Method for providing aggregation of trading on multiple alternative trading systems

• US 20060161494A1
• Filed: 01/14/2005
• Published: 07/20/2006
• Est. Priority Date: 01/14/2005
• Status: Active Grant

• Current Assignee: Virtu ITG Software Solutions LLC
• Original Assignee: ITG Incorporated
• Inventors: Littlewood, Margaret G.
• Granted Patent: US 7,487,125 B2
• 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

Abstract

A method for performing financial trading amongst a plurality of alternative trading systems using a common financial computer platform. The method including the steps of receiving at the common financial computer platform a buy-order for a prescribed number shares at a prescribed price. Electronic communication is then established between the common financial computer platform and each of the plurality of alternative trading systems. At least a portion of the buy-order is then submitted from the common financial computer platform to each of the plurality of alternative trading systems. The common financial common platform then monitors each of the plurality of alternative trading systems to determine if at least a portion of the buy-order was executed by one of the plurality of alternative trading systems. And if yes, then that indicated execution for one of the plurality of alternative trading systems is automatically accepted and automatically canceled are the remaining buy orders that were submitted to the other alternative trading system which were not yet executed.

Claims

1. A method for performing financial trading amongst a plurality of alternative trading systems using a common financial computer platform, said method comprising the steps of:

receiving at said common financial computer platform a buy-order for a prescribed trading commodity;

establishing communication between said common financial computer platform and each of said plurality of alternative trading systems;

submitting at least a portion of said buy-order simultaneously from said common financial computer platform to each of said plurality of alternative trading systems;

monitoring each of said plurality of alternative trading systems to determine if a said at least a portion of said buy-order was executed by one of said plurality of alternative trading systems;

automatically accepting a determined execution from a said alternative trading systems for a submitted at least a portion of said buy-order; and

automatically canceling said at least a portion of said buy-side order submitted to each of said plurality of alternative trading systems that was not determined to execute said at least a portion of said buy-side order.

2. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 wherein in the receiving step the buy-order includes the number of stock shares to be purchased, price limits for the number of stock shares to be purchased and the percentage of the buy-order that may be consummated during a business day.

3. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 wherein the establishing communication step includes the common financial computer platform being configured to individually communicate with each of said plurality of alternative trading systems without any further modification to said common financial computer platform.

4. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 wherein the plurality of alternative trading systems are chosen from the group consisting of:

ITG Post;

Liquidnet;

Harborside;

Instinet Cross;

Pipeline; and

NYFIX Millenium.

5. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 wherein the step of submitting a portion of said buy-order includes dividing a number of shares prescribed in said buy-order by a number equal to the number of alternative trading systems contained in said plurality of alternative trading systems and submitting said divided number of shares to each of said plurality of alternative trading systems.

6. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 5 wherein the step of submitting a portion of said buy-order includes submitting said divided number of shares to each of said plurality of alternative trading systems.

7. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 further including the step determining an alternative trading system from one of said plurality of alternative trading systems that is receive a balance of the outstanding buy-order after said executting alternative trading systems executed said submitted at least a portion of said buy-order.

8. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 further including the steps:

providing a smart router; and

transmitting said buy-order from said smart router to at least one predetermined alternative trading system based upon historical trading data.

9. A method for performing anonymous buy-side financial trading with a plurality of alternative trading systems, said method comprising:

providing a plurality of alternative trading systems;

providing a common financial computer coupled to each of said plurality of alternative trading systems;

providing a smart router;

transmitting said buy-order from said smart router to at least one predetermined alternative trading system based upon historical trading data collected in said smart router regarding said plurality of alternative trading systems;

receiving at said common financial computer platform from a buy-side trader a buy order for a prescribed trading commodity;

establishing communication between said common financial computer platform and each of said plurality of alternative trading systems;

submitting at least a portion of said buy-order simultaneously from said common financial computer platform to each of said plurality of alternative trading systems wherein said submission is anonymous to each of said plurality of alternative trading systems;

monitoring each of said plurality of alternative trading systems to determine if a said at least a portion of said buy-order was accepted by one of said plurality of alternative trading systems;

automatically accepting a determined execution from a said alternative trading systems for a submitted at least a portion of said buy-order; and

automatically canceling said at least a portion of said buy-side order submitted to each of said plurality of alternative trading systems that was not determined to accept said at least a portion of said buy-side order.

10. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 wherein in the receiving step the buy-order includes the number of stock shares to be purchased, price limits for the number of stock shares to be purchased and the percentage of the buy-order that may be consummated during a business day.

11. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 wherein the establishing communication step includes the common financial computer platform being configured to individually communicate with each of said plurality of alternative trading systems without any further modification to said common financial computer platform.

12. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 wherein the plurality of alternative trading systems are chosen from the group consisting of:

ITG Post;

Liquidnet;

Harborside;

Instinet Cross;

Pipeline; and

NYFIX Millenium.

13. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 wherein the step of submitting a portion of said buy-order includes dividing a number of shares prescribed in said buy-order by a number equal to the number of alternative trading systems contained in said plurality of alternative trading systems and submitting said divided number of shares to each of said plurality of alternative trading systems.

14. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 13 wherein the step of submitting a portion of said buy-order includes submitting said divided number of shares to each of said plurality of alternative trading systems.

15. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 further including the step determining an alternative trading system from one of said plurality of alternative trading systems that is receive a balance of the outstanding buy-order after said executing alternative trading systems executed said submitted at least a portion of said buy-order.