Securities Trading With Net Pricing For Retail Investors

This innovative trading system enables retail investors to request securities trades at net prices that include commission costs, providing transparency and preventing the hidden markup associated with traditional gross pricing. By allowing investors to know their total cost upfront, the system democratizes trading access and enables easier price comparison across different service providers, addressing long-standing inequities in securities trading.

The Problem

Traditional securities trading brokerages quote gross prices to retail investors, with commissions added separately – often opaquely. Investors cannot easily compare true costs across different brokers because commission structures vary widely. Market makers quote prices without commission included, forcing securities companies to add markups that aren’t explicitly disclosed in many cases. Retail investors lack pricing transparency compared to wholesale markets where net pricing (commission included) is standard. This creates inherent disadvantages for retail participants and reduces market efficiency by preventing truly comparable pricing. Existing RFQ (request for quote) systems and alternative trading venues operate only on gross pricing bases, perpetuating these information asymmetries.

What This Invention Does

The brokerage system receives a first trade request from a retail investor specifying a net price they are willing to accept or pay. The system extracts the gross market price from a market maker and determines the applicable commission, then calculates the net price as the sum of gross price plus commission. The system simultaneously sends order information to the market maker using the gross price and to the investor’s securities company account using the net price. When the investor’s securities company receives the second order information with net pricing, it processes the order at that transparent total cost. This architecture creates a transaction where the market maker operates on familiar gross pricing while the investor operates on transparent net pricing, allowing both sides to function in their preferred frameworks. The investor gains pricing clarity without disrupting market maker operations.

Key Features

• Net Price Transparency. Investors see their total cost upfront, including all commissions and fees, enabling genuinely informed decision-making about trade execution.
• Easy Price Comparison. With net pricing displayed consistently, investors can easily compare the true cost of executing trades through different brokerages or venues.
• Market Integration. The system maintains compatibility with existing market maker pricing structures, allowing seamless integration with existing trading infrastructure without requiring backend system changes.
• Retail Investor Protection. Net pricing prevents hidden markups and commission surprises, protecting retail investors from undisclosed costs that professional traders can more easily negotiate away.
• Real-Time Execution. The system operates in real-time, enabling immediate order processing without manual intervention or delays that could allow price slippage.

Who Is Behind It?

This innovation results from collaboration between Fujitsu Limited, a global technology leader, and Tokyo Stock Exchange, Inc., operator of Japan’s primary securities exchange. The development team included twelve inventors reflecting diverse technical expertise: Akihiro Kuwabara, Noriyuki Tagawa, Yuki Okura, Koji Tsuchiya, Koichi Ito, Risa Tokita, Shota Noguchi, Saki Ito, Takumi Nishida, Kazuomi Tanioka, Kenta Nakao, and Takahiro Usui. Spruson & Ferguson patent attorneys managed the application. The innovation demonstrates commitment from major financial institutions to improving market structure for retail participants.

Why It Matters

Securities trading represents trillions of dollars globally, with retail participation growing significantly through digital platforms. Yet retail investors continue operating at information disadvantages compared to institutional traders. This innovation directly addresses pricing transparency, a fundamental fairness principle that benefits the broader investment ecosystem. Clear net pricing enables retail investors to confidently execute their trading strategies without concern about hidden costs. As global securities markets evolve toward greater transparency and retail participation, systems enabling net pricing become increasingly important for market confidence and fairness. The technology may be particularly valuable in emerging markets or developing economies where establishing transparent pricing structures from the outset can support more efficient market development.

Related Concepts

Price transparency in securities markets is a central concern of regulators worldwide, with wholesale markets long operating on net pricing while retail investors have historically faced opaque commission structures. The gap between institutional and retail pricing has driven regulatory initiatives such as MiFID II in Europe and best execution requirements globally.

The rise of digital brokerage platforms has begun to close this gap, yet hidden markups in market-maker spreads remain a challenge. Net pricing systems, as developed here by Tokyo Stock Exchange and Fujitsu, align retail trading economics with the transparency standards long enjoyed by institutional investors.

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AU 2024266751 was published in the Australian Official Journal of Patents on 19 March 2026 and is open for public inspection. Patent applications represent inventions that are sought to be protected and do not necessarily reflect commercially available products.