Patent Portfolio

Deep Liquidity’s patents technology is about broadening the definition on what a limit order "is" 

Deep Liquidity’s patents describe new ways limit orders can be: 

• Displayed to the market
• Executed. Executions currently favor parties that hit or take limit orders out of order books not the parties that place the limit orders. 
• Communicated between individual buyers and sellers. 
• Constructed to contain built-in service fees. This type of service fee is based on the level risk a wholesaler (market maker) takes in order to fill a particular size of a retail order. This type of “liquidity” fee does not exist anywhere in the world today. 

All of these major advances in “limit order” technology are owned 100% by Deep Liquidity, Inc. The following is Deep Liquidity’s Patent Portfolio:

• U.S. Patent 7,921,054  – – System and method for block trading, patented April 5, 2011. This invention describes a new market maker order type that trades above or below the National Best Bid or Offer (NBBO). When the limit order executes, it will attempt to liquidate itself back into the markets seeking hidden liquidity and better priced quotes.
• U.S. Patent 7,769,668 – – System and method for facilitating trading of financial instruments, patented August 3, 2010. This invention describes a new limit order type called Hide Side. It is designed to be displayed to the market, but not disclose if a trader is buying or selling. It allows a trader to effectively advertise what he needs to get done and at the same time reduce his trading interest footprint to the market. It protects limit orders from penny jumping. It also reduces transaction costs associated with trading. It is a must have for brokers so they can protect their customers’ limit orders when they are entered into the market. It works for all types of financial instruments.
• U.S. Patent 7,076,461 – System and method for trading above or below the market, patented July 11, 2006. This patent is revolutionary because it suggests that the “quantity” of securities along with price can be electronically negotiated as easy as stock exchanges express prices of their listed shares today. This makes the negotiation of financial instruments into a two dimensional process. This is achieved through a new limit order type that is designed for market makers. It allows market markers to build in a liquidity fee into their limit orders in direct proportion to the risk associated with filling particular orders. This opens the door to a new type of specialist that provides liquidity based on liquidity fees. It is a must have for market makers so they can more efficiently price risk. It works for all types of financial instruments. 
• Japan Patent
• Pending Patent – – This invention describes a peer to peer trading method that provides an automated negotiation of a trade at the midpoint of NBBO without leaking any trading interest and without the requiring a trader to commit an order to any particular trading system.
• Pending Patent – – This invention describes a new limit order type that will only execute if the market is stable. 
• Pending Patent – This invention describes a new type of stock exchange that prioritizes order matching based on size of orders in combination with the price of orders.
• Pending Patent – This invention describes a new type of limit order that will only execute if a specific market event occurs which is previously agreed on by the buyer and seller.
• Pending Patent – – This invention describes a new type of stock exchange that uses decoys to protect its displayed orders. This introduces dilution of trading interest to the financial markets.
• Pending Patent – This invention describes a new limit order type that pegs itself to the aggregate displayed liquidity in the stock exchanges and their estimated hidden liquidity. Currently, limit orders are pegged to the NBBO only. This is a completely new form of pegging designed for market makers that is based on filling orders below or above the NBBO and flipping the position back into the market at the point of execution for instant profits on at least a portion of the execution.