Only-at-best trading orders in an electronic trading system

Abstract

Systems and methods of trading items on an electronic trading system according to the invention are provided. The embodiments of the invention are based at least in part on a new order type. The new order type is an only at best order type, whereby trades are preferably only executed at the best price the item is being bought or sold.

1 . (canceled) 
     
     
         2 . An apparatus comprising:
 at least one processor; and   at least one memory having instructions to store thereon which, when executed by the at least one processor, direct the at least one processor to:
 receive from a bidder an only-at-best bid to purchase a trading product, the only-at-best bid comprising a bid price, in which the at least one processor is configured to receive a plurality of bids and offers from a plurality of trading participants via a plurality of user workstations in electronic communication with the at least one processor; 
 determine that, at a time when the only-at-best bid is received by the at least one processor, at least two other trading participants are engaged in an active trading session for the trading product at a first price that is lower than the bid price, in which the at least two other trading participants comprise at least one seller of the trading product and at least one buyer of the trading product other than the bidder, and in which being engaged in an active trading session comprises being in a state of actively trading quantity of the trading product; 
 responsive to the first price is lower than the bid price, prevent execution of a trade related to the trading product until receipt of an acknowledgement message from the computing device of the bidder; and 
 responsive to the act of determining that at least two other trading participants are engaged in an active trading session for the trading product at a first price that is lower than the bid price at a time when the only-at-best bid is received by the at least one processor, decrease, by the at least one processor, the bid price of the only-at-best bid to the lower first price. 
   
     
     
         3 . The apparatus of  claim 2 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to: responsive to the first price lower than the bid price, generate electronic signals to cause to communicate an alert message directed to a graphical user interface of a computing device of the bidder, wherein the alert message indicates that the first price is lower than the bid price. 
     
     
         4 . The apparatus of  claim 2 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to: communicate an alert message, indicating that the first price is lower than the bid price, directed to a graphical user interface of a computing device of the bidder. 
     
     
         5 . The apparatus of  claim 2 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to: responsive to the first price lower than the bid price, generate electronic signals to cause to communicate an alert message directed to a graphical user interface of a computing device of the bidder. 
     
     
         6 . The apparatus of  claim 2 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to cause to be displayed a participant-selectable dialogue box that presents a selection to maintain the only-at-best bid and a selection to modify the only-at-best bid. 
     
     
         7 . The apparatus of  claim 2 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to receive by the at least one processor an instruction to enable an only-at-best setting applicable to the only-at-best bid. 
     
     
         8 . The apparatus of  claim 2 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to provide by the at least one processor a selectable setting that implements an only-at-best setting for a selected group of orders. 
     
     
         9 . The apparatus of  claim 2 , in which the only-at-best bid comprises a request to:
 if (a) the bid price is higher than (b) a best offer price of a best offer to sell the trading product that has already been received by the at least one processor at a time when the only-at-best bid is received by the at least one processor, then either:
 (i) execute a trade with the best offer at the best offer price, or 
 (ii) queue the only-at-best bid at the best offer price. 
   
     
     
         10 . The apparatus of  claim 9 , in which the only-at-best bid comprises a request to:
 if (a) the bid price is equal to or less than (b) a best offer price of a best offer to sell the trading product that has already been received by the at least one processor at a time when the only-at-best bid is received by the at least one processor, then treat the only-at-best bid as a regular bid.   
     
     
         11 . An apparatus comprising:
 at least one processor; and   at least one memory having instructions to store thereon which, when executed by the at least one processor, direct the at least one processor to:
 receive from an offeror an only-at-best offer to sell a trading product, the only-at-best offer comprising an offer price, in which the at least one processor is configured to receive a plurality of bids and offers from a plurality of trading participants via a plurality of user workstations in electronic communication with the at least one processor, in which the at least two other trading participants comprise at least one buyer of the trading product and at least one seller of the trading product other than the offeror; 
 determine that, at a time when the only-at-best offer is received by the at least one processor, at least two other trading participants are engaged in an active trading session for the trading product at a first price that is higher than the offer price; 
 responsive to the first price is higher than the offer price, prevent execution of a trade related to the trading product until receipt of an acknowledgement message from the computing device of the offeror; and 
 responsive to the act of determining that at least two other trading participants are engaged in an active trading session for the trading product at a first price that is higher than the offer price at a time when the only-at-best offer is received by the at least one processor, increase the offer price of the only-at-best offer to the higher first price. 
   
     
     
         12 . The apparatus of  claim 11 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to: communicate an alert message, indicating that the first price is lower than the bid price, directed to a graphical user interface of a computing device of the bidder. 
     
     
         13 . The apparatus of  claim 11 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to: responsive to the first price lower than the bid price, generate electronic signals to cause to communicate an alert message directed to a graphical user interface of a computing device of the bidder. 
     
     
         14 . The apparatus of  claim 11 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to cause to be displayed a participant-selectable dialogue box that presents a selection to maintain the only-at-best offer and a selection to modify the only-at-best offer. 
     
     
         15 . The apparatus of  claim 11 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to receive by the at least one processor an instruction to enable an only-at-best setting applicable to the only-at-best offer. 
     
     
         16 . The apparatus of  claim 11 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to provide by the at least one processor a selectable setting that implements an only-at-best requirement on a selected group of orders. 
     
     
         17 . The apparatus of  claim 11 , in which the only-at-best offer comprises a request to:
 if (a) the offer price is lower than (b) a best bid price of a best bid to purchase the trading product that has already been received by the at least one processor at a time when the only-at-best offer is received by the at least one processor, then either:
 (i) execute a trade with the best bid at the best bid price, or 
 (ii) queue the only-at-best offer at the best bid price. 
   
     
     
         18 . The apparatus of  claim 11 , in which the only-at-best offer comprises a request to:
 if (a) the offer price is equal to or greater than (b) a best bid price of a best bid to purchase the trading product that has already been received by the at least one processor at a time when the only-at-best offer is received by the at least one processor, then treat the only-at-best offer as a regular offer.   
     
     
         19 . An article of manufacture comprising: a computer-readable medium that is non-transitory, in which the computer-readable medium stores instructions which, when executed by a processor, direct the processor to:
 receive from a trading participant an only-at-best order to buy or sell an instrument, the only-at-best order comprising an order price, in which the at least one processor is configured to receive a plurality of bids and offers from a plurality of trading participants via a plurality of devices in electronic communication with the processor;   determine whether at a time when the only-at-best order is received by the at least one processor, at least two other trading participants are actively trading the instrument at a better price than the order price, wherein the better price comprise comprises one of (1) a lower price than the order price if the only-at-best order is an offer to buy the instrument and (2) a higher price than the order price if the only-at-best order is an order to sell the instrument;   in response to the only-at-best order is an order to buy the instrument, alert that the better price is a lower price than the order price; and   responsive to the act of determining that at least two other trading participants are engaged in an active trading session for the instrument at a better price at a time when the only-at-best order is received by the at least one processor, change the order bid price of the only-at-best order to the better price.   
     
     
         20 . The article of manufacture of  claim 19 , further comprising instructions: in which the only-at-best order is an order to sell the instrument, further comprising instructions to alert the trading participant that the better price is a higher price than the order price. 
     
     
         21 . The article of manufacture of  claim 19 , further comprising instructions: in which the only-at-best order comprises a request to:
 if, at a time when the only-at-best order is received, at least two other trading participants are engaged in an active trading session for the instrument at a better price, then either:
 (i) execute the only-at-best order at the better price, or 
 (ii) queue the only-at-best order at the better price.