Granted Patent B2

US 8,635,144 · App. 12/692,147 · Granted Jan 21, 2014

Abstract

Claims (37)

1. A method for facilitating trading of securities over a computer system, comprising the steps of:

electronically receiving a first order for a security from a first user, along with a price for said first order;

calculating with a processing system comprising one or more processors a block price range for said security, said block price range having an upper end and a lower end;

determining with said processing system that said first order is reasonably priced, wherein the determining is based on whether said price satisfies the following conditions:

for a sell order, said price is equal to or lower than said upper end of said block price range, and

for a buy order, said price is equal to or higher than said lower end of said block price range;

transmitting to a second user an electronic notification that a reasonably priced order for said security is present, but without notifying said second user of a side of the order;

receiving a second order from said second user, along with a price for said second order, wherein said second order is contra to said first order, such that if said first order is a buy order, said second order is a sell order, and if said first order is a sell order, said second order is a buy order, and wherein said second order is reasonably priced but does not cross said first order;

transmitting an electronic contra order notification to said second user after said second order is received, said electronic contra order notification indicating that a reasonably priced contra order is active within the computer system;

receiving a third order, along with a price for said third order, from said second user, said third order being contra to said first order, such that if said first order is a buy order, said third order is a sell order, and if said first order is a sell order, said third order is a buy order, and wherein said third order crosses said first order; and

executing a trade comprising said first order and said third order,

wherein said second user receives said electronic contra order notification only after a second predetermined time period has lapsed after said second order is received, and

wherein said step of calculating the block price range comprises predicting a price range likely to occur within a first predetermined time period.

2. The method as in claim 1 , wherein said second user receives said contra order notification immediately after said second order is received.

3. The method as in claim 1 , wherein said step of calculating the block price range is based on recent or current market prices.

4. The method as in claim 1 , wherein said step of calculating the block price range is based on recent volatility in said security.

5. The method as in claim 1 , wherein said block price range is recalculated at intervals of time approximately equal to said first predetermined time period.

6. The method as in claim 1 , further comprising disallowing from being processed by the computer system any order that is not a multiple of a block quantity predetermined by the computer system.

7. An electronic system for facilitating securities trading, comprising:

one or more processors configured to:

receive a first order from a first user, along with a price for said first order;

calculate a block price range for said security, said block price range having an upper end and a lower end;

determine whether said first order is reasonably priced, based on whether said price satisfies conditions of:

for a sell order, said price is equal to or lower than said upper end of said block price range, or

for a buy order, said price is equal to or higher than said lower end of said block price range;

transmit to a second user an electronic notification that a reasonably priced order for said security is present, but without notifying said second user of a side of the order;

receive a second order, along with a price for said second order, from said second user, wherein said second order is contra to said first order, such that if said first order is a buy order, said second order is a sell order, and if said first order is a sell order, said second order is a buy order, and wherein said second order is reasonably priced but does not cross said first order;

transmit an electronic contra order notification to said second user after said second order is received, said electronic contra order notification indicating that a reasonably priced contra order is active within the electronic system;

receive a third order, along with a price for said third order, from said second user, said third order being contra to said first order, such that if said first order is a buy order, said third order is a sell order, and if said first order is a sell order, said third order is a buy order, and wherein said third order crosses said first order; and

execute a trade comprising said first order and said third order

wherein said second user receives said electronic contra order notification only after a second predetermined time period has lapsed after said second order is received, and

wherein said step of calculating the block price range comprises predicting a price range likely to occur within a first predetermined time period.

8. The system as in claim 7 , wherein said second user receives said contra order notification immediately after said second order is received.

9. The system as in claim 7 , wherein said step of calculating the block price range is based on recent or current market prices.

10. The system as in claim 7 , wherein said step of calculating the block price range is based on recent volatility in said security.

11. The system as in claim 7 , wherein said block price range is recalculated at intervals of time approximately equal to said first predetermined time period.

12. The system as in claim 7 , wherein the one or more processors are further configured to disallow from being processed by the electronic system any order that is not a multiple of a block quantity predetermined by the electronic system.

Assignments (7)