Patent ID: 8195560

Claim:
A system for performing crossing of institutional security orders comprising: a first server connected across a communication network to at least one second server providing an away market for order execution and to a plurality of client stations; each client station having an interface configured to input orders into an order book maintained by the first server, wherein the orders include an attribute setting that identifies the order as recallable or non-recallable; the first server including a database, and configured to receive at least first and second institutional orders entered at one or more of the plurality of client stations and configured to send a child order consisting of at least a portion of the first institutional order, that is identified with the recallable attribute setting, to the away market for order execution, a database storing a current state of the first and second institutional orders including any open portion of said orders; the first server further including operating instructions operable to determine whether matching terms exist between the first and second institutional orders in the database, wherein the matching terms determination is based on predetermined criteria; the operating instructions, upon determination of matching contra-terms among the first and second institutional orders, being further operable to instruct the first server to: (a) first forward, to the at least one second server, contra orders of equal size that are composed of the open portion of the first institutional order and the second institutional order for execution on the at least one second server in lieu of the first server in a time-priority sequence relative to any orders in the away market so as to provide additional orders to the away market, wherein a plurality of participants in the away market have an opportunity to execute a transaction with at least one of the first-forwarded contra orders; (b) determine a deficit of available short liquidity to fill the second institutional order; (c) recall the child order from the away market so as to return liquidity to the database, (d) second forward, to the at least one second server, contra orders of equal size that are composed of the recalled child order and an open portion of the second institutional order for execution on the at least one second server in lieu of the first server in a time-priority sequence relative to any orders in the away market so as to provide additional orders to the away market, wherein a plurality of participants in the away market have an opportunity to execute a transaction with at least one of the second-forwarded contra orders; and (e) set an automatic expiration attribute for at least one of the contra orders forwarded to the second server so as to limit an exposure on the away market.