Systems and methods for implementing post-matching trading

Abstract

Systems and methods for implementing post-matching trading are provided. A financial instrument transaction system may include a database configured to store financial instrument information for reference entities; a memory for storing execution instructions; and a processor. The processor may execute the instructions. The processor may initiate a trading session for a predetermined duration. Prior to and during the trading session, the processor may receive from a plurality of trader clients trading instructions associated with the reference entity. The instructions may include either a buy or sell position and a price. At the end of the trading session, the processor may determine, based on predefined criteria, whether the trading session qualifies for a post-matching session. If the trading session qualifies for a post-matching session, the processor may provide a graphical user interface to a selected group of traders for trading in the post-matching session.

What is claimed is: 
     
         1 . A financial instrument transaction system, comprising:
 a database configured to store financial instrument information for a reference entity;   memory configured to store execution instructions; and   a processor coupled with the database and the memory, the processor configured to execute the instructions, the instructions configured to cause the processor to:
 initiate a trading session for a predetermined duration; 
 prior to and during the trading session, receive from each one of a plurality of trader clients a trading instruction associated with the reference entity; 
 establish a mid-price based on the instructions received from the plurality of trader clients; 
 and 
 during the trading session, execute trading for the reference entity at a matching price, said matching price being different from the mid-price, said matching price being based on at least a first buy position and at least a first sell position, the first buy position being at a price that is higher than the first sell position; 
   wherein, when the first buy position is more distant from the mid-price than the first sell position, the processor is further configured to set the matching price closer to the first sell position than to the first buy position, and, when the first sell position is more distant from the mid-price than the first buy position, the processor is configured to set the matching price closer to the first buy position than to the first sell position.   
     
     
         2 . The system of  claim 1 , the instructions further configured to determine at the end of the trading session, based on predefined criteria, whether the trading session qualifies for a post-matching session; and if the trading session qualifies for a post-matching session, providing a graphical user interface to a selected group of traders for trading in the post-matching session. 
     
     
         3 . The system of  claim 2 , the instructions further configured to terminate the trading session at the end of the trading session if the trading session fails to qualify for the post-matching session. 
     
     
         4 . The system of  claim 1 , the instructions further configured to determine the matching price based at least in part on the mid-price. 
     
     
         5 . The system of  claim 4 , the instructions further configured to determine the matching price based at least in part on at least one current bid. 
     
     
         6 . The system of  claim 4 , the instructions further configured to determine the trading price for the price other than the mid-price based at least in part on at least one current offer. 
     
     
         7 . The system of  claim 6 , the instructions further configured to determine the matching price based at least in part on whether a current bid and a current offer are crossed. 
     
     
         8 . A financial instrument transaction system, comprising:
 a database configured to store financial instrument information for a reference entity;   memory configured to store execution instructions; and   a processor coupled with the database and the memory, the processor configured to execute the instructions, the instructions configured to cause the processor to:
 initiate a trading session for a predetermined duration; 
 prior to and during the trading session, receive from each one of a plurality of trader clients a trading instruction associated with the reference entity; 
 establish a mid-price based on the instructions received from the plurality of trader clients; 
 and 
 during the trading session, execute trading for the reference entity at a matching price, said matching price being different from the mid-price, said matching price being based on at least a first buy position and at least a first sell position, the first buy position being at a price that is higher than the first sell position; 
   wherein, when the difference between first buy position and the mid-price is greater than the difference between the first sell position and the mid-price, the processor is further configured to set the matching price closer to the first sell position than to the first buy position, and, when the difference between the first sell position and the mid-price is greater than the difference between the first buy position and the mid-price, the processor is configured to set the matching price closer to the first buy position than to the first sell position.   
     
     
         9 . The system of  claim 8 , the instructions further configured to determine at the end of the trading session, based on predefined criteria, whether the trading session qualifies for a post-matching session; and if the trading session qualifies for a post-matching session, providing a graphical user interface to a selected group of traders for trading in the post-matching session. 
     
     
         10 . The system of  claim 9 , the instructions further configured to terminate the trading session at the end of the trading session if the trading session fails to qualify for the post-matching session. 
     
     
         11 . The system of  claim 8 , the instructions further configured to determine the matching price based at least in part on the mid-price. 
     
     
         12 . The system of  claim 11 , the instructions further configured to determine the matching price based at least in part on at least one current bid. 
     
     
         13 . The system of  claim 11 , the instructions further configured to determine the trading price for the price other than the mid-price based at least in part on at least one current offer. 
     
     
         14 . The system of  claim 13 , the instructions further configured to determine the matching price based at least in part on whether a current bid and a current offer are crossed.