IP Library Granted Patent US 12694000
Granted Patent B1
US 12694000 · App. 19/285,811 · Granted Jul 28, 2026

Exchange designated complex option (EDCO) systems and methods implementing zero additive impact representations of EDCOs

Inventor: Brett Johnson (Wichita, KS)
Assignee: CBOE EXCHANGE, INC.
G06F16/212
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Quick Facts
Patent No.
US 12694000
App. No.
19/285,811
Granted
Jul 28, 2026
Kind
B1
Abstract

An exchange designated complex option (EDCO) system implements zero additive impact representations of EDCOs. The system includes an order handler interfaced with an exchange platform to receive EDCOs and non-EDCO instrument requests, a matching engine, and an EDCO framework comprising an EDCO symbol processing engine. A computer memory stores an EDCO template table schema defining named EDCO templates and an EDCO symbol daily table schema for daily representations of EDCOs. A daily EDCO symbol database holds tables created according to the daily table schema. One or more processors execute the symbol processing engine to instantiate a daily set of EDCOs, generate metadata for each EDCO stored in the daily database, and designate the EDCOs for exchange on the exchange platform.

Claims (41)

1 . An exchange designated complex option (EDCO) system implementing zero additive impact representations of EDCOs, the EDCO system comprising:

an order handler communicatively coupled to an exchange platform and configured to receive requests for EDCOs and non-EDCO instruments;

a matching engine communicatively coupled to the order handler and the exchange platform;

an ECDO framework communicatively coupled to the matching engine and comprising an EDCO symbol processing engine;

a computer memory storing an EDCO template table schema defining provisioned named EDCO templates for instantiating zero additive impact representations of each of a plurality of EDCOs for exchange on the exchange platform,

wherein the computer memory further stores an ECDO symbol daily table schema configured to define daily representations of the plurality of EDCOs;

a daily EDCO symbol database comprising an EDCO symbol daily database table created according to the ECDO symbol daily table schema, and;

one or more processors configured to execute computing instructions stored in a tangible, non-transitory computer-readable storage medium, where the computing instructions, when executed by the one or more processors, are configured to:

execute the EDCO symbol processing engine to create a daily set of EDCOs, wherein each EDCO of the daily set of EDCOs comprises an instantiated version of an EDCO created according to the ECDO symbol daily table schema,

generate metadata for each EDCO of the daily set of EDCOs, wherein the metadata is stored in the daily EDCO symbol database, and

designate each EDCO of the daily set of EDCOs for exchange on the exchange platform.

2 . The ECDO system of claim 1 , wherein creation of each EDCO of the daily set of EDCOs comprises writing metadata comprising data from the ECDO template table schema to the daily EDCO symbol database as defined by the ECDO symbol daily table schema.

3 . The ECDO system of claim 2 , wherein each EDCO is created based on the provisioned named EDCO templates.

4 . The ECDO system of claim 1 , wherein creation of the daily set of EDCOs comprises indicating whether any EDCO of the daily set of EDCOs is able to be included as a part of a rested order on a complex order book.

5 . The ECDO system of claim 1 , wherein creation of the daily set of EDCOs comprises indicating a type for each EDCO of the daily set of EDCOs.

6 . The ECDO system of claim 1 , wherein the EDCO symbol daily database table is reset daily.

7 . The ECDO system of claim 1 , wherein each EDCO of the daily set of EDCOs is created having a zero additive computer processing impact on the exchange platform compared with the non-EDCO instruments of the exchange platform.

8 . The ECDO system of claim 1 , wherein information of the daily set of EDCOs are provided over a computer network via at least one of: (1) providing a downloadable file at a server with information of the daily set of EDCOs; and/or (2) providing one or more data feeds with information of the daily set of EDCOs.

9 . The ECDO system of claim 1 , wherein at least one EDCO is an existing EDCO previously created by the EDCO symbol processing engine, and wherein the existing EDCO is designated for exchange on the exchange platform.

10 . An exchange designated complex option (EDCO) method implementing zero additive impact representations of EDCOs, the EDCO method comprising:

executing an EDCO symbol processing engine to create a daily set of EDCOs, wherein each EDCO of the daily set of EDCOs comprises an instantiated version of an EDCO created according to an ECDO symbol daily table schema,

wherein the EDCO symbol processing engine is implemented as part of an ECDO framework communicatively coupled to a matching engine, the matching engine communicatively coupled to an order handler and an exchange platform, and the order handler communicatively coupled to an exchange platform and configured to receive requests for EDCOs and non-EDCO instruments,

wherein the ECDO symbol daily table schema defines daily representations instantiated from a plurality of EDCOs for trade in a given day, and

wherein an EDCO template table schema defines provisioned named EDCO templates for instantiating zero additive impact representations of each of the plurality of EDCOs for exchange on the exchange platform;

generating metadata for each EDCO of the daily set of EDCOs, wherein the metadata is stored in a daily EDCO symbol database, the daily EDCO symbol database comprising an EDCO symbol daily database table created according to the ECDO symbol daily table schema; and

designating each EDCO of the daily set of EDCOs for exchange on the exchange platform.

11 . The ECDO method of claim 10 , wherein creation of each EDCO of the daily set of EDCOs comprises writing metadata comprising data from the ECDO template table schema to the daily EDCO symbol database as defined by the ECDO symbol daily table schema.

12 . The ECDO method of claim 11 , wherein each EDCO is created based on the provisioned named EDCO templates.

13 . The ECDO method of claim 10 , wherein creation of the daily set of EDCOs comprises indicating whether any EDCO of the daily set of EDCOs is able to be included as a part of a rested order on a complex order book.

14 . The ECDO method of claim 10 , wherein creation of the daily set of EDCOs comprises indicating a type for each EDCO of the daily set of EDCOs.

15 . The ECDO method of claim 10 , wherein the EDCO symbol daily database table is reset daily.

16 . The ECDO method of claim 10 , wherein each EDCO of the daily set of EDCOs is created having a zero additive computer processing impact on the exchange platform compared with the non-EDCO instruments of the exchange platform.

17 . The ECDO method of claim 10 , wherein information of the daily set of EDCOs are provided over a computer network via at least one of: (1) providing a downloadable file at a server with information of the daily set of EDCOs; and/or (2) providing one or more data feeds with information of the daily set of EDCOs.

18 . The ECDO method of claim 10 , wherein at least one EDCO is an existing EDCO previously created by the EDCO symbol processing engine, and wherein the existing EDCO is designated for exchange on the exchange platform.

19 . A tangible, non-transitory computer-readable medium storing instructions for implementing zero additive impact representations of exchange designated complex options (EDCOs), that when executed by one or more processors cause the one or more processors to:

execute an EDCO symbol processing engine to create a daily set of EDCOs, wherein each EDCO of the daily set of EDCOs comprises an instantiated version of an EDCO created according to an ECDO symbol daily table schema,

wherein the EDCO symbol processing engine is implemented as part of an ECDO framework communicatively coupled to a matching engine, the matching engine communicatively coupled to an order handler and an exchange platform, and the order handler communicatively coupled to an exchange platform and configured to receive requests for EDCOs and non-EDCO instruments,

wherein the ECDO symbol daily table schema defines daily representations instantiated from a plurality of EDCOs for trade in a given day, and

wherein an EDCO template table schema defines provisioned named EDCO templates for instantiating zero additive impact representations of each of the plurality of EDCOs for exchange on the exchange platform;

generate metadata for each EDCO of the daily set of EDCOs, wherein the metadata is stored in a daily EDCO symbol database, the daily EDCO symbol database comprising an EDCO symbol daily database table created according to the ECDO symbol daily table schema; and

designate each EDCO of the daily set of EDCOs for exchange on the exchange platform.