System and method for execution delayed trading

• US 20050075963A1
• Filed: 05/07/2004
• Published: 04/07/2005
• Est. Priority Date: 12/09/2002
• Status: Active Grant

• Current Assignee: Deep Liquidity, Inc.
• Original Assignee: Deep Liquidity, Inc.
• Inventors: Balabon, Sam
• Granted Patent: US 8,484,121 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• 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 method and system for trading financial instruments with an execution delay. According to one embodiment, a trading system receives from a first party an order to trade a financial instrument, the order specifying timing information for delaying completion of the order, determines a current market value of the financial instrument upon matching the order with a contra order of a second party, and completes the order only if the determined market value of the financial instrument remains unchanged for an amount of time based on the timing information specified in the order.

Claims

1. A computer-implemented method for trading financial instruments, comprising:

receiving from a first party an order to trade a financial instrument, the order specifying timing information for delaying completion of the order;

upon matching the order with a contra order of a second party, determining a current market value of the financial instrument; and

completing the order only if the determined market value of the financial instrument remains unchanged for an amount of time based on the timing information specified in the order.

2. The method of claim 1, wherein the timing information includes a minimum time limit.

3. The method of claim 1, wherein the timing information includes a maximum time limit.

4. The method of claim 1, wherein the timing information includes a time period between a minimum time limit and a maximum time limit.

5. The method of claim 4, wherein the amount of time includes a random time period within the minimum time limit and the maximum time limit.

6. The method of claim 1, wherein the amount of time includes a pre-set time period.

7. The method of claim 1, wherein the amount of time includes a period of time during which the determined market value of the financial instrument is verified.

8. The method of claim 1, wherein the order is received from the first party over a network.

9. The method of claim 1, wherein the order to trade is a buy order.

10. The method of claim 1, wherein the order to trade is a sell order.

11. The method of claim 1, wherein the financial instrument is one of a stock, bond, fund, contract, option, future, commodity and currency.

12. The method of claim 1, wherein the current market value is based on a bid price.

13. The method of claim 1, wherein the current market value is based on an ask price.

14. The method of claim 1, wherein the current market value is based on the midpoint of a bid and ask price.

15. The method of claim 1, wherein the current market value is based on a last trade price.

16. The method of claim 1, wherein completing the order includes executing the order.

17. The method of claim 1, wherein completing the order includes submitting the order to a third party system for execution.

18. The method of claim 1, wherein the order further specifies at least one activation condition, and further comprising delaying activation of the order until the at least one activation condition is satisfied.

19. The method of claim 18, wherein the at least one activation condition includes activating the order only if a market value of the financial instrument remains unchanged for a particular interval of time.

20. The method of claim 18, wherein the activation of the order includes posting the order in a manner indicating that the order is available for trading.

21. The method of claim 20, wherein the order is posted on a bulletin board transmitted over a network.

22. The method of claim 21, wherein the side of the order is not posted if the current market value is based on the midpoint of a bid and ask price.

23. The method of claim 20, wherein the manner indicating that the order is available for trading includes an association of the posted order with a particular color.

24. The method of claim 1, wherein the current market value is determined based on a software program that scans market data.

25. The method of claim 1, wherein the order further specifies a predetermined distance and predetermined direction away from a market value of the financial instrument at which to trade.

26. The method of claim 25, wherein the predetermined distance is a percentage.

27. The method of claim 25, wherein the predetermined distance is a dollar amount.

28. The method of claim 25, wherein the predetermined direction is below the market value of the financial instrument.

29. The method of claim 25, wherein the predetermined direction is above the market value of the financial instrument.

30. An apparatus for trading financial instruments, comprising:

a processor; and

a memory storing instructions adapted to be executed by said processor to;

receive from a first party an order to trade a financial instrument, the order specifying timing information for delaying completion of the order,

upon matching the order with a contra order of a second party, determine a current market value of the financial instrument, and

complete the order only if the determined market value of the financial instrument remains unchanged for an amount of time based on the timing information specified in the order.

31. A system for trading financial instruments, comprising:

means for receiving from a first party an order to trade a financial instrument, the order specifying timing information for delaying completion of the order;

means for determining a current market value of the financial instrument upon matching the order with a contra order of a second party; and

means for completing the order only if the determined market value of the financial instrument remains unchanged for an amount of time based on the timing information specified in the order.

32. A computer-implemented method for trading financial instruments, comprising:

displaying through a user interface an order entry field soliciting timing information for delaying completion of an order to trade a financial instrument;

upon receipt of the solicited timing information, determining a current market value of the financial instrument; and

completing the order only if the determined market value of the financial instrument remains unchanged for an amount of time based on the solicited timing information.

33. A computer-implemented method for trading financial instruments, comprising:

displaying through a user interface an order listing specifying timing information for delaying completion of an order to trade a financial instrument; and

completing the order only if a current market value of the financial instrument remains unchanged for an amount of time based on the timing information specified in the order.

34. A computer-implemented method for trading financial instruments, comprising:

receiving from a first party an order to trade a financial instrument;

upon matching the order with a contra order of a second party, determining a current market value of the financial instrument; and

completing the order only if the determined market value of the financial instrument remains unchanged for an amount of time.

35. The method of claim 34, wherein the current market value is based on a bid price.

36. The method of claim 34, wherein the current market value is based on an ask price.

37. The method of claim 34, wherein the amount of time includes a minimum time limit.

38. The method of claim 34, wherein the amount of time includes a maximum time limit.

39. The method of claim 34, wherein the amount of time includes a time period between a minimum time limit and a maximum time limit.

40. The method of claim 39, wherein the amount of time includes a random time period within the minimum time limit and the maximum time limit.

41. The method of claim 34, wherein the amount of time includes a pre-set time period.

42. The method of claim 34, wherein the amount of time includes a period of time during which the determined market value of the financial instrument is verified.

43. A computer-implemented method for providing financial instruments for trading, comprising:

receiving an order to trade a financial instrument, the order specifying timing information for delaying activation of the order;

determining a current market value of the financial instrument; and

activating the order only if the determined market value of the financial instrument remains unchanged for an amount of time based on the timing information specified in the order.

44. The method of claim 43, wherein activating the order includes posting the order in a manner indicating that the order is available for trading.

45. The method of claim 44, wherein the order is posted on a bulletin board transmitted over a network.

46. The method of claim 43, wherein the current market value is based on a bid price.

47. The method of claim 43, wherein the current market value is based on an ask price.

48. The method of claim 43, wherein the timing information includes a minimum time limit.

49. The method of claim 43, wherein the timing information includes a maximum time limit.

50. The method of claim 43, wherein the timing information includes a time period between a minimum time limit and a maximum time limit.

51. The method of claim 50, wherein the amount of time includes a random time period within the minimum time limit and the maximum time limit.