PROCESSING OF ORDERS IN AN TRADING SYSTEM ONCE WARNING LIMITS ARE EXCEEDED

• US 20070100737A1
• Filed: 11/22/2006
• Published: 05/03/2007
• 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 7,509,284 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 allows a trader and/or counterparty to control whether the trader and/or counterparty wants to continue to be able to trade with the other when a pending trade between the trader and counterparty exceeds one or more warning limits.

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

if execution of the pending trade would exceed the warning limit;

processing the pending trade based on a specification of the first trader and a specification of the second trader; and

causing the first trader to be prompted as to whether the first trader wants to disable subsequent trading with the second trader.

2. The method of claim 1, in which causing the first trader to be prompted as to whether the first trader wants to disable trading with the second trader comprises causing the first trader to be prompted as to whether the first trader wants to make orders from the first trader unavailable to the second trader.

3. The method of claim 2, in which the orders comprise at least one of:

bids, and

offers.

4. The method of claim 1, in which causing the first trader to be prompted as to whether the first trader wants to disable trading with the second trader comprises causing the first trader to be prompted as to whether the first trader wants to make orders from the second trader unavailable to the first trader.

5. The method of claim 1, in which causing the first trader to be prompted as to whether the first trader wants to disable trading with the second trader comprises causing the first trader to be prompted as to whether the first trader:

wants to make orders from the first trader unavailable to the second trader, and

wants to make orders from the second trader unavailable to the first trader.

6. The method of claim 1, in which if execution of the pending trade would exceed the warning limit, further comprising causing the second trader to be prompted as to whether the second trader wants to disable trading with the first trader.

7. The method of claim 1, further comprising receiving from the first trader an indication to disable trading with the second trader.

8. The method of claim 7, further comprising:

receiving an order from the first trader; and

causing one of;

the order to be displayed to the second trader, in which the order is displayed as being unavailable to the second trader, and

the order to not be displayed to the second trader.

9. The method of claim 8,

in which the order comprises one or more alphanumeric characters, and

in which the order is displayed as being unavailable to the second trader based on at least one of:

a color of the alphanumeric characters,

a font of the alphanumeric characters,

a flashing of the alphanumeric characters, and

a non-flashing of the alphanumeric characters.

10. The method of claim 8, in which the order comprises at least one of:

a bid, and

an offer.

11. The method of claim 7, further comprising:

receiving an order from the second trader; and

causing one of;

the order to be displayed to the first trader, in which the order is displayed as being unavailable to the first trader, and

the order to not be displayed to the first trader.

12. The method of claim 1, further comprising receiving from the first trader an indication to not disable trading with the second trader.

13. The method of claim 12, further comprising:

receiving an order from the first trader; and

causing the order to be displayed to the second trader, in which the order is displayed as being available to the second trader.

14. The method of claim 13,

in which the order comprises one or more alphanumeric characters, and

in which the order is displayed as being available to the second trader based on at least one of:

a color of the alphanumeric characters,

a font of the alphanumeric characters,

a flashing of the alphanumeric characters, and

a non-flashing of the alphanumeric characters.

15. The method of claim 12, further comprising:

receiving an order from the second trader; and

causing the order to be displayed to the first trader, in which the order is displayed as being available to the first trader.

16. The method of claim 1, in which processing the pending trade comprises executing all of the pending trade.

17. The method of claim 16, further comprising receiving from the first trader an indication to not disable trading with the second trader.

18. The method of claim 16, further comprising receiving from the first trader an indication to disable trading with the second trader.

19. The method of claim 1, in which processing the pending trade comprises executing at least a portion of the pending trade.

20. The method of claim 19, further comprising receiving from the first trader an indication to not disable trading with the second trader.

21. The method of claim 1, in which processing the pending trade comprises one of:

executing all of the pending trade,

executing a portion of the pending trade, and

rejecting the pending trade.

22. The method of claim 21, 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.

23. The method of claim 22, 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.

24. The method of claim 1, in which if execution of the pending trade would not exceed the warning limit, executing the pending trade;

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 warning limit specified against the second trader, and

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

27. The method of claim 26, 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. An apparatus comprising a computing device operable to perform the method of claim 1.