Direct access bond trading platform

• US 20070174178A1
• Filed: 12/20/2006
• Published: 07/26/2007
• Est. Priority Date: 12/20/2005
• Status: Abandoned Application

• Current Assignee: Interactive Brokers (Interactive Brokers Group, Inc.)
• Original Assignee: Interactive Brokers (Interactive Brokers Group, Inc.)
• Inventors: Peterffy, Thomas, Chait, Jonathan, Galik, Milan
• Application Number:
  US11/643,063
• Publication Number:
  US 20070174178A1
• 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 bond trading transactions between a trading platform and a Customer and which allows its bond customers to trade with each other and thus, providing additional liquidity. The method includes receiving, by the trading platform, bond pricing information for a particular bond from a first bond buyer/seller, receiving a bond trading transaction for the particular bond from the Customer and determining whether the bond trading transaction for the particular bond can be executed. If the bond trading transaction can be executed, the bond trading transaction for the particular bond is placed on an internal order book.

Claims

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

receiving, by the trading platform, bond pricing information for a particular bond from a first liquidity provider;

receiving the bond trading transaction for the particular bond from the customer;

determining whether the bond trading transaction can be executed; and

responsive to the determining, placing the bond trading transaction on an internal order book.

2. The method of claim 1, further comprising:

receiving, by the trading platform, bond pricing information for the particular bond from a second liquidity provider; and

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

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

evaluating the bond 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 bond trading 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 bond pricing information for a plurality of liquidity providers; and

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

5. The method of claim 1, wherein the bond pricing information includes a plurality of different bonds.

6. The method of claim 1, wherein the bond 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 bond trading transaction.

8. The method of claim 1, wherein the bond 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 bond trading 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 particular bond;

generating a composite price for the particular bond 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 bond trading 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 any assets within the account.

16. A system for performing a bond trading transaction for a customer, the system comprising:

a trading platform configured to receive bond pricing information for a particular bond from a first liquidity provider and to receive the bond trading transaction from the customer;

a quote matching component configured to determine whether the bond trading transaction can be executed; and

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

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

and the system further comprising;

a composite price generator configured to generate a composite price for the particular bond 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 bond 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 bond trading 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 bond pricing information for the particular bond from a plurality of liquidity providers; and

the composite price generator is further configured to generate a composite price for the particular bond based on the pricing information received from the plurality of liquidity providers.

20. The system of claim 16, wherein the bond pricing information includes a plurality of different bonds.

21. The system of claim 16, wherein the bond pricing information includes a bid price and the quote matching component is configured to use the bid price in determining whether the bond trading transaction can be executed.

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

23. The system of claim 16, wherein the currency pair pricing information includes an ask price and the quote matching component is configured to use the bid price in determining whether the bond trading transaction can be executed.

24. The system of claim 23, wherein the trading platform charges the customer a commission based on an amount of the bond trading 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 particular bond;

and the system further comprises;

a composite price generator configured to generate a composite price for the particular bond 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 bond trading transaction;

and the system further comprises;

a non-bond trading 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 any assets within the account.

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

receiving, by the trading platform, bond pricing information for a particular bond from a first liquidity provider;

receiving the bond trading transaction for the particular bond from the customer;

determining whether the bond trading transaction can be executed; and

responsive to the determining, placing the bond trading transaction on an internal order book.