Method and apparatus for trading bonds
First Claim
1. A computer-based electronic trading system for trading one or more of a plurality of debt instruments, including one or more of a plurality of bonds, comprising:
- a plurality of computers via which one or more of a plurality of traders enters a plurality of trading orders for one or more of the plurality of debt instruments, each of which plurality of computers executes a client application;
a central controller coupled to the plurality of computers and matching buy orders and sell orders for a same one of the one or more of the plurality of debt instruments in a price, time priority basis, and reporting all matched buy orders and sell orders as a plurality of executed trades to each of the plurality of traders via the plurality of computers.
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Accused Products
Abstract
An Internet based real-time interactive electronic trading system for broadcasting quotes, usually bid and ask prices, for high-yield corporate bonds to buyers and sellers in a fully encrypted manner. Further, it processes orders and executes trades between clients. In addition to fully automating the entire high yield bond trading process, the system maintains a full audit trail of every event in the trading process. The system permits direct but anonymous trading which permits both buyers and sellers to see the price at which they will trade and avoids the need, and cost, for an intermediary. It allows the sale of municipal Bonds in an anonymous and transparent market and allows the purchaser of Municipal Bonds to contemporaneously insure their Bond purchase from default electronically through a municipal bond insurance provider, such as MBIA Insurance Corporation, when making the purchase. The system permits direct but anonymous trading of Convertible debt and Emerging Market Debt as well as providing transparency and liquidity not previously attainable in those markets.
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Citations
53 Claims
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1. A computer-based electronic trading system for trading one or more of a plurality of debt instruments, including one or more of a plurality of bonds, comprising:
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a plurality of computers via which one or more of a plurality of traders enters a plurality of trading orders for one or more of the plurality of debt instruments, each of which plurality of computers executes a client application;
a central controller coupled to the plurality of computers and matching buy orders and sell orders for a same one of the one or more of the plurality of debt instruments in a price, time priority basis, and reporting all matched buy orders and sell orders as a plurality of executed trades to each of the plurality of traders via the plurality of computers. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 29)
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14. A computer-based method for electronically trading one or more debt instruments, including one or more bonds, comprising:
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entering a plurality of trading orders for one or more of the plurality of debt instruments into a plurality of computers;
matching buy orders and sell orders for a same one of the one or more debt instruments in a price, time priority basis;
reporting all matched buy orders and sell orders as a plurality of executed trades to each of the plurality of traders.
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28. An method for trading bonds comprising:
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entering a buy order for a particular instrument and an order for insurance for the particular instrument simultaneously;
submitting the buy order to an electronic trading system; and
submitting the insurance order to an insurance provider via the electronic trading system.
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30. A method for purchasing an insurable instrument comprising:
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creating a buy order for the insurable instrument, said buy order including a request for a quote for the insurable instrument;
submitting the request for a quote to an insurance provider;
receiving a quote from the insurance provider; and
submitting the buy order to the electronic trading. - View Dependent Claims (31)
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32. A method for trading an insurable instrument comprising:
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entering an order for the insurable instrument into an order processing system; and
offering insurance for the insurable instrument at a point of sale of the insurable instrument.
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33. A method for trading an insurable instrument comprising:
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entering an order for the insurable instrument into an electronic trading system;
submitting a request for an insurance quote from a plurality of insurance providers as part of the order for the insurable instrument; and
accepting at least one of a plurality of quotes from one of a plurality of responses from the plurality of insurance providers. - View Dependent Claims (35, 36, 37, 38, 39)
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34. An apparatus for trading insurable instruments comprising:
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at least one workstation executing a client application enabling a user to enter simultaneously an order for at least one insurable instrument and a request for a quote on insurance for the insurable instrument;
a central controller receiving the order for the insurable instrument and the request for the quote; and
an insurance provider interface coupling the central controller to one or more insurance providers via which said central controller forwards the request for the quote and via which said controller receives one or more quotes from the one or more insurance providers.
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40. A computer-based trading method for trading a plurality of different types of bond instruments, comprising:
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enabling a trader to submit an order completely anonymously;
enabling a user to submit an order and control an amount of the order that is disclosed to other traders;
matching buy orders to sell orders using a price/time priority. - View Dependent Claims (41, 42)
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43. An apparatus for trading a plurality of bond instruments comprising an Internet-based bond trading system including:
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a plurality of clients entering orders anonymously for one or more of the plurality of bond instruments and enabling a trader to control an amount of an order that is disclosed to other traders; and
one or more servers coupled to the plurality of clients via a public computer network, said one or more servers restricting access to authorized clients, said one or more servers maintaining an audit trail that records every event at the one or more servers and determines what acts authorized users have taken, said one or more servers time stamping all activity, including time of receipt of any order, time of execution, as well as all logins and connection status, said one or more servers recording a state of each record in the server before and after a change. - View Dependent Claims (44, 45, 46, 47, 48, 49, 50)
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51. A method for transacting in municipal securities and transacting for insurance in conjunction with the municipal securities, comprising:
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providing a common interface via which a trader can enter an order for a municipal security and request a quote for insurance on the municipal security;
coupling the common interface to an electronic trading system for trading the municipal security; and
coupling the common interface to an insurance provider for receiving a quote in response to the request for the quote;
enabling a trader to accept or decline the quote via the common interface. - View Dependent Claims (52, 53)
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Specification