System and method for optimizing the broker selection...

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

Reexamination Certificate

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C705S038000

Reexamination Certificate

active

07831503

ABSTRACT:
An embodiment of the present invention provides a system and method for minimizing the total expected execution cost of securities trades through a real-time analysis and optimization process incorporating: (1) the currently offered share price and liquidity in the securities markets; (2) execution costs as input in real-time by executing brokers; (3) expected price improvement based on current and recent trading data; (4) time required to execute an order by an executing broker; and (5) the current rate of change in the share price of a security during the time required to execute the transaction. Based on these factors, the invention ranks, in dollars and cents per shares, brokers from lowest to highest expected total execution cost. The initiating party to the securities transaction can route the order(s) to the executing brokers with the lowest expected total execution costs to minimize the total execution cost.

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