Dynamic information dissemination within a trading system
View Patent ↗A method for use by an operator of a system for trading of financial instruments allows the operator to differentiate between the information a user of the system is given access to regarding trades which are made outside of the system and then reported to the system, so called off-exchange trades. The operator defines a first set of boundaries within which the off-exchange trades will be accepted by the system. The operator also defines which sub-sets of a set of information about the trade will be disseminated to users of the system. The definition of the boundaries and the sub-sets of information are defined independently of each other.
1. A method for use in a computerized exchange system for matching of financial instruments that controls the information that users of the computerized exchange system are given access to regarding an off-exchange trade order match of a financial instrument made outside of the computerized exchange system at a first time and then reported to the computerized exchange system at a second later time, said method comprising:
defining a first set of boundaries within which the off-exchange trade order match will be accepted by the system,
when a price of the off-exchange trade order match is outside of a price spread for the financial instrument in the computerized exchange system at the second later time, selecting a first sub-set of information about the off-exchange trade order match to be disseminated to users of the system that is different from a second sub-set of information about the off-exchange trade order match to be disseminated to the users when the off-exchange trade order match price is not outside of the price spread for the financial instrument in the computerized exchange system at the second later time.
2. The method of claim 1 , wherein the first set of boundaries and the sub-sets of information are defined independently of each other, the method further comprising:
communicating one or more off-exchange trade order matches which have occurred within the first set of boundaries but outside of a second set of boundaries to users of the system by indicating that the trade order match has occurred outside of the second set of boundaries and by communicating to users of the system the price and quantity of the trade order match.
3. The method of claim 2 , wherein which the first and second set of boundaries are the same.
4. The method of claim 2 , wherein said communication to the users is carried out by only communicating to users of the system the price and quantity of the trade order match.
5. The method of claim 1 , wherein the operator defines different types of off-exchange trade order matches and communicates to the users of the system which such type each off-exchange trade order match is.
6. The method of claim 5 , wherein said information is communicated to the users of the system along with information about all trade order matches made in the system.
7. The method of claim 1 , wherein the operator defines a number of different types of off-exchange trade order matches, with each financial instrument in the system being associated with an operator-defined sub-set of said number of different types of trade order matches.
8. The method of claim 7 , wherein each user of the system is associated with an operator-defined sub-set of said number of different types of trade order matches.
9. A computerized exchange for matching financial instruments and for controlling the information users of the exchange are given access to regarding an off-exchange trade order match of a financial instrument made outside of the exchange at a first time and then reported to the exchange at a second later time, said system comprising:
first defining means for defining a first set of boundaries within which the off-exchange trade order match will be accepted by the exchange,
means for determining when a price of the off-exchange trade order match is outside of a price spread for the financial instrument in the exchange at the second later time and selecting a first sub-set of information about the off-exchange trade order match to be disseminated to users of the exchange that is different from a second sub-set of information about the off-exchange trade order match to be disseminated to the users when the off-exchange trade order match price is not outside of a price spread for the financial instrument in the exchange at the second later time.
10. The exchange of claim 9 , wherein the boundaries and the sub-sets of information are defined independently of each other, the exchange further comprising first communicating means for communicating to users of the system one or more off-exchange trade order matches which have occurred within the first set of boundaries but outside of a second set of boundaries, the first communicating means further being adapted to indicate to said users that the trade order match has occurred outside of the second set of boundaries and to communicate to users of the system the price and quantity of the trade order match.
11. The exchange of claim 10 , wherein the first and second set of boundaries are the same.
12. The exchange of claim 10 , wherein said first communicating means is adapted to only communicate to the users of the exchange the price and quantity of the trade order match.
13. The exchange of claim 10 , further comprising:
second defining means for defining different types of off-exchange trade order matches, and second communicating means for communicating to the users of the exchange which the type of an off-exchange trade order matches.
14. The exchanger of claim 13 , wherein said second communicating means is configured to communicate said information to the users of the exchange along with information about all trade order matches made in the exchange.
15. The exchange of claim 10 , further comprising third defining means for enabling the operator of the system to define a number of different types of off-exchange trade order matches, and in which exchange each instrument in the exchange is associated with an operator-defined sub-set of said number of different types of trade order matches.
16. The exchange of claim 15 , further comprising means for associating users of the exchange to be associated with said operator-defined sub-set of said number of different types of trades.
17. A method for use in a computerized trading exchange system for matching financial instruments, the method comprising:
enabling a first user of the trading exchange system to carry out an off-exchange trade order match of a financial instrument outside of the trading exchange system at a first time and then report said off-exchange trade order match to the trading exchange system at a second later time,
when a price of the off-exchange trade order match is outside of a price spread for the financial instrument in the computerized exchange system at the second later time, enabling a second user to receive a first sub-set of information about said off-exchange trade order match which is disseminated by the trading exchange system to the second user,
wherein the first sub-set of information is different from a second sub-set of information about the off-exchange trade order match that would be disseminated to the second user when the off-exchange trade order match price is not outside of the price spread for the financial instrument in the computerized exchange system at the second later time.
18. The method in claim 17 , wherein for either of the first or second sub-sets of information to be disseminated to the second user, the off-exchange trade order match must be determined to be within a first set of boundaries, and wherein the first set of boundaries and the sub-sets of information are defined independently of each other.
19. A method for disseminating information in a computerized exchange system to users associated with the computerized exchange system regrading an off-exchange trade order match for a financial instrument at a match price that is made outside the computerized exchange system at a first time and then reported to the computerized exchange system at a second later time, the method comprising:
determining whether a reported off-exchange trade order match satisfies a predetermined condition for which the off-exchange trade order match will be accepted by the computerized exchange system, and
if the off-exchange trade order match is accepted by the computerized exchange system, then disseminating a first sub-set of information about the off-exchange trade order match to the users when the off-exchange trade order match price is outside of a price spread for the financial instrument in the computerized exchange system at the second later time.
20. The method in claim 19 , further comprising:
if the off-exchange trade order match is accepted by the computerized exchange system, then disseminating a second sub-set of information about the off-exchange trade order match, different from the first sub-set of information, to the users when the off-exchange trade order match price is at or within the price spread for the financial instrument spread in the computerized exchange system at the second later time.
21. The method in claim 19 , wherein the predetermined condition and the sub-sets of information are defined independently.
22. Apparatus for disseminating information in a computerized exchange system to users associated with the computerized exchange system regarding an off-exchange trade order match for a financial instrument at a match price that is made outside the computerized exchange system at a first time and then reported to the computerized exchange system at a second later time, the apparatus comprising a computer configured to:
determine whether a reported off-exchange trade order match a predetermined condition for which the off-exchange trade order match will be accepted by the computerized exchange system, and
if the off-exchange trade order match is accepted by the computerized exchange system, then disseminate a first sub-set of information about the off-exchange trade order match to the users when the off-exchange trade order match price is outside of a price spread for the financial instrument in the computerized exchange system at the second later time.
23. The apparatus in claim 22 , further comprising:
if the off-exchange trade order match is accepted by the computerized exchange system, then the computer is configured to disseminate a second sub-set of information, different from the first sub-set of information about the off-exchange trade order match, to the users when the off-exchange trade order match price is at or within the price spread for the financial instrument spread in the computerized exchange system at the second later time.