Market driven implied trade resolution

Abstract

An electronic trading system utilizes a Match Engine that receives orders, stores them internally, calculates tradable combinations and advertises the availability of real and implied orders in the form of market data. New tradable items defined as combinations of other tradable items may be included in the calculation of tradable combinations. The disclosed embodiments relate to detection of market conditions where identification of implied opportunities may, for example, subvert real orders resulting in undesirable effects. Under circumstances where such undesirable effects are likely to occur, identification of implied opportunities may be delayed thereby allowing market forces to attempt to resolve the aberrant market conditions and avoid the undesirable effects.

What is claimed is: 
     
         1 . A computer implemented method for controlling operation of a trading system, the trading system comprising a processor and a match engine coupled therewith, the match engine being operative to match an order for an instrument with another order counter thereto to at least partially satisfy one or both of the order or the other order, the method comprising:
 receiving, by the processor, an order at an associated order price;   enabling, by the processor, the match engine to perform matches for a set of instruments;   identifying, by the processor, that an implied opportunity exists for the order at an associated match price;   determining, by the processor, that the associated match price is better than the associated order price;   preventing, by the processor, the match engine from matching the order with the implied opportunity;   attempting, by the match engine, to match the order with another previously received order counter thereto at the associated order price; and   allowing, by the processor, after a defined period of time, matching implied opportunities by the match engine.   
     
     
         2 . The computer implemented method of  claim 1 , wherein prior to receiving the order, the match engine is suspended in response to a market event. 
     
     
         3 . The computer implemented method of  claim 2 , wherein the market event comprises a price exceeding a threshold. 
     
     
         4 . The computer implemented method of  claim 2 , wherein prior to receiving the order, the match engine is operating in a pre-open phase. 
     
     
         5 . The computer implemented method of  claim 1 , wherein the order comprises a buy order, the associated match price of thereof being better than the associated order price thereof when the associated match price thereof is less than the associated order price thereof. 
     
     
         6 . The computer implemented method of  claim 1 , wherein the order comprises a sell order, the associated match price of thereof being better than the associated order price thereof when the associated match price thereof is greater than the associated order price thereof. 
     
     
         7 . The computer implemented method of  claim 1 , wherein the implied opportunity comprises a spread between instruments associated with at least the order. 
     
     
         8 . The computer implemented method of  claim 1 , wherein allowing comprises allowing the match engine to match the order at least partially with the implied opportunity. 
     
     
         9 . A system for controlling operation of a match engine operative to match an order for an instrument with another order counter thereto to at least partially satisfy one or both of the order or the other order, the system comprising:
 an implied opportunity identifier implemented by a processor and a non-transitory memory coupled therewith, the implied opportunity identifier operative to identify implied opportunities;   an order receiver operative to receive an order at an associated order price and transmit the order to the match engine;   the match engine operative to match the order with an implied opportunity identified by the implied opportunity identifier at an associated match price or to match the order with another previously received order counter thereto at the associated order price; and   an implied opportunity controller implemented by the processor and coupled with the match engine and operative to prevent the match engine, when the associated match price is better than the associated order price, from matching the order with the implied opportunity until the match engine has first attempted to match the order with another previously received order counter thereto at the associated order price or a defined period of time has elapsed.   
     
     
         10 . The system of  claim 9 , wherein the match engine is suspended in response to a market event in a market for any of the instruments in the set of instruments prior to when the order receiver receives the order. 
     
     
         11 . The system of  claim 10 , wherein the market event comprises a price exceeding a threshold. 
     
     
         12 . The system of  claim 10 , wherein the match engine is in a pre-open state prior to when the order receiver receives the order. 
     
     
         13 . The system of  claim 9 , wherein the order of comprises a buy order, the associated match price of thereof being better than the associated order price thereof when the associated match price thereof is less than the associated order price thereof. 
     
     
         14 . The system of  claim 9 , wherein the order comprises a sell order, the associated match price of thereof being better than the associated order price thereof when the associated match price thereof is greater than the associated order price thereof. 
     
     
         15 . The system of  claim 9 , wherein the implied opportunity comprises a spread between instruments associated with at least the order. 
     
     
         16 . A system for controlling operation of a match engine operative to match an order for an instrument with another order counter thereto to at least partially satisfy one or both of the order or the other order, the system comprising:
 means for receiving an order at an associated order price;   means for enabling the match engine to perform matches for a set of instruments;   means for identifying that an implied opportunity exists for the order at an associated match price;   means for determining that the associated match price is better than the associated order price; and   means for preventing the match engine from matching the order with the implied opportunity until a defined period of time has passed.   
     
     
         17 . The system of  claim 16 , wherein prior to enabling, the match engine is suspended in response to a market event. 
     
     
         18 . The system of  claim 17 , wherein the market event comprises a price exceeding a threshold. 
     
     
         19 . The system of  claim 16 , wherein the order comprises a buy order, the associated match price of thereof being better than the associated order price thereof when the associated match price thereof is less than the associated order price thereof. 
     
     
         20 . The system of  claim 16 , wherein the order comprises a sell order, the associated match price of thereof being better than the associated order price thereof when the associated match price thereof is greater than the associated order price thereof.