Intra-day matching system and method

• US 20060089898A1
• Filed: 09/28/2005
• Published: 04/27/2006
• Est. Priority Date: 10/25/2004
• Status: Abandoned Application

• Current Assignee: Chicago Board of Trade of The City of Chicago Incorporated, Board of Trade of the City of Chicago Incorporated (CME Group Incorporated)
• Original Assignee: Board of Trade of the City of Chicago Incorporated (CME Group Incorporated)
• Inventors: Collins, Dennis M., Durkin, Bryan T., McCabe, Thomas G., Bennett, James G., Rooney, Mary Beth E., Lynch, Anita Olivia, Ratner, Laurence M., Kemp, Melissa H., Owens, Jacqueline B.
• Application Number:
  US11/236,995
• Publication Number:
  US 20060089898A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system and method that provides intra-day confirmation of non-anonymous trade transactions made at an exchange includes the entry into a computer system of first data relative to the trade transaction on behalf of one party to the trade transaction, wherein the first data include a code identifying an opposing party to the transaction. A message is sent to the designated opposing party prior to submitting the trade transaction for matching prior to end-of-day clearing. The trade transaction is matched to second data relative to the trade transaction entered into the system based on identity between certain elements of the first data and the second data, and a confirmation is sent to at least one of the parties to the trade transaction.

Claims

1. A system for confirming prior to clearing a non-anonymous trade transaction made at an exchange comprising:

a data entry circuit that enables the entry into a computer system of first data relative to the trade transaction on behalf of one party to the trade transaction, wherein the first data includes an identity of the item that is the subject of the trade transaction, a price, a quantity and a code identifying an opposing party to the transaction;

a messaging circuit that sends a message relative to the trade transaction to the opposing party prior to submission of the trade transaction to a matching circuit that matches the trade transaction to second data relative to the trade transaction entered into the system based on identity between certain elements of the first data and the second data; and

a confirmation circuit that sends a message confirming the match to one of the parties.

2. The system of claim 1 wherein the second data are an acceptance of the trade transaction on behalf of the opposing party.

3. The system of claim 2 wherein the acceptance of the trade transaction is automatically made on behalf of the opposing party.

4. The system of claim 2 wherein the acceptance is in multiple parts.

5. The system of claim 1 wherein the data entry circuit also enables the one party to modify the first data provided that the modification is made during a predetermined time period from the time the first data and the second data are linked together.

6. The system of claim 1 that includes an identification circuit that assigns an identification code to the trade transaction.

7. The system of claim 6 wherein the first data and the identification code are sent to the matching circuit as an unconfirmed transaction if there is no response to the checking message within a predetermined period of time.

8. The system of claim 1 wherein the second data are an independent record of the trade transaction made by the opposing party and the matching circuit matches the first data and the second data based on the identity of the one party and the opposing party and the identity between elements of the first data and the second data.

9. The system of claim 1 wherein the second data are an independent record of the trade transaction made by the opposing party.

10. The system of claim 1 wherein the data entry circuit enables one party to correct any error made in the entry of the first data.

11. The system of claim 1 wherein the confirmation circuit sends a confirmation message to both parties.

12. The system of claim 1 wherein the data entry circuit enables one party to correct any error made in the entry of the first data or the second data.

13. The system of claim 1 wherein the first data includes multiple orders.

14. A method for confirming prior to clearing a non-anonymous trade transaction made at an exchange, the method comprising the steps of:

entering into a computer system of first data relative to the trade transaction on behalf of one party to the trade transaction, wherein the first data include an identity of the item that is the subject of the trade transaction, a price, a quantity and a code identifying an opposing party to the transaction;

sending a message relative to the trade transaction to the opposing party;

matching the trade transaction to second data relative to the trade transaction entered into the system based on identity between certain elements of the first data and the second data; and

sending a confirmation of the match to one of the parties.

15. The method of claim 14 wherein the second data are an acceptance of the first data on behalf of the opposing party.

16. The method of claim 14 wherein the second data are linking to data entered on behalf of the opposing party to the first data.

17. The method of claim 16 wherein the linking is done automatically.

18. The method of claim 15 wherein the acceptance is in multiple parts.

19. The method of claim 14 including the step of modifying the first data prior to matching the trade transaction.

20. The method of claim 14 including the step of modifying the first data prior to a predetermined period of time from the time the first data are linked to the second data.

21. The method of claim 14 including the step of sending the first data as an unconfirmed transaction if there is no response to the message within a predetermined period of time.

22. The method of claim 21 wherein the second data are an independent record of the trade transaction made by the opposing party and the matching of the first data and the second data is based on the identity of the one party and the opposing party and the identity between elements of the first data and the second data.

23. The method of claim 14 wherein the second data are an independent record of the trade transaction made by the opposing party.

24. The method of claim 14 wherein a confirmation of the match is sent to both parties.

25. The method of claim 14 including the step of correcting any error made in data entry provided that the correction is made during a predetermined period of time from the time the first data are linked to the second data.

26. The method of claim 14 wherein the first data include multiple orders.