Patent ID: 7574395

Claim:
A method for providing price improvement on an item being traded in an active market, wherein said active market is a market where said item is actively being traded, said method comprising: providing a touch price for said item; electronically receiving at least one price-improved order having a price and a size, wherein said at least one price-improved order improves on said touch price; displaying a price improvement indicator while said at least one price-improved order is available for trade in said active market; prioritizing each said at least one price-improved order based on predetermined criteria; receiving at least one transaction order, wherein said at least one transaction order is an order to buy or sell said item; filling said at least one transaction order based on the prioritization of said at least one price-improved order; and electronically distributing at least a portion of the difference between said touch price and said price of said at least one price-improved order used to fill said at least one transaction order to: a trader associated with said at least one price-improved order; a trader associated with said at least one transaction order; and a system host.