Hybrid trading system for concurrently trading through both electronic and open-outcry trading mechanisms

US7552083B2 · kind B2 · utility

Assignee

• Chicago Board Options Exchange, Incorporated · US

Inventors

• Anthony J. Carone · Chicago, US
• Mark A. Esposito · Chicago, US
• Stuart J. Kipnes · Chicago, US
• Anthony Montesano · Chicago, US
• Eileen C. Smith · Chicago, US
• Edward T. Tilly · Barrington, US

Key dates

• Filing date: Nov 30, 2005
• Grant date: Jun 23, 2009
• Expiry date: Jul 7, 2026

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/06
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A system and method of allocating orders in an exchange configured for trading by a combination of electronic and open-outcry trading mechanisms is provided. One method includes permitting multiple quotes to be disseminated to the market, and providing market making rights of varying degrees to entities having a physical presence on the floor of the exchange and entities remotely located away from the trading floor. The system includes a trade engine configured for receiving orders from market makers on and away from the trading floor. The system also includes executable instructions for allocating to designated primary market makers a portion of an incoming order remaining after first trading against public customer orders.