Cross and Post Order Automation for Market Center Execution
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Solution Overview
Problem
In existing systems, cross orders that do not execute cleanly in the marketplace require manual handling and tracking of unfilled balances, necessitating the generation and resubmission of new orders, which is inefficient and labor-intensive.
Innovation Solution
A method is implemented where the posting market center automatically converts the unexecuted portion of a cross order into a limit-priced order and posts it to the order book, ensuring automatic execution and association with the original cross order terms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual handling and tracking of unfilled balances is used, then brokers can manage cross orders, but operational efficiency deteriorates and labor intensity increases
Solution Approach 1:
The system automatically generates and posts limit-priced orders for unfilled balances without requiring broker intervention. The market center tracking system self-manages the conversion and resubmission process, eliminating manual labor while maintaining operational control.
Solution Approach 2:
The manual mechanical process of broker tracking and order resubmission is replaced with an automated electronic tracking system at the market center. The system uses computational algorithms to automatically convert unfilled balances into limit-priced orders and post them to the order book.
2Productivity
If automatic conversion and posting of limit-priced orders is implemented, then operational efficiency improves, but system complexity increases
Solution Approach 1:
The market center tracking system performs multiple functions: it tracks cross order executions, identifies unfilled balances, converts them to limit-priced orders, and posts them to the order book. This multi-functional approach consolidates complexity into a single universal system rather than requiring separate systems for each function.
Solution Approach 2:
The patent combines the cross order execution tracking and limit-priced order management functions into a single integrated market center tracking system. By merging these functions, the system reduces overall complexity compared to having separate manual processes for each task.
3Loss of time
If brokers manually track and associate trades with original cross orders, then order fulfillment can be monitored, but time consumption increases
Solution Approach 1:
The market center tracking system continuously monitors execution status and provides real-time feedback on unfilled balances. This feedback mechanism automatically triggers the conversion and posting of limit-priced orders, eliminating the time-consuming manual tracking and association process while maintaining complete information about trade fulfillment status.
Data Source
AI summary
A cross and post order and related market center and process are disclosed which automatically convert any unfilled balance of a cross order that was broken up due to interaction with the posting market center's order book to a limit order at the same price. The process also automatically associates the transactions that are used to fill the generated limit order with the cross and post order that was originally sent to the posting market center for execution.