Trading system

1. A method for use in an automated trading system, where a market maker is responsible for providing in a first computer-based exchange a buy price and a sell price to trade a financial instrument and where a difference between the buy price and the sell price defines a spread for the financial instrument, comprising the following steps implemented at the first computer-based exchange:

receiving a quote comprising a volume and a price associated with the buying and/or selling of the financial instrument that requires an improved buy price and/or sell price for trading the financial instrument relative to the buy price and/or sell price for trading the financial instrument offered in the first computer-based exchange; and

automatically using a current buy price and/or a current sell price for the financial instrument obtained from a second computer-based exchange to execute the quote of the financial instrument at the improved buy price and/or sell price at the first computer-based exchange,

wherein the quote further includes a multiplier parameter for controlling a volume of the quote by multiplying the multiplier parameter with a volume at the second computer-based exchange.

2. The method according to claim 1 , wherein the multiplier parameter is used to control a risk for the market maker with respect to the volume associated with the quote.

3. The method according to claim 1 , wherein the quote further includes a volume limit parameter for controlling a risk for the market maker with respect to the volume associated with the quote.

4. The method in claim 1 , wherein the improved price is a either a higher buy price if the quote is a buy order or a lower sell price if the quote is a sell order.

5. The method in claim 1 , further comprising:

determining that a remainder of an incoming order cannot be filled at the first computer-based exchange;

automatically obtaining additional volume of the financial instrument from the second computer-based exchange; and

executing some or all of the remainder of the incoming order at the first computer-based exchange using the additional volume of the financial instrument obtained from the second computer-based exchange.

6. The method in claim 5 , wherein the execution of some or all of the remainder of the incoming order at the first computer-based exchange using the additional volume of the financial instrument obtained from the second computer-based exchange is at the improved buy price and/or sell price.

7. The method in claim 6 , further comprising:

determining that only some of the remainder of the incoming order can be filled using the additional volume of the financial instrument obtained from the second computer-based exchange, and

executing a non-executed portion of the trade order at the first computer-based exchange without consideration of the improved buy price and/or sell price.

8. The method in claim 5 , wherein in order to transfer the additional volume of the financial instrument from the second computer-based exchange to the first computer-based exchange, the first computer-based exchange performs the following steps:

sending a transfer order to the market maker requesting the market maker execute that transfer order at the second computer-based exchange;

receiving from the market maker the additional volume of the financial instrument obtained as a result of the market maker executing the transfer order at the second computer-based exchange; and

executing some or all of the remainder of the trade order at the first computer-based exchange using the additional volume of the financial instrument obtained from the second computer-based exchange and received from the market maker.

9. Apparatus for use in an automated trading system, where a market maker is responsible for providing in a first computer-based exchange a buy price and a sell price to trade a financial instrument and where a difference between the buy price and the sell price defines a spread for the financial instrument, comprising electronic circuitry at the first computer-based exchange programmably configured to:

receive a quote comprising a volume and a price associated with the buying and/or selling of the financial instrument that requires an improved buy price and/or sell price for trading the financial instrument relative to the buy price and/or sell price for trading the financial instrument offered in the first computer-based exchange; and

automatically use a current buy price and/or a current sell price for the financial instrument obtained from a second computer-based exchange to execute the quote of the financial instrument at the improved buy price and/or sell price at the first computer-based exchange,

wherein the quote further includes a multiplier parameter for controlling a volume of the quote by multiplying the multiplier parameter with a volume at the second computer-based exchange.

10. The apparatus according to claim 9 , wherein the multiplier parameter is used to control a risk for the market maker with respect to the volume associated with the quote.

11. The apparatus according to claim 9 , wherein the quote further includes a volume limit parameter for controlling a risk for the market maker with respect to the volume associated with the quote.

12. The apparatus according to claim 9 , wherein the improved price is a either a higher buy price if the quote is a buy order or a lower sell price if the quote is a sell order.

13. The apparatus according to claim 9 , wherein the electronic circuitry at the first computer-based exchange is further configured to:

determine that a remainder of an incoming order cannot be filled at the first computer-based exchange;

automatically obtain additional volume of the financial instrument from the second computer-based exchange; and

execute some or all of the remainder of the incoming order at the first computer-based exchange using the additional volume of the financial instrument obtained from the second computer-based exchange.

14. The apparatus according to claim 13 , wherein the electronic circuitry at the first computer-based exchange is further configured to execute some or all of the remainder of the incoming order at the first computer-based exchange using the additional volume of the financial instrument obtained from the second computer-based exchange at the improved buy price and/or sell price.

15. The apparatus according to claim 14 , wherein the electronic circuitry at the first computer-based exchange is further configured to:

determine that only some of the remainder of the incoming order can be filled using the additional volume of the financial instrument obtained from the second computer-based exchange, and

execute a non-executed portion of the trade order at the first computer-based exchange without consideration of the improved buy price and/or sell price.

16. The apparatus according to claim 13 , wherein in order to transfer the additional volume of the financial instrument from the second computer-based exchange to the first computer-based exchange, the electronic circuitry at the first computer-based exchange is further configured to:

send a transfer order to the market maker requesting the market maker execute that transfer order at the second computer-based exchange;

receive from the market maker the additional volume of the financial instrument obtained as a result of the market maker executing the transfer order at the second computer-based exchange; and

execute some or all of the remainder of the trade order at the first computer-based exchange using the additional volume of the financial instrument obtained from the second computer-based exchange and received from the market maker.

17. A computer program for use in an automated trading system, where a market maker is responsible for providing in a first computer-based exchange a buy price and a sell price to trade a financial instrument and where a difference between the buy price and the sell price defines a spread for the financial instrument, wherein the computer program includes program code provided in a computer-readable medium for controlling a computer, comprising program code configured to:

receive a quote comprising a volume and a price associated with the buying and/or selling of the financial instrument that requires an improved buy price and/or sell price for trading the financial instrument relative to the buy price and/or sell price for trading the financial instrument offered in the first computer-based exchange; and

automatically use a current buy price and/or a current sell price for the financial instrument obtained from a second computer-based exchange to execute the quote of the financial instrument at the improved buy price and/or sell price at the first computer-based exchange,

wherein the quote further includes a multiplier parameter for controlling a volume of the quote by multiplying the multiplier parameter with a volume at the second computer-based exchange.

18. The computer program according to claim 17 , wherein the multiplier parameter is used to control a risk for the market maker with respect to the volume associated with the quote.

19. The computer program according to claim 17 , wherein the quote further includes a volume limit parameter for controlling a risk for the market maker with respect to the volume associated with the quote.

20. The computer program according to claim 17 , wherein the improved price is a either a higher buy price if the quote is a buy order or a lower sell price if the quote is a sell order.

21. The computer program according to claim 17 , wherein the program code is further configured to:

determine that a remainder of an incoming order cannot be filled at the first computer-based exchange;

automatically obtain additional volume of the financial instrument from the second computer-based exchange; and

execute some or all of the remainder of the incoming order at the first computer-based exchange using the additional volume of the financial instrument obtained from the second computer-based exchange.

22. The computer program according to claim 21 , wherein the program code is further configured to execute some or all of the remainder of the incoming order at the first computer-based exchange using the additional volume of the financial instrument obtained from the second computer-based exchange at the improved buy price and/or sell price.

23. The computer program according to claim 22 , wherein the program code is further configured to:

determine that only some of the remainder of the incoming order can be filled using the additional volume of the financial instrument obtained from the second computer-based exchange, and

execute a non-executed portion of the trade order at the first computer-based exchange without consideration of the improved buy price and/or sell price.

24. The computer program according to claim 21 , wherein in order to transfer the additional volume of the financial instrument from the second computer-based exchange to the first computer-based exchange, the program code is further configured to:

send a transfer order to the market maker requesting the market maker execute that transfer order at the second computer-based exchange;

receive from the market maker the additional volume of the financial instrument obtained as a result of the market maker executing the transfer order at the second computer-based exchange; and

execute some or all of the remainder of the trade order at the first computer-based exchange using the additional volume of the financial instrument obtained from the second computer-based exchange and received from the market maker.