Method And Apparatus For Processing And Routing Transactions

Abstract

Option orders are processed by receiving an option order, the option order including information identifying a customer, and information identifying a desired option. One of a plurality of option exchanges is selected to complete the option order, the selecting based on information identifying the customer and the desired option. In some embodiments, a routing rule is selected based on the information identifying a customer.

1 . A method for processing option orders, comprising:
 receiving an option order, said option order including information identifying a customer, and information identifying a desired option; and   selecting, based on said information identifying said customer and said desired option, one of a plurality of option exchanges to complete said option order.   
     
     
         2 . The method of  claim 1 , further comprising:
 selecting, based on said information identifying a customer, a routing rule.   
     
     
         3 . The method of  claim 1 , wherein said selecting is further based on said desired option. 
     
     
         4 . The method of  claim 1 , further comprising:
 causing said option order to be transmitted to said selected option exchange for completion.   
     
     
         5 . The method of  claim 2 , said information identifying said desired option including information identifying a security underlyer, an expiration date, a price, and a quantity, the method further comprising:
 comparing at least one of said security underlyer and said quantity to said routing rule to identify said selected one of said plurality of option exchanges.   
     
     
         6 . The method of  claim 5 , wherein said option order further includes information identifying an order type, wherein said order type is selected from the group consisting of: a market order, and a marketable limit order. 
     
     
         7 . The method of  claim 6 , further comprising:
 determining that said routing rule lacks explicit routing instructions for said desired option;   identifying a specialist associated with said desired option; and   identifying specialist pricing for said desired option.   
     
     
         8 . The method of  claim 7 , further comprising:
 retrieving current national best bid and offer (NBBO) pricing data for said desired option; and   comparing said current NBBO pricing data said specialist pricing for said desired option to determine if said option order can be routed to said specialist.   
     
     
         9 . The method of  claim 6 , further comprising:
 determining that said routing rule lacks explicit routing instructions for said option;   identifying, based on said information identifying said desired option and said routing rule, a second routing rule; and   routing said option order based on said second routing rule.   
     
     
         10 . The method of  claim 6 , further comprising:
 determining that said routing rule lacks explicit routing instructions for said desired option;   determining that no specific routing instructions exist for said option order; and   identifying NBBO data for said desired option, said NBBO data including data identifying at least a first exchange having NBBO pricing; and   routing said option order to said at least first exchange.   
     
     
         11 . A method, initiated by a customer, for processing an options order including data identifying said customer, an underlying security, and an amount, the method comprising:
 communicating at least a first routing rule to a routing system; and   transmitting said options order to said routing system and causing said routing system to route said options order to an options exchange based on a comparison of said at least first routing rule to said options order.   
     
     
         12 . The method of  claim 11 , wherein said at least first routing rule includes explicit routing instructions for options orders including at least a first security underlyer. 
     
     
         13 . The method of  claim 11 , further comprising:
 communicating a restricted trade list to said routing system, said restricted trade list including a plurality of security underlyers which cannot be traded by said customer.   
     
     
         14 . (canceled) 
     
     
         15 . A method for processing option orders, comprising:
 receiving an option order, said option order including information identifying a customer, and information identifying a desired option;   identifying a set of routing rules associated with said customer;   determining that said set of routing rule lacks explicit routing instructions for said option;   identifying national best bid and offer (NBBO) data for said option, said NBBO data including data identifying a first exchange having pricing for said option near NBBO pricing; and   routing said option order to said first exchange.   
     
     
         16 . The method of  claim 15 , wherein said near NBBO pricing is within 0-20% of NBBO pricing. 
     
     
         17 . The method of  claim 15 , further comprising:
 identifying a second exchange having pricing for said option near NBBO pricing; and   routing said option order to the exchange having pricing nearest the NBBO pricing for said option.   
     
     
         18 - 21 . (canceled)