DETECTING TRACKING AND RESPONDING TO TOXIC OR LIKELY TOXIC ORDERS IN AN EQUITIES ORDER FLOW USING TOXICITY AND/OR PROFIT ANALYZERS

摘要

Methods and systems are provided which enable equities broker-dealers to execute an equity trade order while simultaneously eliminating (or at least reducing) exposure to the negative consequences associated with toxic (or likely toxic) orders in the equities market. By using toxicity and/or profit analyzers, for example, to detect, track and respond to the level of toxic (or likely toxic) orders present in an equities order flow, a broker dealer can reduce the level of risk inherent in serving as counter­party to order flows, such as anonymous equities order flows. Various alternative embodiments are also disclosed.