Systems for automated trading and 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 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 market distribution component configured to, in response to the trading system receiving from traders quotes to buy or sell products traded on the system, the quotes including a price, a visible amount and a linked hidden amount, distribute the quotes to traders so as to show the visible amounts, but not show the linked hidden amounts;
a matching engine configured to match the quotes to buy or sell products with orders received from traders in response to the distributed quotes, the matching engine being configured to match the visible amounts of quotes before the linked hidden amounts; and
wherein the matching engine is configured to replenish a matched quote with any residual unmatched linked amount of the quote, the replenished quote being at the same price as the matched quote,
wherein the matching engine further comprises an auto-matching component configured to match quotes received from two traders 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 matching engine is further configured to replenish the quote converted into the taker order following the auto-match with any residual unmatched linked amount, the replenished quote being at the same price as the matched quote the replenished quote having a visible amount up to the limit indicated with the remainder as a linked amount.
2. An automated trading system for trading products between traders, the system comprising:
one or more memories;
one or more severs being connected to one or more of the memories and configured to:
respond to the receipt of a quote associated with a first trader by storing the received quote, the received quote being a quote to buy or sell a product traded and including a price, a visible amount and a linked hidden amount, the received quote including an indication of a maximum amount of the linked amount that can be shown to traders as a visible amount in the submitted new quote and the one or more servers submit the new quote with a visible amount that does not exceed the maximum amount;
distribute the received quote to other traders using the system in a manner which causes the visible amount to be shown to the other traders, but the linked hidden amount not to be shown to the other traders;
respond to the receipt of an order associated with one of the other traders by storing the received order, the order being at the price of the quote and for an amount which is equal to or greater than the visible amount but less than the combination of the visible and linked hidden amounts,;
match the order with all of the visible amount and, if the order is for an amount which is greater than the visible amount, with a portion of the linked hidden amount so that there is a residual amount of the linked hidden amount which is unmatched; and
submit a new quote on behalf of the first trader into the system at the price of the received quote and with a visible amount.
3. The automated trading system of claim 2 , wherein the new quote is submitted only after a deal for the matched amount of the quote has been confirmed.
4. The automated trading system of claim 2 , wherein the visible amount of the new quote is equal to the residual amount.
5. The automated trading system of claim 2 , wherein the visible amount of the new quote is less than the residual amount.
6. The automated trading system of claim 2 , wherein the received order is for an amount which is greater than the visible amount.
7. The automated trading system of claim 2 , wherein the new quote is for an amount equal to the residual amount.
8. An automated trading system for trading products between traders, comprising:
one or more memories;
one or more servers connected to one or more of the memories and configured to:
in response to the trading system receiving from traders quotes to buy or sell products traded on the system, the quotes including a price, a visible amount and a linked hidden amount, distribute the quotes to traders so as to show the visible amounts, but not show the linked hidden amounts;
match the quotes to buy or sell products with orders received from traders in response to the distributed quotes, the matching engine being configured to match the visible amounts of quotes before the linked hidden amounts;
replenish a matched quote with any residual unmatched linked amount of the quote, the replenished quote being at the same price as the matched quote,
match quotes received from two traders 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
replenish the quote converted into the taker order following the auto-match with any residual unmatched linked amount, the replenished quote being at the same price as the matched quote a the replenished quote having a visible amount up to the limit indicated with the remainder as a linked amount.