Automated trading exchange system having integrated quote risk monitoring and integrated quote modification services

Abstract

An automated trading exchange having integrated quote risk monitoring and quote modification services. An apparatus is implemented using at least one computer configured to receive orders and quotes, wherein specified ones of the quotes are contained in a quote group, and have associated trading parameters such as a risk threshold. The computer generates a trade by matching received orders and quotes to previously received orders and quotes, and then determines whether a quote within the quote group has been filled as a result of the generated trade, and if so, determines a risk level and an aggregate risk level associated with said trade. The computer then compares the aggregate risk level with the market-maker's risk threshold, and if the threshold is exceeded, automatically modifies at least one of the remaining quotes in the quote group. The computer may also automatically regenerate quotes that have been filled.

1 .- 30 . (canceled) 
     
     
         31 . An automated trading exchange having integrated quote risk monitoring, comprising:
 at least one server computer comprising a memory, and a processor, said server computer configured to:   receive electronically from users, orders and quotes, wherein specified ones of said quotes belong to a quote group, and user specified threshold parameters associated with specified ones of said quotes;   match orders and quotes from said received orders and quotes in order to execute trades;   determine whether a quote having associated user specified threshold parameters has been filled as a result of a generated trade, and if so, determining a number of contracts bought or sold within said quote group, including said generated trade;   compare said number of contracts bought or sold within said quote group with said user specified threshold parameters associated with specified ones of said quotes; and   if said user specified threshold parameters associated with specified ones of said quotes is exceeded, to remove automatically at least one of remaining specified ones of said quotes in said quote group from being eligible to be matched.   
     
     
         32 . The automated trading exchange of  claim 31 , wherein said user specified threshold parameters include a percentage threshold, and said at least one server computer is further configured to:
 calculate a percentage of total quotes that have been traded based on said number of contracts that have been bought or sold comprises a total number of put contracts bought or sold;   compare said calculated percentage to said percentage threshold; and   if said percentage threshold is exceeded, remove automatically at least one of said remaining specified ones of said quotes in said quote group from being eligible to be matched.   
     
     
         33 . The automated trading exchange of  claim 31 , wherein said user specified threshold parameters include a net threshold, and said at least one server computer is further configured to:
 calculate an absolute value of a net between contracts bought and contracts sold;   
       compare the calculated absolute value to said net threshold; and
 if said net threshold is exceeded, remove automatically at least one of said remaining specified ones of said quotes in said quote group from being eligible to be matched. 
 
     
     
         34 . The automated trading exchange of  claim 31 , wherein said user specified threshold parameters include a net threshold, and said at least one server computer is further configured to:
 calculate an absolute value of a net between (a) calls purchased plus puts sold, and (b) calls sold plus puts purchased;   compare said calculated absolute value to a net threshold; and   if said net threshold is exceeded, to remove automatically at least one of said remaining specified ones of said quotes in said quote group from being eligible to be matched.