Patent ID: 7747493

Claim:
A method for changing priority levels of orders in an electronic trading environment, the method comprising: sorting a plurality of orders in an order book for a tradeable object at an electronic exchange into one of a plurality of price levels each having an associated order queue for holding pending orders for the tradeable object at the associated price level within the plurality of price levels, each of the plurality of orders having an order price and being sorted into one of the plurality of price levels according to the order price for each of the plurality of orders, where orders from the plurality of orders having a common order price are further sorted in an associated order queue for a price level of the common order price according to a match algorithm of the electronic exchange, and where the electronic exchange matches the plurality of orders first according to a price then according to the associated order queue; receiving a first order for the tradeable object at the electronic exchange at a first time, the first order comprising a first priority and a first order quantity at a first order price; placing the first order in the order book at a first price level of the plurality of price levels and at a first location in the order queue associated with the first price level according to the match algorithm of the electronic exchange; receiving a second order for the tradeable object at the electronic exchange at a second time, the second order comprising a second priority and a second order quantity at the first order price, wherein the second time is subsequent to the first time; placing the second order at a second location in the order queue associated with the first price level according to the match algorithm of the electronic exchange, wherein the first order has a higher priority in the order queue associated with the first price level over the second order such that the second location is initially in the order queue associated with the first price level behind the first location based on the first and second times; receiving a command at the electronic exchange to swap priority of the first and second orders in the order queue associated with the first price level; responsive to the command, comparing the first priority and the second priority; responsive to the comparison, swapping the second order in the order queue associated with the first price level with the first order in the order queue associated with the first price level such that the second order is in the first location and the first order is in the second location; generating a fee associated with swapping the second order and the first order; and matching the second order with a first counter-order having the first order price, where the second order includes the fee.