Gary D Katz

US Patent:

6377940, Apr 23, 2002

Filed:

Nov 5, 1998

Appl. No.:

09/186155

Inventors:

Jan Tilfors - Stockholm, SE
Gary Katz - Plainview NY

Assignee:

International Securities Exchange, LLC - New York NY

International Classification:

G06F 1760

US Classification:

705 37

Abstract:

In an automated exchange system a method and a device which automatically checks the corresponding price in other exchanges order books is provided the exchange only allows a match if a better price cannot be found elsewhere. In a preferred embodiment the order is automatically transferred to the exchange having the better price if this is the case, and the order is further processed at that exchange the method and device provides means so that investors will not have to worry about getting a better price elsewhere, when entering bids into an automated exchange.

US Patent:

6405180, Jun 11, 2002

Filed:

Nov 5, 1998

Appl. No.:

09/186154

Inventors:

Jan Tilfors - Stockholm, SE
Gary Katz - Plainview NY

Assignee:

International Securities Exchange, LLC - New York NY

International Classification:

G06F 1760

US Classification:

705 37, 705 35, 705 36

Abstract:

In an automated exchange system means are provided by means of which a market maker can enter a course of action in advance, so that the volume in the orderbook is continuously updated, and where the updating is performed differently with respect to different counter parts. Also, quotes that may result in a trade between Market Makers are hidden for some time before being matched, thus giving the Market Makers a chance to back off. The system employs a function that supports that Market Makers through pre-defined parameters will have new orders generated by the system and that a market maker can act differently with respect to different counterparts. The parameters specify if a Market Maker should add extra volume on an existing price or generate a new order at a worse price. In order to make it possible for market makers to have a very tight spread without forcing them to take larger risks, additional logic is used when matching orders. The algorithm used for this purpose protects the market makers in certain situations and gives market makers the possibility to have a tight spread without taking a large risk.

US Patent:

7246093, Jul 17, 2007

Filed:

Apr 18, 2003

Appl. No.:

10/418908

Inventors:

Gary Katz - Plainview NY, US

Assignee:

International Sercurities Exchange, LLC - New York NY

International Classification:

G06Q 40/00
G06F 17/16

US Classification:

705 37, 705 35, 705 36

Abstract:

An automated exchange is provided for trading the financial instruments, such as options contracts. The exchange receives an order to purchase or sell a quantity of the instrument. Information concerning the order is transmitted to one or more market participants. Responses to the transmitted information are received during a predetermined period of time. Trades are executed between the order and the responses. The information transmitted may include only limited information about the order. For example, the party placing the order may remain anonymous. The price of the trade is calculated based on the responses. The order may also trade against previously received orders and quotations.