Patents by Inventor Edward T. Tilly
Edward T. Tilly has filed for patents to protect the following inventions. This listing includes patent applications that are pending as well as patents that have already been granted by the United States Patent and Trademark Office (USPTO).
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Patent number: 11151650Abstract: A system and method of allocating orders in an exchange configured for trading by a combination of electronic and open-outcry trading mechanisms is provided. One method includes permitting multiple quotes to be disseminated to the market, but limiting market making to only those entities having a physical presence on the floor of the exchange. Methods of enhancing the hybrid electronic and open-outcry exchange also include automatically eliminating crossed quotes and locked quotes while permitting certain orders to trade against locked quotes.Type: GrantFiled: September 13, 2019Date of Patent: October 19, 2021Assignee: CBOE EXCHANGE, INC.Inventors: Eileen C. Smith, Anthony Montesano, Edward T. Tilly, Mark A. Esposito, Stuart J. Kipnes, Anthony J. Carone
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Publication number: 20210019826Abstract: A method of providing orders to a virtual trading crowd in an exchange prior to automatically linking the order to an away market includes receiving a marketable order at the exchange, wherein the exchange price differs from a national best bid or offer (NBBO) price, routing the order to a trade engine, disseminating a request for price message, the request for price message including a price equal to the NBBO price, receiving a response message, initiating a quote trigger, wherein the quote trigger occurs for a period of N seconds, allocating at least a portion of the order according to an allocation algorithm, wherein an order size of each market maker is capped to prevent inflation of an allocated portion of the order, and allocating any remaining portion of the order to at least one predetermined market maker guarantor for execution at the NBBO price.Type: ApplicationFiled: June 3, 2020Publication date: January 21, 2021Applicant: Cboe Exchange, Inc.Inventors: Edward T. Tilly, Anthony Montesano, Eileen C. Smith
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Publication number: 20200175591Abstract: A system and method of allocating orders in an exchange configured for trading by a combination of electronic and open-outcry trading mechanisms is provided. One method includes permitting multiple quotes to be disseminated to the market, but limiting market making to only those entities having a physical presence on the floor of the exchange. Methods of enhancing the hybrid electronic and open-outcry exchange also include automatically eliminating crossed quotes and locked quotes while permitting certain orders to trade against locked quotes.Type: ApplicationFiled: September 13, 2019Publication date: June 4, 2020Applicant: Cboe Exchange, Inc.Inventors: Eileen C. Smith, Anthony Montesano, Edward T. Tilly, Mark A. Esposito, Stuart J. Kipnes, Anthony J. Carone
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Patent number: 10614521Abstract: A method of providing an automated auction for internalization for the purchase or sale of securities or derivatives in an exchange is disclosed. The method may include receiving an order at an electronic trade engine, disseminating a request for price message to at least one user in response to receiving the order, receiving a one-sided response message representative of a participant-type in response to the request for price message, selecting an allocation algorithm from a plurality of allocation algorithms, initiating the selected allocation algorithm and allocating the order according to the participant-type upon termination of the selected auction. The system may include an electronic trading engine configured to disseminate an auction message in response to an order, a database of allocation algorithms, and a trade processor for initiating an auction according the one of the allocation algorithms and terminating the auction upon defined early termination events.Type: GrantFiled: September 28, 2012Date of Patent: April 7, 2020Assignee: Cboe Exchange, Inc.Inventors: Edward T. Tilly, Anthony J. Carone, Stuart J. Kipnes, James Gazis, Anthony Montesano, Eileen C. Smith
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Patent number: 10417708Abstract: A system and method of allocating orders in an exchange configured for trading by a combination of electronic and open-outcry trading mechanisms is provided. One method includes permitting multiple quotes to be disseminated to the market, but limiting market making to only those entities having a physical presence on the floor of the exchange. Methods of enhancing the hybrid electronic and open-outcry exchange also include automatically eliminating crossed quotes and locked quotes while permitting certain orders to trade against locked quotes.Type: GrantFiled: December 14, 2012Date of Patent: September 17, 2019Assignee: Cboe Exchange, Inc.Inventors: Eileen C. Smith, Anthony Montesano, Edward T. Tilly, Mark A. Esposito, Stuart J. Kipnes, Anthony J. Carone
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Publication number: 20190220925Abstract: A method of providing orders to a virtual trading crowd in an exchange prior to automatically linking the order to an away market includes receiving a marketable order at the exchange, wherein the exchange price differs from a national best bid or offer (NBBO) price, routing the order to a trade engine, disseminating a request for price message, the request for price message including a price equal to the NBBO price, receiving a response message, initiating a quote trigger, wherein the quote trigger occurs for a period of N seconds, allocating at least a portion of the order according to an allocation algorithm, wherein an order size of each market maker is capped to prevent inflation of an allocated portion of the order, and allocating any remaining portion of the order to at least one predetermined market maker guarantor for execution at the NBBO price.Type: ApplicationFiled: September 17, 2018Publication date: July 18, 2019Applicant: Cboe Exchange, Inc.Inventors: Edward T. Tilly, Anthony Montesano, Eileen C. Smith
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Publication number: 20190220926Abstract: A method of providing an automated auction for internalization for the purchase or sale of securities or derivatives in an exchange is disclosed. The method may include receiving an order at an electronic trade engine, disseminating a request for price message to at least one user in response to receiving the order, receiving a one-sided response message representative of a participant-type in response to the request for price message, selecting an allocation algorithm from a plurality of allocation algorithms, initiating the selected allocation algorithm and allocating the order according to the participant-type upon termination of the selected auction. The system may include an electronic trading engine configured to disseminate an auction message in response to an order, a database of allocation algorithms, and a trade processor for initiating an auction according the one of the allocation algorithms and terminating the auction upon defined early termination events.Type: ApplicationFiled: October 15, 2018Publication date: July 18, 2019Applicant: CBOE EXCHANGE, INC.Inventors: Edward T. Tilly, Anthony J. Carone, Stuart J. Kipnes, James Gazis, Anthony Montesano, Eileen C. Smith
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Publication number: 20170287066Abstract: An automated system for matching orders from a virtual trading crowd in an exchange configured for trading securities or derivatives is disclosed including an electronic trade engine operative to receive an order or a quote for a security or derivative at the exchange, the trade engine further operative to disseminate a request for a price message to a plurality of market makers quoting a class in response to receiving the order or the quote, an electronic book in communication with the electronic trade engine, the electronic book operative to store at least one order or quote received by the electronic trade engine, a database including an allocation algorithm, the database in communication with the electronic trade engine, and a trade processor in communication with the database, the trade processor operative to analyze and execute orders or quotes according to the allocation algorithm selected from the database.Type: ApplicationFiled: November 18, 2016Publication date: October 5, 2017Applicant: Chicago Board Options Exchange, IncorporatedInventors: Edward T. Tilly, Anthony Montesano, Eileen C. Smith
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Publication number: 20160358261Abstract: An automated system for routing orders in an exchange configured for trading securities or derivatives is disclosed. The system includes an electronic trade engine operative to receive an order from an originating firm, the order including a designation specifying a preference for a particular market maker for a security or derivative at the exchange. Upon determining that the order cannot trade at the exchange, the electronic trade engine, via an order handling system, is operative to route the order to a second exchange with a second designation that is one of: identical to the designation of the received order or modified to a different designation according to predetermined instructions.Type: ApplicationFiled: January 8, 2016Publication date: December 8, 2016Applicant: Chicago Board Options Exchange, IncorporatedInventors: Edward T. Tilly, Anthony Montesano, Eileen C. Smith
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Publication number: 20160358255Abstract: A method of providing orders to a virtual trading crowd in an exchange prior to automatically linking the order to an away market includes receiving a marketable order at the exchange, wherein the exchange price differs from a national best bid or offer (NBBO) price, routing the order to a trade engine, disseminating a request for price message, the request for price message including a price equal to the NBBO price, receiving a response message, initiating a quote trigger, wherein the quote trigger occurs for a period of N seconds, allocating at least a portion of the order according to an allocation algorithm, wherein an order size of each market maker is capped to prevent inflation of an allocated portion of the order, and allocating any remaining portion of the order to at least one predetermined market maker guarantor for execution at the NBBO price.Type: ApplicationFiled: February 8, 2016Publication date: December 8, 2016Applicant: Chicago Board Options Exchange, IncorporatedInventors: Edward T. Tilly, Anthony Montesano, Eileen C. Smith
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Publication number: 20140258071Abstract: Systems and methods for creating, disseminating and managing margin for a seller-advanced margin derivative investment instrument are disclosed. In one aspect, a seller-advanced margin derivative investment instrument is defined where a seller pre-pays a margin requirement that a buyer typically pays initially as required by an exchange. In another aspect, a collateral management service associated with a clearing entity for an exchange identifies, tracks and notifies seller and buyer clearing firms of margin charges and credits relating to seller-advanced margin derivative investment instruments.Type: ApplicationFiled: March 5, 2014Publication date: September 11, 2014Inventors: Edward T. Tilly, William M. Speth
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Publication number: 20130282553Abstract: A system and method for trading derivatives in penny increments while disseminating quotes for derivatives in nickel/dime increments is disclosed. A trading engine receives quotes for a derivative in penny increments from at least one entity. The trading engine rounds out the quotes for the derivative in penny increments to quotes for the derivative in nickel/dime increments. The quotes in nickel/dime increments are aggregated and disseminated. The trading engine receives bids and offers to take positions in the derivative based on the aggregate quotes for the derivative in nickel/dime increments and executes trades for the derivative by matching bids and offers to buy and sell positions in the derivative.Type: ApplicationFiled: June 14, 2013Publication date: October 24, 2013Applicant: CHICAGO BOARD OPTIONS EXCHANGE, INCORPORATEDInventors: Edward T. Tilly, Christopher Gust
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Publication number: 20130238481Abstract: A system and method of allocating orders in an exchange configured for trading by a combination of electronic and open-outcry trading mechanisms is provided. One method includes permitting multiple quotes to be disseminated to the market, but limiting market making to only those entities having a physical presence on the floor of the exchange. Methods of enhancing the hybrid electronic and open-outcry exchange also include automatically eliminating crossed quotes and locked quotes while permitting certain orders to trade against locked quotes.Type: ApplicationFiled: December 14, 2012Publication date: September 12, 2013Inventors: Eileen C. Smith, Anthony Montesano, Edward T. Tilly, Mark A. Esposito, Stuart J. Kipnes, Anthony J. Carone
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Publication number: 20130185185Abstract: An automated system for matching orders from a virtual trading crowd in an exchange configured for trading securities or derivatives is disclosed including an electronic trade engine operative to receive an order or a quote for a security or derivative at the exchange, the trade engine further operative to disseminate a request for a price message to a plurality of market makers quoting a class in response to receiving the order or the quote, an electronic book in communication with the electronic trade engine, the electronic book operative to store at least one order or quote received by the electronic trade engine, a database including an allocation algorithm, the database in communication with the electronic trade engine, and a trade processor in communication with the database, the trade processor operative to analyze and execute orders or quotes according to the allocation algorithm selected from the database.Type: ApplicationFiled: November 27, 2012Publication date: July 18, 2013Inventors: Edward T. Tilly, Anthony Montesano, Eileen C. Smith
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Patent number: 8489489Abstract: A system and method for trading derivatives in penny increments while disseminating quotes for derivatives in nickel/dime increments is disclosed. A trading engine receives quotes for a derivative in penny increments from at least one entity. The trading engine rounds out the quotes for the derivative in penny increments to quotes for the derivative in nickel/dime increments. The quotes in nickel/dime increments are aggregated and disseminated. The trading engine receives bids and offers to take positions in the derivative based on the aggregate quotes for the derivative in nickel/dime increments and executes trades for the derivative by matching bids and offers to buy and sell positions in the derivative.Type: GrantFiled: May 3, 2006Date of Patent: July 16, 2013Assignee: Chicago Board Options Exchange, IncorporatedInventors: Edward T. Tilly, Christopher Gust
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Publication number: 20130179321Abstract: A method of providing an automated auction for internalization for the purchase or sale of securities or derivatives in an exchange is disclosed. The method may include receiving an order at an electronic trade engine, disseminating a request for price message to at least one user in response to receiving the order, receiving a one-sided response message representative of a participant-type in response to the request for price message, selecting an allocation algorithm from a plurality of allocation algorithms, initiating the selected allocation algorithm and allocating the order according to the participant-type upon termination of the selected auction. The system may include an electronic trading engine configured to disseminate an auction message in response to an order, a database of allocation algorithms, and a trade processor for initiating an auction according the one of the allocation algorithms and terminating the auction upon defined early termination events.Type: ApplicationFiled: September 28, 2012Publication date: July 11, 2013Inventors: Edward T. Tilly, Anthony J. Carone, Stuart J. Kipnes, James Gazis, Anthony Montesano, Eileen C. Smith
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Patent number: 8346653Abstract: An automated system for matching orders from a virtual trading crowd in an exchange configured for trading securities or derivatives is disclosed including an electronic trade engine operative to receive an order or a quote for a security or derivative at the exchange, the trade engine further operative to disseminate a request for a price message to a plurality of market makers quoting a class in response to receiving the order or the quote, an electronic book in communication with the electronic trade engine, the electronic book operative to store at least one order or quote received by the electronic trade engine, a database including an allocation algorithm, the database in communication with the electronic trade engine, and a trade processor in communication with the database, the trade processor operative to analyze and execute orders or quotes according to the allocation algorithm selected from the database.Type: GrantFiled: October 23, 2009Date of Patent: January 1, 2013Assignee: Chicago Board Options Exchange, IncorporatedInventors: Edward T. Tilly, Anthony Montesano, Eileen C. Smith
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Patent number: 8346652Abstract: A system and method of allocating orders in an exchange configured for trading by a combination of electronic and open-outcry trading mechanisms is provided. One method includes permitting multiple quotes to be disseminated to the market, but limiting market making to only those entities having a physical presence on the floor of the exchange. Methods of enhancing the hybrid electronic and open-outcry exchange also include automatically eliminating crossed quotes and locked quotes while permitting certain orders to trade against locked quotes.Type: GrantFiled: September 16, 2009Date of Patent: January 1, 2013Assignee: Chicago Board Options Exchange, IncorporatedInventors: Eileen C. Smith, Anthony Montesano, Edward T. Tilly, Mark A. Esposito, Stuart J. Kipnes, Anthony J. Carone
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Patent number: 8296218Abstract: A method of providing an automated auction for internalization for the purchase or sale of securities or derivatives in an exchange is disclosed. The method may include receiving an order at an electronic trade engine, disseminating a request for price message to at least one user in response to receiving the order, receiving a one-sided response message representative of a participant-type in response to the request for price message, selecting an allocation algorithm from a plurality of allocation algorithms, initiating the selected allocation algorithm and allocating the order according to the participant-type upon termination of the selected auction. The system may include an electronic trading engine configured to disseminate an auction message in response to an order, a database of allocation algorithms, and a trade processor for initiating an auction according the one of the allocation algorithms and terminating the auction upon defined early termination events.Type: GrantFiled: December 29, 2009Date of Patent: October 23, 2012Assignee: Chicago Board Options Exchange, IncorporatedInventors: Edward T. Tilly, Anthony J. Carone, Stuart J. Kipnes, James Gazis, Anthony Montesano, Eileen C. Smith
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Publication number: 20120158567Abstract: A system and method of allocating orders in an exchange configured for trading by a combination of electronic and open-outcry trading mechanisms is provided. One method includes permitting multiple quotes to be disseminated to the market, and providing market making rights of varying degrees to entities having a physical presence on the floor of the exchange and entities remotely located away from the trading floor. The system includes a trade engine configured for receiving orders from market makers on and away from the trading floor. The system also includes executable instructions for allocating to designated primary market makers a portion of an incoming order remaining after first trading against public customer orders.Type: ApplicationFiled: August 23, 2011Publication date: June 21, 2012Inventors: Anthony J. Carone, Mark A. Esposito, Stuart J. Kipnes, Anthony Montesano, Eileen C. Smith, Edward T. Tilly