Systems and Methods for Managing Trade Exposure

摘要

Methods and supporting systems for updating an order type within a trade execution server for a single trading entity having multiple independent traders includes receiving, via an electronic network, a trade order for a hard-to-borrow security from multiple independent traders, and, periodically calculating an overall net position for the hard-to-borrow security for a single entity for which the traders are operating. If the trade order is a sell-long order and the net position for the corresponding security is net short, the trade order is converted to a sell-short order, and if the trade order is a sell-short order and the net position is net long, the trade order is converted to a sell-long order. The converted trade order is then transmitted to a trade execution engine for market execution.

主权项

1. A method for updating an order type within a trade execution server for a single trading entity having multiple independent traders, the method comprising:
receiving via an electronic network a trade order for a hard-to-borrow security from one of the multiple independent traders; calculating, across a plurality of the multiple independent traders, an overall net position for the hard-to-borrow security for a single entity; if the trade order is a sell-long order and the net position for the corresponding security is net short, converting the trade order to a sell-short order, and if the trade order is a sell-short order and the net position is net long, converting the trade order to a sell-long order; and transmitting the converted trade order to a trade execution engine for market execution.