Abstract: A system that analyzes toxic flow, retains the toxic flow with a dealer, and rebates all or a partial percentage of the toxic flow to liquidity providers in the market, The system allows clients and dealers can be identified by a number or code, and temporarily retains toxicity with the dealers until a predetermined amount of time and/or number of trades elapses. The dealers can then rebate back to the system any net toxicity beyond a random distribution, and the system can distribute any net toxicity beyond the random distribution to the liquidity providers. Buyers and sellers therefore receive a better price, and liquidity providers can operate with the comfort of knowing that their transactions will involve no toxicity above a random distribution.