Reprice-to-block order
A reprice-to-block order and related market center and process are disclosed which automatically reprice a posted limit order to the price of a block trade executed at an inferior price on a market away from the market center that posted the limit order.
1. A posting market center, comprising:
a computer system comprising one or more servers communicatively coupled;
an interface embodied in the computing system receiving orders, including reprice-to-block orders that are to be automatically repriced based on block trades executed at inferior prices, and continuously electronically polling market-wide tape over the Internet for a new last sale executed on an away market, the market-wide tape comprising at least one facility configured to electronically and continuously make available real-time trade information for one or more securities over the Internet;
a posting market center memory storing code, said code, when executed, defining an internal order book and a public order book, and analyzing and processing reprice-to-block orders;
a processor executing the stored code for analyzing and processing the reprice-to-block orders when the interface receives said reprice-to-block orders, wherein the code, upon execution by said processor, further causes said posting market center to:
(a) post one or more of the received reprice-to-block orders on the internal order book and the public order book;
(b) continuously electronically poll, via the interface, the market-wide tape over the Internet to obtain the real-time trade information;
(c) identify, from among the real-time trade information, the new last sale executed on the away market; and
(d) automatically activate, via the interface, a block trade decision application when the new last sale posted on the tape is identified, the block trade decision application including one or more routines and executed by the one or more servers of the computer system,
wherein the block trade decision application, when executed, automatically reprices at least one of the one or more reprice-to-block orders in response to detection of an inferior price at the away market based on assessment of said identified new last sale, the one or more routines of the block trade decision application configured to:
determine, by said executing of the block trade decision application, that the new last sale is a block trade;
determine that the block trade was executed at a price that is inferior to a price of the one or more reprice-to-block orders that were posted to the internal order book and the public order book at step (a); and
reprice the at least one of the one or more reprice-to-block orders to the price of the block trade that was executed at the inferior price, wherein the at least one repriced reprice-to-block order is posted in a position other than a top position on at least one of said order books, comprises one or more non-displayed components, or a combination thereof.
2. The posting market center of claim 1 , wherein the at least one of the one or more reprice-to-block orders is a buy order.
3. The posting market center of claim 1 , wherein the at least one of the one or more reprice-to-block orders is a sell order.
4. The posting market center of claim 1 , wherein the at least one of the one or more reprice-to-block orders is a reserve order.
5. The posting market center of claim 1 , wherein the posting market center operates in an equities marketplace.