System and method for changing order priority levels in an electronic trading environment
A system and method for fee-based order priority level modification in an electronic trading environment are described. When an order reaches an exchange, a priority level of the order may be changed to a higher priority level, and the priority level of the order initially at the higher priority level may be changed to a lower priority level of the received order. In one embodiment, a trader who is gaining a higher priority level will be preferably charged a fee for having his order moved to the higher priority level, and at least a portion of that fee may be paid to a trader who is giving up his high priority level.
1. A method for sorting orders in an order queue at an electronic trading environment, the method comprising:
generating, via a server of an electronic exchange, a fee for placing a first order of a received plurality of orders for a tradeable object in an order queue for order matching by the electronic exchange according to a match algorithm of the electronic exchange and a user-identified priority, where the first order includes an order price and the user-identified priority.
2. The method of claim 1 where the fee is associated with a trader for the first order.
3. The method of claim 1 , further comprising displaying a queue position for the plurality of received orders on a graphical user interface.
4. The method of claim 1 where the first order is changed from a first priority level to a second priority level.
5. The method of claim 4 where positions for the first order and a second order of the received plurality of orders are swapped according to the user-identified priority for the first order and a user-identified priority for the second order.
6. The method of claim 5 where the trader of the first order is assessed the fee.
7. The method of claim 5 where the trader of the second order is credited at least a portion of the fee.
8. The method of claim 5 where a quantity of the second order is less than a quantity of the first order and where a portion of the first order is swapped with the second order.
9. The method of claim 5 where a quantity of the second order is greater than a quantity of the first order and where a portion of the second order is swapped with the first order.
10. The method of claim 5 where ownership of the first order and the second order is swapped.
11. A non-transitory computer readable medium having instructions stored thereon, which when executed by a processor cause the processor to perform acts comprising:
generating, via a server of an electronic exchange, a fee for placing a first order of a received plurality of orders for a tradeable object in an order queue for order matching by the electronic exchange according to a match algorithm of the electronic exchange and a user-identified priority, where the first order includes an order price and the user-identified priority.
12. The non-transitory computer readable medium of claim 11 where the fee is associated with a trader for the first order.
13. The non-transitory computer readable medium of claim 11 , further comprising displaying a queue position for the plurality of received orders on a graphical user interface.
14. The non-transitory computer readable medium of claim 11 where the first order is changed from a first priority level to a second priority level.
15. The non-transitory computer readable medium of claim 14 where positions for the first order and a second order of the received plurality of orders are swapped according to the user-identified priority for the first order and a user-identified priority for the second order.
16. The non-transitory computer readable medium of claim 15 where the trader of the first order is assessed the fee.
17. The non-transitory computer readable medium of claim 15 where the trader of the second order is credited at least a portion of the fee.
18. The non-transitory computer readable medium of claim 15 where a quantity of the second order is less than a quantity of the first order and where a portion of the first order is swapped with the second order.
19. The non-transitory computer readable medium of claim 15 where a quantity of the second order is greater than a quantity of the first order and where a portion of the second order is swapped with the first order.
20. The non-transitory computer readable medium of claim 15 where ownership of the first order and the second order is swapped.