Block Trading System with Tiered Order Ranges

The patent segments block orders into multiple smaller child orders that are executed sequentially. Each child order is displayed and executed individually rather than showing the entire block order at once. This segmentation allows the system to maintain trading transparency for each small order while preventing other traders from manipulating prices based on knowledge of the full block order size and intent.

The patent merges multiple child orders into a single parent block order structure. By grouping related child orders under a common parent order, the system can process and settle them more efficiently than as completely separate transactions. This merging reduces the overhead and processing costs associated with handling multiple independent transactions while still maintaining the confidentiality benefits of segmented execution.

The patent establishes minimum order size requirements for child orders before they are created and executed. By setting these preliminary constraints on order sizing, the system ensures that child orders remain small enough to maintain liquidity but large enough to avoid excessive processing costs. This preliminary action of defining order size parameters helps optimize the balance between liquidity provision and cost efficiency.