METHOD AND SYSTEM OF MATCHING BLOCK SIZE SELL AND BUY

ORDERS FOR SECURITIES

FIELD OF THE INVENTION

[ 1 ] The present invention relates to a method and system for matching block size sell and buy orders for securities. The present invention also relates to a method and system for substantially reducing or substantially minimising information leakage and market impact on block trades.

BACKGROUND TO THE INVENTION

[2] Securities trading is commonly associated with a public exchange, examples of which include the Australia Stock Exchange and the New York Stock Exchange. These public exchanges typically operate as lit markets in which orders are displayed on order books and are therefore pre-trade transparent. On these public exchanges, lit orders can be seen by the general public.

[3] A trade is generally considered a block trade when it is particularly large or exceeds a minimum threshold determined by a regulator or an exchange.

[4] Block trading is not well suited to lit markets because of the price impact which occurs when a large order is visible to the general public.

[5] Block trades often occur through the intermediation of a stockbroker who matches buyers and sellers and assists in negotiating the trade price. The problem with this method is the information leakage and market impact which occurs when a stockbroker seeks to find the other side of an order. Parties that become aware that a stockbroker is acting for a buyer or seller obtain an informational advantage which they can use for their benefit and to the detriment of the original buyer or seller. Those who are alerted first gain the most significant advantage.

[6] As part of the process of finding the other side of an order, stockbrokers frequently use Indications of Interest (IOIs) to alert their clients to the presence of an order. This can result in information leakage. Because IOIs are non-binding, stockbrokers often send alerts without having a genuine order for the purpose of attracting genuine orders for which they can then seek to find the other side. This can lead to frustration on the part of firms who respond to IOIs but do not end up trading because the stockbroker is unable to find the other side of their order. [7] Lit markets often operate opening and closing auctions at set times at the beginning and end of the trading day. The liquidity concentration at such auctions tends to reduce market impact, providing an opportunity for lit block trades. The problem is that most traders would prefer to be complete before the closing auction and some exchanges charge more to trade in the auction than in continuous trading.

[8] In recent years, a substantial amount of securities trading has been taking place within dark pools, which are essentially private forums for trading securities that are generally not openly available to the public. Orders in dark pools are not pre-trade transparent and dark orders cannot be seen by the general public. Offsetting dark orders are automatically executed on a dark trading venue without each counterpart ever knowing the full order size of the other.

[9] The owner or administrator of a dark pool can control whose buy and sell orders are processed within the dark pool and can impose other qualifying criteria and rules of their choice. Trading within dark pools is done anonymously so that neither the size of the trade nor the price is revealed until the trade is filled. The prices are agreed upon directly by the participants, but in Australia, are typically between the National Best Bid or Offer (NBBO) which is the best bid and offer displayed on a lit venue at the time the trade is matched.

[10] One method of operating a dark pool for block trades is to sweep outstanding orders from the trading systems used by institutions to alert them to the existence of an offsetting order. Once alerted, the buyers and sellers are able to electronically negotiate a price directly with one another. This negotiation process replaces the role traditionally played by stockbrokers.

[1 1 ] The problems with such a method arise when alerts are generated which do not result in trades. This can occur when non-actionable orders are swept into the system, when traders with different pricing strategies are matched, when traders are not physically present to respond to alerts or when negotiations fail as each side seeks a better price. These non-traded matches result in information leakage to the detriment of users.

[12] Lit exchanges and dark pools may also offer a setting to allow block trading using a mid-point crossing engine in which all orders are actionable and traded as soon as an opposing order arrives. Due to the nature of this type of trading the average trade size is relatively small, predatory activity is high and fees tend to be relatively high. [13] Improved methods of block trading are required.

SUMMARY OF THE INVENTION

[14] The present invention is directed to methods and systems relating to block securities transactions within a pool which is semi-lit.

[15] In a broad form, the present invention relates to methods and systems for substantially reducing or substantially minimising information leakage and market impact on block trades. In one broad form, the present invention allows participants to control one or more IOIs linked to their orders. In another broad form, the present invention allows participants to choose between trading blocks at the mid-point of the NBBO or at the Volume Weighted Average Price (VWAP) from the time of the match until the close time. In another broad form, the present invention allows certain users to participate during discrete liquidity windows only. In yet another broad form, the present invention facilitates securities transactions that utilise a dark book and operate a partially lit period.

[16] Preferred advantages of the various methods and systems of the present invention include that information leakage is minimised or substantially eliminated; the block event is open to a wider audience; participants can control their own IOIs; and price is set substantially independently of any direct influence by the buyers or sellers or with a substantial reduction of any influence.

[17] In a first aspect, the present invention provides a computer implemented method of matching one or more block size sell orders and one or more block size buy orders for securities comprising:

setting opening hours for trading, the opening hours beginning at a start time, concluding at a close time and comprising one or more block event liquidity windows; receiving one or more sell orders and/or one or more buy orders during the opening hours, wherein the one or more sell orders comprise one or more institutional sell orders and/or one or more broker sell orders and the one or more buy orders comprise one or more institutional buy orders and/or one or more broker buy orders; and matching the one or more institutional sell orders and/or one or more institutional buy orders at any time during the opening hours and matching the one or more broker sell orders and/or the one or more broker buy orders during the one or more block event liquidity windows to thereby match the one or more sell orders and/or the one or more buy orders for the securities within the block event.

[18] In one embodiment of the first aspect, the recei ved one or more sell orders and/or one or more buy orders each comprise an order to be matched at the mid price of the NBBO, at the VWAP from the time at which the order is matched until the close time or at a price to be Worked. These order types may be referred to as Mid type; VWAP type and Work type, respectively.

[19] In another embodiment of the first aspect, the received one or more sell orders and one or more buy orders comprise instructions to send actionable IOIs comprising order type and order size.

[20] The order type may comprise Mid type; VWAP type or Work type.

[21] In one embodiment of the first aspect, when an offsetting order is submitted that matches with an order comprising an actionable IOI, the submitted offsetting order is guaranteed of being matched immediately.

[22] In another embodiment of the first aspect wherein a received order type comprises a Work type, the matching one or more sell orders and/or one or more buy orders requires human intermediation.

[23] In one embodiment of the first aspect, each of the received one or more actionable IOIs may be sent by an institutional participant or by a broker participant.

[24] In another embodiment of the first aspect, each of the one or more actionable IOIs may be visible to institutional participants only.

[25] The one or more actionable IOIs may be received at any time during the opening hours.

[26] The one or more actionable IOIs may be flagged as being received from a broker participant.

[27] In one embodiment of the first aspect, the opening hours comprise a pre-market time period.

[28] In another embodiment of the first aspect, the pre-market time period comprises one or more pre-market block event liquidity windows. The pre-market block event liquidity window may allow matching of sell-side orders. The pre-market block event liquidity window may be restricted to VWAP.

[29] In one embodiment of the first aspect, the method further comprises sending the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network.

[30] In another embodiment of the first aspect, the method further comprises settling the matched one or more sell orders and one or more buy orders as a trade. The settling may be performed by a settlement agent.

[31 ] In another embodiment of the first aspect, the received one or more sell orders and one or more buy orders are purged at close or at the end of the day.

[32] In a second aspect, the present invention provides a computer system for matching one or more block size sell orders and one or more block size buy orders for securities comprising:

at least one input device for setting opening hours for trading, the opening hours beginning at a start time, concluding at a close time and comprising one or more block event liquidity windows;

at least one network connection device for receiving one or more sell orders and/or one or more buy orders during the opening hours, wherein the one or more sell orders comprise one or more institutional sell orders and/or one or more broker sell orders and the one or more buy orders comprise one or more institutional buy orders and/or one or more broker buy orders; and

at least one processor for matching the one or more institutional sell orders and/or one or more institutional buy orders at any time during the opening hours and matching the one or more broker sell orders and/or the one or more broker buy orders during the one or more block event liquidity windows to thereby match the one or more sell orders and/or the one or more buy orders for the securities within the block event.

[33] In one embodiment of the second aspect, the received one or more sell orders and/or one or more buy orders each comprise an order to be matched at the mid price of the NBBO, at the VWAP from the time at which the order is matched until the close time or at a price to be Worked.

[34] In another embodiment of the second aspect, the received one or more sell orders and/or one or more buy orders each comprise instructions to send actionable IOIs comprising order type and order size.

[35] In another embodiment of the first aspect, the received one or more sell orders and one or more buy orders each comprise instructions to send actionable IOIs comprising order type and order size.

[36] The order type may comprise Mid type; VWAP type or Work type.

[37] In one embodiment of the first aspect, when an offsetting order is submitted that matches with an order comprising an actionable IOI, the submitted offsetting order is guaranteed of being matched immediately.

[38] In another embodiment of the second aspect wherein a received order type comprises a Work type, the matching one or more sell orders and/or one or more buy orders requires human intermediation.

[39] In one embodiment of the second aspect, each of the received one or more actionable IOIs may be sent by an institutional participant or by a broker participant.

[40] In another embodiment of the second aspect, each of the one or more actionable IOIs may be visible to institutional participants only.

[41 ] In one embodiment of the second aspect, the at least one network connection device further sends the matched one or more sell orders and/or one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange.

[42] In another embodiment of the second aspect, the computer system further comprises a settlement processor for settling the matched one or more sell orders and/or one or more buy orders as a trade. The settlement process may be associated with a settlement agent.

[43] In another embodiment of the second aspect, the received one or more sell orders and/or one or more buy orders are purged at close or at the end of the day.

[44] In a third aspect, the present invention provides a computer readable storage medium having computer-executable instructions for matching one or more block size sell orders and one or more block size buy orders for securities within a block event, the computer-executable instructions configured to:

set opening hours for trading, the opening hours beginning at a start time, concluding at a close time and comprising one or more block event liquidity windows receive one or more sell orders and/or one or more buy orders during the opening hours, wherein the one or more sell orders comprise one or more institutional sell orders and/or one or more broker sell orders and the one or more buy orders comprise one or more institutional buy orders and/or one or more broker buy orders; and match the one or more institutional sell orders and/or one or more institutional buy orders at any time during the opening hours and matching the one or more broker sell orders and/or the one or more broker buy orders during the one or more block event liquidity windows to thereby match the one or more sell orders and/or the one or more buy orders for the securities within the block event.

[45] In one embodiment of the third aspect, the received one or more sell orders and/or one or more buy orders each comprise an order to be matched at the mid price of the NBBO, at the VWAP from the time at which the order is matched until the close time or at a price to be Worked.

[46] In another embodiment of the third aspect, the received one or more sell orders and/or one or more buy orders comprise instructions to send actionable IOIs comprising order type and order size.

[47] The order type may comprise Mid type; VWAP type or Work type.

[48] In one embodiment of the third aspect, when an offsetting order is submitted that matches with an order comprising an actionable IOI, the submitted offsetting order is guaranteed of being matched immediately.

[49] In another embodiment of the third aspect wherein a received order type comprises a Work type, the matching one or more sell orders and/or one or more buy orders requires human intermediation.

[50] In one embodiment of the third aspect, each of the received one or more actionable IOI may be sent by an institutional participant or by a broker participant.

[51 ] In another embodiment of the third aspect, each of the one or more actionable IOI may be visible to institutional participants only.

[52] In one embodiment of the third aspect, the computer-executable instructions are further configured to send the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. In one particular embodiment, the trade reporting is immediate upon matching.

[53] In another embodiment of the third aspect, the computer-executable instructions are further configured to settle the matched one or more sell orders and one or more buy orders as a trade. The settlement process may be associated with a settlement agent. [54] In another embodiment of the third aspect, the received one or more sell orders and one or more buy orders are purged at close or at the end of the day.

[55] According to any one of the first, second or third aspects, the one or more orders may be received at any time during the opening hours.

[56] According to any one of the first, second or third aspects, the one or more actionable 101s may be flagged as being received from a broker participant.

[57] According to any one of the first, second or third aspects, the opening hours comprise a pre-market time period.

[58] According to any one of the first, second or third aspects, the pre-market time period comprises one or more pre-market block event liquidity windows.

[59] In a fourth aspect, the present invention provides a computer implemented method of matching one or more sell orders and one or more buy orders for securities within a block event comprising:

setting a block price and opening hours for the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period;

receiving one or more sell orders and one or more buy orders during the opening hours;

storing the received one or more sell orders and one or more buy orders in a dark book;

alerting one or more participants to the block event during the partially lit period wherein the alert includes the existence of one or more orders and does not include direction or size; and

matching the received one or more sell orders with the received one or more buy orders to thereby match the one or more sell orders and the one or more buy orders for the securities within the block event.

[60] In one embodiment of the fourth aspect, the method further comprises sending the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network.

[61 ] In another embodiment of the fourth aspect, the method further comprises settling the matched one or more sell orders and one or more buy orders as a trade. The settling may be performed by a settlement agent.

[62] In a fifth aspect, the present invention provides a computer implemented method of alerting one or more participants of the existence of one or more orders during a block event comprising:

receiving one or more sell orders and/or one or more buy orders during opening hours of the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period;

storing the received one or more sell orders and/or one or more buy orders in a dark book; and

alerting one or more participants in the block event during the partially lit period wherein the alert includes the existence of one or more orders and does not include direction or size to thereby alert the one or more participants to the existence of the one or more orders during the block event.

[63] In one embodiment of the fifth aspect, the method further comprises receiving one or more buy orders and/or one or more sell orders from the alerted one or more participants.

[64] In another embodiment of the fifth aspect, the method further comprises matching the received one or more sell orders with the received one or more buy orders.

[65] In yet another embodiment of the fifth aspect, the method further comprises sending the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network.

[66] In still another embodiment of the fifth aspect, the method further comprises settling the matched sell and buy orders as a trade. The settling may be performed by a settlement agent.

[67] In a sixth aspect, the present invention provides a computer implemented method of receiving one or more sell orders and/or one or more buy orders during a block event comprising:

setting a block price and opening hours for the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period; alerting one or more participants to the block event during a partially lit period within opening hours of the block event wherein the alert includes the existence of one or more orders and does not include direction or size; and

receiving one or more sell orders and/or one or more buy orders from the one or more participants who were sent the alert during the opening hours to thereby receive the one or more sell orders and the one or more buy orders.

[68] In one embodiment of the sixth aspect, the method further comprises matching the received one or more sell orders with the received one or more buy orders.

[69] In another embodiment of the sixth aspect, the method further comprises sending the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network.

[70] In still another embodiment of the sixth aspect, the method further comprises settling the matched sell and buy orders as a trade. The settling may be performed by a settlement agent.

[71] In a seventh aspect, the present invention provides a computer system for matching one or more sell orders and one or more buy orders for securities within a block event comprising:

at least one input device for setting a block price and opening hours for the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period;

at least one network connection device for receiving one or more sell orders and one or more buy orders during the opening hours;

a memory for storing the recei ved one or more sell orders and one or more buy orders in a dark book;

at least one network connection device for sending an alert to one or more participants in the block event during the partially lit period wherein the alert includes the existence of one or more orders and does not include direction or size; and

at least one processor for matching the received one or more sell orders with the received one or more buy orders to thereby match the one or more sell orders and the one or more buy orders for the securities within the block event. [72] In one embodiment of the seventh aspect, the at least one network connection device sends the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network.

[73] In another embodiment of the seventh aspect, the computer system further comprises at least one settlement processor for settling the matched one or more sell orders and one or more buy orders as a trade. The settling may be performed by a settlement agent.

[74] In an eighth aspect, the present invention provides a computer system for alerting one or more participants of the existence of one or more orders during a block event comprising:

at least one network connection device for receiving one or more sell orders and/or one or more buy orders during opening hours of the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period;

a memoiy for storing the received one or more sell orders and/or one or more buy orders in a dark book; and

the at least one network connection device for sending an alert to one or more participants in the block event during the partially lit period wherein the alert includes the existence of one or more orders and does not include direction or size to thereby alert the one or more buy-side participants to the existence of the one or more orders during the block event.

[75] In one embodiment of the eighth aspect, the at least one network connection device is for receiving one or more buy orders and/or one or more sell orders from the alerted one or more participants.

[76] In another embodiment of the eighth aspect, the computer system further comprises at least one processor for matching the received one or more sell orders with the received one or more buy orders.

[77] In yet another embodiment of the eighth aspect, the at least one network connection is for sending the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network. [78] In still another embodiment of the eighth aspect, the computer system further comprises at least one settlement processor for settling the matched sell and buy orders as a trade. The settling may be performed by a settlement agent.

[79] In a ninth aspect, the present invention provides a computer system for receiving one or more sell orders and/or one or more buy orders during a block event comprising: at least one processor for setting a block price and opening hours for the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period;

at least one network connection device for sending an alert to one or more participants in the block event during a partially lit period within opening hours of the block event wherein the alert includes the existence of one or more orders and does not include direction or size; and

the at least one network connection for receiving one or more sell orders and/or one or more buy orders from the one or more participants who were sent the alert during the opening hours to thereby receive the one or more sell orders and/or one or more buy orders.

[80] In one embodiment of the ninth aspect, the at least one processor is further for matching the received one or more sell orders with the received one or more buy orders.

[81 ] In another embodiment of the ninth aspect, the at least one network connection is for sending the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network.

[82] In still another embodiment of the ninth aspect, the computer system further comprises at least one settlement processor for settling the matched sell and buy orders as a trade. The settling may be performed by a settlement agent.

[83] In a tenth aspect, the present invention provides a computer readable storage medium having computer-executable instructions for matching one or more sell orders and one or more buy orders for securities within a block event the computer-executable instructions configured to:

set a block price and opening hours for the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period; receive one or more sell orders and one or more buy orders during the opening hours;

store the received one or more sell orders and one or more buy orders in a dark book;

alert one or more participants to the block event during the partially lit period wherein the alert includes the existence of one or more orders and does not include direction or size; and

match the received one or more sell orders with the received one or more buy orders to thereby match the one or more sell orders and the one or more buy orders for the securities within the block event.

[84] In one embodiment of the tenth aspect, the computer-executable instructions are configured to send the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network.

[85] In another embodiment of the tenth aspect, the computer-executable instructions are configured to settle the matched one or more sell orders and one or more buy orders as a trade. The settling may be performed by a settlement agent.

[86] In an eleventh aspect, the present invention provides a computer readable storage medium having computer-executable instructions for alerting one or more participants of the existence of one or more orders during a block event the computer-executable instructions configured to:

receive one or more sell orders and/or one or more buy orders during opening hours of the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period;

store the received one or more sell orders and/or one or more buy orders in a dark book; and

alert one or more participants in the block event during the partially lit period wherein the alert includes the existence of one or more orders and does not include direction or size to thereby alert the one or more participants to the existence of the one or more orders during the block event.

[87] In one embodiment of the eleventh aspect, the computer-executable instructions are configured to receive one or more buy orders and/or one or more sell orders from the alerted one or more participants.

[88] In another embodiment of the eleventh aspect, the computer-executable instructions are configured to match the received one or more sell orders with the received one or more buy orders.

[89] In yet another embodiment of the eleventh aspect, the computer-executable instructions are configured to send the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network.

[90] In still another embodiment of the eleventh aspect, the computer-executable instructions are configured to settle the matched sell and buy orders as a trade. The settling may be performed by a settlement agent.

[91] In a twelfth aspect, the present invention provides a computer readable storage medium having computer-executable instructions for receiving one or more sell orders and/or one or more buy orders during a block event the computer-executable instructions configured to:

set a block price and opening hours for the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period;

alert one or more participants to the block event during a partially lit period within opening hours of the block event wherein the alert includes the existence of one or more orders and does not include direction or size; and

receive one or more sell orders and/or one or more buy orders from the one or more participants who were sent the alert during the opening hours to thereby receive the one or more buy orders.

[92] In one embodiment of the twelfth aspect, the computer-executable instructions are configured to match the received one or more sell orders with the received one or more buy orders.

[93] In another embodiment of the twelfth aspect, the computer-executable instructions are configured to send the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange. The sending may be through a network.

[94] In still another embodiment of the twelfth aspect, the computer-executable instructions are configured to settle the matched sell and buy orders as a trade. The settling may be performed by a settlement agent.

[95] In one embodiment of any one of the above aspects, the receiving steps are performed by a host computer. The host computer system may be associated with a registered securities exchange.

[96] According to any one of the fourth to twelfth aspects, the block price may be set at or before commencement of the opening hours. The block price may be set at the same time as the opening hours or at a different time. The block price may be set using the same input device as used for setting the opening hours or using a different input device.

[97] According to any one of the fourth to twelfth aspects, the block price may be set using any suitable setting such as, the VWAP, price on the market at a specific time or the first or last price of the day.

[98] According to any one of the above aspects, the one or more sell orders and one or more buy orders comprise a security code and a volume.

[99] According to any one of the above aspects, the block event may comprise a universe of securities. The universe of securities may comprise a subset of securities comprised on a public register.

[100] According to any one of the above aspects, the block event may comprise a MAQ or Minimum Acceptable Quantity which is the minimum size of a trade within the relevant block event.

[101 ] According to any one of the fourth to twelfth aspects, the alert may comprise a personal call or electronic notification through email, SMS or other electronic notification. The personal call may comprise a telephone call, video call or other individualized notification.

[102] According to any on of the fourth to twelfth aspects, the alert may further comprise additional information such as, the opening hours, the lit period, the match time, the block price setting and/or the universe of securities.

[103] Where the terms "comprise", comprises", "comprising", "include", "includes", "included" or "including" are used in this specification, they are to be interpreted as specifying the presence of the stated features, integers, steps or components referred to, but not to preclude the presence or addition of one or more other feature, integer, step, component or group thereof.

[104] Further, any prior art reference or statement provided in the specification is not to be taken as an admission that such art constitutes, or is to be understood as constituting, part of the common general knowledge.

BRIEF DESCRIPTION OF THE FIGURES

[105] In order that the present invention may be readily understood and put into practical effect, reference will now be made to the accompanying illustrations, wherein like reference numerals refer to like features and wherein:

[106] Figure 1A: illustrates a flow diagram of an example method according to one embodiment of the present invention.

[107] Figure IB: illustrates a flow diagram of an example method according to another embodiment of the present inventi on.

[108] Figure 2 A shows one embodiment of a computer system suitable for use in the present invention.

[109] FIG. 2B: shows one embodiment of a computer memory and processor suitable for use in the present invention.

DETAILED DESCRIPTION OF THE INVENTION

[1 10] The following description refers to specific embodiments of the present invention and is in no way intended to limit the scope of the present invention to those specific embodiments.

[I l l] In one embodiment, the present invention relates to methods and systems for substantially reducing or substantially minimising information leakage and market impact on block trades. Advantageously, the present invention may allow participants to control their own one or more IOIs. The present invention is the only platform to combine best practice from electronic networks and specialist human block trading specialists. Additionally, the present invention provides the only continuous VWAP crossing engine and is the only institutional block trading platform which gives access to broker flow. Furthermore, the present invention achieves less information leakage that other block trading platforms and requires minimal technical and legal effort to participate.

[1 12] In another embodiment, the present invention is directed to methods and systems relating to securities transactions within a block event which are not completely dark. As such, the present invention makes limited information available to participants. For example, the participants may be informed of the existence of one or more orders but not the direction or size. As such, the present invention may be referred to as being partially lit, in that while a subset of available information is communicated to participants, some information is maintained as confidential.

[1 13] Advantageously, the methods and systems of the present invention strike a balance between the interests of traditional investors and brokers by seeking to combine the advantages of dark pools and lit markets, while reducing or substantially eliminating one or more of the undesirable practices and/or conflicts that exist in these markets.

[1 14] As used herein "participant' includes buyers and sellers as well as potential buyers and potential sellers who may become buyers and sellers once aware of the block event.

[1 15] Example participants may include sell-side brokers (broker participants) and buy-side entities (institutional participants). The participants may be required to become members by entering a trading agreement with the method and system administrators. The agreement may also require settlement with a designated clearing and settlement agent.

[1 16] The term "direction" when used in reference to an order means whether that order is to buy or to sell.

[1 17] The term "block event' is a term of the art conventionally used in the financial services industry to mean a transaction either at or exceeding a minimum threshold value determined by a regulator or an exchange.

[118] The present invention may utilise a dark book. A "dark booK' is a database of one or more buy orders and/or one or more sell orders that is maintained as confidential and completely undisclosed to the rest of the market before the orders are matched as executed trades.

[1 19] The tradeable universe may comprise a universe of securities comprising a subset of securities comprised on a public register. For example, the universe of securities may be limited to a subset comprising securities with a relatively large market capitalization such as, the largest 5, 10, 25, 50, 100, 200, 300 or 500 securities comprised on a relevant register. In another embodiment, the universe of securities may comprise a single security. [120] FIG. 1A shows one embodiment of a computer-implemented method of matching one or more sell and one or more buy orders for securities within a block event according to the invention. In method 100, step 102 comprises setting a block price and opening hours for the block event. The opening hours may be set by an administrator to begin at a selected start time and conclude at a selected match time. The opening hours comprise a partially lit period.

[121 ] The partially lit period is a subset of the opening hours and extends from a period after commencement of the opening hours to the conclusion of the opening hours.

[122] The match time is the end of the partially lit period and also the end of the opening hours.

[123] The block price setting may be by any suitable method. For example, the block price may be set using the VWAP, price on the market at a specific time or the first or last price of the day. The specific time may be any selected time at which the securities price is then used as the block price.

[124] While the setting(s) for determining the block price may be known, the actual block price may not be known until after the match time. The block price will be used at settlement to determine the actual value of the exchange.

[125] Step 104 comprises receiving one or more sell orders and/or one or more buy orders during the opening hours. The received one or more sell orders and/or one or more buy orders may comprise a security code and a volume. The security code identifies the security that is being bought and sold in the block event and the volume indicates the number of securities that are to be bought or sold.

[126] The received one or more sell orders and one or more buy orders may also comprise amendments or cancellations to previously received orders.

[127] In step 106 the received one or more sell orders and one or more buy orders are stored in the confidential database that comprises the dark book.

[128] In step 108 one or more participants are alerted to the block event during the partially lit period. The alert includes the existence of one or more orders, but not the direction or size of the orders.

[129] The alert may be sent, for example, to participants who are buy-side members. In the alert, the existence of an order will be disclosed but not the direction or size. The alert may be sent automatically or may be relayed by a relationship manager. The alert may be provided in a personal call or in an electronic notification. The electronic notification may comprise an email, SMS or other electronic notification. The personal call may comprise a telephone call, video call or other individualized notification.

[130] The alert may also comprise additional information such as, the opening hours; the lit period; the match time; the block price setting and/or the universe of securities comprised within the block event. This additional information may also be listed on a participant or publicly accessible website.

[131] As indicated in FIG. 1A, receipt of the alert may prompt the receiver to send additional sell or buy orders which are received by the administrator of method 100 in step 104.

[132] The received one or more sell orders are matched with the received one or more buy orders in step 1 10.

[133] FIG. 1A also illustrates a computer implemented method 120 of alerting one or more participants of the existence of one or more orders during a block event. Method 120 comprises steps 104, 106 and 108. In step 104 the one or more sell orders and/or one or more buy orders are received during opening hours of the block event. In step 106 the received one or more sell orders and/or one or more buy orders are stored in a dark book. In step 108 one or more participants in the block event are alerted during the partially lit period.

[134] Similarly to the case with method 100, in method 120 the alert may prompt the receiver to send additional sell or buy orders which are received by the administrator of method 100 in step 104.

[135] Also illustrated in FIG. 1A is computer implemented method 130 of receiving one or more sell orders and/or one or more buy orders during a block event. Method 130 comprises steps 102, 108, and 104. In step 102 the block price and opening hours for the block event are set. In step 108 one or more participants is alerted to the block event during a partially lit period within the opening hours of the block event. In step 104 one or more sell orders and/or one or more buy orders are received from the one or more participants who were sent the alert.

[136] Another embodiment according to the invention is shown in FIG. IB which shows a computer implemented method 140 of matching one or more block size sell orders and one or more block size buy orders for securities. [137] Step 1 12 of method 140 comprises setting opening hours for the block event. The opening hours may begin at a start time, conclude at a close time and further comprise one or more block event liquidity windows 1 14.

[138] As shown in FIG. IB, the opening hours may comprise a pre-market time period 142. The pre-market time period 142 may be before the market officially opens. In the embodiment shown in FIG. I B, which is modelled on the Australian Stock Exchange, the pre-market time period 142 extends from 8:30 am until the market opens at 10:00 am. From the teaching herein a skilled person is readily able to select other chronologies for the pre-market time periods.

[139] The pre-market time period 142 shown in FIG. I B comprises a pre-market block event liquidity window 144. The pre-market block event liquidity window 144 may allow matching of sell-side orders. The pre-market block event liquidity window 144 may be restricted to VWAP orders. In the embodiment shown in FIG. IB, the pre- market block event liquidity window 144 extends from 8:30 am to 10:00 am.

[140] Method 140 further comprises step 1 16 of receiving one or more sell orders and one or more buy orders during the opening hours, wherein the one or more sell orders may comprise one or more institutional sell orders and/or one or more broker sell orders and the one or more buy orders may comprise one or more institutional buy orders and/or one or more broker buy orders.

[141] Step 1 18 of method 140 comprises matching the one or more institutional sell orders and/or one or more institutional buy orders at any time during the opening hours and matching the one or more broker sell orders and/or the one or more broker buy orders during the one or more block event liquidity windows 1 14 to thereby match the one or more sell orders and the one or more buy orders for the securities within the block event.

[142] The embodiment shown in FIG. IB shows the opening hours to extend from the opening of the market at 10:00 am until the close of the market at 16:00. Also shown are three block event liquidity windows 1 16 which extend from 10:20 to 10:30; 12:20 to 12:30; and 15:20 to 15:30. From the teaching herein a skilled person is readily able to select other numbers of block event liquidity windows 1 16 and other chronologies for these windows 1 16 and for the opening hours.

[143] Method 140 may further comprise receiving one or more orders containing instructions to send actionable IOIs comprising order type and order size. In a novel and inventive development, the present inventor has utilized actionable IOIs which are distinguished from conventional IOIs by being guaranteed of execution by a respondent and by allowing participants to control the sending of IOIs.

[144] The actionable 101 size may be a qualitative size. For example the actionable IOI size may indicate less than $1 million; $ 1 million +; or $5 million +. From the teaching herein a skilled person is readily able to select other actionable IOI sizes.

[145] Additionally, the actionable IOI size may indicate a range. For example, the qualitative sizes for the actionable IOI above indicate the ranges of $1 to $999,999; $1 ,000,001 to $4,999,999; and greater than $5,000,000. Based on the teaching herein a skilled person is readily able to selection other actionable IOI ranges.

[146] The order type may comprise a Mid type; a VWAP type or a Work type. A Mid type order may be executed immediately at the mid point of the NBBO. A VWAP type order may be conducted immediately at VWAP from the time it is matched until the end of the day. A Work type order means an order is present but is not immediately executable and will require some manual negotiation. The manual negotiation may be required because neither Mid or VWAP price is right; the order is being worked elsewhere but it can be pulled back to trade a block; the participant is away from their desk and they don't wish to leave live block orders; and/or the order is too big to leave in a system which executes automatically.

[147] In a preferred embodiment, any Mid order type and any VWAP order type are immediately eligible for matching.

[148] Either an institutional participant or a broker participant can instruct the sending of an actionable IOI However, in a preferred embodiment, the actionable IOIs are only visible to institutional participants.

[149] When a received one or more sell orders or one or more buy orders comprise instructions to send an actionable IOIs the instructions and IOI sent will comprise the order type and order size.

[150] The inventors' novel and inventive implementation of actionable IOIs means that when an offsetting order is submitted that matches with an order comprising an actionable IOI, the submitted offsetting order is guaranteed of being matched immediately. [151 ] The one or more orders may be sent by a participant and received by the administrator at any time during the opening hours.

[152] The one or more actionable 101 may be flagged as being received from a broker participant.

[153] The received one or more sell orders and one or more buy orders may be purged at close or at the end of the day.

[154] A person of skill in the art readily appreciates that methods 100, 120, 130, 140 may be modified by addition of steps shown in FIG. lA, FIG. IB and/or described herein.

[155] For example, method 130 may comprise the additional step 120 of matching the received one or more sell orders with the received one or more buy orders.

[156] An example of a step not shown on FIG. 1A that may be comprised within methods 100, 120, 130, 140 is the step of sending the matched one or more sell orders and one or more buy orders for trade reporting. The trade reporting may be on a registered securities exchange using conventional methods. The sending may be through a network.

[157] Another such example that may be comprised within methods 100, 120, 130, 140 is a step of settling the matched one or more sell orders and one or more buy orders as a trade. The settling may be performed by a settlement agent. The settlement agent may be a clearing and settlement agent designated by the administrator of methods 100, 120, 130, 140.

[158] The present invention also provides a computer system for perforating the methods of the invention and computer readable storage medium having computer- executable instructions for performing the methods of the invention.

[159] One embodiment of a computer system 200 suitable for use in the present invention is shown in Figs. 2A and 2B. In the embodiment shown computer system 200 comprises a computer module 201 comprising input devices such as a keyboard 202, a mouse pointer device 203, a scanner 226, an external hard drive 227, and a microphone 280; and output devices including a printer 215, a display device 214 and loudspeakers 217. In some embodiments video display 214 may comprise a touchscreen.

[160] The input devices may be used for setting the block price and/or opening hours for the block event. In one embodiment, the block price and/or opening hours are entered on keyboard 202. The block price and/or opening hours may be set at the same time or at a different time. In other embodiments, the opening hours are set using keyboard 202 and where required the block price is set by being received by network connection device 216 through network 220.

[161] A network connection device 216 such as, a Modulator-Demodulator (Modem) transceiver device, may be used by the computer module 201 for communicating to and from a communications network 220 via a connection 221.

[162] The network connection device 216 may receive the one or more sell orders and one or more buy orders along with any modifications and cancellations. The network connection device 216 may also be used to send the alert and/or to send matched one or more sell orders and one or more buy orders for trade reporting.

[163] The network 220 may be a wide-area network (WAN), such as the Internet, a cellular telecommunications network, or a private WAN. Through the network 220, computer module 201 may be connected to other similar computer modules 290 or server computers 291. Where the connection 221 is a telephone line, the network connection device 216 may be a traditional "dial-up" modem. Alternatively, where the connection 221 is a high capacity (e.g. cable) connection, the connection device 216 may comprise a broadband modem. A wireless modem may also be used for wireless connection to network 220.

[164] The computer module 201 typically includes at least one processor 205, and a memory 206 for example formed from semiconductor random access memory (RAM) and semiconductor read only memory (ROM).

[165] The memory 206 may store the received one or more sell orders and one or more buy orders in an electronic dark book. Memory 206 may be password or otherwise protected so that its contents can be maintained as confidential.

[166] The processor 205 may be used to set the block price at the match time and/or match the received one or more sell orders with the recei ved one or more buy orders.

[167] The module 201 also includes a number of input/output (I/O) interfaces including: an audio-video interface 207 that couples to the video display 214, loudspeakers 217 and microphone 280; an I/O interface 213 for the keyboard 202, mouse 203, scanner 226 and external hard drive 227; and an interface 208 for the external modem 216 and printer 215. In some implementations, modem 216 may be incorporated within the computer module 201 , for example within the interface 208. The computer module 201 also has a local network interface 21 1 which, via a connection 223, permits coupling of the personal device 200 to a local computer network 222, known as a Local Area Network (LAN).

[168] As also illustrated, the local network 222 may also couple to the wide network 220 via a connection 224, which would typically include a so-called "firewall" device or device of similar functionality. The interface 21 1 may be formed by an Ethernet circuit card, a Bluetooth wireless arrangement or an IEEE 802.1 1 wireless arrangement or other suitable interface.

[169] The I/O interfaces 208 and 213 may afford either or both of serial and parallel connectivity, the former typically being implemented according to the Universal Serial Bus (USB) standards and having corresponding USB connectors (not illustrated).

[170] Storage devices 209 are provided and typically include a hard disk drive (HDD) 210. Other storage devices such as, an external HD 227, a disk drive (not shown) and a magnetic tape drive (not shown) may also be used. An optical disk drive 212 is typically provided to act as a non-volatile source of data. Portable memory devices, such as optical disks (e.g. CD-ROM, DVD, Blu-Ray Disc), USB-RAM, external hard drives and floppy disks for example may be used as appropriate sources of data to the computer module 201. Another source of data to personal device 200 is provided by the at least one server computer 291 through network 220.

[171 ] The components 205 to 213 of the computer module 201 typically communicate via an interconnected bus 204 in a manner that results in a conventional mode of operation of computer module 200. In the embodiment shown in FIGS. 2A and 2B, processor 205 is coupled to system bus 204 through connections 218. Similarly, memory 206 and optical disk drive 212 are coupled to the system bus 204 by connections 219. Examples of personal devices 200 on which the described arrangements can be practiced include IBM-PC's and compatibles, Sun Sparc stations, Apple computers; smart phones; tablet computers or a like device comprising a computer module like computer module 201. It is to be understood that when personal device 200 comprises a smart phone or a tablet computer, display device 214 may comprise a touchscreen and other input and output devices may not be included such as, mouse pointer device 203; keyboard 202; scanner 226; and printer 215.

[172] Fig. 2B is a detailed schematic block diagram of processor 205 and a memory 234. The memory 234 represents a logical aggregation of all the memory modules, including the storage device 209 and semiconductor memory 206, which can be accessed by the computer module 201 in Fig. 2A.

[173] The methods 100, 120, 130, 140 of the invention may be implemented using computer module 201 wherein the methods may be implemented as one or more software application programs 233 executable within computer module 201. In particular, the steps of the methods 100, 120, 130, 140 of the invention may be effected by instructions 231 in the software carried out within the computer module 201

[174] The software instructions 231 may be formed as one or more code modules, each for performing one or more particular tasks. The software 233 may also be divided into two separate parts, in which a first part and the corresponding code modules performs the method of the invention and a second part and the corresponding code modules manage a graphical user interface between the first part and the user.

[175] The software 233 may be stored in a computer readable medium, including in a storage device of a type described herein. The software is loaded into the computer module 201 from the computer readable medium or through network 221 or 223, and then executed by computer module 201. In one example the software 233 is stored on storage medium 225 that is read by optical disk drive 212. Software 233 is typically stored in the HDD 210 or the memory 206.

[176] A computer readable medium having such software 233 or computer program recorded on it is a computer program product. The use of the computer program product in the personal device 200 preferably effects a device or apparatus for implementing the methods 1 10, 120, 130, 140 of the invention.

[177] In some instances, the software application programs 233 may be supplied to the user encoded on one or more disk storage medium 225 such as a CD-ROM, DVD or Blu-Ray disc, and read via the corresponding drive 212, or alternatively may be read by the user from the networks 220 or 222. Still further, the software can also be loaded into the computer module 201 from other computer readable media. Computer readable storage media refers to any non-transitory tangible storage medium that provides recorded instructions and/or data to the computer module 201 , 290 and/or server computer 291 for execution and/or processing. Examples of such storage media include floppy disks, magnetic tape, CD-ROM, DVD, Blu-ray Disc, a hard disk drive, a ROM or integrated circuit, USB memory, a magneto-optical disk, or a computer readable card such as a PCMCI A card and the like, whether or not such devices are internal or external of the computer module 201. Examples of transitory or non -tangible computer readable transmission media that may also participate in the provision of software application programs 233, instructions 231 and/or data to the computer module 201 include radio or infra-red transmission channels as well as a network connection 221 , 223, 224, to another computer or networked device 290, 291 and the Internet or an Intranet including email transmissions and information recorded on Websites and the like.

[178] The second part of the application programs 233 and the corresponding code modules mentioned above may be executed to implement one or more graphical user interfaces (GUIs) to be rendered or otherwise represented upon display 214. Through manipulation of, typically, keyboard 202, mouse 203 and/or screen 214 when comprising a touchscreen, a user of computer module 201 and the methods 100, 120, 130, 140 of the invention may manipulate the interface in a functionally adaptable manner to provide controlling commands and/or input to the applications associated with the GUI(s). Other forms of functionally adaptable user interfaces may also be implemented, such as an audio interface utilizing speech prompts output via loudspeakers 217 and user voice commands input via microphone 280. The manipulations including mouse clicks, screen touches, speech prompts and/or user voice commands may be transmitted via network 220 or 222.

[179] When the computer module 201 is initially powered up, a power-on self-test (POST) program 250 may execute. The POST program 250 is typically stored in a ROM

249 of the semiconductor memory 206. A hardware device such as the ROM 249 is sometimes referred to as firmware. The POST program 250 examines hardware within the computer module 201 to ensure proper functioning, and typically checks processor 205, memory 234 (209, 206), and a basic input-output systems software (BIOS) module 251, also typically stored in ROM 249, for correct operation. Once the POST program

250 has run successfully, BIOS 251 activates hard disk drive 210. Activation of hard disk drive 210 causes a bootstrap loader program 252 that is resident on hard disk drive 210 to execute via processor 205. This loads an operating system 253 into RAM memory 206 upon which operating system 253 commences operation. Operating system 253 is a system level application, executable by processor 205, to fulfil various high level functions, including processor management, memory management, device management, storage management, software application interface, and generic user interface.

[180] Operating system 253 manages memory 234 (209, 206) in order to ensure that each process or application running on computer module 201 has sufficient memory in which to execute without colliding with memory allocated to another process. Furthermore, the different types of memory available in the computer module 201 must be used properly so that each process can run effectively. Accordingly, the aggregated memory 234 is not intended to illustrate how particular segments of memory are allocated, but rather to provide a general view of the memory accessible by computer module 201 and how such is used.

[181] Processor 205 includes a number of functional modules including a control unit 239, an arithmetic logic unit (ALU) 240, and a local or internal memory 248, sometimes called a cache memory. The cache memory 248 typically includes a number of storage registers 244, 245, 246 in a register section storing data 247. One or more internal busses 241 functionally interconnect these functional modules. The processor 205 typically also has one or more interfaces 242 for communicating with external devices via the system bus 204, using a connection 218. The memory 234 is connected to the bus 204 by connection 219.

[182] Application program 233 includes a sequence of instructions 231 that may include conditional branch and loop instructions. Program 233 may also include data 232 which is used in execution of the program 233. The instructions 231 and the data 232 are stored in memory locations 228, 229, 230 and 235, 236, 237, respectively. Depending upon the relati ve size of the instructions 231 and the memory locations 228- 230, a particular instruction may be stored in a single memory location as depicted by the instruction shown in the memory location 230. Alternately, an instruction may be segmented into a number of parts each of which is stored in a separate memory location, as depicted by the instruction segments shown in the memory locations 228 and 229.

[183] In general, processor 205 is given a set of instructions 243 which are executed therein. The processor 205 then waits for a subsequent input, to which processor 205 reacts by executing another set of instructions. Each input may be provided from one or more of a number of sources, including data generated by one or more of the input devices 202, 203, or 214 when comprising a touchscreen, data received from an external source across one of the networks 220, 222, data retrieved from one of the storage devices 206, 209 or data retrieved from a storage medium 225 inserted into the corresponding reader 212. The execution of a set of the instructions may in some cases result in output of data. Execution may also involve storing data or variables to the memory 234.

[184] The disclosed arrangements use input variables 254 that are stored in the memory 234 in corresponding memory locations 255, 256, 257, 258. The described arrangements produce output variables 261 that are stored in the memory 234 in corresponding memory locations 262, 263, 264, 265. Intermediate variables 268 may be stored in memory locations 259, 260, 266 and 267.

[185] The register section 244, 245, 246, the arithmetic logic unit (ALU) 240, and the control unit 239 of the processor 205 work together to perform sequences of micro- operations needed to perform "fetch, decode, and execute" cycles for every instruction in the instruction set making up the program 233. Each fetch, decode, and execute cycle comprises:

(a) a fetch operation, which fetches or reads an instruction 231 from memory location 228, 229, 230;

(b) a decode operation in which control unit 239 determines which instruction has been fetched; and

(c) an execute operation in which the control unit 239 and/or the ALU 240 execute the instruction.

[186] Thereafter, a further fetch, decode, and execute cycle for the next instruction may be executed. Similarly, a store cycle may be performed by which the control unit 239 stores or writes a value to a memory location 232.

[187] Each step or sub-process in the methods of the invention may be associated with one or more segments of the program 233, and may be performed by register section 244-246, the ALU 240, and the control unit 239 in the processor 205 working together to perform the fetch, decode and execute cycles for every instruction in the instruction set for the noted segments of program 233.

[188] In the computer readable storage medium embodiments of the invention, computer-executable instructions for matching one or more sell orders and one or more buy orders for securities within a block event may comprise fetch, decode and execute cycles employed to, for example, set a block price and opening hours for the block event; receive one or more sell orders and one or more buy orders during the opening hours; store the received one or more sell orders and one or more buy orders in a dark book; alert one or more participants to the block event during the partially lit period; and match the received one or more sell orders with the received one or more buy orders.

[189] Other computer readable storage medium embodiments, in which computer- executable instructions for alerting one or more participants of the existence of one or more orders during a block event may comprise cycles employed to, for example, receive one or more sell orders and/or one or more buy orders during opening hours of the block event; store the received one or more sell orders and/or one or more buy orders in a dark book; and alert one or more participants in the block event during the partially lit period.

[190] In still other computer readable storage medium embodiments, computer- executable instructions for receiving one or more sell orders and/or one or more buy orders during a block event, may comprise cycles employed to, for example, set a block price and opening hours for the block event, the opening hours beginning at a start time, concluding at a match time and comprising a partially lit period; alert one or more participants to the block event during a partially lit period within opening hours of the block event; and receive one or more sell orders and/or one or more buy orders from the one or more participants who were sent the alert during the opening hours to thereby receive the one or more buy orders.

[191] In another computer readable storage medium embodiment the computer- executable instructions are for matching one or more block size sell orders and one or more block size buy orders for securities within a block event. In this embodiment the computer-executable instructions may comprise cycles employed to, for example, set opening hours for trading, the opening hours beginning at a start time, concluding at a close time and comprising one or more block event liquidity windows; receive one or more sell orders and one or more buy orders during the opening hours, wherein the one or more sell orders comprise one or more institutional sell orders and/or one or more broker sell orders and the one or more buy orders comprise one or more institutional buy orders and/or one or more broker buy orders; and match the one or more institutional sell orders and one or more institutional buy orders at any time during the opening hours and matching the one or more broker sell orders and the one or more broker buy orders during the one or more block event liquidity windows to thereby match the one or more sell orders and the one or more buy orders for the securities within the block event. [192] A person of skill in the art readily understands that the computer-executable instructions for individual steps or sub-processes may be extracted and assembled into other methods.

[193] Additionally, computer-executable instructions for other steps sub-processes or may be added to the computer readable storage medium embodiments. For example, cycles employed to send the matched one or more sell orders and one or more buy orders for trade reporting; and/or cycles employed to settle the matched one or more sell orders and one or more buy orders as a trade may be added.

[194] One or more other computers 290 may be connected to the communications network 220 as seen in Fig. 2A. Each such computer 290 may have a similar configuration to the computer module 201 and corresponding peripherals.

[195] For example, computer 290 may be operated by a clearing and settlement agent and may comprise a settlement processor for settling the matched one or more sell orders and one or more buy orders as a trade.

[196] In another example, computer 290 is operated by a securities exchange or broker and receives the matched one or more sell orders and one or more buy orders for trade reporting.

[197] One or more other server computer 291 may be connected to the communications network 220. These server computers 291 respond to requests from the personal devices 201 or other server computers to provide information. For example, server computer 291 may be operated by a securities exchange and may provide the securities price to computer module 201 for use in setting the price at the match time. The securities price provided may be the price at a specific time, the VWAP or the first or last price of the day.

[198] The VWAP may be calculated by a market data provider and supplied for example by a server computer like computer 291 through network 220 or 222. Using an Australian example, the VWAP may be supplied by IRESS Limited.

[199] Methods 100, 120, 130, 140 may alternatively be implemented in dedicated hardware such as one or more integrated circuits performing the functions or sub functions of the described methods. Such dedicated hardware may include graphic processors, digital signal processors, or one or more microprocessors and associated memories. [200] So that the invention may be readily understood and put into practical effect, the following non-limiting Examples are provided.

EXAMPLES

Example Parameters

Table 1 shows some example Block Event parameters that could be executed with the methods and systems of the invention. In Table 1, M AQ is the Minimum Acceptable Quantity which is the minimum size of a trade within the relevant block event. Table 1 shows examples with an MAQ comprising a Block size and also an example with a MAQ of $5,000,000.00.

Table 1 shows examples with two different Universes that are workable in the method shown in FIG. 1A. The first three examples show a Block Event limited to buying and selling of securities comprised within the ASX 300. The Small Cap Block Event is an example that excludes the ASX 100 and trades are constrained to those securities on the ASX that are outside the ASX 100.

Table 1 : Example Block Events

Example Infrastructure and implementation

[201 ] The methods and systems of the present invention may be implemented using the existing technology and infrastructure within many conventional securities exchanges. For example, the methods and systems may be implemented on the Australian Stock Exchange (ASX). This highlights another advantage of the invention, which is that minimal technology or development costs are expected. The implementation may be via a license from the ASX. The owner or administrator of the methods and systems may grant ASX a license to market the methods and systems to ASX market participants. The owner or administrator of the methods and systems may market directly to buy-sides.

[202] In the ASX example, broker memberships may be available to any ASX market participant broker and buy-side memberships may be available to firms that meet a minimum funds under management (FUM) threshold. These members may enter standard trading agreements with the owner or administrator of the methods and systems of the invention and agree to settle trades with a designated clearing and settlement agent. Brokerage fees may be charged to the Broker members and the Buy-side members. The different member types may be charged different rates.

[203] Members may submit orders during the opening hours and amend or cancel until the match time. Members may be required to submit orders directly from an execution management system (EMS) or via the owner or administrator's relationship manager. These orders will be completely undisclosed until commencement of the partially lit period.

[204] During the partially lit period, the relationship manager(s) will alert buy-side members to potential block events. The existence or an order in a particular stock will be disclosed but not the direction or size.

[205] At the match time, all offsetting buy and sell orders will be matched at the Block Price and confirmed to members as fills. The match time and block price will be detennined by the method and system of the invention.

[206] Matches may be sent to a broker for trade reporting to an exchange as block trades. Members may settle trades with the designated clearing and settlement agent.

[207] In the event that a block is oversubscribed, orders may be shared according to the number of buyers and sellers. The share may be apportioned, for example, on a pro-rata basis determined by a percentage of the total buy and/or sell orders received or on the basis that priority is given to the first orders received.

[208] Institutions can access the methods of the invention in several ways. Direct access can be obtained by opening an account with an administrator and trades can be conducted directly with the administrator, in which case settlement is conducted by the administrator. Access may also be obtained through an introducing broker, under which the administrator of the present invention is selected as a destination and directed through an existing broker. In this scenario, settlement is through the existing broker. Access may also be anonymous through a broker. The broker will send agency orders during the broker windows. Another way to access the invention is through a broker algorithm which will work orders in the block event liquidity windows. Under the algorithm access, settlement is with the existing broker.

[209] The present invention has been designed to allow institutions to connect with minimal effort. Participants can obtain access through their OMS or EMS and orders are sent via FIX. Significantly, no new programs need to be installed. Integration has been finalised for most OMS and EMS vendors. Additionally, the IOIs are received in exactly the same way as they are from other brokers, e.g. via Bloomberg, IRESS or FIX. The only work required is to set up a new broker in their system. If access is through an introducing broker, only a new algorithm need be enabled.

[210] The present invention has advantages over conventional and prior art methods in that information leakage and market impact is minimised or substantially eliminated. In one embodiment this is because only the existence of one or more orders is disclosed and only during the lit period. Additionally, the alert process opens up the partial lit period to a wider audience. Further, the price is set independently of any direct influence by the buyers or sellers. As such, the method of the present invention protects investors and eliminates or at least substantially reduces information disadvantages and inefficiencies and provides a platform for natural interest to be matched without unnecessary intermediation.

[21 1] The present invention is also of advantage to brokers, because they can access a large pool of block liquidity and all brokers are placed on a level playing field.

[212] Advantages are also provided to investors, including the ability to access block liquidity in a fairer and more efficient manner than previous means and to achieve best execution of their orders.