DISTRIBUTED MATCHING ENGINE

1 . A system comprising a plurality of servers including at least a first server and a second server, wherein the plurality of servers interconnected by at least one network:

wherein the first server is configured to:

maintain a first order book for an item to be traded;

receive a first order for the item, wherein the first order includes a quantity;

place the first order in the first order book, wherein the first server is responsible for controlling execution of contra-orders against the first order; and

communicate the first order on the network;

wherein the second server is configured to:

maintain a second order book for the item;

receive the first order communicated by the first server;

place the first order in the second order book;

receive a second order for the item;

determine the second order is a contra-order to the first order; and

in response to determining the second order is a contra-order to the first order, communicate the second order to the first server;

wherein the first server is further configured to:

receive the second order from the second server;

determine whether the first order is available;

when available, execute a trade between the first and second orders;

remove the first order from the first order book when the second order is for all available quantity of the first order; and

communicate a confirmation message on the network indicating the first order is traded against; and

wherein the second server is further configured to:

receive the confirmation message; and

in response to receiving the confirmation message, remove the first order from the second order book when the second order is for all available quantity of the first order.