may award a participant with trading priority to trade on an incoming contra order. The participant may also have an associated order modified as a result of an incoming contra order and/or be caused to automatically trade on an incoming contra order.

1 - 41 . (canceled) 
     
     
         42 . A method, comprising:
 transitioning, by at least one processor of at least one computing device, an electronic trading system from a first trading state to a second trading state;   determining, by the at least one processor, from among a plurality of bids that are pending at a completion of the first trading state, a best bid,
 wherein the best bid comprises a bid having a best price from among the plurality of bids, 
 wherein the best bid is associated with a participant; 
   receiving, by the at least one processor, an offer in the second trading state;   determining, by the at least one processor, that a price of the best bid satisfies a price criterion with respect to a price of a trade made in the first state;   based at least in part on determining that a price of the best bid satisfies a price criterion with respect to a price of a trade made in the first state, presenting, by the at least one processor, the offer exclusively to the participant;   determining, by the at least one processor, that a different participant indicates a willingness to trade against the offer; and   based at least in part on determining that the different participant indicates the willingness to trade against the offer, automatically causing, by the at least one processor, the participant to trade against the offer.   
     
     
         43 . The method of  claim 42 , wherein the price criterion comprises the price of the best bid being within a predetermined delta of the price of the trade made in the first state. 
     
     
         44 . The method of  claim 42 , wherein determining that the different participant indicates the willingness to trade against the offer comprises:
 determining, by the at least one processor, that the different participant has a bid among the plurality of bids that are pending at a completion of the first trading state.   
     
     
         45 . The method of  claim 42 , further comprising:
 determining, by the at least one processor, that a size of the best bid satisfies a minimum size;   
       and 
       wherein the act of presenting the offer exclusively to the participant is further based at least in part on determining that the size of the best bid satisfies the minimum size. 
     
     
         46 . The method of  claim 45 , further comprising:
 determining, by the at least one processor, that a size of the offer satisfies a further minimum size;   
       and 
       wherein the act of presenting the offer exclusively to the participant is further based at least in part on determining that the size of the offer satisfies the further minimum size. 
     
     
         47 . The method of  claim 42 , further comprising:
 determining, by the at least one processor, that a size of the best bid exceeds a predetermined percentage of a size of the offer;   
       and 
       wherein the act of presenting the offer exclusively to the participant is further based at least in part on determining that the size of the best bid exceeds the predetermined percentage of the size of the offer. 
     
     
         48 . The method of  claim 42 , further comprising:
 determining, by the at least one processor, that the participant associated with the best bid purchased at least a minimum size in the first trading state; and   
       wherein the act of presenting the offer exclusively to the participant is further based at least in part on determining that the participant associated with the best bid purchased at least a minimum size in the first trading state. 
     
     
         49 . The method of  claim 42 , further comprising:
 determining, by the at least one processor, that a size of the offer exceeds a predetermined percentage of a size of the best bid;   
       and 
       wherein the act of presenting the offer exclusively to the participant is further based at least in part on determining that the size of the offer exceeds the predetermined percentage of the size of the best bid. 
     
     
         50 . The method of  claim 42 , further comprising:
 based at least in part on the act of determining that a price of the best bid satisfies a price criterion with respect to a price of a trade made in the first state, modifying, by the at least one processor, the best bid, wherein modifying the best bid does not affect the potential right to trade exclusively of the participant.   
     
     
         51 . The method of  claim 50 , wherein modifying the best bid comprises at least one of:
 reducing, by the at least one processor, a size of the best bid, and   decreasing, by the at least one processor, a price of the best bid.   
     
     
         52 . The method of  claim 50 , wherein modifying the best bid comprises:
 removing, by the at least one processor, the best bid.   
     
     
         53 . The method of  claim 42 , wherein presenting the offer exclusively to the participant comprises at least one of:
 causing, by the at least one processor, the offer to be shown only to the participant; and   making, by the at least one processor, the offer available to be traded against only by the participant.   
     
     
         54 . The method of  claim 42 , further comprising:
 determining that the offer has at least one of a best price and a time priority from among a plurality of offers pending in the second trading state;   
       and 
       wherein the act of presenting the offer exclusively to the participant is further based at least in part on determining that the offer has at least one of the best price and the time priority from among the plurality of offers pending in the second trading state. 
     
     
         55 . The method of  claim 42 , further comprising:
 determining, by the at least one processor, from among a plurality of offers that are pending at the completion of the first trading state, a best offer,
 wherein the best offer comprises an offer having a best price from among the plurality of offers, and 
 wherein the best offer is associated with another participant; 
   determining, by the at least one processor, that the another participant associated with the best offer sold at least a second minimum size in the first trading state; and   based at least in part on (i) determining the best offer and (ii) determining that the another participant associated with the best offer sold at least the second minimum size in the first trading state, awarding, by the at least one processor, the another participant with a potential right to trade exclusively against at least one bid received in the second trading state.   
     
     
         56 . An apparatus, comprising:
 at least one processor; and   at least one memory device electronically coupled to the at least one processor, wherein the at least one memory device stores instructions which, when executed by the at least one processor, direct the at least one processor to: transition an electronic trading system from a first trading state to a second trading state;   determine from among a plurality of bids that are pending at a completion of the first trading state, a best bid,
 wherein the best bid comprises a bid having a best price from among the plurality of bids, 
 wherein the best bid is associated with a participant; 
   receive an offer in the second trading state;   determine that a price of the best bid satisfies a price criterion with respect to a price of a trade made in the first state;   based at least in part on determining that a price of the best bid satisfies a price criterion with respect to a price of a trade made in the first state, presenting, by the at least one processor, the offer exclusively to the participant;   determine that a different participant indicates a willingness to trade against the offer; and   based at least in part on determining that the different participant indicates the willingness to trade against the offer, automatically cause the participant to trade against the offer.   
     
     
         57 . The method of  claim 56 , wherein the price criterion comprises the price of the best bid being within a predetermined delta of the price of the trade made in the first state. 
     
     
         58 . The method of  claim 56 , wherein the act of determining that the different participant indicates the willingness to trade against the offer comprises:
 determine that the different participant has a bid among the plurality of bids that are pending at a completion of the first trading state.   
     
     
         59 . The method of  claim 56 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to:
 determine that a size of the best bid satisfies a minimum size;   
       and 
       wherein the act of presenting the offer exclusively to the participant is further based at least in part on determining that the size of the best bid satisfies the minimum size. 
     
     
         60 . The method of  claim 59 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to:
 determine that a size of the offer satisfies a further minimum size;   
       and 
       wherein the act of presenting the offer exclusively to the participant is further based at least in part on determining that the size of the offer satisfies the further minimum size. 
     
     
         61 . A computer readable medium comprising a program that, when executed by at least one computing device, directs the at least one computing device to:
 transition an electronic trading system from a first trading state to a second trading state;   determine from among a plurality of bids that are pending at a completion of the first trading state, a best bid,
 wherein the best bid comprises a bid having a best price from among the plurality of bids, 
 wherein the best bid is associated with a participant; 
   receive an offer in the second trading state;   determine that a price of the best bid satisfies a price criterion with respect to a price of a trade made in the first state;   based at least in part on determining that a price of the best bid satisfies a price criterion with respect to a price of a trade made in the first state, presenting, by the at least one processor, the offer exclusively to the participant;   determine that a different participant indicates a willingness to trade against the offer; and   based at least in part on determining that the different participant indicates the willingness to trade against the offer, automatically cause the participant to trade against the offer.