System and method for routing trading orders in an electronic trading system using trader lists

Abstract

A system for managing trading orders comprises a memory operable to store a trader list that is associated with a first trader and that designates one or more other traders. The system further comprises a processor communicatively coupled to the memory and operable to receive a trading order from the first trader. The processor is further operable to transmit the trading order to a plurality of traders, wherein the plurality of traders does not comprise any of the one or more designated traders from the trader list. The processor is further operable to prevent the transmission of the trading order to the one or more designated traders.

1 - 61 . (canceled) 
     
     
         62 . A system for managing trading orders, comprising:
 a processor; and   a memory that stores instructions which, when executed by the processor, direct the processor to:
 (a) receive a trading order from a trader, the trading order comprising an order to buy or sell a quantity of a financial instrument; 
 (b) determine a trade credit associated with the trader; 
 (c) determine whether the trading order (1) can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order or (2) cannot be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order; 
 (d) if the received trading order cannot be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order, then:
 increase the trade credit; and 
 submit the received trading order for execution; and 
 
 (e) if the received trading order can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order, then:
 calculate a decrease of the trade credit; and 
 perform one of:
 (1) based on a determination that subtracting the calculated decrease from the trade credit would not cause the trade credit to be less than a configurable threshold, submit the received trading order for execution; and subtract the calculated decrease from the trade credit; and 
 (2) based on a determination that subtracting the calculated decrease from the trade credit would cause the trade credit to be less than the configurable threshold, prevent the execution of the received trading order. 
 
 
   
     
     
         63 . The system of  claim 62 , in which the trade credit comprises a non-monetary value that cannot be used by the trader to fund a purchase price of a financial instrument. 
     
     
         64 . The system of  claim 62 , wherein the instructions, when executed by the processor, direct the processor to determine the trade credit by allocating to the trader an initial trade credit based on determining that the trader is a new trader. 
     
     
         65 . The system of  claim 64 , wherein:
 the trader is one of a plurality of traders; and   the initial trade credit allocated to the trader is substantially equal to an initial trade credit allocated to each of the other plurality of traders.   
     
     
         66 . The system of  claim 62 , wherein the received trading order is an initial trading order received from the trader during a configurable session, and the act of determining the trade credit comprises resetting the trade credit to be equal to an initial trade credit. 
     
     
         67 . The system of  claim 62 , wherein the trading order is a bid or an offer that cannot be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order. 
     
     
         68 . The system of  claim 62 , wherein the trading order is a buy order or a sell order that can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order. 
     
     
         69 . The system of  claim 62 , wherein:
 the received trading order is associated with a trade value;   if the trade credit is increased, then the increase of the trade credit is based at least in part on at least one of the trade value and a size of the trading order; and   if the trade credit is decreased, then the decrease of the trade credit is based at least in part on at least one of the trade value and the size of the trading order.   
     
     
         70 . The system of  claim 62 , in which
 if the trade credit is increased, then the trade credit is increased by a first percentage of the size of the trading order; and   if the trade credit is decreased, then the trade credit is decreased by a second percentage of the size of the trading order, and in which the first percentage is different from the second percentage.   
     
     
         71 . The system of  claim 62 , wherein the processor is further operable to cause the trade credit to decay over time. 
     
     
         72 . The system of  claim 62 , further comprising:
 determining an initial trade credit for a particular trader based at least in part on at least one of a size of the particular trader, anticipated trading activity of the particular trader, trading history of the particular trader, and affiliation of the particular trader.   
     
     
         73 . The system of  claim 62 , wherein the configurable threshold is zero. 
     
     
         74 . The system of  claim 62 , wherein preventing the execution of the received trading order comprises at least one of:
 deleting the received trading order without submitting the received trading order for execution;   withholding the received trading order from execution; and   returning the received trading order to the trader without submitting the received trading order for execution.   
     
     
         75 . The system of  claim 62 , wherein the trader is associated with an order price feed that is designated as restricted. 
     
     
         76 . The system of  claim 62 , wherein the received trading order is a first trading order, and the processor is further operable to:
 receive a plurality of other trading orders after receiving the first trading order; and   repeat steps (c) and either (d) or (e), as applicable, for each of the plurality of other trading orders.   
     
     
         77 . The system of  claim 62 , in which the trading order comprises a respective trade value, and in which the memory stores instructions which, when executed by the at least one processor, direct the at least one processor to:
 if the received trading order cannot be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order, then increase the trade credit by an amount determined based at least in part on at least one of a size and a type of the trading order; and   if the received trading order can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order, then calculate a decrease of the trade credit based at least in part on at least one of a size and a type of the trading order.   
     
     
         78 . The system of  claim 62 , in which the trading order comprises a respective trade value, and in which the memory stores instructions which, when executed by the at least one processor, direct the at least one processor to:
 if the received trading order cannot be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order, then increase the trade credit by an amount that is substantially numerically proportional to the trade value; and   if the received trading order can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order, then calculate a trade decrease amount by which the trade credit is decreased, the trade decrease amount being substantially equal to an amount that is numerically proportional to the trade value.   
     
     
         79 . A system for managing trading orders, comprising:
 a processor; and   a memory that stores instructions which, when executed by the processor, direct the processor to:
 (a) receive a trading order from a trader, the trading order comprising an order to buy or sell a quantity of a financial instrument; 
 (b) determine a trade credit associated with the trader; 
 (c) determine whether the trading order can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order; 
 (d) based on a determination that the received trading order can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order:
 calculate a decrease of the trade credit; and 
 perform one of:
 (1) based on a determination that subtracting the calculated decrease from the trade credit would not cause the trade credit to be less than a configurable threshold, 
 submit the received trading order for execution; and 
 subtract the calculated decrease from the trade credit; and 
 (2) based on a determination that subtracting the calculated decrease from the trade credit would cause the trade credit to be less than the configurable threshold, prevent the execution of the received trading order. 
 
 
   
     
     
         80 . A system for managing trading orders, comprising:
 a processor; and   a memory that stores instructions which, when executed by the processor, direct the processor to:
 (a) receive a trading order from a trader, the trading order comprising an order to buy or sell a quantity of a financial instrument; 
 (b) determine a trade credit associated with the trader; 
 (c) determine whether the trading order can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order; and 
 (d) based on a determination that the received trading order cannot be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order, then:
 increase the trade credit; and 
 submit the received trading order for execution. 
 
   
     
     
         81 . A method, comprising:
 receive, by at least one processor, a trading order from a trader, the trading order comprising an order to buy or sell a quantity of a financial instrument;   determine, by the at least one processor, a trade credit associated with the trader;   determine, by the at least one processor, whether the trading order (1) can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order or (2) cannot be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order;   if the received trading order cannot be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order, then:
 increase, by the at least one processor, the trade credit; and 
 submit, by the at least one processor, the received trading order for execution; and 
   if the received trading order can be at least partially matched for execution with a preexisting order received by the processor prior to receiving the trading order, then:
 calculate, by the at least one processor, a decrease of the trade credit; and 
 perform, by the at least one processor, one of:
 (1) based on a determination that subtracting the calculated decrease from the trade credit would not cause the trade credit to be less than a configurable threshold, submit the received trading order for execution; and subtract the calculated decrease from the trade credit; and 
 (2) based on a determination that subtracting the calculated decrease from the trade credit would cause the trade credit to be less than the configurable threshold, prevent the execution of the received trading order.