PROCESSING OF TRADES THAT EXCEED WARNING LIMITS

• US 20070088653A1
• Filed: 11/22/2006
• Published: 04/19/2007
• Est. Priority Date: 08/04/2000
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Gilbert, Andrew, Lutnick, Howard, Ginsberg, Philip
• Granted Patent: US 7,519,555 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A trading system determines whether a pending trade between a trader and a counterparty exceeds one or more warning limits, and may process the pending trade based upon specifications by the trader and counterparty, which specifications indicate how each party wants to process over-warning-limit pending trades.

Claims

1. A method comprising:

determining whether execution of a pending trade between a first trader and a second trader would exceed a warning limit; and

determining, based on a specification of the first trader and a specification of the second trader, whether each of the first trader and the second trader wants to execute all of the pending trade, in which the specification of the first trader and the specification of the second trader each comprises an indication of how to process pending trades that exceed a warning limit.

2. The method of claim 1, in which the specification of the first trader and the specification of the second trader are specified prior to a processing of orders that form the pending trade.

3. The method of claim 1, in which if execution of the pending trade would exceed the warning limit, performing the step of determining whether each of the first trader and the second trader wants to execute all of the pending trade.

4. The method of claim 3, in which if execution of the pending trade would not exceed the warning limit, executing the pending trade.

5. The method of claim 3, further comprising executing all of the pending trade when each of the first trader and the second trader wants to execute all of the pending trade.

6. The method of claim 5, in which the specification of the first trader and the specification of the second trader each comprises at least one of:

an indication to execute all of any pending trade that exceeds a warning limit, and

an indication to prompt for execution of all of any pending trade that exceeds a warning limit.

7. The method of claim 5, further comprising causing, subsequent to executing all of the pending trade, at least one of:

orders from the second trader to be made unavailable to the first trader, and

orders from the first trader to be made unavailable to the second trader.

8. The method of claim 5, in which if execution of the pending trade would exceed the warning limit, the method further comprising causing the first trader to be prompted as to whether the first trader would like to make subsequent orders from the second trader unavailable to the first trader.

9. The method of claim 5, in which if execution of the pending trade would exceed the warning limit, the method further comprising causing the first trader to be prompted as to whether the first trader would like to make subsequent orders from the first trader unavailable to the second trader

10. The method of claim 3, in which determining whether each of the first trader and the second trader wants to execute all of the pending trade comprises determining whether the specification of the first trader and the specification of the second trader each comprises an indication to execute all of any pending trade that exceeds a warning limit.

11. The method of claim 3, in which determining whether each of the first trader and the second trader wants to execute all of the pending trade comprises causing at least one of the first trader and the second trader to be prompted as to whether all of the pending trade should be executed.

12. The method of claim 11, further comprising rejecting the pending trade when at least one of the first trader and the second trader to be prompted elects to not execute all of the pending trade.

13. The method of claim 1, further comprising determining, based on at least one of the specification of the first trader and the specification of the second trader, whether at least one of the first trader and the second trader wants to execute a portion the pending trade.

14. The method of claim 13, in which if execution of the pending trade would exceed the warning limit, performing the step of determining whether at least one of the first trader and the second trader wants to execute a portion the pending trade.

15. The method of claim 14, in which determining whether at least one of the first trader and the second trader wants to execute a portion the pending trade comprises determining whether at least one of the specification of the first trader and the specification of the second trader comprises at least one of:

an indication to execute a portion of any pending trade that exceeds a warning limit, and

an indication to prompt for execution of a portion of any pending trade that exceeds a warning limit.

16. The method of claim 14, in which determining whether at least one of the first trader and the second trader wants to execute a portion the pending trade comprises causing at least one of the first trader and the second trader to be prompted as to whether a portion of the pending trade should be executed.

17. The method of claim 16, further comprising rejecting the pending trade when at least one of the first trader and the second trader to be prompted elects to not execute a portion of the pending trade.

18. The method of claim 14, further comprising executing a portion of the pending trade.

19. The method of claim 18, in which executing the portion of the pending trade comprises executing a portion not exceeding the warning limit.

20. The method of claim 19, further comprising causing a remaining portion of the pending trade not executed to be displayed as at least one of a bid and an offer.

21. The method of claim 1, further comprising determining, based on at least one of the specification of the first trader and the specification of the second trader, whether at least one of the first trader and the second trader wants to reject the pending trade.

22. The method of claim 21, in which if execution of the pending trade would exceed the warning limit, performing the step of determining whether at least one of the first trader and the second trader wants to reject the pending trade.

23. The method of claim 22, in which determining whether at least one of the first trader and the second trader wants to reject the pending trade comprises determining whether at least one of the specification of the first trader and the specification of the second trader comprises an indication to reject pending trades that exceed a warning limit.

24. The method of claim 1, in which the specification of the first trader and the specification of the second trader each comprises at least one of:

an indication to reject pending trades that exceed a warning limit,

an indication to execute a portion of any pending trade that exceeds a warning limit,

an indication to execute all of any pending trade that exceeds a warning limit,

an indication to prompt for execution of a portion of any pending trade that exceeds a warning limit, and

an indication to prompt for execution of all of any pending trade that exceeds a warning limit.

25. The method of claim 1, in which the warning limit comprises a minimum of a warning limit of the first trader and a warning limit of the second trader.

26. The method of claim 25, in which:

the warning limit of the first trader comprises a counterparty limit specified against the second trader, and

the warning limit of the second trader comprises a counterparty limit specified against the first trader.

27. The method of claim 25, in which the warning limit of the first trader and the warning limit of the second trader each comprises at least one of:

a total dollar amount of buy side transactions,

a total dollar amount of sell side transactions,

a total dollar amount of buy side transactions and sell side transactions,

a count of a total number of buy side transactions,

a count of a total number of sell side transactions, and

a count of a total number of buy side transactions and sell side transactions.

28. The method of claim 25, in which

the warning limit of first trader comprises a total dollar amount of buy side transactions, and

the warning limit of second trader comprises a total dollar amount of sell side transactions.

29. An apparatus comprising a computing device operable to perform the method of claim 1.