Trading Order Validation System and Method and High-Performance Trading Data Interface

Abstract

A post-trade monitor receives feedback in the form of drop copy messages from an exchange server and validates orders placed with the exchange server by a sponsored access trading platform shortly after the orders have been placed. If a recently placed order is found to violate a rule or regulation, the monitor instructs the trading platform to change to a more restrictive trading mode, such as to cease placing all orders or certain types of orders, at least until certain parameters are met.

What is claimed is: 
     
         1 . A system for post-trade monitoring of orders placed by a customer trading platform with at least one exchange server, the system comprising:
 a sponsored access post-trade monitor, distinct from the customer trading platform, configured to:
 receive drop copy messages from the at least one exchange server, the drop copy messages relating to respective orders placed by the customer trading platform; 
 determine, based at least in part on at least one of the received drop copy messages, if one of the orders placed by the customer trading platform caused the customer to exceed a trading limit established for a customer; and 
 if one of the orders is determined to have caused the customer to exceed the trading limit, send a message, via a computer network, to the customer trading platform instructing the customer trading platform to change to a less permissive trading mode; and 
   an application programming interface on the customer trading platform and configured to receive messages from the sponsored access post-trade monitor and, responsive to the messages, to alter a trading mode of the customer trading platform.   
     
     
         2 . A system according to  claim 1 , wherein the application programming interface is further configured to provide an indication of the trading mode of the customer trading platform. 
     
     
         3 . A system according to  claim 1 , wherein the application programming interface is further configured to provide an indication of permissibility of a proposed trade, according to the trading mode of the customer trading platform. 
     
     
         4 . A system according to  claim 1 , wherein the application programming interface is further configured, in response to receiving a given message from the sponsored access post-trade monitor, to alter the trading mode of the customer trading platform to one of:
 a mode enabling unrestricted trading;   a mode enabling restricted trading; and   a mode disabling trading.   
     
     
         5 . A system according to  claim 1 , wherein the application programming interface is further configured, in response to receiving a given message from the sponsored access post-trade monitor, to alter the trading mode of the customer trading platform to one of:
 a mode permitting orders that increase account exposure and permitting orders that decrease account exposure;   a mode permitting orders that decrease account exposure and prohibiting orders that increase account exposure; and   a mode prohibiting orders that increase account exposure and prohibiting orders that decrease account exposure.   
     
     
         6 . A system according to  claim 1 , wherein the sponsored access post-trade monitor is further configured to:
 determine, based at least in part on at least one other of the received drop copy messages, if the limit is no longer exceeded; and   if the limit is no longer exceeded, send a second message, via the computer network, to the customer trading platform instructing the customer trading platform to change to a less restrictive trading mode.   
     
     
         7 . A system according to  claim 1 , wherein the sponsored access post-trade monitor:
 further comprises a communication interface configured to communicate via a computer network; and is further configured to:
 send, via the communication interface, information about trading events related to the customer trading platform; 
 receive, via the communication interface, information about trading events related to at least one trading platform other than the customer trading platform; and 
 recalculate the trading limit, based on the received information about the trading events. 
   
     
     
         8 . A computer-implemented method for post-trade monitoring of an order placed by a customer trading platform with at least one exchange server, the method comprising:
 receiving, by a sponsored access post-trade monitor, distinct from the customer trading platform, an electronic drop copy message from the at least one exchange server, the electronic drop copy message relating to the order placed by the customer trading platform;   automatically determining, based at least in part on the received electronic drop copy message, if the order placed by the customer trading platform caused the customer to exceed a trading limit established for a customer;   if the order is determined to have caused the customer to exceed the trading limit, automatically sending a message, via a computer network, to the customer trading platform instructing the customer trading platform to change to a less permissive trading mode; and   receiving, at the customer trading platform, the message from the sponsored access post-trade monitor; and   responsive to the message, automatically altering a trading mode of the customer trading platform.