Patent ID: 8527391
Filing Date: 2013-09-03
Classification: G06Q

Abstract:
1. A system for trading financial instruments on an automated exchange comprising: a participant computer system for communicating with an automated exchange system including; a processor; a memory, the memory including program memory for a quote engine that electronically generates a plurality of quotes for the purchase and sale of an instrument, program memory for a program, that, when the processor executes program instructions, generates a quote handling instruction for the plurality of quotes for the instrument, wherein the quote handling instruction includes instructing the exchange system to make the quotes inactive for a transaction thereon, wherein the quotes remain on the exchange system while inactive, and instructing the exchange system to reactivate the quotes for a transaction thereon; and an interface operatively connected to a network and adapted to transmit the quotes to the exchange system, and transmit the quote handling instruction to the exchange system; and the automated exchange for trading a financial instrument, the automated exchange including: a server having a processor; an interface operatively connected to the network and adapted to receive the plurality of quotes for the purchase or sale of the instrument, and the quote handling instruction; and a memory, the memory including program memory for a program that, when the processor executes program instructions, makes the received quotes unavailable for a transaction thereon if the received quote handling instruction instructs the exchange system to make the quotes inactive, wherein the quotes remain on the exchange system while inactive; makes the received quotes available for a transaction thereon if the received quote handling instruction instructs the exchange system to reactivate the quotes; executes an update of quotes on the exchange for a best bid and offer calculation; calculates the best bid and offer as a function of the update; and operates a timer configured to interpose a plurality of delays over a plurality of successive predetermined time periods upon the execution of a quote handling instruction, wherein the quotes subject to the quote handling instruction do not trigger the update of the best bid and offer during a first time period, wherein the matching engine updates the best bid and offer triggered by quotes other than the quotes subject to the quote handling instruction during the first time period, and wherein a predetermined portion of the quotes subject to the quote handling instruction trigger the best bid and offer update after a subsequent time period of the plurality of time periods expires.