Systems and methods for multiparty anonymous negotiation with incentives

• US 20050234805A1
• Filed: 03/11/2005
• Published: 10/20/2005
• Est. Priority Date: 04/19/2004
• Status: Abandoned Application

• Current Assignee: Perimeter Financial Corp. (CI Financial Corporation)
• Original Assignee: Markets, Inc.
• Inventors: Gerhart, Douglas W., Steiner, Douglas E., Robertson, Judith N., Haddad, Roula, Barnhorst, Eric E., Abbott, Karl, Findlay, Donald R.
• Application Number:
  US11/076,901
• Publication Number:
  US 20050234805A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Consistent with the present invention, systems, computer programs, and methods are provided for anonymously negotiating and matching buy and sell orders in a fungible asset trading market. Furthermore, systems and methods consistent with the present invention may provide a time-sensitive trading environment that encourages participants to continue negotiations for an asset until a mutually acceptable price is reached by providing a participant with an incentive to continue submitting orders, such as information concerning the other side'"'"'s ordering actions, as long as the participant continues to negotiate in a timely manner.

Claims

1. A method for encouraging trades for fungible assets, comprising:

receiving a first order associated with a fungible asset from a first participant;

notifying a second participant that the order for the fungible asset has been received;

receiving a second order for the fungible asset from the second participant;

providing to the first participant an incentive to submit a new order associated with the fungible asset;

determining, as a function of at least one criteria, whether to withdraw the incentive; and

withdrawing the incentive based on whether the new order submitted by the first participant meets the at least one criteria.

2. The method of claim 1, wherein the incentive is information about another participant'"'"'s order for the fungible asset, and wherein the information is not available to other participants that do not have a pending order for the fungible asset.

3. The method of claim 1, wherein the criteria is submission of the new order before the expiration of a period of time.

4. The method of claim 3, wherein the period of time begins nearly when the second order is received, and wherein the period of time is repeated if the first participant submits a new order for the fungible asset.

5. The method of claim 1, wherein the criteria is a better price in the new order than the price in the first order.

6. The method of claim 1, further comprising:

providing to the second participant a second incentive to submit a new order for the fungible asset; and

withdrawing the second incentive if the second participant does not submit a new order that meets at least one predetermined criteria.

7. The method of claim 6, wherein the incentive is information about another participant'"'"'s order for the fungible asset, and wherein the information is not available to other participants that do not have a pending order for the fungible asset.

8. The method of claims 6, wherein the criteria is submission of the new order before the expiration of a period of time.

9. The method of claim 6, wherein the criteria is a better price in the new order than the price in the second order.

10. A system for encouraging trades for fungible assets, comprising:

means for receiving a first order associated with a fungible asset from a first participant;

means for notifying a second participant that the order for the fungible asset has been received;

means for receiving a second order for the fungible asset from the second participant;

means for providing to the first participant an incentive to submit a new order associated with the fungible asset;

means for determining, as a function of at least one criteria, whether to withdraw the incentive; and

means for withdrawing the incentive based on whether the new order submitted by the first participant meets the at least one criteria.

11. The system of claim 10, wherein the incentive is information about another participant'"'"'s order for the fungible asset, and wherein the information is not available to other participants that do not have a pending order for the fungible asset.

12. The system of claim 10, wherein the criteria is submission of the new order before the expiration of a period of time.

13. The system of claim 10, wherein the period of time begins nearly when the second order is received, and wherein the period of time is reset each time the first participant submits a new order for the fungible asset.

14. The system of claim 10, wherein the criteria is a better price in the new order than the price in the first order.

15. The system of claim 10, further comprising:

means for providing to the second participant a second incentive to submit a new order for the fungible asset; and

means for withdrawing the second incentive if the second participant does not submit a new order that meets at least one predetermined criteria.

16. The system of claim 10, wherein the incentive is information about another participant'"'"'s order for the fungible asset, and wherein the information is not available to other participants that do not have a pending order for the fungible asset.

17. The system of claim 10, wherein the criteria is submission of the new order before the expiration of a period of time.

18. The system of claim 10, wherein the criteria is a better price in the new order than the price in the second order.

19. A computer program product for encouraging trades for fungible assets with instructions for causing a processor to perform operations comprising:

receiving a first order associated with a fungible asset from a first participant;

notifying a second participant that the order for the fungible asset has been received;

receiving a second order for the fungible asset from the second participant;

providing to the first participant an incentive to submit a new order associated with the fungible asset;

determining, as a function of at least one criteria, whether to withdraw the incentive; and

withdrawing the incentive based on whether the new order submitted by the first participant meets the at least one criteria.

20. The computer program product of claim 19, wherein the incentive is information about another participant'"'"'s order for the fungible asset, and wherein the information is not available to other participants that do not have a pending order for the fungible asset.

21. The computer program product of claim 19, wherein the criteria is submission of the new order before the expiration of a period of time.

22. The computer program product of claim 21, wherein the period of time begins nearly when the second order is received, and wherein the period of time is reset each time the first participant submits a new order for the fungible asset.

23. The computer program product of claim 19, wherein the criteria is a better price in the new order than the price in the first order.

24. The computer program product of claim 19, further comprising instructions for causing a processor to perform operations comprising:

providing to the second participant a second incentive to submit a new order for the fungible asset; and

withdrawing the second incentive if the second participant does not submit a new order that meets at least one predetermined criteria.

25. The computer program product of claim 24, wherein the incentive is information about another participant'"'"'s order for the fungible asset, and wherein the information is not available to other participants that do not have a pending order for the fungible asset.

26. The computer program product of claim 24, wherein the criteria is submission of the new order before the expiration of a period of time.

27. The computer program product of claim 24, wherein the criteria is a better price in the new order than the price in the second order.

28. A method for encouraging trading of a fungible asset comprising:

a) receiving at least two complimentary orders for the fungible asset;

b) notifying a plurality of participants with information regarding the at least two complimentary orders;

c) starting a timer;

d) determining a subset of the plurality of participants, wherein the subset contains only participants that have submitted a market-improving order for the fungible asset before the timer expires; and

e) notifying the participants in the subset of the plurality of participants with information regarding the market-improving order.

29. The method of claim 28, further comprising:

f) repeating steps c) through d).

30. An apparatus for providing incentives for trading a fungible asset comprising:

a receiver for receiving a signal containing information describing at least two complimentary orders for the fungible asset;

a transmitter for broadcasting a signal notifying a plurality of participants with information regarding the at least two complimentary orders;

a timer for providing a signal at the expiration of a predetermined period of time;

a processor for determining a subset of the plurality of participants, wherein the subset contains only participants that have submitted a market-improving order for the fungible asset before the signal from the timer is provided; and

a transmitter for notifying the participants in the subset of the plurality of participants regarding an incentive for submitting a new order.

31. The apparatus of claim 30, wherein the incentive is information regarding the market-improving order.