Auction market with price improvement mechanism

Abstract

The present application at least describes a computer readable medium including instructions that, when executed by a processor, causes the processor to receive, from a first participant among plural participants in an auction operated in a networked auction system, one of a buy and sell order for a product (ORDER). The ORDER includes one or more of a price, quantity, type, and exposure time to remain active. The exposure time allows for one or more of a reply, opposite side order, and a pre-defined relative indication with or without a price improvement relative to a current price established by a National Best Bid/Offer or an equivalent exchange (PRI). The instructions when executed by the processor causes the processor to receive a market best bid and ask price (MARKET PRICE) from the National Best Bid/Offer or equivalent exchange for buying and selling the product. The instructions when executed by the processor causes the processor to receive, from a second participant among the plural participants in the auction operated on the networked auction system, the PRI to trade on the ORDER. Further, the instruction when executed by the processor causes the processor to effectuate a state where the PRI is maintained undisclosed from the plural participants. Even further, the instructions when executed by the processor causes the processor to transmit, to the plural participants in the networked auction system, the received ORDER. Still even further, the instructions when executed by the processor causes the processor to determine based on the MARKET PRICE that the PRI satisfies the ORDER within the exposure time. Still yet even further, the instructions when executed by the processor causes the processor to execute the ORDER.

What is claimed is: 
     
         1 . A computer readable medium including instructions that, when executed by a processor, causes the processor to:
 receive, from a first participant among plural participants in an auction operated in a networked auction system, one of a buy and sell order for a product (ORDER), where the ORDER includes one or more of a price, quantity, type, and exposure time to remain active, and where the exposure time allows for one or more of a reply, opposite side order, and a pre-defined relative indication with or without a price improvement relative to a current price established by a National Best Bid/Offer or an equivalent exchange (PRI);   receive a market best bid and ask price (MARKET PRICE) from the National Best Bid/Offer or equivalent exchange for buying and selling the product;   receive, from a second participant among the plural participants in the auction operated on the networked auction system, the PRI to trade on the ORDER;   effectuate a state where the PRI is maintained undisclosed from the plural participants;   transmit, to the plural participants in the networked auction system, the received ORDER;   determine based on the MARKET PRICE that the PRI satisfies the ORDER within the exposure time; and   execute the ORDER.   
     
     
         2 . The computer readable medium of  claim 1 , wherein the PRI is received before the ORDER. 
     
     
         3 . The computer readable medium of  claim 1 , further including instructions that when executed by the processor causes the processor to disclose details of a transaction involving the PRI to all of the plural participants in the networked system. 
     
     
         4 . The computer readable medium of  claim 1 , further including instructions that when executed by the processor causes the processor to terminate the auction upon executing the ORDER. 
     
     
         5 . The computer readable medium of  claim 1 , wherein expiration of the exposure time causes the auction system to terminate. 
     
     
         6 . The computer readable medium of  claim 1 , wherein the exposure time is less than 60 seconds. 
     
     
         7 . The computer readable medium of  claim 1 , wherein the exposure time is less than 30 seconds. 
     
     
         8 . The computer readable medium of  claim 1 , wherein the product is a financial security. 
     
     
         9 . The computer readable medium of  claim 8 , wherein the financial security is available on a stock exchange. 
     
     
         10 . A computer readable medium including instructions that, when executed by a processor, causes the processor to:
 receive, from a first participant among plural participants an auction operated in a networked auction system, one of a buy and sell order for a product (ORDER), where the ORDER includes one or more of a price, quantity, type, and exposure time to remain active, and where the exposure time allows for one or more of a reply, opposite side order, and a pre-defined relative indication with or without a price improvement relative to a current price established by a National Best Bid/Offer or an equivalent exchange (PRI);   receive a market best bid and ask price (MARKET PRICE) from the National Best Bid/Offer or equivalent exchange for buying and selling the product;   receive, from a second participant of the plural participants in the networked auction system, the PRI to trade on the ORDER;   effectuate a state whereby the PRI remains undisclosed from the plural participants;   transmit, to the plural participants in the networked auction system, the received ORDER;   determine based on the MARKET PRICE that the PRI does not satisfy the ORDER within the exposure time;   evaluate, during the exposure time and based on the determination, whether one or more of the reply and opposite side order satisfies the ORDER; and   execute the ORDER based on the evaluation.   
     
     
         11 . The computer readable medium of  claim 10 , wherein the PRI is received before the ORDER. 
     
     
         12 . The computer readable medium of  claim 10 , further including instructions that when executed by the processor causes the processor to disclose details of a transaction involving the PRI to all of the plural participants in the networked system. 
     
     
         13 . The computer readable medium of  claim 10 , further including instructions that when executed by the processor causes the processor to terminate the auction upon execution of the ORDER. 
     
     
         14 . The computer readable medium of  claim 10 , wherein expiration of the exposure time causes the auction to terminate. 
     
     
         15 . The computer readable medium of  claim 10 , wherein the exposure time is less than 60 seconds. 
     
     
         16 . The computer readable medium of  claim 15 , wherein the exposure time is less than 30 seconds. 
     
     
         17 . The computer readable medium of  claim 10 , wherein the product is a financial security. 
     
     
         18 . A method comprising:
 receiving, from a first participant among plural participants, one of a buy and sell order for a product (ORDER), where the ORDER includes one or more of a price, quantity, type, and exposure time to remain active, and where the exposure time allows for one or more of a reply, opposite side order, and a pre-defined relative indication with or without a price improvement relative to a current price established by a National Best Bid/Offer or an equivalent exchange (PRI);   receiving a market best bid and ask price (MARKET PRICE) from the National Best Bid/Offer or equivalent exchange for buying and selling the product;   receiving the PRI to trade on the ORDER from a second participant among the plural participants;   effectuating a state where the PRI is maintained undisclosed from the plural participants;   transmitting the received ORDER to the plural participants;   determining based on the MARKET PRICE that the PRI satisfies the ORDER within the exposure time; and   executing the ORDER.   
     
     
         19 . The method  claim 18 , further comprising:
 disclosing details of a transaction involving the PRI to all of the plural participants.   
     
     
         20 . The method of  claim 18 , further comprising:
 terminating the method directly after the ORDER is executed.