Abstract: The present invention relates to an electronic trading system and a method for automatically performing an execution of an order from a market participant against a quote of a market maker. According to the present invention, an order from a market participant is executed against the matching quote of a market maker only, if a corresponding hedge transaction for mitigating the market maker's execution risk has been generated and successfully executed. Thereby the initial order and the hedge transaction preferably relate to different markets, such that the invention provides a conditional link between trades performed in these markets.

Abstract: The present invention provides an automated settlement system and method for receiving appropriate information, monitoring and controlling the timely interaction between the participants to settle trade and to guarantee the irrevocable and inseparable exchange of cash against securities. Two market participants which have agreed to exchange securities against cash forward their request to the automated settlement system of the present invention. The settlement system takes over control of the further procedure by initiating and monitoring a timely transfer of cash to a trust account, initiating and monitor the transfer of securities from the seller's securities deposit account to the buyer's securities deposit account, and to finally credit the seller's cash account. The central settlement system is responsible for involving and processing the interactions between the market participants, the custodians/((I)CSDs) and cash correspondent banks.