| CPC G06Q 40/04 (2013.01) [G06Q 30/08 (2013.01)] | 14 Claims |
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1. A method comprising:
controlling, by at least one processor of an electronic exchange platform:
receiving, over a communication network, a plurality of marketmaking orders for a side of trades for a financial instrument from each of a plurality of sellside participants in a market for the financial instrument;
in response to receiving the plurality of marketmaking orders, pegging a first price for each of the plurality of marketmaking orders to a price relative to and behind a best price on the side of trades in an order book for the market, such that the first price for each of the plurality of marketmaking orders is in a pegged relationship with the best price;
in response to receiving the plurality of marketmaking orders, populating, over the communication network, a respective interface of at least one buyside participant, of a plurality of buyside participants in the market for the financial instrument, with market information that includes information about a respective subset of the plurality of marketmaking orders for which the at least one buyside participant is determined to be an approved buyside participant from approval data in a memory indicating, for each of the plurality of marketmaking orders, respective approved buyside participants out of the plurality of buyside participants;
receiving, over the communication network from a first buyside participant, a contra order to the plurality of marketmaking orders, in which the first buyside participant is approved to trade with a subset of the sellside participants and in which the contra order identifies a preferred sellside participant;
in response to receiving the contra order, distributing the contra order first to orders in the order book according to a priority scheme to distribute liquidity, in which the priority scheme prioritizes distributing liquidity to orders at a best bid or offer counter to the contra order over distributing liquidity to marketmaking orders that the first buyside participant is approved to trade against and whose sellside submitter does not have an order at the best bid or offer counter to the contra order;
automatically in response to the distributing of the contra order, determining new best bid and offer prices in the order book; and
automatically in response to determining the new best bid and offer prices in the order book, without processing any order price adjustment information over the communication network from any of the sellside participants having respective remaining marketmaking orders of the plurality of marketmaking orders,
removing latency by, at the electronic exchange platform, locally pegging an adjusted price to a new best price on the side of trades determined from the new best bid or offer prices, by adjusting the remaining marketmaking orders of the plurality of marketmaking orders to the adjusted price to retain the pegged relationship between the adjusted price of each of the remaining marketmaking orders and the new best price on the side of trades determined from the new best bid or offer prices.
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