Intercontinental Exchange. has been granted a patent for a system that enhances liquidity at posting market centers. This system allows smaller, routable orders to be filled internally, reducing the need to route them to external markets, thereby increasing overall order execution efficiency. GlobalData’s report on Intercontinental Exchange gives a 360-degree view of the company including its patenting strategy. Buy the report here.
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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 July 2024 was 66%. Grant share is based on the ratio of number of grants to total number of patents.
Tracking liquidity orders for improved market center execution
The patent US12073467B2 describes a sophisticated system for managing orders in a trading environment, specifically through a posting market center computer. This system is designed to interface with multiple external data sources, allowing it to receive both displayed and nondisplayed orders, including a unique type of order known as a tracking liquidity order. The core functionality of the system revolves around an order matching engine that organizes these orders within an order book based on predetermined rules. Notably, the system can prevent incoming orders from being routed to external markets if they can be executed against the tracking liquidity order, prioritizing this internal execution based on specific pricing characteristics.
Further claims detail the operational nuances of the system, including the handling of market maker quotes and the ranking of orders based on their visibility and pricing. The tracking liquidity orders are characterized by their nondisplayed nature, meaning their price and size are not visible in the order book, which allows for a more discreet trading strategy. The system is also equipped to manage fluctuating price parameters for these tracking orders, ensuring compliance with national best bid and offer regulations to avoid trade-through violations. Overall, the patent outlines a comprehensive framework for enhancing order execution efficiency while maintaining regulatory compliance in trading activities.
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GlobalData Patent Analytics tracks bibliographic data, legal events data, point in time patent ownerships, and backward and forward citations from global patenting offices. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.
