Chicago-December 12th, 2013 – Green Key Technologies, a financial markets technology solutions provider, announced today that the United States Patent Office has awarded the company a patent for the design of their OTC liquidity allocation process called “Decline Ratio Matching”.

    Within Green Key’s Block Pool℠, a quote management platform used by OTC derivative participants, brokers are able to rank traders in the matching algorithm according to performance metrics such as their “decline ratio” by dragging them up or down in a GUI.

    “The problem with indicative markets is the no obligation-optionality embedded into each market maker quote. Since quotes are not the same as firm orders, brokers are often probed with indications from traders searching for real liquidity only to have the trader decline should their quote be elected for a deal,” Anthony Tassone, Chief Executive Officer for Green Key Technologies, said.

    To provide brokers with the tools for correcting this behavior, Green Key Technologies offers the ability to change the allocation algorithm, specifically the user ranking, which prioritizes how liquidity gets allocated. Within the Block Pool℠, brokers are able to see the historical number of times a trader accepted a deal versus the number of times they declined. Each trading firm is then assigned a “decline ratio” which can then be used to dynamically adjust their queue position up and down the order book relative to other trading firm’s decline ratios. Liquidity is therefore allocated to those firms with the highest probability of accepting the deal.

    “Decline ratio allocation is a smart order router for OTC brokers that increases the integrity of their liquidity by firming up quotes,” said Tassone. “Voice brokers are already doing this over the phone. They know who is likely to flake and who is not. We have just quantified and automated the process and are thrilled the USPTO agrees it’s unique and novel”.

    The patented liquidity allocation process was integrated into The Block Pool℠ by Stockholm based trading systems vendor Baymarkets.

    “Decline Ratio allocation is extremely interesting to OTC Brokers,” Peter Fredriksson, CEO for Baymarkets, said. We have many brokers in various asset classes as clients and users of our trading platform Edge, the base for Block Pool℠. We believe the decline ratio algorithm has the potential to revolutionize OTC trading”. More information on decline ratio matching can be found at

    About Baymarkets
    With the EDGE Trading Platform, Baymarkets delivers the next generation trading system for the OTC markets. Our clients, located in Europe, Asia and the US, are brokers, banks, and exchanges/MTFs, who want to increase their revenues, adapt to the market regulations and maximize the business with each of their clients, by streamlining and standardizing the trading processes. Edge is designed to be a highly configurable trading and negotiation platform providing you with the flexibility you need to succeed in your market niche. The Baymarkets team is based in Stockholm, Sweden with board members and advisors in the UK and US. The team has extensive experience in the financial markets and software development. Baymarkets is independent and owned by its founders, staff and KTHChalmers Capital, a leading Swedish VC-fund that is funded by the Wallenberg Group. Call us today at+46 8 454 85 50 or visit our website for more information. 

    Our mailing address is:

    Sveavägen 33
    Stockholm SE-111 34

    Related content

    News: Trading Firms Boost Fill Rates with Redline’s Synthetic Options NBBO
    4 September 2013 – Redline Trading Solutions
    WOBURN, Mass. – September 4, 2013 – Redline Trading Solutions announced support in its ultra-low latency InRush exchange feeds, providing pricing information sig…

    Blog: Spock: Data Driven Testing
    Trisha Gee 20 December 2013

    News: LMAX Exchange adds RUB and CNH currency pairs
    16 January 2014 – LMAX
    London, January 2014 – LMAX Exchange, the first FCA regulated MTF for FX trading, has added ruble (RUB) and offshore renminbi (CNH) currency pairs to its existing list of…

    News: TMX Atrium expands Moscow connectivity to IXcellerate
    9 January 2014 – IXcellerate
    IXcellerate, Moscow’s premiere carrier neutral data centre operator, today announced connectivity to TMX Atrium, provider of smarter infrastructure solutions for the fin…

    News: Tbricks OnDemand – A Fully Managed Trading Service
    18 March 2013 – Tbricks
    Introducing a managed service powered by QuantLINK and QuantFEED   Stockholm, Sweden, 18 March 2013 — Tbricks, the provider of next generati…

    News: Joint Venture Offers Fast High Frequency Trading System
    19 December 2013 – Mercury Minerva
    A New “Gunslinger” in High Frequency Trading Hits Sub-Microsecond    Mercury-Minerva Systems, Inc (Carmel, IN, Tiburon, CA) has released its Gunslinger…

    Leave A Reply