US20070027795A1 - System and method for using trader lists in an electronic trading system to route a trading order with a reserved size - Google Patents

Abstract

A system for managing trading orders comprises a memory operable to store a trader list that is associated with a first trader and that designates one or more other traders. The system further comprises a processor communicatively coupled to the memory and operable to receive a trading order from the first trader, wherein the trading order is for an order quantity of a first trading product. The processor is further operable to determine a first portion and a second portion of the order quantity. The processor is further operable to disclose the first portion of the order quantity to a plurality of traders. If a configurable condition is satisfied, the processor is further operable to disclose the second portion of the order quantity to one or more traders that are not designated by the trader list and to prevent the disclosure of the second portion of the order quantity to the one or more designated traders from the trader list.

Description

RELATED APPLICATION
• This patent application claims priority from Patent Application Ser. No. 60/703,623, filed Jul. 29, 2005 entitled: System and Method for Limiting Aggressive Trading in an Electronic Trading System.
TECHNICAL FIELD OF THE INVENTION
• The present invention relates generally to electronic trading and, more specifically, to a system for using trader lists in an electronic trading system to route a trading order with a reserved size.
BACKGROUND OF THE INVENTION
• In recent years, electronic trading systems have gained wide spread acceptance for trading of a wide variety of items, such as goods, services, financial instruments, and commodities. For example, electronic trading systems have been created that facilitate the trading of financial instruments and commodities such as stocks, bonds, currency, futures contracts, oil, and gold.
• Many of these electronic trading systems use a bid/offer process in which bids and offers are submitted to the systems by a passive side and then those bids and offers are hit or lifted (or taken) by an aggressive side. For example, a passive trading counterparty may submit a “bid” to buy a particular trading product. In response to such a bid, an aggressive side counterparty may submit a “hit” in order to indicate a willingness to sell the trading product to the first counterparty at the given price. Alternatively, a passive side counterparty may submit an “offer” to sell the particular trading product at the given price, and then the aggressive side counterparty may submit a “lift” (or “take”) in response to the offer to indicate a willingness to buy the trading product from the passive side counterparty at the given price.
SUMMARY OF THE INVENTION
• In accordance with the present invention, the disadvantages and problems associated with prior electronic trading systems have been substantially reduced or eliminated.
• In one embodiment, a system for managing trading orders comprises a memory operable to store a trader list that is associated with a first trader and that designates one or more other traders. The system further comprises a processor communicatively coupled to the memory and operable to receive a trading order from the first trader, wherein the trading order is for an order quantity of a first trading product. The processor is further operable to determine a first portion and a second portion of the order quantity. The processor is further operable to disclose the first portion of the order quantity to a plurality of traders. If a configurable condition is satisfied, the processor is further operable to disclose the second portion of the order quantity to one or more traders that are not designated by the trader list and to prevent the disclosure of the second portion of the order quantity to the one or more designated traders from the trader list.
• In another embodiment, a method for managing trading orders comprises receiving a trading order from a first trader, wherein the trading order is for an order quantity of a first trading product and the first trader is associated with a trader list designating one or more other traders. The method continues by determining a first portion and a second portion of the order quantity. The method continues by disclosing the first portion of the order quantity to a plurality of traders. If a configurable condition is satisfied, the method continues by disclosing the second portion of the order quantity to one or more traders that are not designated by the trader list and preventing the disclosure of the second portion of the order quantity to the one or more designated traders from the trader list.
• Various embodiments of the present invention may benefit from numerous advantages. It should be noted that one or more embodiments may benefit from some, none, or all of the advantages discussed below.
• One advantage is that the trading platform uses trader lists that assist traders in managing risks associated with trading. For example, a particular trader may perceive that trades with highly specialized traders are not likely to be profitable. Based on this perception, the particular trader may configure a trader list to designate those highly specialized traders with which the particular trader does not want to trade. When the particular trader submits a trading order and/or an order price feed, the trading platform may transmit the trading order and/or the order price feed to the other traders in the trading system, with the exception of those traders designated by the trader list. Thus, the trading platform may prevent trades that the particular trader believes would be unprofitable.
• Another advantage is that, by using trader lists, the trading platform may limit or eliminate small trades that are perceived as nuisances. For example, a particular trader may submit, as a trading order, an offer to trade a large quantity of a particular trading product. In a system without trader lists, small traders would receive the trading order and attempt to aggress relatively small portions of the total quantity of the trading order. The particular trader that submitted the trading order might perceive such small transactions as nuisances. To eliminate these nuisances, the trading platform allows the particular trader to configure a trader list that designates those traders in the trading system that are prone to aggress against relatively small portions of a large bid or offer. Thus, when the particular trader submits a trader order, the trading platform may transmit the trading order to the other traders in trading system, with the exception of those small traders designated by the trader list. Thus, by allowing traders to configure trader lists, the trading platform may assist traders in managing risks and in avoiding nuisance-type trades.
• Other advantages will be readily apparent to one having ordinary skill in the art from the following figures, descriptions, and claims.
BRIEF DESCRIPTION OF THE DRAWINGS
• For a more complete understanding of the present invention and its advantages, reference is now made to the following description, taken in conjunction with the accompanying drawings, in which:
• FIG. 1 illustrates one embodiment of a trading system in accordance with the present invention;
• FIG. 2A illustrates an example of a trader profile, according to certain embodiments of the present invention;
• FIG. 2B illustrates an example of a flow of operation between traders and a trading platform, according to certain embodiments of the present invention;
• FIG. 2C illustrates an example of a flow of operation between traders and a trading platform, according to certain embodiments of the present invention;
• FIG. 3 illustrates a flowchart for generating and using trader lists to process trading orders, according to certain embodiments of the present invention;
• FIG. 4 illustrates an example of a trader profile configured for dividing a trading order into a display portion and a held portion, according to certain embodiments of the present invention; and
• FIG. 5 illustrates a flowchart for processing a display portion and a held portion of a trading order, according to certain embodiments of the present invention.
DETAILED DESCRIPTION OF THE INVENTION
• FIG. 1 illustrates atrading system10 according to certain embodiments of the present invention.System10 may include one ormore terminals14 coupled to atrading platform18 by one ormore communications networks20. Generally,trading system10 may receive and processtrading orders24 fromtraders12. More specifically,trading system10 may generate for a particular trader12 atrader list44 that designates one or moreother traders12 with whom theparticular trader12 does not want to trade. Upon receivingtrading order24 from theparticular trader12,trading system10 may prevent the transmission of the receivedtrading order24 totraders12 designated bytrader list44 associated with theparticular trader12. By usingtrader list44 to processtrading order24,trading platform18 may assisttrader12 in avoiding a trade betweentrader12 and thosetraders12 that are designated bytrader list44.
• Trading system10 comprises one ormore terminals14. Terminal14 represents any suitable local or remote end-user devices that may be used bytraders12 to access one or more elements oftrading system10, such astrading platform18.Terminal14 may comprise a computer, workstation, telephone, Internet browser, electronic notebook, Personal Digital Assistant (PDA), pager, or any other suitable device (wireline, wireless, or both), component, or element capable of receiving, processing, storing, and/or communicating information with other components ofsystem10.Terminal14 may also comprise any suitable user interface such as a display, microphone, keyboard, or any other appropriate terminal equipment according to particular configurations and arrangements. It will be understood that there may be any number ofterminals14 communicatively connected totrading platform18.
• In some embodiments,terminal14 may be communicatively coupled tointerface server15.Interface server15 is generally operable to transmittrading orders24,order price feeds26, and market data betweenterminal14 andtrading platform18. Aparticular interface server15 that is coupled toterminal14 for aparticular trader12 may store one ormore trader profiles38,trader preferences42, and trader lists44 (described below) associated with one ormore traders12. Based at least in part ontrader profile38,interface server15 may prevent the disclosure of one ormore trading orders24 and/or one or more order price feeds26 totrader12. In particular,interface server15 may usetrader list38 to filter particular trading orders24 from a stream of market data received fromtrading platform18. Aparticular interface server15 may be communicatively coupled to any number and combination ofterminals14.Interface server15 represents a general-purpose personal computer (PC), a Macintosh, a workstation, a Unix-based computer, a server computer, or any suitable processing device.Interface server15 may include any hardware, software, firmware, or combination thereof operable to perform the functions and/or operations described above.
• Terminals14 are operable to receivetrading orders24 fromtraders12 and to sendtrading orders24 totrading platform18. Trading orders24 may comprise orders to trade products such as, for example, stocks, equity securities, bonds, mutual funds, options, futures, derivatives, currencies, other financial instruments, or any suitable trading product. Such trading orders24 may comprise bids, offers, market orders, limit orders, stop loss orders, day orders, open orders, GTC (“good till cancelled”) orders, “good through” orders, “all or none” orders, “any part” orders, or any other order suitable for trading.
• The various types oftrading orders24 intrading system10 may generally be characterized as eitherpassive trading orders24 or aggressive trading orders24. Anaggressive trading order24 is an order that activates or triggers a trade. In contrast, apassive trading order24 is an order that does not, by itself, activate or trigger a trade. A “hit” and a “take” (e.g., “lift”) are examples of aggressive trading orders24. A “bid” and an “offer” are generally examples of passive trading orders24. (In some situations, however, a bid or an offer may be considered anaggressive trading order24. For example, iftrader12 submits an offer that is below the best bid price, the offer may trigger or activate a trade and, therefore, be considered anaggressive trading order24.) An example illustrates passive and aggressive trading orders24. Apassive trader12 may submit a “bid” to buy a particular amount of product A at a given price. In response to such a bid, anaggressive trader12 may submit a “hit” to activate or trigger a sale of the particular amount of product A to thepassive trader12 at the given price. In this example, the bid is apassive trading order24 and the hit is anaggressive trading order24. As another example, apassive trader12 may submit an “offer” to indicate a willingness to sell a particular amount of product A at a given price. Subsequently, anaggressive trader12 may submit a “lift” (or “take”) in response to the offer to activate or trigger the purchase of the particular amount of product A at the given price from thepassive trader12. In this example, the offer is apassive trading order24 and the lift (or take) is anaggressive trading order24.
• Althoughterminals14 are described herein as being used by “traders”12, it should be understood that the term “trader” is meant to broadly apply to any user oftrading system10, whether that user is an agent acting on behalf of a principal, a principal, an individual, a legal entity (such as a corporation), or any machine or mechanism that is capable of placing and/or responding totrading orders24 insystem10.Certain traders12 may be customers12a.Other traders12 may be market makers12b.
• Market maker12bis any individual, firm, or other entity that submits and/or maintains either or both bid and offertrading orders24 simultaneously for the same instrument. For example, market maker12bmay be a brokerage or bank that maintains either a firm bid and/or offer price in a given security by standing ready, willing, and able to buy and/or sell that security at publicly quoted prices. Market maker12bgenerally displays bid and/or offer prices for specific numbers of specific securities, and if these prices are met, market maker12bwill immediately buy for and/or sell from its own accounts. According to certain embodiments, asingle trading order24 may be filled by a number of market makers12bat potentially different prices.
• Customer12amay be any user oftrading system10 that is not a market maker12b. Customer12amay be an individual investor, an agent acting on behalf of a principal, a principal, an individual, a legal entity (such as a corporation), or any machine or mechanism that is capable of placing and/or responding totrading orders24 insystem10.
• In some embodiments, market makers12bmay include individuals, firms or other entities that are granted particular privileges such that trading orders24 received from such individuals, firms or other entities are treated as being received from a traditional market maker12b(such as a brokerage or bank, for example). For example, certain individuals, firms or other entities that may otherwise be treated as customers12amay be granted privileges to be treated as market makers12bfor the purposes of the systems and methods discussed herein. To receive market maker privileges, an individual, firm or other entity may be required to pay a fee, pay a commission, or submit and/or simultaneously maintain both bid and offertrading orders24 for particular instruments. According to certain embodiments, an individual, firm or other entity may be designated as a market maker12bfor particular instruments but as a customer12afor other instruments.
• In some embodiments, a multi-tiered system of market makers12bmay be employed.Trading platform18 may grant different privileges to different market makers12bbased on one or more criteria such as, for example, whether market maker12bis associated with an electronic feed, whether market maker12bis a strong trader, or whether market maker12bhas particular information. Market makers12bmay be categorized into different tiers for different tradable instruments. For instance, a particular market maker12bmay be categorized as a first-level market maker for instrument(s) for which that market maker12bis a strong trader and as a second-level market maker12bfor other types of instruments.
• Terminals14 may be communicatively coupled with orderprice feed modules16. An orderprice feed module16 comprises any suitable hardware and/or software for generating and/or communicating one or more order price feeds26. In some embodiments, orderprice feed module16 may be separate from terminal14 andinterface server15. In other embodiments, orderprice feed module16 may be comprised withinterminal14 orinterface server15. Thus, the functions and operations of orderprice feed module16 may, in some embodiments, be performed byterminal14,interface server15, or any other suitable component oftrading system10. Anorder price feed26 may be a real time (or substantially real time) data stream indicating the current best bid and/or offer thattrader12 is willing to send or make available for a particular trading product. Order price feed26 for a particular trading product may comprise an offer quantity, an offer price, a bid quantity, and/or a bid price. A particular market maker12bmay supply order price feed26 (e.g., bid-offer spreads) for a particular trading product to multiple market centers40 and/ortrading platforms18 to allow that market maker12bto flood the general marketplace with its best bid and offer price. According to certain embodiments, market maker12bgenerates revenue by persistently trading at its bid and offer prices and profiting the difference. Such a strategy may be referred to as “trading the bid-offer spread.”
• Terminals14 and/or orderprice feed modules16 may be communicatively coupled totrading platform18 vianetwork20.Network20 is a communication platform operable to exchange data or information betweenterminals14 andtrading platform18 and/or market centers40. In some embodiments,network20 may represent an Internet architecture that enablesterminals14 to communicate withplatform18 and/or market centers40. In other embodiments,network20 may be a plain old telephone system (POTS), whichtraders12 could use to perform the same operations or functions. In some embodiments,network20 may be any packet data network (PDN) offering a communications interface or exchange between any two nodes insystem10.Network20 may further comprise any combination of the above examples and any local area network (LAN), metropolitan area network (MAN), wide area network (WAN), wireless local area network (WLAN), virtual private network (VPN), intranet, or any other appropriate architecture or system that facilitates communications betweenterminals14 andplatform18 and/or market centers40.
• Market centers40 comprise all manner of order execution venues including exchanges, Electronic Communication Networks (ECNs), Alternative Trading Systems (ATSs), market makers, or any other suitable market participants. Eachmarket center40 maintains a bid and offer price in a given trading product by standing ready, willing, and able to buy or sell at publicly quoted prices, also referred to as market center prices. Aparticular market center40 may facilitate trading of multiple trading products, such as, for example, stocks, fixed income securities, futures contracts, currencies, precious metals, and so forth. Market centers may be communicatively coupled totrading platform18 vianetwork20.
• Trading platform18 is a trading architecture that facilitates the routing, matching, and otherwise processing oftrading orders24 and/or order price feeds26.Trading platform18 may comprise a management center or a headquartering office for any person, business, or entity that seeks to route, match, process, or filltrading orders24 and/or order price feeds26. Accordingly,trading platform18 may include any suitable combination of hardware, software, personnel, devices, components, elements, or objects that may be utilized or implemented to achieve the operations and functions of an administrative body or a supervising entity that manages or administers a trading environment.Trading platform18 may comprise aprocessor32 and amemory34.
• Processor32 is operable to process trading orders24, record trading orders24 inmemory34 androute trading orders24 totraders12 and/or market centers40.Processor32 is further operable to executerules36 stored inmemory34 to generate and use trader lists44 to manage the disclosure oftrading orders24 and/or order price feeds26 betweentraders12.Processor32 may comprise any suitable combination of hardware and software implemented in one or more modules to provide the described function or operation.
• Memory34 comprises any suitable arrangement of random access memory (RAM), read only memory (ROM), magnetic computer disk, CD-ROM, or other magnetic or optical storage media, or any other volatile or non-volatile memory devices that store one or more files, lists, tables, or other arrangements of information such as trading orders24. AlthoughFIG. 1 illustratesmemory34 as internal totrading platform18, it should be understood thatmemory34 may be internal or external to components oftrading system10, depending on particular implementations. Also,memory34 illustrated inFIG. 1 may be separate or integral to other memory devices to achieve any suitable arrangement of memory devices for use intrading system10.
• According to certain embodiments,memory34 comprisesrules36 and trader profiles38. Generally, rules36 comprises software instructions for routing, matching, processing, or filling trading orders24. In particular, rules36 may comprise instructions for generating and using trader lists44 to manage the disclosure oftrading orders24 and/or order price feeds26 betweentraders12 and/or market centers40.
• Trader profiles38 generally comprise information regarding the identity, address, employer, and/or account information oftraders12. In some embodiments, eachtrader12 intrading system10 is associated with arespective trader profile38.Trader profile38 may comprisetrader preferences42 and trader lists44 of aparticular trader12.Trader profile38 may further comprise other relevant information such as, for example, activity logs, trade data, and history data associated withtrader12.Trading platform18 may allow a person or entity to register to usetrading system10 as atrader12. When aparticular trader12 registers to usetrading system10,trading platform18 may generatetrader profile38 for thattrader12. Thus, for eachtrader12 intrading system10,memory34 may store a correspondingtrader profile38.
• It should be understood that the internal structure oftrading platform18 and the interfaces, processors, and memory devices associated therewith is malleable and can be readily changed, modified, rearranged, or reconfigured to achieve the intended operations oftrading platform18.
• In operation,trading platform18 may use trader lists44 to minimize the risk of aparticular trader12 trading withother traders12 with whom theparticular trader12 does not want to trade. For example, aparticular trader12 may perceive that trades with highlyspecialized traders12 are not likely to be profitable. Based on this perception, theparticular trader12 may configuretrader list44 to designate those highlyspecialized traders12 with which theparticular trader12 does not want to trade. When tradingplatform18 receivestrading order24 from aparticular trader12,trading platform18 may scantrader profile38 associated withtrader12 to identify theparticular trader list44 associated withtrader12.Trader list44 may designate one ormore traders12 intrading system10.Trading platform18 may then transmittrading order24 totraders12 intrading system10 with the exception of thosetraders12 designated bytrader list44.Trading platform18 may affirmatively prevent the transmission oftrading order24 to thoseparticular traders12 designated bytrader list44. Thus, becausetrading platform18 usestrader list44, aparticular trader12 may avoid trades between theparticular trader12 and thosetraders12 designated bytrader list24.
• According to certain embodiments,trading platform18 may allow persons or entities to register to usetrading system10 astraders12. Whentrader12 registers to usetrading system10,trading platform18 may request and receive fromtrader12 information regarding thetrader preferences42, account, identity, affiliation, size, trading history, and/or other suitable attributes oftrader12. Based on this information provided bytrader12,trading platform18 may generatetrader profile38 fortrader12.Trading platform18 may storetrader preferences42 oftrader12 intrader profile38.
• In some embodiments,trading platform18 may allow aparticular trader12 to createtrader list44 that designates one ormore traders12 with whom theparticular trader12 does not want to trade.Trader12 may generate multiple trader lists44. For example, aparticular trader12 may generate onetrader list44 for one type of trading product and anothertrader list44 for another type of trading product. Each of trader lists44 associated with aparticular trader12 may be the same or different.Trading platform18 may store trader lists44 of aparticular trader12 intrader profile38 of thattrader12.Trading platform18 may allowtrader12 to create trader lists44 whentrader12 registers to usetrading system10. Oncetrader12 creates trader lists44,trader12 may thereafter update, modify, and/or change trader lists44 to reflect changes in the market and/or in the trading strategies.
• In some embodiments, for aparticular trader12,trading platform18 may create all or a portion of trader lists44 automatically based ontrader preferences42 of thattrader12.Trading platform18 may generatetrader list44 for aparticular trader12 by comparingtrader preferences42 of theparticular trader12 withtrader profiles38 of theother traders12 intrading system10. For example,trader12 may submit to trading platform18 aparticular trader preference42 to avoid trading ten-year notes withtraders12 whose trade volume for ten-year notes exceeded $500,000,000 during the last 7 days.Trading platform18 may store thisparticular trader preference42 intrader profile38 associated withtrader12. In this example,trading platform18 may then scan trader profiles38 of theother traders12 to identify thosetraders12 intrading system10 whose trade volume for ten-year notes exceeded $500,000,000 during the last 7 days.Trading platform18 may generatetrader list44 designating the identifiedtraders12 and may store the generatedtrader list44 intrader profile38. In the present example,trading platform18 may updatetrader list44 at the end of each day, each week, or other configurable period such thattrader list44 may be based on recent trading activity (i.e., the trading of ten-year notes during the most recent 7 days).
• The foregoing example illustratestrader preference42 based on a particular characteristic of counterparty traders12 (i.e., trading volume that exceeded a particular threshold ($500,000,00) of a particular trading product (ten-year notes)). It should be understood, however, thattrader preference42 may be based on any number and combination of characteristics associated withcounterparty traders12. For example,trader preference42 may be associated with a particular trading product andtrader list44 may designate thosetraders12 that specialize in trading the particular trading product. As another example,trader preference42 may be associated with a particular trading activity andtrader list44 may designate thosetraders12 that engage in the particular trading activity. Thus, it should be understood that aparticular trader preference42 may be based on the size, affiliation, trading history, identity, specialty, and/or any other suitable characteristic ofcounterparty traders12.
• Oncetrading platform18 receives from aparticular trader12trading order24,trading platform18 may determine whethertrader profile38 associated with theparticular trader12 includes atrader list44. Iftrader profile38 includes atrader list44,trading platform18 may transmittrading order24 totraders12 intrading system10 with the exception of thosetraders12 designated by thetrader list44.Trading platform18 may prevent the transmission oftrading order24 to thosetraders12 designated by thetrader list44. Transmittingtrading order24 totraders12 may comprise disclosing, displaying, and/or otherwise communicatingtrading order24 totraders12. Preventing the transmission oftrading order24 may comprise deletingtrading order24 from one or more queues associated with thosetraders12 designated bytrader list44, filteringtrading order24 from one or more data streams associated withtraders12 designated bytrader list44, and/or routingtrading order24 away from thosetraders12 designated bytrader list44.
• It should be understood that, just astrading platform18 may usetrader list44 to filter the transmission oftrading order24,trading platform18 may usetrader list44 to filter the transmission oforder price feed26. In particular, whentrader12 submitsorder price feed26,trading platform18 may usetrader list44 associated withtrader12 to prevent the transmission of order price feed26 to thosetraders12 designated bytrader list44.Trading platform18 may thereby preventtraders12 that are designated bytrader list44 associated with aparticular trader12 from aggressing againstorder price feed26 associated with theparticular trader12.
• In some embodiments,trading platform18 may transmit to aparticular trader12trading orders24 from thosetraders12 designated bytrader list44 associated withparticular trader12. Thus, although the designatedtraders12 may not receivetrading orders24 from theparticular trader12 associated withtrader list44, theparticular trader12 may receivetrading orders24 from the designatedtraders12. In some embodiments,trading platform18 may cause terminal14 to displaytrading order24 from a designatedtrader12 as dimmed or highlighted relative to the display of aparticular trading order24 submitted by aparticular trader12 that is not designated bytrader list44. For example, a particular trader A is associated withtrader list44 that designates traders B and D. In this example,trading system10 comprises traders A, B, C, D, and E. If trader A submits trading order24a, then tradingplatform18 may transmit trading order24ato traders C and E but, based ontrader list44, prevent the transmission of trading order24ato traders B and D. In this example, if trader B submits trading order24band if trader C submits trading order24c, then tradingplatform18 may transmit trading order24band trading order24cto terminal14 associated with trader A. Because trader B is designated bytrader list44 associated with trader A,trading platform18 may cause terminal14 associated with trader A to display trading order24bas dimmed or highlighted relative to trading order24c. Although the foregoing example illustratestrader list44 as designating two traders (i.e., traders B and D), it should be understood thattrader list44 may designate any number and combination oftraders12 based on any number and combination of suitable criteria.
• In the foregoing example, based ontrader list44,trading platform18 prevents the transmission and/or disclosure of aparticular trading order24 toparticular traders12. It should be understood, however, that the function of preventing the transmission and/or disclosure of particular trading orders24 and/or order price feeds26 may be performed byinterface server15, by tradingplatform18, or byinterface server15 andtrading platform18 in conjunction. For example,interface server15 may comprise all or a portion of an application program interface (API) associated withtrading platform18. In some embodiments,interface server15 associated with aparticular trader12 may store trader profiles38 (includingtrader preferences42 and trader lists44). Based at least in part ontrader list44,interface server15 may prevent the disclosure of one ormore trading orders24 and/or order price feeds26 to one ormore traders12. Thus, in some embodiments, the function of preventing the disclosure oftrading order24 to aparticular trader12 may be performed at least in part by one ormore interface servers15.
• According to certain embodiments, the use of trader lists44 to process trading orders24 may offer various advantages. It should be noted that one or more embodiments may benefit from some, none, or all of the advantages discussed below. One advantage is that, by using trader lists44,trading platform18assists traders12 in managing risks associated with trading. For example, aparticular trader12 may perceive that trades with highlyspecialized traders12 are not likely to be profitable. Based on this perception, theparticular trader12 may configuretrader list44 to designate those highlyspecialized traders12 with which theparticular trader12 does not want to trade. When theparticular trader12 submitstrading order24 and/ororder price feed26,trading platform18 may transmittrading order24 and/or order price feed26 totraders12 intrading system10 with the exception of thosetraders12 designated bytrader list44. Thus,trading platform18 may prevent trades that theparticular trader12 believes would be unprofitable.
• Another advantage is that, by using trader lists44,trading platform18 may limit or eliminate small trades that are perceived as nuisances. For example, aparticular trader12 may submit astrading order24 an offer to trade a large quantity of a particular trading product. In a system withouttrader list44,small traders12 may receivetrading order24 and attempt to aggress against relatively small portions of the total quantity oftrading order24. Theparticular trader12 that submittedtrading order24 may perceive such a small transaction as a nuisance. To eliminate this nuisance, theparticular trader12 may configuretrader list44 to designate thosetraders12 intrading system10 that are prone to aggress only small portions of a large bid or offer. Thus, when theparticular trader12 submitstrader order24,trading platform18 may transmittrading order24 totraders12 intrading system10 with the exception of thosesmall traders12 designated bytrader list44. Thus,trading platform18 may reduce the occurrence of nuisance-type trades. Thus, by allowingtraders12 to configure trader lists44,trading platform18 may assisttraders12 in managing risks and in avoiding nuisance-type trades.
• FIGS. 2A and 2B provide an example of usingtrader list44 to prevent trades between aparticular trader12 andother traders12 with whom theparticular trader12 does not want to trade. In particular,FIG. 2A illustratestrader profile38 associated with aparticular trader12. In this example, theparticular trader12 is referred to as Trader H. Trader H submits totrading platform18trader preferences42a,42b, and42c.Trader preference42ais to avoid executing trades for ten-year notes withtraders12 whose trade volume for ten-year notes exceeded $500,000,000 during the past seven days.Trader preference42bis to avoid executing trades for Euros where the trade value would be less than $50,000.Trader preference42cis to avoid executing trades for stock A withtraders12 that are not associated with anorder price26 feed for Japanese Yen.Trading platform18stores trader preferences42a,42b, and42cintrader profile38 associated with Trader H.
• In the present example,trading platform18 usedtrader preferences42 intrader profile38 to automatically generate trader lists44 for Trader H. Becausetrader preference42arelates to ten-year notes,trading platform18 generatestrader list44aassociated with ten-year notes. In particular,trading platform18 scans trader profiles38 to identifytraders12 intrading system10 whose trade volume for ten-year notes during the past seven days exceeds $500,000,000. In the present example,trading platform18 determines that, during the past seven days, the trade volumes for ten-year notes for each of Traders A, E, F, and G exceeded $500,000,000. Accordingly,trading platform18 configurestrader list44ato designate Traders A, E, F, and G.
• Becausetrader preference42brelates to Euros,trading platform18 generatestrader list44bassociated with Euros. In particular,trading platform18 scans trader profiles38 to identify thosetraders12 intrading system10 that tend to initiate trades for Euros where the trade value is less than $50,000. In the present example,trading platform18 determines that Traders B and D tend to initiate such trades. Accordingly,trading platform18 configurestrader list44bto designate Traders B and D.
• Becausetrader preference42crelates to stock A,trading platform18 generatestrader list44cassociated with stock A. Based ontrader preference42c,trading platform18 scans trader profiles38 to identify thosetraders12 that are not associated with anorder price feed26 for Japanese Yen. In the present example,trading platform18 determines that Traders C, E, and D are not associated with anorder price feed26 for Japanese Yen. Accordingly,trading platform18 configurestrader list44cto designate Traders C, E, and D. Thus, Trader H is associated with three trader lists44 and eachtrader list44 is associated with a different trading product. As illustrated in the present example,trading platform18 may automatically generate and/or configure trader lists44 based ontrader preferences42 stored intrader profile38 of aparticular trader12.
• FIG. 2B illustrates one embodiment of a flow of operation betweentraders12 andtrading platform18 according to theexample trader profile38 illustrated inFIG. 2A. In this example,trading system10 comprises eighttraders12—namely, Traders A-H. In the present example, Trader H submits totrading platform18trading order24 for ten-year notes. Upon receivingtrader order24,trading platform18 determines thattrader profile38 associated with Trader H comprisestrader list44aassociated with ten-year notes. In particular,trading platform18 determines thattrader list44adesignates Traders A, E, F, andG. Trading platform18 transmitstrading order24 to Traders B, C, and D. Based ontrader list44a, however,trading platform18 prevents the transmission oftrading order24 to Traders A, E, F, and G. Thus,trading platform18 allows Trader H to avoid trades for ten-year notes with thosetraders12 intrading system10 with whom Trader H does not want to trade.
• FIG. 2C illustrates another embodiment of a flow of operation betweentraders12 andtrading platform18 according to theexample trader profile38 illustrated inFIG. 2A. In this example,trading system10 comprises eighttraders12—namely, Traders A-H. Eachtrader12 is associated with arespective interface server15. In this example, eachinterface server15 stores one or more trader profiles38. Trader profiles38 comprisetrader preferences42 and trader lists44 (not shown). In this example, the function of preventing the disclosure ofparticular trading orders24 toparticular traders12 is performed at least in part byinterface servers15. In particular, trader H submits tradingorder24 totrading platform18. Upon receivingtrading order24,trading platform18 transmitstrading order24 to interfaceservers15 associated with Traders A-G respectively. In this example,interface servers15 associated with Traders A-G each comprisetrader profile38 associated with Trader H (as illustrated inFIG. 2A).Trader profile38 associated with Trader H comprisestrader list44adesignating traders A, E, F, and G. In this example, based ontrader list44a,interface servers15 associated with Traders B, C, and D transmittrading order24 toterminals14 associated with Traders B, C, and D, respectively. Based ontrader list44a,interface servers15 associated with Traders A, E, F, and G, respectively, do not transmittrading order24 toterminals14 associated with Traders A, E, F, and G, respectively.Interface servers15 associated with Traders A, E, F, and G may prevent the transmission oftrader order24 of Trader H by filtering thattrading order24 out of data transmissions fromtrading platform18. Thus, in some embodiments, aparticular interface server15 may comprise one or more trader profiles38 and may filter or prevent the transmission of particular trading orders24.
• Although the foregoing example illustratestrader preferences42 and trader lists44 associated with ten-year notes, Euros, and a particular stock, it should be understood thattrader preferences42 and trader lists44 may be based on any number and combination of trading products, market data, profile data, trading system information, and/or other suitable criteria. In the foregoing example,trading platform18 automatically generates trader lists44 based ontrader preferences42 associated withtrader12. It should be understood that, in some embodiments,trader12 may configure trader lists44 by manually selecting theparticular traders12 to be in trader lists44.
• FIG. 3 illustrates a flowchart for generating and using trader lists44 to process trading orders24. The method begins atstep302 when tradingplatform18 receives one ormore trader preferences42 from aparticular trader12.Trader12 may submittrader preferences42 at the time of registering to usetrading system10, andtrading platform18 may usetrader preferences42 to generatetrader profile38 associated withtrader12. In some embodiments, aftertrader12 registers and submits theinitial trader preferences42,trading platform18 may allowtrader12 to later modify, delete, and/or add totrader preferences42. Atstep304,trading platform18 comparestrader preferences42 of theparticular trader12 withtrader profiles38 of theother traders12 intrading system10. For example, if afirst trader12 submitstrader preference42 to avoid trading withtraders12 having a particular characteristic,trading platform18 may compare the trader preference42 (e.g., the particular characteristic) withtrader profiles38 to identify thosetraders12 having the particular characteristic.
• Atstep306, based at least in part on the comparison,trading platform18 generates one or more trader lists44 designating one ormore traders12.Trading platform18 may store trader lists44 intrader profile38 associated withtrader12. In some embodiments,trader12 may be associated with a plurality of trader lists44 and each of the plurality of trader lists44 may be associated with a respective trading product. Atstep308,trading platform18 receivestrading order24 fromtrader12.Trading platform18 identifies, atstep310, the one ormore traders12 designated by theappropriate trader list44 based on, for example, the trading product associated with thetrading order24. Atstep312,trading platform18 transmitstrading order24 totraders12 intrading system10 with the exception of the one ormore traders12 designated bytrader list44 identified atstep310. Atstep314,trading platform18 prevents the transmission oftrading order24 to the one ormore traders12 designated bytrader list44. Preventing the transmission oftrading order24 may comprise deletingtrading order24 from one or more queues associated withtraders12 designated bytrader list44, filteringtrading order24 from one or more data streams associated withtraders12 designated bytrader list44, and/or routingtrading order24 away fromtraders12 designated bytrader list44.
• FIG. 4 illustrates aparticular trader profile38 that is configured to use trader lists44 for the partial disclosure of atrading order24. In some embodiments,trading platform18 may configuretrading order24 to comprise two parts—a display portion and a held portion.Trading platform18 may be configured to transmit the display portion oftrading order24 toother traders12 and to withhold from transmission the held portion oftrading order24 until one or more configurable conditions are satisfied. Once the one or more configurable conditions associated with the held portion oftrading order24 are satisfied,trading platform18 may transmit and/or disclose the held portion oftrading order24 to one ormore traders12 intrading system10.
• In some embodiments,trading platform18 may determine the display portion and the held portion oftrading order24 based at least in part ontrader preferences42 associated withtrader12.Trader12 may submit to trading platform18 aparticular trader preference42 to determine the display portion and/or the held portion of aparticular trading order24 based on current market data, based on a configurable percentage of the total quantity oftrading order24, based on a configurable threshold, and/or any number and combination of suitable criteria.
• In some embodiments,trading platform18 may be configured to transmit the display portion oftrading order24 from aparticular trader12 to allother traders12 intrading system10. Once the display portion oftrading order24 has been aggressed by one ormore traders12,trading platform18 may transmit the held portion oftrading order24 to one ormore traders12 that are not designated bytrader list44 associated with theparticular trader12. In some embodiments,trading platform18 may prevent the transmission of the held portion oftrading order24 to thosetraders12 designated bytrader list44 associated withtrader12. Thus,trading platform18 may be configured to transmit the display portion oftrading order24 to allother traders12 intrading system10 and to limit the transmission of the held portion oftrading order24 to thosetraders12 that are not designated bytrader list44.
• FIG. 4 illustrates anexample trader profile38 for Trader F. In this example,trader profile38 may be used to dividetrading order24 into a display portion and a held portion.Trader profile38 comprises three trader preferences (42x,42y, and42z) that are related to trading Euros. In particular,trader preference42xis to configure the display portion oftrading order24 to be equal to 40% of the total quantity oftrading order24.Trader preference42yis to transmit the display portion oftrading order24 from Trader F to allother traders12 intrading system10. In the present example,trading system10 comprises Traders A-H.Trader preference42zis to transmit the held portion oftrading order24 to aparticular trader12 if (1) thatparticular trader12 has aggressed at least a portion of the display portion oftrading order12 and (2) thatparticular trader12 is not designated bytrader list44 associated with Trader F. In addition to comprisingtrader preferences42,trader profile38 associated with Trader F comprisestrader list44f.Trader list44frelates to trading Euros and designates Traders A and D.
• In the present example, Trader F submits totrading platform18trading order12 for a total quantity of 20,000,000 Euros. Based ontrader preference42xintrader profile38,trading platform18 determines that the display portion oftrading order24 is 8,000,000 Euros (i.e., 40% of the total quantity) and that the held portion oftrading order24 is 12,000,000 Euros (i.e., 60% of the total quantity). Based ontrader preference42y,trading platform18 transmits the display portion of trading order24 (i.e., 8,000,000 Euros) to Traders A, B, C, D, E, G, and H. Subsequently, Trader C aggresses the entire display portion oftrading order24. As a result,trading platform18 determines whether the configurable condition oftrader preference42zhas been satisfied. In this example,trading platform18 determines that Trader C aggressed the display portion oftrading order24 and that Trader C is not designated bytrader list44f. As a result,trading platform18 transmits and/or discloses to Trader C the held portion (i.e., the remaining 12,000,000 Euros) oftrading order24. Thus, without disclosing the held portion oftrading order24 to at least thosetraders12 designated bytrader list44,trading platform18 provides Trader C with an opportunity to aggress against the held portion oftrading order24.
• The foregoing example illustrates using a configurable percentage of the total quantity oftrading order24 to determine the display portion oftrading order24. It should be understood, however, thattrading platform18 may determine the display portion oftrading order24 based on any suitable data, tiers, threshold, and/or other suitable information. Although tradingorder24 in the foregoing example relates to trading Euros, it should be understood that the method and system described herein may be applied totrading orders24 for any number and combination of suitable trading products.
• In the foregoing example, the configurable condition for transmitting the held portion oftrading order24 is based on whether aparticular trader12 has aggressed all or a portion of the display portion oftrading order24. It should be understood, however, that the transmission of the held portion oftrading order24 may be triggered based on any number and combination of suitable conditions. For example, the transmission of the held portion oftrading order24 may be based on whether the market has crossed, whether the best bid or offer price intrading system10 has satisfied a configurable threshold, whether the current trading activity intrading system10 has satisfied a particular threshold, and/or any other suitable condition.
• In some embodiments, just astrading platform18 may dividetrading order24 into a display portion and a held portion,trading platform18 may be configured to divide a particularorder price feed26 into a display portion and a held portion. The transmission of the held portion of order price feed26 toother traders12 may be triggered by any number and combination of configurable conditions. In some embodiments,trading platform18 may distribute the display portion oftrading order24 and/ororder price feed26 among multiple price levels.
• An example illustrates certain embodiments. Trader12msubmitsorder price feed26 for currency A totrading platform18. The total quantity oforder price feed26 is 100,000,000 units of currency A. The best bid price associated withorder price feed26 is $2.00 per unit and the best offer price associated withorder price feed26 is $2.20 per share.Trader preferences42 stored intrader profile38 associated with trader12mindicate that the display portion oforder price feed26 should be 70,000,000 units of currencyA. Trader preferences42 associated with trader12malso indicate that the held portion oforder price feed26 should be disclosed if the market crosses. In this example,trader profile38 comprisestrader list44 that is associated with currency A and that designates trader12pand trader12q. Accordingly,trading platform18 discloses to theother traders12 in trading system10 (except trader12pand trader12q) a quantity of 70,000,000 units of currency A with a best bid price of $2.00 per unit and a best offer price of $2.20 per unit. Subsequently, the market for currency A crosses. Consequently,trading platform18 discloses the held portion of order price feed26b—the remaining 30,000,000 units—to theother traders12 in trading system10 (except for trader12pand trader12q).
• In the foregoing example,trader preferences42 directedtrading platform18 to set the display portion of order price feed26 to be equal to a configurable level—70,000,000 units. In some embodiments,trader preferences42 may directtrading platform18 to determine the display portion oforder price feed26 based on a configurable percentage of the total quantity associated withorder price feed26, based on current market data, or based on any number and combination of suitable criteria. In some embodiments,trading platform18 may distribute the display portion and/or held portion oforder price feed26 among multiple price levels. For instance, referring to the foregoing example,trader preferences42 may indicate that half of the display portion oforder price feed26 should be disclosed at a bid price of $2.00 per unit and the other half at a bid price of $2.10.
• Although the foregoing examples use certain quantities, percentages, and currency amounts to illustrate certain embodiments of the present invention, it will be understood that any quantities, percentages, currency amounts, or other suitable metrics may be used without changing the operation or functionality of the present invention.
• The embodiments described herein offer important technical advantages. Various embodiments may have none, some, or all of these advantages. One advantage is thattrading system10 protectstraders12 against latency. In particular,trading system10 may take a small amount of time to process trading orders24 and/or order price feeds26 fromtraders12. Markets, however, may experience rapid changes in prices. If a market shifts immediately aftertrader12 submitstrading order24 and/ororder price feed26, thattrader12 may be exposed to trades at an undesirable price. By allowingtrader12 to initially disclose less than all oftrading order24 and/or order price feed26 toother traders12, the present invention protectstrader12 against latency and shifts in the market.
• Another advantage is thattrading platform18 is operable to use trader lists44 associated with aparticular trader12 to avoid trades between theparticular trader12 andother traders12 with whom theparticular trader12 does not want to trade. In some embodiments,traders12 may use trader lists44 to avoid nuisance-type trades and/or trades that are not likely to be profitable. Thus, trader lists44assist traders12 in managing risks associated with trading.
• In some embodiments,trading platform18 may configure order price feed26 from aparticular trader12 to be an aggressiveorder price feed26. Similarly,trading platform18 may configuretrading order24 from aparticular trader12 to be anaggressive trading order24. In particular,trading platform18 may receivetrading orders24 fromtraders12 and hold those tradingorders24 until one or more configurable conditions occur intrading system10. For example,trader12 may submittrader preference42 that the best bid or offer price of a particular trading product must reach a configurable level beforetrading platform18 may disclosetrading order24 oruse trading order24 to aggress one or more contra trading orders24.
• As an example, Trader12wsubmits tradingorder24 to purchase 1,000,000 shares of stock A totrading platform18. In addition, Trader12wsubmitstrader preference42 to not disclosetrading order24 until the price per share for stock A in the market reaches $50.00, and then to submittrading order24 as anaggressive trading order24. In this example,trading platform18stores trading order24 andtrader preference42 inmemory34. Subsequently,trading platform18 detects that the price per share for stock A has reached $50.00. As a result,trading platform18 submitstrading order24 of Trader12wto aggress against the available volume of stock A intrading system10. Thus,trading platform18 may allowtrader12 to submit configurable conditions that must occur before tradingplatform18 disclosestrading order24 and/or usestrading order24 to aggress acontra trading order24.Trading platform18 may thereby increase the likelihood that aparticular trading order24 and/or order price feed26 from aparticular trader12 will not be disclosed toother traders12 until conditions desired by theparticular trader12 are present in the market.
• In some embodiments,trading platform18 may use trader lists44 to process aggressive order price feeds26 and/or aggressive trading orders24. For example, upon receiving an aggressive order price feed26 from afirst trader12,trading platform18 may determine that thefirst trader12 is associated with aparticular trader list44. In this example, theparticular trader list44 designates athird trader12 but not asecond trader12. Based on theparticular trader list44, trading platform may use the aggressive order price feed26 to aggress against one or more trading orders from thesecond trader12. However, because theparticular trader list44 designates thethird trader12,trading platform18 may prevent the aggressive order price feed26 from aggressing againsttrading orders24 from thethird trader12. Thus,trading platform18 may use trader lists44 to process aggressive order price feeds26 and/or aggressive trading orders24.
• FIG. 5 illustrates a flow chart for processing the display portion and the held portion of aparticular trading order24, according to certain embodiments. The method starts atstep502 when tradingplatform18 receivestrading order24 from aparticular trader12. In some embodiments, tradingorder24 may be associated with a total quantity of a particular trading product. Theparticular trader12 may be associated with atrader list44 designating one ormore traders12.
• Atstep504,trading platform18 determines a first portion and a second portion of the order quantity associated withtrading order24. The determination of the first portion and the second portion may be based at least in part on one ormore trader preferences42 associated with theparticular trader12. Atstep506,trading platform18 discloses the first portion of the order quantity to a plurality oftraders12 intrading system10. Atstep508,trading platform18 determines whether a configurable condition has been satisfied. The configurable condition may be based on one ormore trader preferences42 associated with theparticular trader12. Iftrading platform18 determines atstep508 that the configurable condition has been satisfied, then atstep510,trading platform18 discloses the second portion of the order quantity to one ormore traders12 that are not designated bytrader list44 associated with theparticular trader12. Atstep512,trading platform18 prevents the disclosure of the second portion of the order quantity to thosetraders12 designated bytrader list44.
• If, atstep508,trading platform18 determines that the configurable condition has not been satisfied, then tradingplatform18 determines atstep514 whether a configurable time period (e.g., for allowing the configurable condition to occur) has expired. Iftrading platform18 determines atstep514 that the configurable time period has not expired,trading platform18 may return to step508. If, however,trading platform18 determines atstep514 that the configurable time period has expired, the method ends.
• Although the present invention has been described in several embodiments, a myriad of changes and modifications may be suggested to one skilled in the art, and it is intended that the present invention encompass such changes and modifications as fall within the scope of the present appended claims.

Claims (57)

1. A system for managing trading orders, comprising:

a memory operable to store a trader list that is associated with a first trader and that designates one or more other traders;

a processor communicatively coupled to the memory and operable to:

receive a trading order from the first trader, wherein the trading order is for an order quantity of a first trading product;

determine a first portion and a second portion of the order quantity;

disclose the first portion of the order quantity to a plurality of traders; and

if a configurable condition is satisfied:

disclose the second portion of the order quantity to one or more traders that are not designated by the trader list; and

prevent the disclosure of the second portion of the order quantity to the one or more designated traders from the trader list.

2. The system ofclaim 1, wherein:

the trading order is a first trading order;

the determination of the first portion and the second portion of the order quantity from the first trading order is based at least in part on a first preference associated with the first trader; and

the processor is further operable to:

receive from the first trader a second trading order for an order quantity of a second trading product;

determine a first portion and a second portion of the order quantity from the second trading order, wherein the determination of the first portion and the second portion of the order quantity from the second trading order is based at least in part on a second preference associated with the first trader; and

disclose the first portion of the order quantity from the second trading order to a plurality of traders.

3. The system ofclaim 2, wherein the determined first portion of the order quantity from the first trading order is different than the determined first portion of the order quantity from the second trading order.

4. The system ofclaim 2, wherein the first preference is associated with the first trading product and the second preference is associated with the second trading product.

5. The system ofclaim 2, wherein:

the trader list is a first trader list associated with the first trading product;

the configurable condition is a first configurable condition associated with the first trading product;

the first trader is associated with:

a second configurable condition associated with the second trading product; and

a second trader list designating one or more other traders; and

the processor is further operable to:

if the second configurable condition is satisfied:

disclose the second portion of the order quantity from the second trading order to one or more traders that are not designated by the second trader list; and

prevent the disclosure of the second portion of the order quantity from the second trading order to the one or more designated traders from the second trader list.

6. The system ofclaim 5, wherein the second trader list is different from the first trader list.

7. The system ofclaim 5, wherein the second configurable condition is different from the first configurable condition.

8. The system ofclaim 1, wherein the determination of the first portion and the second portion of the order quantity is based at least in part on one or more preferences associated with the first trader.

9. The system ofclaim 8, wherein at least one of the one or more preferences is to determine the first portion based at least in part on a configurable percentage of the order quantity.

10. The system ofclaim 8, wherein at least one of the one or more preferences is to determine the first portion based at least in part on current market data.

11. The system ofclaim 8, wherein the processor is further operable to allow the first trader to input the one or more preferences.

12. The system ofclaim 1, wherein the processor is further operable to allow the first trader to input the configurable condition.

13. The system ofclaim 1, wherein:

the trading order is a first trading order; and

the configurable condition is that a second trading order aggress at least part of the first portion of the order quantity from the first trading order.

14. The system ofclaim 1, wherein:

the trading order is a first trading order; and

the configurable condition is that:

a second trading order aggress at least part of the first portion of the order quantity from the first trading order; and

the second trading order is not from a trader designated by the trader list.

15. The system ofclaim 1, wherein the configurable condition is that a best bid price or a best offer price in a trading system satisfy a configurable threshold.

16. The system ofclaim 1, wherein the configurable condition is that a trading volume associated with the first trading product satisfy a configurable threshold.

17. The system ofclaim 1, wherein each of the one or more traders designated by the trader list are market makers that specialize in trading the first trading product.

18. The system ofclaim 1, wherein the trading order is part of a substantially real-time order price feed from the first trader.

19. The system ofclaim 1, wherein disclosing the first portion of the order quantity to a plurality of traders comprises transmitting the first portion of the order quantity to the plurality of traders.

20. A method for managing trading orders, comprising:

receiving a trading order from a first trader, wherein:

the trading order is for an order quantity of a first trading product; and

the first trader is associated with a trader list designating one or more other traders;

determining a first portion and a second portion of the order quantity;

disclosing the first portion of the order quantity to a plurality of traders; and

if a configurable condition is satisfied:

disclosing the second portion of the order quantity to one or more traders that are not designated by the trader list; and

preventing the disclosure of the second portion of the order quantity to the one or more designated traders from the trader list.

21. The method ofclaim 20, wherein:

the trading order is a first trading order;

the determination of the first portion and the second portion of the order quantity from the first trading order is based at least in part on a first preference associated with the first trader;

and further comprising:

receiving from the first trader a second trading order for an order quantity of a second trading product;

determining a first portion and a second portion of the order quantity from the second trading order, wherein the determination of the first portion and the second portion of the order quantity from the second trading order is based at least in part on a second preference associated with the first trader; and

disclosing the first portion of the order quantity from the second trading order to a plurality of traders.

22. The method ofclaim 21, wherein the determined first portion of the order quantity from the first trading order is different than the determined first portion of the order quantity from the second trading order.

23. The method ofclaim 21, wherein the first preference is associated with the first trading product and the second preference is associated with the second trading product.

24. The method ofclaim 21, wherein:

the trader list is a first trader list associated with the first trading product;

the configurable condition is a first configurable condition associated with the first trading product; and

the first trader is associated with:

a second configurable condition associated with the second trading product; and

a second trader list designating one or more other traders;

and further comprising:

if the second configurable condition is satisfied:

disclosing the second portion of the order quantity from the second trading order to one or more traders that are not designated by the second trader list; and

preventing the disclosure of the second portion of the order quantity from the second trading order to the one or more designated traders from the second trader list.

25. The method ofclaim 24, wherein the second trader list is different from the first trader list.

26. The method ofclaim 24, wherein the second configurable condition is different from the first configurable condition.

27. The method ofclaim 20, wherein the determination of the first portion and the second portion of the order quantity is based at least in part on one or more preferences associated with the first trader.

28. The method ofclaim 27, wherein at least one of the one or more preferences is to determine the first portion based at least in part on a configurable percentage of the order quantity.

29. The method ofclaim 27, wherein at least one of the one or more preferences is to determine the first portion based at least in part on current market data.

30. The method ofclaim 27, further comprising allowing the first trader to input the one or more preferences.

31. The method ofclaim 20, further comprising allowing the first trader to input the configurable condition.

32. The method ofclaim 20, wherein:

the trading order is a first trading order; and

the configurable condition is that a second trading order aggress at least part of the first portion of the order quantity from the first trading order.

33. The method ofclaim 20, wherein:

the trading order is a first trading order; and

the configurable condition is that:

a second trading order aggress at least part of the first portion of the order quantity from the first trading order; and

the second trading order is not from a trader designated by the trader list.

34. The method ofclaim 20, wherein the configurable condition is that a best bid price or a best offer price in a trading system satisfy a configurable threshold.

35. The method ofclaim 20, wherein the configurable condition is that a trading volume associated with the first trading product satisfy a configurable threshold.

36. The method ofclaim 20, wherein each of the one or more traders designated by the trader list are market makers that specialize in trading the first trading product.

37. The method ofclaim 20, wherein the trading order is part of a substantially real-time order price feed from the first trader.

38. The method ofclaim 20, wherein disclosing the first portion of the order quantity to a plurality of traders comprises transmitting the first portion of the order quantity to the plurality of traders.

39. Logic for managing trading orders, the logic encoded in computer-readable media and operable when executed to:

receive a trading order from a first trader, wherein:

the trading order is for an order quantity of a first trading product; and

the first trader is associated with a trader list designating one or more other traders;

determine a first portion and a second portion of the order quantity;

disclose the first portion of the order quantity to a plurality of traders; and

if a configurable condition is satisfied:

disclose the second portion of the order quantity to one or more traders that are not designated by the trader list; and

prevent the disclosure of the second portion of the order quantity to the one or more designated traders from the trader list.

40. The logic ofclaim 39, wherein:

the trading order is a first trading order;

the determination of the first portion and the second portion of the order quantity from the first trading order is based at least in part on a first preference associated with the first trader; and

the logic is further operable when executed to:

receive from the first trader a second trading order for an order quantity of a second trading product;

determine a first portion and a second portion of the order quantity from the second trading order, wherein the determination of the first portion and the second portion of the order quantity from the second trading order is based at least in part on a second preference associated with the first trader; and

disclose the first portion of the order quantity from the second trading order to a plurality of traders.

41. The logic ofclaim 40, wherein the determined first portion of the order quantity from the first trading order is different than the determined first portion of the order quantity from the second trading order.

42. The logic ofclaim 40, wherein the first preference is associated with the first trading product and the second preference is associated with the second trading product.

43. The logic ofclaim 40, wherein:

the trader list is a first trader list associated with the first trading product;

the configurable condition is a first configurable condition associated with the first trading product;

the first trader is associated with:

a second configurable condition associated with the second trading product; and

a second trader list designating one or more other traders; and

the logic is further operable when executed to, if the second configurable condition is satisfied:

disclose the second portion of the order quantity from the second trading order to one or more traders that are not designated by the second trader list; and

prevent the disclosure of the second portion of the order quantity from the second trading order to the one or more designated traders from the second trader list.

44. The logic ofclaim 43, wherein the second trader list is different from the first trader list.

45. The logic ofclaim 43, wherein the second configurable condition is different from the first configurable condition.

46. The logic ofclaim 39, wherein the determination of the first portion and the second portion of the order quantity is based at least in part on one or more preferences associated with the first trader.

47. The logic ofclaim 46, wherein at least one of the one or more preferences is to determine the first portion based at least in part on a configurable percentage of the order quantity.

48. The logic ofclaim 46, wherein at least one of the one or more preferences is to determine the first portion based at least in part on current market data.

49. The logic ofclaim 46, further comprising allowing the first trader to input the one or more preferences.

50. The logic ofclaim 39, further comprising allowing the first trader to input the configurable condition.

51. The logic ofclaim 39, wherein:

the trading order is a first trading order; and

the configurable condition is that a second trading order aggress at least part of the first portion of the order quantity from the first trading order.

52. The logic ofclaim 39, wherein:

the trading order is a first trading order; and

the configurable condition is that:

a second trading order aggress at least part of the first portion of the order quantity from the first trading order; and

the second trading order is not from a trader designated by the trader list.

53. The logic ofclaim 39, wherein the configurable condition is that a best bid price or a best offer price in a trading system satisfy a configurable threshold.

54. The logic ofclaim 39, wherein the configurable condition is that a trading volume associated with the first trading product satisfy a configurable threshold.

55. The logic ofclaim 39, wherein each of the one or more traders designated by the trader list are market makers that specialize in trading the first trading product.

56. The logic ofclaim 39, wherein the trading order is part of a substantially real-time order price feed from the first trader.

57. The logic ofclaim 39, wherein disclosing the first portion of the order quantity to a plurality of traders comprises transmitting the first portion of the order quantity to the plurality of traders.

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