Price display in an anonymous trading system

• US 20050283426A1
• Filed: 05/10/2005
• Published: 12/22/2005
• Est. Priority Date: 05/11/2004
• Status: Abandoned Application

• Current Assignee: CME Group Incorporated
• Original Assignee: EBS Group Ltd. (CME Group Incorporated)
• Inventors: Krishnasami, Srivathsan, Sinclair, James
• Application Number:
  US11/125,110
• Publication Number:
  US 20050283426A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0603 Catalogue ordering
• 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

An anonymous trading system comprises an interconnected network of broking nodes arranged in cliques which receive buy and sell orders from trader terminals via connected trading engines and which match persistent orders, executed deals and distribute price information to trader terminals. The system has the ability for a trader to call out for a quote (request for a quote) anonymously. RFQs are only transmitted on to potential counterparties if they are within a predetermined price range. The RFQs include a price at which the requesting party is willing to deal, but this price is not communicated potential counterparties. Counterparty responses are matches on a time, price basis and non-matched responses may be matched with themselves. Similarly, non-matched RFQs may be matched with each other.

Claims

1. An anonymous computerised trading system for trading products, comprising a trading network arranged to receive inputs from order input devices;

the order input devices being arranged to generate request for quote (RFQ) messages including price and amount of a product for anonymous transmission;

the trading network being arranged only to distribute RFQ messages which specify a price within a given range, wherein the RFQ messages are distibuted to others trading on the trading system without the price.

2. A trading system according to claim 1, wherein the range is defined by a difference from a system defined price.

3. An anonymous computer trading system according to claim 2, wherein the system defined price is the best price currently available in the system for the product to be traded.

4. A trading system according to claim 2, wherein the system defined price is a time averaged price for matches made for the product to be traded.

5. A trading system according to claim 1, wherein the order input devices are arranged to prevent RFQ messages from being transmitted to the trading network which specify a price outside the given range.

6. A trading system according to claim 1, wherein the trading network is arranged to prevent transmission of RFQ messages which specify a price outside the given range.

7. An anonymous computer trading system according to claim 1, wherein RFQ messages specifying a price within the given range are committed to be matched at the price specified or better.

8. A trading system according to claim 1, wherein the order input devices are arranged to generate response messages in response to a distributed RFQ message, the response messages being transmitted by the trading network to the order input device which generated the RFQ message.

9. A trading system according to claim 1, wherein the RFQs generated by the order input devices and transmitted to the system include price and amount of the product to be traded, and the RFQs are distributed by the system to potential counterparties without the price submitted by the order input device.

10. A trading system according to claim 9, wherein the price transmitted to the system comprises a buy price and a sell price.

11. A trading system according to claim 1, wherein the system is arranged to match RFQ messages with the best priced responder order submitted within a given time period

12. A trading system for trading products, comprising a trading network arranged to receive order inputs from order input devices, the order input devices being arranged to generate request for quote (RFQ) messages specifying price and amount of a product to be traded for anonymous transmission;

the order input devices being arranged to generate response messages in response to a received RFQ message, the response messages specifying a price, and the trading network being arranged to match RFQ messages with response messages in time priority order such that the first compatible response matches the request for quote.

13. A trading system according to claim 12, wherein the RFQs generated by the order input devices and transmitted to the system include price and amount of the product to be traded, and the RFQs are distributed by the system to potential counterparties without the price submitted by the order input device.

14. A trading system according to claim 13, wherein the price transmitted to the system comprises a buy price and a sell price.

15. A trading system for trading products, comprising a trading network arranged to receive inputs from order input devices;

the order input devices being arranged to generate request for quote (RFQ) messages specifying price and amount of a product for anonymous transmission;

the order input devices being arranged to generate response messages in response to an RFQ message, the response messages specifying a price and amount;

the trading network being arranged to match the RFQ message with a compatible response message leaving unmatched response messages;

the trading network being further arranged to match unmatched response messages submitted in response to a request for quote with one another.

16. A trading system according to claim 15, wherein the RFQs generated by the order input devices and transmitted to the system include price and amount of the product to be traded, and the RFQs are distributed by the system to potential counterparties without the price submitted by the order input device.

17. A trading system according to claim 16, wherein the price transmitted to the system comprises a buy price and a sell price.

18. A trading system according to claim 15, wherein the system is arranged to match RFQ messages with the best priced responder order submitted within a given time period

19. An anonymous computer trading system for trading products, comprising a trading network arranged to receive inputs from order input devices;

the order input devices being arranged to generate request for quote (RFQ) messages specifying price and amount of a product to be traded;

the trading network being arranged to match request compatible RFQ messages with one another to which no matching response is made.

20. A trading system according to claim 19, wherein the RFQs generated by the order input devices and transmitted to the system include price and amount of the product to be traded, and the RFQs are distributed by the system to potential counterparties without the price submitted by the order input device.

21. A trading system according to claim 20, wherein the price transmitted to the system comprises a buy price and a sell price.

22. A trading system for trading products, comprising a trading network arranged to receive order inputs from order input devices, the order input devices being arranged to generate request for quote (RFQ) messages specifying price and amount of a product to be traded for anonymous transmission;

the order input devices being arranged to generate response messages in response to a received RFQ message, the response messages specifying a price, and the trading network being arranged to match RFQ messages with the best priced response message submitted within a given period of time.