Foreign exchange trading platform

• US 20070043648A1
• Filed: 06/12/2006
• Published: 02/22/2007
• Est. Priority Date: 06/10/2005
• Status: Abandoned Application

• Current Assignee: Interactive Brokers LLC (Interactive Brokers Group, Inc.)
• Original Assignee: Interactive Brokers LLC (Interactive Brokers Group, Inc.)
• Inventors: Chait, Jonathan
• Application Number:
  US11/451,731
• Publication Number:
  US 20070043648A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A foreign exchange platform for performing a foreign exchange transaction between a trading platform and a customer receives currency pair pricing information from a first liquidity provider and also receives the foreign exchange transaction from the customer. The platform then determines whether the foreign exchange transaction can be executed; and responsive to the determination, the foreign exchange transaction is placed on an internal order book. This is performed with the platform acting in an agency role in which the currency pair pricing information is presented unchanged to the customer.

Claims

1. A method for performing a foreign exchange transaction between a trading platform and a customer, the method comprising:

receiving, by the trading platform, currency pair pricing information from a first liquidity provider;

receiving the foreign exchange transaction from the customer;

determining whether the foreign exchange transaction can be executed; and

responsive to the determining, placing the foreign exchange transaction on an internal order book.

2. The method of claim 1, further comprising:

receiving, by the trading platform, currency pair pricing information from a second liquidity provider; and

generating a composite price for the currency pair based on the pricing information received from the first and the second liquidity providers.

3. The method of claim 2, wherein generating a composite price for the currency pair further comprises:

evaluating the currency pair pricing information received from the first and second liquidity providers to identify a best seller and a best buyer from a perspective of the customer; and

routing the foreign exchange transaction to at least one of the best seller and the best buyer.

4. The method of claim 3, further comprising:

repeating the receiving of currency pair price information for a plurality of liquidity providers; and

repeating the generating of a composite price for the currency pair based on the pricing information received from the plurality of liquidity providers.

5. The method of claim 1, wherein the currency pair pricing information includes a plurality of currency pairs.

6. The method of claim 1, wherein the currency pair pricing information includes a bid price and the step of determining is performed using the bid price.

7. The method of claim 6, wherein the trading platform charges the customer a commission based on an amount of the foreign exchange transaction.

8. The method of claim 1, wherein the currency pair pricing information includes an ask price and the step of determining is performed using the ask price.

9. The method of claim 8, wherein the trading platform charges the customer a commission based on an amount of the foreign exchange transaction.

10. The method of claim 1, further comprising the step of:

receiving, by the trading platform, at least one of a bid price and ask price from another customer related to the currency pair;

generating a composite price for the currency pair based on the pricing information received from the first liquidity provider and the at least one bid price and ask price from the another customer.

11. The method of claim 1, further comprising the steps of:

receiving from the customer a transaction request for an asset other than a foreign exchange transaction; and

performing the transaction request.

12. The method of claim 11, wherein the transaction request relates to buying or selling one or more equity instruments.

13. The method of claim 12, further comprising the step of:

managing an account for the customer such that the one or more equity instruments are valued according to a base currency selected by the customer.

14. The method of claim 13, wherein all assets within the account are valued according to the base currency.

15. The method of claim 14, wherein the base currency is changeable by the customer without liquidating an assets within the account.

16. A system for performing a foreign exchange transaction for a customer, the system comprising:

a trading platform configured to receive currency pair pricing information from a first liquidity provider and to receive the foreign exchange transaction from the customer;

a quote matching component configured to determine whether the foreign exchange transaction can be executed; and

an internal order book, responsive to the quote matching system, in which the foreign exchange transaction is placed.

17. The system of claim 16, wherein the trading platform is further configured to receive currency pair pricing information from a second liquidity provider;

and the system further comprising;

a composite price generator configured to generate a composite price for the currency pair based on the pricing information received from the first and the second liquidity providers.

18. The system of claim 17, wherein the composite price generator is further configured to:

evaluate the currency pair pricing information received from the first and second liquidity providers to identify a best seller and a best buyer from a perspective of the customer; and

route the foreign exchange transaction to at least one of the best seller and the best buyer.

19. The system of claim 18, wherein:

the receiver is further configured to repeat receiving of currency pair price information for a plurality of liquidity providers; and

the composite price generator is further configured to generating of a composite price for the currency pair based on the pricing information received from the plurality of liquidity providers.

20. The system of claim 16, wherein the currency pair pricing information includes a plurality of currency pairs.

21. The system of claim 16, wherein the currency pair pricing information includes a bid price and the step of determining is performed using the bid price.

22. The system of claim 21, wherein the trading platform charges the customer a commission based on an amount of the foreign exchange transaction.

23. The system of claim 16, wherein the currency pair pricing information includes an ask price and the step of determining is performed using the ask price.

24. The system of claim 23, wherein the trading platform charges the customer a commission based on an amount of the foreign exchange transaction.

25. The system of claim 16, wherein the receiver is further configured to receive at least one of a bid price and ask price from another customer related to the currency pair;

and the system further comprises;

a composite price generator configured to generate a composite price for the currency pair based on the pricing information received from the first liquidity provider and the at least one bid price and ask price from the another customer.

26. The system of claim 16, wherein the receiver is further configured to receive from the customer a transaction request for an asset other than a foreign exchange transaction;

and the system further comprises;

a non-currency exchange platform configured to perform the transaction request.

27. The system of claim 26, wherein the transaction request relates to buying or selling one or more equity instruments.

28. The system of claim 27, further comprising an account manager configured to:

manage an account for the customer such that the one or more equity instruments are valued according to a base currency selected by the customer.

29. The system of claim 28, wherein all assets within the account are valued according to the base currency.

30. The system of claim 28, wherein the base currency is changeable by the customer without liquidating an assets within the account.

31. A computer readable medium bearing executable instruction for performing a foreign exchange transaction between a trading platform and a customer, the instruction upon execution cause one or more processors to perform the steps of:

receiving, by the trading platform, currency pair pricing information from a first liquidity provider;

receiving the foreign exchange transaction from the customer;

determining whether the foreign exchange transaction can be executed; and

responsive to the determining, placing the foreign exchange transaction on an internal order book.