Automated trading system for conversion of unmatched amounts into new quotes
Quotes entered into an automated trading system may comprise a visible, or primary, amount, and a linked or hidden amount. The visible amount only is shown to other traders on the system but part or all of the linked amount may be dealt if the order with with the quote is match is for an amount greater than the visible amount. If, after matching and deal confirmation, all the visible amount has been dealt, but some or all of the linked amount remains, a fresh order for the remaining linked amount is generated and submitted to the trading system for matching. The new quoted may be visible only or may have a visible component up to a limit specified by the maker on submission of the original quote, with the remainder being linked. Maker quotes converted to taker quotes by an auto-match routine may be resubmitted for undealt linked amounts in the same way. In one aspect of the invention, linked amounts are matched and dealt before visible amounts.
1. An automated trading system for trading products between traders, comprising:
a plurality of order input devices configured to enter quotes to buy or sell products traded on the system, the quotes including a price, a visible amount and a linked hidden amount, and to enter orders in response to quotes input from others of the plurality of order input devices;
a market distribution component configured to distribute quotes to order input devices, the quotes being shown to order input devices only for the visible amounts;
a matching engine configured to match quotes to buy or sell with orders submitted in response to the quotes, the matching engine being configured to match the visible amounts of the quotes matched before the linked amounts; and
a quote generation and submission device configured to convert any residual unmatched linked amount into a fresh quote at the same price as the matched quote and submitting the fresh quote to the system for matching,
wherein the matching engine further comprises an auto-matching component configured to match quotes submitted by two order input devices and convert one of the quotes into a taker order, wherein the quote to be converted into a taker order includes a price, a visible amount, a linked hidden amount, and an indication of a limit of the linked amount that can be shown as a visible amount; and
wherein the quote generation and submission device is further configured to convert any residual unmatched linked amount of the quote converted into the taker order following the auto-match into a fresh quote at the same price as the matched quote and to submit the fresh quote to the system for matching, the fresh quote having a visible amount up to the limit indicated with the remainder as a linked amount.
2. An automated trading system according to claim 1 , wherein the quote generation and submission device is configured to submit the fresh quote only after a deal for the matched amount of the original quote has been confirmed.
3. An automated trading system according to claim 1 , wherein quotes entered from the order input devices include an indication of a limit of the linked amount that can be shown to other order input devices as a visible amount in a fresh quote, and the quote generation and submission device is configured to form a fresh quote having a visible amount up to the visible amount limit with the remainder as a linked amount.
4. An automated trading system according to claim 1 , wherein the quote generation and submission device is configured to submit the fresh quote only after a deal for the auto-matched amount of the original quote has been confirmed.
5. An automated trading system according to claim 1 , wherein the auto-match component converts the later submitted quote into a taker order.