METHOD AND APPARATUS FOR PRICE IMPROVEMENT, PARTICIPATION, AND INTERNALIZATION
A method for stock option trading includes receiving an option order at a market, contemporaneously receiving a copy of the option order at an electronic drop (EDrop) system, which is separate and distinct from the market, obtaining a potential cross quantity and a potential cross price based on the option order at the EDrop system, and submitting, through the EDrop system, a contra-order, with respect to the option order, to the market for fulfillment, wherein the contra-order specifies at least one of an underlying security potential cross quantity, and the potential cross price.
1 . A method for stock option trading comprising:
receiving an option order at a server;
contemporaneously receiving the option order at an electronic drop (EDrop) system; and
automatically generating a match with respect to the option order, wherein the match specifies at least one of an underlying security potential cross quantity, and the potential cross price.
2 . The method of claim 1 , wherein the contemporaneously receiving comprises receiving an option order selected from the group of option orders consisting of buy calls, sell calls, buy puts, and sell puts.
3 . The method of claim 1 , wherein the automatically generating comprises automatically generating a sell call when the option order is a buy call option order, and automatically generating a buy call when the option order is a sell call option order.
4 . The method of claim 1 , wherein the automatically generating comprises automatically generating a sell put when the option order is a buy put option order, and automatically generating a buy put when the option order is a sell put option order.
5 . The method of claim 1 , further comprising displaying at least an underlying security, am option quantity, at least one of an option bid price and option ask price, and an ask price at a trader terminal, and monitoring the trader terminal for a submit indicator.
6 . The method of claim 5 , wherein the displaying further comprises displaying underlying security bid and ask prices at the market.
7 . The method of claim 5 , wherein the displaying further comprises displaying risk management variables.
8 . The method of claim 1 , wherein the EDrop system is remotely located from the market.
9 . A method of trading in a securities trading network having a market, the method comprising:
receiving an order sent to a market at a first server;
automatically obtaining a contra-order based on the order at the first server; and
submitting a match of the order and contra-order to a second server.
10 . The method of claim 9 , wherein the first server is separate and distinct from the market.
11 . The method of claim 9 , wherein the order is one of a stock and index option order.
12 . The method of claim 9 , wherein the receiving comprises receiving an order selected from a group of option orders consisting of buy calls, sell calls, buy puts, and sell puts.
13 . The method of claim 9 , wherein the submitting comprises submitting a sell call when the order is a buy call order, and submitting a buy call when the order is a sell call order.
14 . The method of claim 9 , wherein the submitting comprises submitting a sell put when the order is a buy put order, and submitting a buy put when the order is a sell put order.
15 . The method of claim 9 , wherein the market matches the order and contra-order before submitting the order to the second server for fulfillment.
16 . The method of claim 15 , wherein the second server is at an exchange.
17 . A trading network system, comprising:
a market in communication with an electronic order flow provider through a network, the market configured to receive the order from the electronic order flow provider; and
a server in communication with the market, the server contemporaneously receiving the order, and wherein the server obtains a contra-order based on the order.
18 . The trading network system of claim 17 , wherein the server is remote from the market.
19 . The trading network system of claim 17 , wherein the server is separate and distinct from the market.
20 . The trading network system of claim 17 , wherein the market matches the order and contra-order.