Systems and methods for an online credit derivative trading system

• US 20040143535A1
• Filed: 12/09/2002
• Published: 07/22/2004
• Est. Priority Date: 12/09/2002
• Status: Active Grant

• Current Assignee: Creditex Group, Inc. (TP ICAP Plc)
• Original Assignee: Creditex, Inc. (TP ICAP Plc)
• Inventors: Dar, Mazyar M., Hirani, Sunil G.
• Granted Patent: US 7,587,355 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A credit derivative trading system comprises a credit derivative authority configured to receive defined positions for credit derivatives and update a plurality of trade clients in real-time whenever there is movement in the market for a particular credit derivative

Claims

1. A credit derivative authority, comprising:

a database configured to store credit derivative information for certain reference entities;

memory configured to store execution instructions; and

a processor coupled with the database and the memory, the processor configured to execute the instructions, the instructions configured to cause the processor to receive a position from a trader client, determine based on the information stored in the database whether the position is a best position, and update a plurality of other trader clients based on the received position when it is determined that the received position is the best position.

2. The credit derivative authority of claim 1, wherein the instructions are further configured to cause the processor to update the plurality of other trader clients in real-time.

3. The credit derivative authority of claim 1, wherein the instructions are further configured to cause the processor to update the information stored in the database based on the received position.

4. The credit derivative authority of claim 1, wherein the instructions are further configured to cause the processor to validate the received position before determining if the received position is the best position.

5. The credit derivative authority of claim 4, wherein the instructions are further configured to cause the processor to cause an error message to be displayed to the trader client when the validation of the received position fails.

6. The credit derivative authority of claim 1, wherein the instructions are further configured to cause the processor to receive a responsive position from one of the plurality of other trader clients.

7. The credit derivative authority of claim 6, wherein the instructions are further configured to cause the processor to update the information stored in the database based on the responsive position.

8. The credit derivative authority of claim 1, wherein the instructions are further configured to cause the processor to receive an acceptance of the position from one of the plurality of other trader clients.

9. The credit derivative authority of claim 8, wherein the instructions are further configured to cause the processor to allow the trader client to interact directly with the other trader client that accepted the position or with a broker once the position is accepted.

10. The credit derivative authority of claim 9, wherein the instructions are further configured to cause the processor to update the information stored in the database based on the received acceptance and the interaction between the trader client and the other trader client or the broker.

11. The credit derivative authority of claim 1, wherein the instructions are further configured to cause the processor to facilitate communication between the trader client and at least one of the plurality of other trader clients.

12. The credit derivative authority of claim 1, wherein the instructions are further configured to cause the processor to receive a defined position from a trader client.

13. The credit derivative authority of claim 12, wherein the instructions are further configured to cause the processor to receive a request to render the defined position inactive and to render the position inactive in response to the received inactivation request.

14. The credit derivative authority of claim 13, wherein the instructions are further configured to cause the processor to receive a request to reactivate the inactive position and to reactivate the position in response to the received reactivation request.

15. The credit derivative authority of claim 1, wherein the instructions are further configured to cause the processor to receive a request from a trader client for a history of trades engaged in by the trader client and to provide the trade history in response to the received request.

16. The credit derivative authority of claim 1, wherein the instructions are further configured to cause the processor to receive a request from a trader client for a history of spread for a certain credit derivative and to provide the spread history in response to the received request.

17. A method for online trading of credit derivatives, comprising:

receiving a position from a trader client;

determining whether the position is a best position; and

updating a plurality of other trader clients based on the received position when it is determined that the received position is the best position.

18. The method of claim 17, further comprising updating the plurality of other trader clients in real-time.

19. The method of claim 17, further comprising updating the information stored in the database based on the received position.

20. The method of claim 17, further comprising validating the received position before determining if the received position is the best position.

21. The method of claim 20, further comprising causing an error message to be displayed to the trader client when the validation of the received position fails.

22. The method of claim 17, further comprising receiving a responsive position.

23. The method of claim 22, further comprising updating the information stored in the database based on the responsive position.

24. The method of claim 17, further comprising receiving an acceptance of the position from one of the plurality of other trader clients.

25. The method of claim 24, further comprising allowing the trader client to interact directly with the other trader client that accepted the position or with a broker once the position is accepted.

26. The method of claim 25, further comprising updating the information stored in the database based on the received acceptance and the interaction between the trader client and the other trader client or the broker.

27. A credit derivative trading system, comprising:

a credit derivative authority;

a plurality of terminals configured to allow a plurality of trader clients to interface with the credit derivative authority; and

a standardized interface that allows each of the plurality of trader clients to interface with the credit derivative authority and view information on a plurality of credit derivatives, the standardized interface configured to display the information for each of the plurality of credit derivatives in a compact and uniform format.

28. The credit derivative trading system of claim 27, wherein the standardized interface is further configured to allow each of the plurality of trader clients to customize the trader client'"'"'s view of the information displayed for the plurality of credit derivatives.

29. The credit derivative trading system of claim 28, wherein the customized interface is further configured to allow each of the plurality of trader clients to customized the trader client'"'"'s view based on region.

30. The credit derivative trading system of claim 28, wherein the customized interface is further configured to allow each of the plurality of trader clients to customized the trader client'"'"'s view based on industry.

31. The credit derivative trading system of claim 28, wherein the customized interface is further configured to allow each of the plurality of trader clients to customized the trader client'"'"'s view based on at least one of a reference entity name, a credit duration, a debt level, a spread, a restructuring level, an ask price, and a credit rating.

32. The credit derivative trading system of claim 27, wherein the customized interface is further configured to allow each of the plurality of trader clients to define credit derivative positions online.

33. The credit derivative trading system of claim 32, wherein the customized interface is further configured to allow each of the plurality of trader clients to update defined positions with a single click at any time.

34. The credit derivative trading system of claim 32, wherein the customized interface is further configured to allow each of the plurality of trader clients to render inactive all or some of the trader clients defined positions with a single click at any time.

35. The credit derivative trading system of claim 34, wherein the customized interface is further configured to allow each of the plurality of trader clients to reactivate some or all of their inactive positions using a single click.

36. The credit derivative trading system of claim 27, wherein the customized interface is further configured to allow each of the plurality of trader clients to transact on other positions by selecting a position and indicating a desire to transact.

37. The credit derivative trading system of claim 27, wherein the customized interface is further configured to allow each of the plurality of trader clients to view a historical spread history for a credit derivative.

38. The credit derivative trading system of claim 27, wherein the customized interface is further configured to allow each of the plurality of trader clients to interact with other trader clients or a broker via electronic messaging.

39. The credit derivative trading system of claim 27, wherein the customized interface is further configured to allow each of the plurality of trader clients to view a history of the credit derivative trades the trader client has executed in the past.

40. The credit derivative trading system of claim 27, wherein the customized interface is further configured to update the information displayed for each of the plurality of credit derivatives in real-time.

41. The credit derivative trading system of claim 27, wherein the compact and uniform format includes a reference entity name for each of the plurality of credit derivatives.

42. The credit derivative trading system of claim 27, wherein the compact and uniform format includes a scheduled termination for each of the plurality of credit derivatives.

43. The credit derivative trading system of claim 27, wherein the compact and uniform format includes a bid and/or ask price for each of the plurality of credit derivatives.

44. The credit derivative trading system of claim 27, wherein the compact and uniform format includes a debt level for each of the plurality of credit derivatives.

45. The credit derivative trading system of claim 27, wherein the compact and uniform format includes a restructuring level for each of the plurality of credit derivatives.

46. A credit derivative authority, comprising:

a database configured to store credit derivative information for certain reference entities;

memory configured to store execution instructions; and

a processor coupled with the database and the memory, the processor configured to execute the instructions, the instructions configured to cause the processor to receive an indication of a desire to transact from a trader client based on a position, determine if the trader client is able to transact on the position, and process the resulting transaction when it is determined that the trader client is able to transact on the position.

47. The credit derivative authority of claim 46, wherein the instructions are further configured to cause the processor to update information provided to a plurality of other trader clients for a credit derivative associated with the position in response to the transaction.

48. The credit derivative authority of claim 46, wherein the instructions are further configured to cause the processor to update the information stored in the database in response to the transaction.

49. The credit derivative authority of claim 46, wherein the instructions are further configured to cause the processor to receive from each of a plurality of trader clients information that identifies which trader clients each of the plurality of trader clients are willing to deal with, and wherein the instructions are further configured to cause the processor to determine if the trader client is able to transact on the position based on the received information.

50. The credit derivative authority of claim 46, wherein the instructions are further configured to cause the processor to store the identifying information received from each of the plurality of trader clients in the database.

51. A method for online trading of credit derivatives, comprising:

receiving an indication of a desire to transact from a trader client based on a position;

determining if the trader client is able to transact on the position; and

processing the resulting transaction when it is determined that the trader client is able to transact on the position.

52. The method of claim 51, further comprising updating information provided to a plurality of other trader clients for a credit derivative associated with the position in response to the transaction.

53. The method of claim 51, further comprising updating the information stored in the database in response to the transaction.

54. The method of claim 51, further comprising receiving from each of a plurality of trader clients information that identifies which trader clients each of the plurality of trader clients are willing to deal with and determining if the trader client is able to transact on the position based on the received information.

55. The method of claim 51, further comprising storing the identifying information received form each of the plurality of trader clients in the database.