According to GlobalData’s company profile on Intercontinental Exchange, retail trading platforms was a key innovation area identified from patents. Intercontinental Exchange's grant share as of September 2023 was 66%. Grant share is based on the ratio of number of grants to total number of patents.

Verifiable order message handling for electronic auctions

A recently filed patent (Publication Number: US20230298097A1) describes a system that enables electronic auctions for securities transactions. The system includes a computer platform with a processor and memory that can communicate with various entity systems through computer networks. The computer platform receives electronic order messages, including sell orders for securities that have not been previously registered with the platform.

The system continually and in real-time analyzes the electronic order messages, identifying requests for participation in an electronic auction. It verifies the characteristics of the sell orders and routes them to an order book storage structure before the auction. At the scheduled auction time, the system determines if the sell order information meets predetermined auction conditions based on the auction price. If the conditions are met, the verified orders are permitted to participate in the electronic auction and are executed in full using the platform's auction engine.

The system allows entity systems to transmit electronic order messages to the computer platform over computer networks using data feeds. The auction engine performs the electronic auction and generates matched orders from the requests for participation. The computer platform also performs an allocation of the requests for participation, ranking and pricing them based on the auction price.

The computer platform parses the electronic order messages to identify the sell orders based on order type indications. It verifies the characteristics of the orders, including order type indications, price indications, size indications, and value indications. It also verifies entity characteristics, such as designated broker dealer entities previously registered with the platform.

The predetermined auction conditions include the auction price being within a price range indicated in a registration statement associated with the entity, the verified order being present in the electronic auction, and the auction price fully executing the verified order.

The system also includes features such as an opening auction for direct limit orders, verification of message characteristics, generation of outgoing messages, routing of order messages, storage of verified orders in the order book, cancellation of the electronic auction if conditions are not met, and determination of the auction price at the scheduled auction time.

Additionally, the computer platform can generate an interactive graphical user interface (GUI) with user tools for the electronic auction and receive user input through the GUI.

Overall, this patent describes a system that enables electronic auctions for securities transactions, providing real-time analysis, verification, and execution of sell orders based on predetermined auction conditions.

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