Exchange trading system and method having a variable maker-taker model
View Patent ↗A method is described for providing one of a plurality of maker-taker pricing models to a system connected with the exchange system. The method includes the steps of an exchange server receiving from a first market participant of the exchange a marked order at the exchange connected to a database, the marked order marked with an indication of an expected rebate amount for trading orders; associating the marked order with an order from a second market participant of the exchange stored in a database configured to receive and store orders having varying rebate amounts according to the expected rebate amount; and executing the marked order according to the indication of an expected rebate amount. An exchange system for accessing at least one maker-taker pricing model for executing a trade on an exchange is also disclosed.
1. A computer implemented method of providing one of a plurality of maker-taker pricing models to a system connected with an exchange, comprising the steps of:
receiving, by an exchange server, an order message at the exchange from a first market participant of the exchange, the order message containing an order to buy or sell a tradeable product and a rebate field, wherein the rebate field is populated with a numerical rebate rate;
associating, by the exchange server, the order message with an order from a second market participant of the exchange stored in a database configured to receive and store orders having varying rebate rates according to received order properties, including the numerical rebate rate; and
executing, by the exchange server, the order based on the received order properties, including the numerical rebate rate.
2. The method according to claim 1 , wherein a first order message includes a different numerical rebate rate than a second order message.
3. The method according to claim 1 , wherein the marked order is aggregated and crossed with other orders received from the first market participant.
4. An exchange system for accessing at least one maker-taker pricing model for executing a trade on an exchange, comprising:
an electronic trade engine configured to receive at least one order message containing an order to buy or sell a tradeable product and a rebate field, the rebate field populated with a numerical rebate rate for trading orders;
an electronic book contained in the electronic trade engine, the electronic book configured to receive and store orders having varying numerical rebate rates; and
a trade processor contained in the electronic trade engine, the trade processor configured to associate an order in the order message with an order from a market participant of the exchange stored in the electronic book according to received order properties, including the numerical rebate rate;
wherein the electronic trade engine is configured to execute a trade for the order based on the received order properties, including the numerical rebate rate.
5. The exchange system according to claim 4 , wherein the electronic book comprises stored orders ranked in priority order according to the varying numerical rebate rates, wherein orders for tradeable products having a same order price are ranked by a cost that includes a cost added by respective numerical rebate rate associated with each order.
6. The exchange system according to claim 5 , wherein the trade processor is configured to associate the order in the received order message to the order from the second market participant stored in the electronic book according to the rebate rate.
7. The method according to claim 1 , wherein the numerical rebate rate is a rebate rate selected by the market participant between $0.00 and a standard maker rate for the exchange.
8. The method according to claim 1 , wherein the received order properties include at least one of a price, a time of receipt, or a quantity.
9. The exchange system according to claim 4 , wherein the numerical rebate rate is a rebate rate selected by the market participant between $0.00 and a standard maker rate for the exchange.
10. The exchange system according to claim 4 , wherein the received order properties include at least one of a price, a time of receipt, or a quantity.