Systems and methods for distributing pricing data for complex derivative securities

• US 20040083158A1
• Filed: 03/21/2003
• Published: 04/29/2004
• Est. Priority Date: 10/09/2002
• Status: Abandoned Application

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Addison, Mark, Kilfedder, Derek, Derbyshire, Richard, Carter, Phillip
• Application Number:
  US10/393,789
• Publication Number:
  US 20040083158A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Methods and systems for providing network-based trading platforms with a continuous stream of up-to-date pricing date for derivatives by way of an externally based pricing-engine system. The pricing engine receives and process feeds of up-to-date information to derive up-to-date pricing data for complex derivative securities. Preferably, the up-to-date information feed is received in real time from a network-based source. The methods and systems of the invention then write the derived pricing data to the locations in cache memory of a network-based trading platform where pricing data is read.

Claims

1. A method for providing pricing data for a derivative to a network-based trading platform comprising:

(a) receiving information relating to the derivative;

(b) using a pricing engine to automatically process the information to derive pricing data for the derivative;

(c) interfacing the pricing engine with the network-based trading platform; and

(d) automatically transmitting the pricing data from the pricing engine to the network-based trading platform over a network.

2. The method of claim 1, wherein the derivative is a complex derivative.

3. The method of claim 1, wherein the information relates to one or more variables that affect the derivative'"'"'s price.

4. The method of claim 1, wherein the information is received over a network.

5. The method of claim 1, wherein automatically transmitting the pricing data comprises writing the pricing data to cache memory accessed by the network-based trading platform.

6. The method of claim 5, wherein the pricing data is written to a hash table residing in the cache memory.

7. The method of claim 1, wherein the pricing data transmitted to the network-based trading platform is available to investors by way of one or more web pages.

8. The method of claim 1, further comprising:

(e) receiving updated information relating to the derivative;

(f) using the pricing engine to automatically process the updated information to derive updated pricing data for the derivative;

(g) interfacing the pricing engine with the network-based trading platform; and

(h) automatically transmitting the updated pricing data from the pricing engine to the network-based trading platform over the network.

9. The method of claim 1, wherein the pricing engine is external from the network-based trading platform.

10. A system for providing pricing data for a derivative to a network-based trading platform comprising:

(i) a memory storage device;

(ii) a processor connected to the storage device;

(iii) a program for controlling the processor;

wherein the memory storage device and the processor are operative with the program to;

(a) receive information relating to the derivative;

(b) control a pricing engine to automatically process the information to derive pricing data for the derivative;

(c) automatically interface the pricing engine with the network-based trading platform; and

(d) automatically transmit the pricing data from the pricing engine to the network-based trading platform over a network.

11. The system of claim 10, wherein the derivative is a complex derivative.

12. The system of claim 10, wherein the information relates to one or more variables that affect the derivative'"'"'s price.

13. The system of claim 10, wherein the information is received over a network.

14. The system of claim 10, wherein automatically transmitting the pricing data comprises writing the pricing data to cache memory accessed by the network-based trading platform.

15. The system of claim 14, wherein the pricing data is written to a hash table residing in the cache memory.

16. The system of claim 10, wherein the pricing data transmitted to the network-based trading platform is available to investors by way of one or more web pages.

17. The system of claim 10, wherein the memory storage device and the processor are further operative with the program to:

(e) receive updated information relating to the derivative;

(f) control the pricing engine to automatically process the updated information to derive updated pricing data for the derivative;

(g) automatically interface the pricing engine with the network-based trading platform; and

(h) transmit the updated pricing data from the pricing engine to the network-based trading platform over the network.

18. A computer readable medium programmed with computer software that is operative to cause a system comprising a memory storage device and a processor to perform the steps of:

(a) receiving information relating to a derivative;

(b) using a pricing engine to automatically process the information to derive pricing data for the derivative;

(c) interfacing the pricing engine with a network-based trading platform; and

(d) automatically transmitting the pricing data from the pricing engine to the network-based trading platform over a network.

19. The computer readable medium of claim 18, wherein the derivative is a complex derivative.

20. The computer readable medium of claim 18, wherein the information relates to one or more variables that affect the derivative'"'"'s price.

21. The computer readable medium of claim 18, wherein the information is received over a network.

22. The computer readable medium of claim 18, wherein automatically transmitting the pricing data comprises writing the pricing data to cache memory accessed by the network-based trading platform.

23. The computer readable medium of claim 22, wherein the pricing data is written to a hash table residing in the cache memory.

24. The computer readable medium of claim 18, wherein the pricing data transmitted to the network-based trading platform is available to investors by way of one or more web pages.

25. The computer readable medium of claim 18, wherein the computer software is operative to further causes the system comprising the memory storage device and the processor to perform the additional steps of:

(e) receiving updated information relating to the derivative;

(f) using the pricing engine to automatically process the updated information to derive updated pricing data for the derivative;

(g) interfacing the pricing engine with the network-based trading platform; and

(h) automatically transmitting the updated pricing data from the pricing engine to the network-based trading platform over the network.