System and method for managing trading using alert messages for outlying trading orders

Abstract

According to one embodiment, a method of managing trading is provided. In a market for a particular type of instrument, buy orders and sell orders are received from a plurality of traders. Each buy order has an associated bid price and each sell order has an associated offer price. A determination is made of whether the particular trading order is an outlying trading order by determining whether the particular trading order differs from at least one comparison price by more than a threshold value. If it is determined that the particular trading is an outlying trading order, a restrictive action is taken regarding the outlying trading order. For example, if a trader subsequently submits another trading order that would trade with the outlying trading order, an alert message may be sent to the trader and the subsequent trading order may be prevented from trading with the outlying trading order at least temporarily.

1 . (canceled) 
     
     
         2 . An apparatus comprising:
 a memory;   a network interface;   a display device;   at least one processor to:
 receive trading orders, via the network interface, each trading order having a price; 
 render, on the display device, the trading orders on an order stack; 
 sort the trading orders on the order stack in accordance with a sort criteria such that an order at the top of the order stack is the first order; 
 in response to removing a given order from the order stack, compare a price of the first order to a value; 
 in response to determining that the price of the first order does not differ from the value by more than a threshold, permit interaction with the first order; 
 in response to determining that the price of the first order does differ from the value by more than the threshold, classify the first order as an outlying order, promote a new order to the top of the order stack, and render, via the display device, at least one space between the new order and the outlying order; and 
 in response to detecting interaction with the outlying order, render an alert on the display device indicating that the outlying order may have an erroneous price and render on the display device an opportunity to change the erroneous price. 
   
     
     
         3 . The apparatus of  claim 2 , wherein the at least one processor is further configured to determine a proposed modified price for the outlying order; and render the proposed modified price on the alert. 
     
     
         4 . The apparatus of  claim 3 , wherein the at least one processor is further configured to render on the display device a price of the outlying order, the price including a whole number component and a fractional number component. 
     
     
         5 . The apparatus of  claim 4 , wherein the proposed modified price for the outlying order includes a modification to the whole number component of the price. 
     
     
         6 . The apparatus of  claim 4 , wherein the at least one processor is further configured to modify an appearance of the whole number component on the display device. 
     
     
         7 . The apparatus of  claim 2 , wherein the at least one processor is further configured to prevent the outlying order from being transmitted to a trading exchange at least until a response to the alert is detected. 
     
     
         8 . The apparatus of  claim 2 , wherein the at least one processor is further configured to receive market information from one or more market information sources and determine the threshold based at least on the market information. 
     
     
         9 . A method executed by at least one processor, the method comprising:
 receiving trading orders, via a network interface, each trading order having a price;   rendering, on a display device, the trading orders on an order stack;   sorting the trading orders on the order stack in accordance with a sort criteria such that an order at the top of the order stack is the first order;   in response to removing a given order from the order stack, comparing a price of the first order to a value;   in response to determining that the price of the first order does not differ from the value by more than a threshold, permitting interaction with the first order;   in response to determining that the price of the first order does differ from the value by more than the threshold, classifying the first order as an outlying order, promoting a new order to the top of the order stack, and rendering, via the display device, at least one space between the new order and the outlying order; and   in response to detecting interaction with the outlying order, rendering an alert on the display device indicating that the outlying order may have an erroneous price and rendering on the display device an opportunity to change the erroneous price.   
     
     
         10 . The method of  claim 9 , further comprising determining a proposed modified price for the outlying order and rendering the proposed modified price on the alert. 
     
     
         11 . The method of  claim 10 , further comprising rendering on the display device a price of the outlying order, the price including a whole number component and a fractional number component. 
     
     
         12 . The method of  claim 11 , wherein the proposed modified price for the outlying order includes a modification to the whole number component of the price. 
     
     
         13 . The method of  claim 11 , further comprising modifying an appearance of the whole number component on the display device. 
     
     
         14 . The method of  claim 9 , further comprising preventing the outlying order from being transmitted to a trading exchange at least until a response to the alert is detected. 
     
     
         15 . The method of  claim 9 , further comprising receiving market information from one or more market information sources and determining the threshold based at least on the market information.