Electronic exchange that enables transferable control of orders positioned in an order queue

Abstract

Systems and methods for order inheritance and transfer. In one example, a user submits an order through a trading platform. The order is then added to an order queue for execution on an exchange. Once a trader has achieved a queue position, various examples allow the trader to indicate that the order is available for inheritance or transfer. Various display indicators may be used to notify other traders that the order and queue position are available. A new owner can be selected, such as by an electronic auction process at a centralized exchange, and order ownership can be transferred to the selected owner.

What is claimed is: 
     
         1 . At least one computer-readable medium, excluding transitory signals, carrying instructions configured to cause at least one processor to perform operations comprising:
 receive, by a trading platform and at a first time, an electronic order from a computing device of a first trader;   in response to receiving the electronic order, establish a position for the electronic order in an order queue,
 wherein the established position is based at least in part on the first time, and 
 wherein the order queue indicates the established position relative to other electronic orders; 
   store the established position for the electronic order as an entry in a database,
 wherein the entry has a data structure including an order identifier field, a trader identifier field, and an established position field; 
   receive, at a second time after the first time, an indication of an intent to abandon control of the electronic order in the established position of the order queue;   in response to the intent to abandon control of the electronic order, associate an electronic tag with the electronic order,
 wherein the electronic tag is associated with a time period during which another trader can assume control of the electronic order in the established position of the order queue; 
   communicate, to computing devices of multiple traders, notifications of the intent to abandon control of the electronic order in the established position of the order queue;   receive, within the time period, requests from two or more of the multiple traders to inherit control of the electronic order in the established position of the order queue;   select, through an electronic auction process, a request of a second trader from among the multiple traders to transfer control of the electronic order from the first trader to the second trader at a centralized exchange, thereby decreasing a need for latency-minimizing software and hardware;   in response to selecting the request to transfer control of the electronic order:
 alert the second trader of acceptance of the request to transfer control of the electronic order; 
 release, in the entry of the database, control of the electronic order from the first trader to the second trader by replacing a trader identifier of the first trader in the trader identifier field with a trader identifier of the second trader; and 
 preserve, in the entry of the database, an order identifier value in the order identifier field and an established position value in the established position field such that the second trader inherits control of the electronic order in the established position. 
   
     
     
         2 . The at least one computer-readable medium of  claim 1 :
 wherein the electronic order includes a bid or ask price and a quantity; and   wherein the established position for the electronic order is further based on the bid or ask price.   
     
     
         3 . The at least one computer-readable medium of  claim 1 , wherein selecting the request of the second trader from among the multiple traders is based on an order position, order price, trader seniority, trader volume, position pricing, trader position, affiliation, membership level, interest in the transfer, interest in an underlying financial product, similar order, or exchange rate associated with the multiple traders, or any combination thereof. 
     
     
         4 . The at least one computer-readable medium of  claim 1 , wherein alerting the second trader of acceptance of the request to transfer control of the electronic order includes causing the at least one processor to generate a visual indicator on a trading application viewed by the second trader. 
     
     
         5 . The at least one computer-readable medium of  claim 1 , wherein the operations further comprise:
 receive a request of a third trader to transfer control of the electronic order from the second trader to the third trader; and   transfer control of the electronic order from the second trader to the third trader.   
     
     
         6 . The at least one computer-readable medium of  claim 1 , wherein the operations further comprise:
 publish electronic orders on the order queue to the multiple traders; and   communicate indications of interest in the electronic orders to owners of the electronic orders.   
     
     
         7 . The at least one computer-readable medium of  claim 1 , wherein the operations further comprise:
 track an evolution of the electronic order after control has been transferred.   
     
     
         8 . A computer-implemented method performed by a trading platform, the method comprising:
 receiving, at a first time, an electronic order from a computing device of a first trader;   in response to receiving the electronic order, establishing a position for the electronic order in an order queue,
 wherein the established position is based at least in part on the first time, and 
 wherein the order queue indicates the established position relative to other electronic orders; 
   storing the established position for the electronic order as an entry in a database,
 wherein the entry has a data structure including an order identifier field, a trader identifier field, and an established position field; 
   receiving, at a second time after the first time, an indication of an intent to abandon control of the electronic order in the established position of the order queue;   in response to the intent to abandon control of the electronic order, associating an electronic tag with the electronic order,
 wherein the electronic tag is associated with a time period during which another trader can assume control of the electronic order in the established position of the order queue; 
   communicating, to computing devices of multiple traders, notifications of the intent to abandon control of the electronic order in the established position of the order queue;   receiving, within the time period, requests from two or more of the multiple traders to inherit control of the electronic order in the established position of the order queue;   selecting, through an electronic auction process, a request of a second trader from among the multiple traders to transfer control of the electronic order from the first trader to the second trader at a centralized exchange, thereby decreasing a need for latency-minimizing software and hardware;   in response to selecting the request to transfer control of the electronic order:
 alerting the second trader of acceptance of the request to transfer control of the electronic order; 
 releasing, in the entry of the database, control of the electronic order from the first trader to the second trader by replacing a trader identifier of the first trader in the trader identifier field with a trader identifier of the second trader; and 
 preserving, in the entry of the database, an order identifier value in the order identifier field and an established position value in the established position field such that the second trader inherits control of the electronic order in the established position. 
   
     
     
         9 . The computer-implemented method of  claim 8 :
 wherein the electronic order includes a bid or ask price and a quantity; and   wherein the established position for the electronic order is further based on the bid or ask price.   
     
     
         10 . The computer-implemented method of  claim 8 , wherein selecting the request of the second trader from among the multiple traders is based on an order position, order price, trader seniority, trader volume, position pricing, trader position, affiliation, membership level, interest in the transfer, interest in an underlying financial product, similar order, or exchange rate associated with the multiple traders, or any combination thereof. 
     
     
         11 . The computer-implemented method of  claim 8 , wherein alerting the second trader of acceptance of the request to transfer control of the electronic order includes generating a visual indicator on a trading application viewed by the second trader. 
     
     
         12 . The computer-implemented method of  claim 8 , further comprising:
 receiving a request of a third trader to transfer control of the electronic order from the second trader to the third trader; and   transferring control of the electronic order from the second trader to the third trader.   
     
     
         13 . The computer-implemented method of  claim 8 , further comprising:
 publishing electronic orders on the order queue to the multiple traders; and   communicating indications of interest in the electronic orders to owners of the electronic orders.   
     
     
         14 . The computer-implemented method of  claim 8 , further comprising:
 tracking an evolution of the electronic order after control has been transferred.   
     
     
         15 . A computing system associated with a trading platform, the computing system comprising:
 at least one processor; and   at least one memory carrying instructions that, when executed by the at least one processor, cause the computing system to perform operations comprising:
 receive, by a trading platform and at a first time, an electronic order from a computing device of a first trader; 
 in response to receiving the electronic order, establish a position for the electronic order in an order queue,
 wherein the established position is based at least in part on the first time, and 
 wherein the order queue indicates the established position relative to other electronic orders; 
 
 store the established position for the electronic order as an entry in a database,
 wherein the entry has a data structure including an order identifier field, a trader identifier field, and an established position field; 
 
 receive, at a second time after the first time, an indication of an intent to abandon control of the electronic order in the established position of the order queue; 
 in response to the intent to abandon control of the electronic order, associate an electronic tag with the electronic order,
 wherein the electronic tag is associated with a time period during which another trader can assume control of the electronic order in the established position of the order queue; 
 
 communicate, to computing devices of multiple traders, notifications of the intent to abandon control of the electronic order in the established position of the order queue; 
 receive, within the time period, requests from two or more of the multiple traders to inherit control of the electronic order in the established position of the order queue; 
 select, through an electronic auction process, a request of a second trader from among the multiple traders to transfer control of the electronic order from the first trader to the second trader at a centralized exchange, thereby decreasing a need for latency-minimizing software and hardware; 
 in response to selecting the request to transfer control of the electronic order:
 alert the second trader of acceptance of the request to transfer control of the electronic order; 
 release, in the entry of the database, control of the electronic order from the first trader to the second trader by replacing a trader identifier of the first trader in the trader identifier field with a trader identifier of the second trader; and 
 preserve, in the entry of the database, an order identifier value in the order identifier field and an established position value in the established position field such that the second trader inherits control of the electronic order in the established position. 
 
   
     
     
         16 . The computing system of  claim 15 :
 wherein the electronic order includes a bid or ask price and a quantity; and   wherein the established position for the electronic order is further based on the bid or ask price.   
     
     
         17 . The computing system of  claim 15 , wherein selecting the request of the second trader from among the multiple traders is based on an order position, order price, trader seniority, trader volume, position pricing, trader position, affiliation, membership level, interest in the transfer, interest in an underlying financial product, similar order, or exchange rate associated with the multiple traders, or any combination thereof. 
     
     
         18 . The computing system of  claim 15 , wherein alerting the second trader of acceptance of the request to transfer control of the electronic order includes causing the at least one processor to generate a visual indicator on a trading application viewed by the second trader. 
     
     
         19 . The computing system of  claim 15 , wherein the operations further comprise:
 receive a request of a third trader to transfer control of the electronic order from the second trader to the third trader; and   transfer control of the electronic order from the second trader to the third trader.   
     
     
         20 . The computing system of  claim 15 , wherein the operations further comprise:
 publish electronic orders on the order queue to the multiple traders; and   communicate indications of interest in the electronic orders to owners of the electronic orders.