System for providing step out commissions and compensation for research brokers

1. A computer process for performing step-out payments on a securities trading system, comprising a trader system, an executing broker system, and a research broker, the computer process comprising:

establishing a digital computer connection within said securities trading system, between said trader system and said executing broker system operably configured to intercept data;

intercepting digital data over said digital computer connection, said data related to trade execution, comprising orders and executions, communicated between the executing broker system and the trader system;

communicating said digital data to a step-out calculation module within said securities trading system;

processing said digital data through said step-out calculation module that calculates step-out information;

segregating step-out payments within said step-out calculation module due to said research broker from payments due to an executing broker;

presenting said step-out information to said trader system;

making said step-out payments automatically from said securities trading system to said research broker without providing information related to trade execution to said research broker; and

notifying said research broker from the securities trading system that said step-out payment is stepped-out.

2. A computer process, in accordance with claim 1 , wherein said payments are chosen within said securities trading system from the group consisting of commissions, traditional step-ins, anonymous step-ins and hard-dollar payment.

3. A computer process, in accordance with claim 1 , further comprising automatically making said step-out payments by said securities trading system in accordance with a trader's control inputs.

4. A computer process, in accordance with claim 3 , wherein process for entering said control input comprises:

accepting at said securities trading system a specification of favored or blocked stocks; and

accepting at said securities trading system a designation of weighting, less or more, to be applied to said specification.

5. A computer process, in accordance with claim 3 , wherein process for entering said control input comprises:

accepting at said securities trading system an identification of said research broker for which share quantities will be stepped in; and

accepting at said securities trading system an instruction whether said payment will be anonymous or traditional.

6. A computer process, in accordance with claim 3 , wherein process for entering said control input comprises:

accepting at said securities trading system an instruction to adhere to client directions; and

accepting at said securities trading system a designation of weighting, less or more, to be applied to said instruction.

7. A computer process, in accordance with claim 3 , wherein process for entering said control input comprises:

accepting at said securities trading system an instruction to pay the said research broker that is furthest behind first, and

accepting at said securities trading system a designation of weighting, less or more, to be applied to process for entering said control input.

8. A computer process, in accordance with claim 3 , wherein process for entering said control input comprises:

accepting at said securities trading system an instruction to pay the said research broker that are paid with soft dollars first; and

accepting at said securities trading system a designation of weighting, less or more, to be applied to process for entering said control input.

9. A computer process, in accordance with claim 3 , wherein process for entering said control input comprises:

accepting at said securities trading system an instruction to spread payments out amongst as many said research brokers as possible; and

accepting at said securities trading system a designation of weighting, less or more, to be applied to said instruction.

10. A computer process, in accordance with claim 1 , further comprising generating a performance report, via said securities trading system, assessing the step-outs and step-ins against a predetermined budget.

11. A computer process, in accordance with claim 1 , further comprising generating a performance report, via said securities trading system, listing a target percentage of commissions which said research broker is to be paid over a predetermined period.

12. A computer process, in accordance with claim 1 , further comprising generating a performance report, via said securities trading system, depicting a budgeted commission amount and said commission for a predetermined period.

13. A computer process, in accordance with claim 1 , further comprising generating a performance report, via said securities trading system, depicting how said commission is distributed among said executing brokers, said research brokers, soft dollars and discretionary distributions.

14. A process within a securities trading computer system for performing securities step-out arrangements, the process comprising:

determining the commission payments due over a set period of time from data intercepted over a digital electronic data connection within said computer system;

determining the number of step-out payments due on said commission payments by a step-out calculation module within said computer system;

determining the details of each step-out payment due on said commission payments within said step-out calculation module;

determining within said step-out calculation module the commission payments due to an executing broker less the step-out payments due to one or more research broker;

presenting to a trader via said computer system, a suggestion of said commission payments;

performing automatic payments via said computer system, wherein payments are said suggested commission payments or commission payments revised by said trader;

notifying said executing broker via said computer system that said commission payments over set period of time payable to said executing broker are available; and

notifying said one or more research broker via said computer system that said step-out payments over set period of time are available, without disclosing to said one or more research broker said commission payments made available to said executing broker.