System and method that provide incentives to qualified users of an electronic trading system

Abstract

Systems and methods for electronic trading that provide incentives to users of a trading system. The systems and methods may monitor a trading activity of the user and determine that the orders submitted by the user over a period of time exceed a first pre-determined threshold. Systems and methods also determine that a spread of the plurality of orders exceeds a second pre-determined threshold. Based on these determinations, the user is designated as qualifying for a special status, which entitles the user to incentives in trading. Systems and methods apply the incentives to an order submitted by the user. One such incentive provides the user with a priority in a trading queue, where orders submitted by the user are executed in advance of other orders in the trading queue.

1 - 24 . (canceled) 
     
     
         25 . A method comprising:
 determining, via a processor, that a user qualifies for a special status based on a plurality of orders submitted by the user over a period of time exceeding a threshold;   providing, via the processor, the user with at least on incentive in trading based on the special status, in which the at least one incentive provides the user with a priority in a trading queue;   receiving, via the processor, an order that is submitted by the user on a remote device and applying, via the processor, the at least one incentive to the order, in which the processor and the remote device are in electronic communication over a network;   in response to applying the at least one incentive to the order, executing, via the processor, the order in advance of at least one other order in the trading queue, in which the order was submitted after the at least one other order.   
     
     
         26 . The method of  claim 25 , in which the special status is a designated market maker. 
     
     
         27 . The method of  claim 25 , in which the threshold is determined in advance of receiving any orders from the user. 
     
     
         28 . The method of  claim 25  further comprising:
 monitoring trading activities of the user. 
 
     
     
         29 . The method of  claim 25  further comprising:
 determining that the user has sufficient credit acceptability. 
 
     
     
         30 . The method of  claim 25 , in which determining that the user qualifies for the special status further comprises:
 determining that a spread of the plurality of orders exceeds a second threshold.   
     
     
         31 . The method of  claim 25 , in which the at least one incentive comprises:
 providing the user with exclusivity to place bids and offers during a set timeframe.   
     
     
         32 . The method of  claim 30  further comprising:
 preventing other users from placing a bid or offer during the set timeframe. 
 
     
     
         33 . The method of  claim 25 , in which the at least one incentive comprises:
 reducing a transaction cost for processing the order that is submitted by the user.   
     
     
         34 . The method of  claim 25 , in which the at least one incentive comprises:
 executing the order without a transaction cost.   
     
     
         35 . The method of  claim 25 , in which the at least one incentive comprises” paying the user a commission that is based at least on the user's trading activities over the period of time. 
     
     
         36 . An apparatus comprising:
 a processor; and   a memory, in which the memory stores instructions which, when executed by the processor, direct the processor to:   determine that a user qualifies for a special status based on a plurality of orders submitted by the user over a period of time exceeding a threshold;   provide the user with at least on incentive in trading based on the special status, in which the at least one incentive provides the user with a priority in a trading queue;   receive an order that is submitted by the user on a remote device and apply the at least one incentive to the order, in which the processor and the remote device are in electronic communication over a network;   in response to applying the at least one incentive to the order, execute the processor, the order in advance of at least one other order in the trading queue, in which the order was submitted after the at least one other order.   
     
     
         37 . The method of  claim 36  further comprising:
 monitoring trading activities of the user. 
 
     
     
         38 . The method of  claim 36  further comprising:
 determining that the user has sufficient credit acceptability. 
 
     
     
         39 . The method of  claim 36 , in which determining that the user qualifies for the special status further comprises:
 determining that a spread of the plurality of orders exceeds a second threshold.   
     
     
         40 . The method of  claim 36 , in which the at least one incentive comprises:
 providing the user with exclusivity to place bids and offers during a set timeframe.   
     
     
         41 . The method of  claim 39  further comprising:
 preventing other users from placing a bid or offer during the set timeframe. 
 
     
     
         42 . An article of manufacture comprising:
 a non-transitory, tangible computer-readable medium that stores instructions which, when executed by a processor, direct the processor to:   determine that a user qualifies for a special status based on a plurality of orders submitted by the user over a period of time exceeding a threshold;   provide the user with at least on incentive in trading based on the special status, in which the at least one incentive provides the user with a priority in a trading queue;   receive an order that is submitted by the user on a remote device and apply the at least one incentive to the order, in which the processor and the remote device are in electronic communication over a network;   in response to applying the at least one incentive to the order, execute the processor, the order in advance of at least one other order in the trading queue, in which the order was submitted after the at least one other order.   
     
     
         44 . The method of  claim 42 , in which the at least one incentive comprises:
 providing the user with exclusivity to place bids and offers during a set timeframe.   
     
     
         45 . The method of  claim 44  further comprising:
 preventing other users from placing a bid or offer during the set timeframe.