Opening Price Process For Trading System

Abstract

A system for determining an opening price for products traded over a distributed, networked computer system, includes a plurality of workstations for entering orders for financial products into the distributed, networked computer system and a server computer coupled to the workstations for receiving the orders. The server computer executes a server process that determines an opening price for the product. The server process identifies the oldest of interest at the most aggressive price on each side of the market and selects the older interest of the identified interest to designate as initial interest. The server process matches initial interest against all contra side interest.

1 . A method of determining an opening price for a product traded in a trading system, the method executed over a distributed network computer system, said method comprising:
 detecting a lock/cross condition in the market prior to opening;   removing the lock/cross condition to allow opening of trading in the particular product, with removing further comprising:   identifying the oldest of interest at the most aggressive price on each side of the market;   selecting the older interest of the identified interest to designate as initial interest; and   matching initial interest against all contra side interest.   
   
   
       2 . The method of  claim 1  wherein the products are financial instruments. 
   
   
       3 . The method of  claim 2  further comprising:
 calling an internalizing agent process to match orders against contra side interest of a market participant at the best price and having an ID matched to the order.   
   
   
       4 . The method of  claim 2  wherein interest is all quote-generated and non-directed, priced orders an the initial interest is designated as an incoming order. 
   
   
       5 . The method of  claim 3  further comprising:
 executing any remaining interest in a particular priority.   
   
   
       6 . The method of  claim 5  wherein the particular priority is Price/Time priority. 
   
   
       7 . The method of  claim 3  wherein interest exists at multiple price levels on each side of the market and at each price level, all Display interest is execute first before moving to another price level. 
   
   
       8 . The method of  claim 3  wherein interest exists at multiple price levels on each side of the market and at each price level, all displayed interest is execute first followed by any Reserve Size before moving to another price level. 
   
   
       9 . The method of  claim 8  wherein reserve size is executed in the order in which displayed size was executed. 
   
   
       10 . The method of  claim 1  wherein the sides of the market are a bid side and an offer side. 
   
   
       11 . The method of  claim 1  wherein executions occur at the price of the book interest so that any price improvement is realized by the initial interest. 
   
   
       12 . The method of  claim 1  wherein after an execution occurs, the method further comprises:
 updating quote-generated orders.   
   
   
       13 . The method of  claim 1  further comprises:
 testing whether the lock/cross condition has been removed; and if the condition was removed,   disseminating an opening price for the product.   
   
   
       14 . A computer program product for remove a lock/cross condition to allow opening of trading in a security said computer program product residing on a computer readable medium comprising instructions for causing a computer to:
 identify the oldest of interest at the most aggressive price on each side of the market;   select the older interest of the identified interest to designate as initial interest; and   match initial interest against all contra side interest.   
   
   
       15 . The computer program product of  claim 14  wherein instructions that cause the computer to further comprise instructions that cause the computer to:
 call an internalizing agent process to match orders against contra side interest of a market participant at the best price and having an ID matched to the order.   
   
   
       16 . The computer program product of  claim 14  wherein the instructions cause the computer to execute matches at the price of the book interest so that any price improvement accrues to the initial interest. 
   
   
       17 . The computer program product of  claim 14  wherein interest exists at multiple price levels on each side of the market and at each price level, all Display interest is execute first before moving to another price level. 
   
   
       18 . The computer program product of  claim 14  further comprising instructions that cause the computer to: 
     further comprises:
 updating quote-generated orders. 
 
   
   
       19 . The computer program product of  claim 14  further comprises instructions to:
 test whether the lock/cross condition has been removed; and if the condition was removed,   disseminate an opening price for the product.   
   
   
       20 . The computer program product of  claim 14  further comprising instructions that cause the computer to:
 update in a montage quote-generated orders.   
   
   
       21 . The computer program product of  claim 14  further comprising instructions that cause the computer to:
 test whether the lock/cross condition has been removed; and if the condition was removed,   disseminate an opening price for the security.   
   
   
       22 . A system for determining an opening price for products traded over a distributed, networked computer system, said system comprising:
 a plurality of workstations for entering orders for financial products into the distributed, networked computer system; and   a server computer coupled to the workstations for the orders, said server computer executing a server process that determines an opening price for the product, the server process comprising instructions that cause the server to:   identify the oldest of interest at the most aggressive price on each side of the market;   select the older interest of the identified interest to designate as initial interest; and   match initial interest against all contra side interest.   
   
   
       23 . The system of  claim 22  wherein the computer program product further comprises instructions for causing the server to:
 call an internalizing agent process to match orders against contra side interest of a market participant at the best price and having an ID matched to the order.   
   
   
       24 . The system of  claim 22  wherein the computer program product further comprises instructions that cause the computer to:
 test whether the lock/cross condition has been removed; and if the condition was removed,   disseminate an opening price for the security.   
   
   
       25 . The system of  claim 22  wherein the products are financial instruments.