System and method for real-time options trading over a computer network

• US 20050137964A1
• Filed: 02/17/2005
• Published: 06/23/2005
• Est. Priority Date: 08/31/2000
• Status: Abandoned Application

• Current Assignee: Optionable, Inc.
• Original Assignee: Optionable, Inc.
• Inventors: Boim, David, Zucker, Yechiel A., Nordlicht, Mark A., Feder, Howard A.
• Application Number:
  US11/060,455
• Publication Number:
  US 20050137964A1
• Time in Patent Office: Days
• US Class Current: 705/37
• 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

The present invention discloses a system for real-time trading of options contracts between a plurality of traders over a computer network. The system includes a computer network, a market server, and two or more trader clients. The market server is operably connected to the computer network. The two or more trader clients are operably corrected to the computer network such that each of the trader clients can be placed into operable communication with the market server. Each of the trade clients facilitates entry and transmission of commands in substantially real-time to the market server and display of substantially real-time updates from the market server. The trader client commands include trade orders wherein the market server distributes the trade orders and any executions of same to each of the trader clients in substantially-real time.

Claims

1. -28. (canceled)

29. A method of determining trading parties for the real-time trading of options contracts over a network, comprising:

selecting, by a first firm, a second firm, wherein the first firm wishes to trade with the second firm;

choosing, by the first firm, an underlying the second firm can trade with the first firm;

selecting, by the second firm, the first firm, wherein the second firm wishes to trade with the first firm;

choosing, by the second firm, another underlying the first firm can trade with the second firm;

matching the first firm with the second firm, comprising;

determining if the first firm selected the second firm;

determining if the second firm selected the first firm; and

determining if the underlying and the other underlying are the same underlying;

permitting a trade between the first firm and the second firm only if the first firm is matched with the second firm wherein the first firm is a first counterparty to the second firm and the second firm is a second counterparty to the first firm; and

forbidding the trade between the first firm and the second firm if the first firm is not matched with the second firm.

30. The method of claim 29, further comprising:

visually notifying the first firm that the second firm is the second counterparty; and

visually notifying the second firm that the first firm is the first counterparty.