Systems and methods for implementing trading and global matching based on request and offer of liquidity
First Claim
1. A computer-implemented method for stimulating trading in a limited-liquidity financial instrument over a computer network having a server system and at least first and second computers, the method comprising:
- receiving at said server a trade of liquidity for the limited-liquidity financial instrument, said receiving comprising;
receiving a first order from said computers, said first order corresponding to a price and volume associated with a pre-determined bid-offer spread, said order being executable only in conjunction with a counterorder that trades with the first order and includes a commitment to make a two-way market in the financial instrument at the pre-determined bid-offer spread and initiating a timer to keep track of time elapsed since occurrence of a trade of the financial instrument to a pre-determined time requirement to make a market; and
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comparing at said server a time elapsed since occurrence of a trade of the financial instrument to a predetermined time requirement to make a market; and
if results of the comparison indicate that the time elapsed has exceeded the predetermined time requirement, then executing a process to (a) initiate a process to generate electronic commands to cause to submit a trade on a default market based on existing market prices, (b) to initiate a penalty phase to generate electronic commands to cause to impose a penalty on a user that has made the commitment to make a two-way market in the financial instrument at the predetermined bid-offer spread but that has failed to execute a trade on the commitment, and (c) execute a process to cause to generate electronic commands to impose restriction of participation rights on the user that has made the commitment but failed on the commitment.
1 Assignment
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Accused Products
Abstract
Apparatus for stimulating trading in a limited-liquidity financial instrument are provided. One the method may include receiving a trade of liquidity for the limited-liquidity financial instrument. The receiving may include receiving a first order. The first order may correspond to a price and volume associated with a pre-determined bid-offer spread. The order may be executable only in conjunction with a counterorder that trades with the first order and includes a commitment to make a two-way market in the financial instrument at the predetermined bid-offer spread. In certain embodiments, when the first order is received from a first entity and the counterorder is received from a second entity, the method may also include receiving a bid price and an offer price from a second entity. The method may also include receiving an instruction from the first entity to select one of the bid and the offer and to execute a trade therewith. The execution of the trade may be for a size not less than the pre-determined size. If the system fails to receive a selection from the first entity within a pre-determined period of time, the method may further include executing a trade based on a pre-determined election by the second entity of a default trade direction.
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Citations
12 Claims
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1. A computer-implemented method for stimulating trading in a limited-liquidity financial instrument over a computer network having a server system and at least first and second computers, the method comprising:
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receiving at said server a trade of liquidity for the limited-liquidity financial instrument, said receiving comprising; receiving a first order from said computers, said first order corresponding to a price and volume associated with a pre-determined bid-offer spread, said order being executable only in conjunction with a counterorder that trades with the first order and includes a commitment to make a two-way market in the financial instrument at the pre-determined bid-offer spread and initiating a timer to keep track of time elapsed since occurrence of a trade of the financial instrument to a pre-determined time requirement to make a market; and
;comparing at said server a time elapsed since occurrence of a trade of the financial instrument to a predetermined time requirement to make a market; and if results of the comparison indicate that the time elapsed has exceeded the predetermined time requirement, then executing a process to (a) initiate a process to generate electronic commands to cause to submit a trade on a default market based on existing market prices, (b) to initiate a penalty phase to generate electronic commands to cause to impose a penalty on a user that has made the commitment to make a two-way market in the financial instrument at the predetermined bid-offer spread but that has failed to execute a trade on the commitment, and (c) execute a process to cause to generate electronic commands to impose restriction of participation rights on the user that has made the commitment but failed on the commitment. - View Dependent Claims (2, 3, 4, 5, 6)
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7. A computer-implemented method for stimulating trading in a limited-liquidity financial instrument over a computer network having a server system and at least first and second computers, the method comprising:
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receiving at said server, a trade of liquidity for the limited-liquidity financial instrument, said receiving comprising; receiving from said first computer, a first order, said first order corresponding to a price and volume associated with a pre-determined bid-offer spread, said order being executable only in conjunction with a counterorder that trades with the first order and includes a commitment to make a two-way market in the financial instrument at the predetermined bid-offer spread wherein, when the first order is received from a first entity and the counterorder is received from a second entity at said second computer, the method further comprises;
receiving a bid price and an offer price from the second entity; and
receiving an instruction from the first entity to select one of the bid and the offer and to execute a trade therewith, the execution for a size not less than the pre-determined size;wherein, if the system fails to receive from a selection from the first entity within a predetermined period of time, the method further comprises (a) executing a trade based on a predetermined election by the second entity of a default trade direction, (b) initiating a penalty phase to generate electronic commands to cause to impose a penalty on a user associated with the commitment, and (c) executing a process to cause to generate electronic commands to impose restriction of participation rights on the user associated with the commitment. - View Dependent Claims (8, 9, 10, 11, 12)
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Specification