System and method for providing latency protection for trading orders

US7970695B2 · kind B2 · utility

Assignee

• BGC PARTNERS, INC. · US

Inventors

• Peter Bartko · New York, US
• John Robert Capuano · Chatham, US
• Joseph C. Noviello · New York, US
• Brian Alexander Weston · Katonah, US

Key dates

• Filing date: Jan 15, 2010
• Grant date: Jun 28, 2011
• Expiry date: Jan 15, 2030

Classification

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

Abstract

A system for managing trading orders comprises a memory operable to store an order associated with a first price. The system further comprises a processor communicatively coupled to the memory and operable to identify a latency value. The processor is further operable to receive a counterorder and to identify a potential trade associated with the order and the counterorder, the potential trade based at least in part on the first price. If the latency value satisfies a configurable condition, the processor is further operable to initiate a configurable period of time. If the potential trade is not valid upon expiration of the configurable period, the processor is further operable to prevent the execution of the potential trade.