Fractional shares order execution methods

Abstract

Methods for executing fractional shares transactions are disclosed. In one aspect, a method for executing a fractional-based buy or sell order may be performed by a fracker processing unit (FPU) configured with an on-hold queue, in-progress queue, fracker balancer, and fractional share database, where a fractional share component of the buy or sell order is subjected to the method. In another aspect, a method for executing a notional-based buy order may be performed by FPU, where an estimated fractional share component of the notional-based buy order is subjected to the method. In another aspect, a method for executing a executing a notional-based sell order may be performed by FPU, where a quantity of an executed whole share component of a notional-based sell order is subjected to the method. In another aspect, a method for executing fractional shares transactions may be performed by in part, providing cleanup account shares to FPU.

What is claimed is: 
     
         1 . A method for executing a fractional-based buy or sell order, comprising:
 receiving, by a processing unit including at least one processor communicatively coupled to a non-transitory processor-readable medium storing processor-executable code, a fractional share component of a buy or sell order comprised of fractional shares;   providing, by the processing unit, the fractional share component to a first queue;   
       providing, by the processing unit, the fractional share component to a second queue after a whole share component of the buy or sell order corresponding to the fractional share component is executed at a price;
 performing, by the processing unit, if a buy order, a first transaction comprised of:
 determining if a sufficient quantity of fractional shares is stored in a fractional shares database, and 
 buying fractional shares for the fractional share component in the second queue from the fractional shares database if a sufficient quantity exists, wherein the buy of the notional-based shares is executed by a fracker balancer based on a user imposed parameter, wherein the fracker balancer is configured with the user imposed parameter and the user imposed parameter includes controls to adjust and set inventory risk exposure, and wherein the user imposed parameter is determined to be elected to hold no more than one share of a given security in the fractional share database and to hold no more than what is necessary to execute current orders; 
 
 performing, by the processing unit, if a sell order, a second transaction comprised of:
 selling the fractional shares of the fractional share component in the second queue to the fractional shares database; and 
 generating a report upon the completion of the first transaction or the second transaction. 
 
 
     
     
         2 . The method of  claim 1 , wherein the buy or sell order is provided through a first communications unit of a first participant, and the execution of the whole share component is reported through a second communications unit of a second participant. 
     
     
         3 . The method of  claim 1 , wherein the buying of fractional shares is executed at the price at which the whole share component was executed or at a real-time price if there is an improvement of the price. 
     
     
         4 . The method of  claim 1 , wherein the first transaction is further comprised of:
 determining a quantity of share components to purchase if a sufficient quantity does not exist;   purchasing the quantity of share components;   storing the purchased quantity of share components in the fractional shares database; and   executing a buy of fractional shares for the fractional share component in the second queue from the fractional shares database.   
     
     
         5 . The method of  claim 4 , wherein the quantity of share components to purchase is determined as a function of a quantity of fractional share components in the first queue and a quantity of shares in the second queue. 
     
     
         6 . The method of  claim 4 , wherein the buy of fractional shares is executed at a price at which the whole share component was executed or a real-time price if there is an improvement of the price. 
     
     
         7 . The method of  claim 1 , further comprising:
 generating a report upon the completion of the first transaction or the second transaction, whereupon the report is included in a buy or sell order report provided to a first communications unit of a first participant.   
     
     
         8 . The method of  claim 1 , further comprising:
 purchasing, from a managed account system employed by a first participant and comprised with an account processing unit, at least one fractional share from a cleanup account.   
     
     
         9 . The method of  claim 8 , wherein the account processing unit is configured to execute a method for executing fractional shares transactions. 
     
     
         10 . A method for executing a notional-based sell order, comprising:
 receiving, by a processing unit including at least one processor communicatively coupled to a non-transitory processor-readable medium storing processor-executable code, a quantity of an executed whole share component of a notional-based sell order having a first amount;   calculating, by the processing unit, a second amount of the executed whole share component;   determining, by the processing unit, whether an oversell condition of the notional-based sell order exists;   performing, by the processing unit, if an oversell condition exists, a first transaction comprised of:
 providing a quantity of the executed whole share component commensurate to the oversell to a fractional share database; and 
 performing, if an oversell condition does not exist, a second transaction comprised of:
 calculating a quantity of shares commensurate to a difference in the first amount and the second amount; 
 performing an execution if the calculated quantity meets a minimum quantity for execution, wherein the buy of the notional-based shares is executed by a fracker balancer based on a user imposed parameter, wherein the fracker balancer is configured with the user imposed parameter and the user imposed parameter includes controls to adjust and set inventory risk exposure, and wherein the user imposed parameter is determined to be elected to hold no more than one share of a given security in the fractional share database and to hold no more than what is necessary to execute current orders, and 
 cancelling an execution if the calculated quantity does not meet a minimum quantity for execution. 
 
   
     
     
         11 . The method of  claim 10 , wherein the notional-based buy order is provided through a communications unit of a participant. 
     
     
         12 . The method of  claim 10 , wherein the calculation of the second amount is performed as a function of a real-time price. 
     
     
         13 . The method of  claim 10 , wherein the existence of an oversell condition is determined as a function of the first amount and the second amount 
     
     
         14 . The method of  claim 10 , wherein the calculation of the second transaction is performed as a function of a real-time price. 
     
     
         15 . The method of  claim 10 , further comprising:
 generating a report upon the completion of the first transaction or the second transaction, whereupon the report is included in a notional-based sell order report provided to a first communications unit of a first participant.   
     
     
         16 . The method of  claim 15 , further comprising:
 purchasing, from a managed account system employed by a first participant and comprised with an account processing unit, at least one fractional share from a cleanup account.   
     
     
         17 . The method of  claim 16 , wherein the account processing unit is configured to execute a method for executing fractional shares transactions.