| CPC G06Q 40/04 (2013.01) | 20 Claims |
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1. A system comprising:
a plurality of hardware match engines, each characterized by a state stored in an order book database stored in a memory coupled with the hardware match engine, operative to attempt to match an incoming order from a participant for at least one transaction for an associated financial instrument with at least one other previously received but unsatisfied order for a transaction counter thereto stored in the order book database, to at least partially satisfy one or both of the incoming order or the at least one other previously received order, wherein a successful match of an incoming order with at least one other previously received but unsatisfied order causes a change in the state of the hardware match engine stored in the order book database; and
a first logic component external to the plurality of hardware match engines and coupled with the order book databases associated with each thereof and further coupled between the participant and the plurality of hardware match engines such that all incoming orders from the participant to each hardware match engine flow therethrough, the first logic component operative to receive the incoming order and prior to forwarding the incoming order to the hardware match engine and an actual match being identified, based on a combination of the incoming order and one or more previously received but unsatisfied orders that are currently stored in the order book database, derive a risk of loss value unique to the incoming order without actually matching the incoming order and computed based on a hypothetical matching of the incoming order as if the incoming order were to be matched by the hardware match engine and at least partially satisfied by at least one other previously received but unsatisfied order currently stored in the associated order book database which, if completed, would alter the state thereof, the derived risk of loss being zero when the incoming order is determined not to match any previously received but unsatisfied orders that are currently stored in the order book database, and, based thereon, determine whether the incoming order is valid or invalid based on a comparison of the derived particular risk of loss to a threshold, the incoming order determined to be invalid when the derived particular risk of loss exceeds the threshold, and when determined to be invalid, prevent the incoming order from being forwarded to the hardware match engine, thereby preventing a change in the state of the order book database caused by the matching of the incoming order, wherein reversion of the state of the associated hardware match engine, caused by an incoming order determined to be invalid, to a prior state is avoided.
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