METHOD AND SYSTEM FOR TRADING TANGIBLE AND INTANGIBLE GOODS

• US 20080015965A1
• Filed: 06/15/2006
• Published: 01/17/2008
• Est. Priority Date: 06/15/2006
• Status: Abandoned Application

• Current Assignee: Susquehanna International Group LLP
• Original Assignee: Susquehanna International Group LLP
• Inventors: Huang, Kai, McCauley, Patrick Robert, O'Connell, Gerald Dennis
• Application Number:
  US11/424,508
• Publication Number:
  US 20080015965A1
• Time in Patent Office: Days
• US Class Current: 705/37
• 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

An electronic trading system and method is used to buy and sell goods. Buyers and sellers use the trading system and the system provides anonymous trade-interest access to both buyers and sellers.

Claims

1. A trading system comprising:

a trade-interest entry engine configured to receive a trade-interest and a contra-side trade-interest;

a trade-interest matching engine configured to match trade-interests received by the trade-interest entry engine; and

an alert generating engine.

2. The trading system of claim 1, further comprising an anonymous blind auction engine configured to be activated when the trade-interest matching engine identifies near-complementary trade-interests.

3. The trading system of claim 1, wherein the trade-interest matching engine matches trade-interests that are complementary or near-complementary based on at least one of subject matter and price.

4. The trading system of claim 1, further comprising a back office system configured to perform at least one item selected from the group consisting of clearing a transaction, processing a transaction, monitoring a regulatory requirement, and monitoring a compliance requirement.

5. The trading system of claim 1, further comprising an analytics engine.

6. The trading system of claim 5, wherein the analytics engine is configured to provide at least one service selected from the group consisting of a pre-trade service, a post-trade service, and an algorithmic trade service.

7. The trading system of claim 1, wherein the trading system is configured for trading a security.

8. The trading system of claim 1, wherein the trading system is Internet-based.

9. The trading system of claim 1, wherein the alert generating engine is configured to notify a subscriber that a near-complementary trade-interest exists.

10. The trading system of claim 1, wherein at least one of the trade-interests comprises an indication of interest.

11. The trading system of claim 9, wherein the subscriber notified by the alert generating engine comprises a qualified subscriber.

12. The trading system of claim 9, wherein the alert generating engine notifies the subscriber via at least one item selected from the group consisting of an e-mail, a text message, a phone call, a sound, a color, a graphic, an alphanumeric character, a link, a pop-up, a window, a dialog box, and text.

13. The trading system of claim 1, wherein the anonymous blind auction comprises an anonymous blind Dutch auction.

14. The trading system of claim 1, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, and the anonymous blind auction engine are combined.

15. The trading system of claim 5, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, the anonymous blind auction engine, and the analytics engine are combined.

16. The trading system of claim 1, further comprising a mechanism for executing a trade anonymously.

17. The trading system of claim 1, wherein the trade-interest and contra-side trade interest comprise a plurality of trade-interests.

18. The trading system of claim 1, further comprising an algorithmic and optimization engine.

19. The trading system of claim 18, wherein the algorithmic and optimization engine is configured to at least perform one item selected from the group consisting of

route a part of a trade-interest for execution when the trade-interest comprises an order;

process the trade-interest comprising an order and if at least part of the order cannot be processed then route that unprocessed part of the order for execution; and

route at least part of the order for execution at the same time the system processes the order.

20. A trading system comprising:

a trade-interest entry engine configured to receive a trade-interest and a contra-side trade-interest;

a trade-interest matching engine configured to match trade-interests received by the trade-interest entry engine;

an alert generating engine; and

an anonymous blind auction engine configured to be activated when the trade-interest matching engine identifies near-complementary trade-interests.

21. The trading system of claim 20, wherein the trade-interest matching engine matches trade-interests that are complementary or near-complementary based on at least one of subject matter and price.

22. The trading system of claim 20, further comprising a back office system configured to perform at least one item selected from the group consisting of clearing a transaction, processing a transaction, monitoring a regulatory requirement, and monitoring a compliance requirement.

23. The trading system of claim 20, further comprising an analytics engine.

24. The trading system of claim 23, wherein the analytics engine is configured to provide at least one service selected from the group consisting of a pre-trade service, a post-trade service, and an algorithmic trade service.

25. The trading system of claim 20, wherein the trading system is configured for trading a security.

26. The trading system of claim 20, wherein the trading system is Internet-based.

27. The trading system of claim 20, wherein the alert generating engine is configured to notify a subscriber that a near-complementary trade-interest exists.

28. The trading system of claim 27, wherein the subscriber notified by the alert generating engine comprises a qualified subscriber.

29. The trading system of claim 20, wherein the at least one of the near-complementary trade-interests comprises an indication of interest.

30. The trading system of claim 20, wherein the alert generating engine notifies the subscriber via at least one item selected from the group consisting of an e-mail, a text message, a phone call, a sound, a color, a graphic, an alphanumeric character, a link, a pop-up, a window, a dialog box, and text.

31. The trading system of claim 20, wherein the anonymous blind auction comprises an anonymous blind Dutch auction.

32. The trading system of claim 20, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, and the anonymous blind auction engine are combined.

33. The trading system of claim 23, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, the anonymous blind auction engine, and the analytics engine are combined.

34. The trading system of claim 20, further comprising a mechanism for executing a trade anonymously.

35. The trading system of claim 20, wherein the trade-interest and contra-side trade interest comprise a plurality of trade-interests.

36. The trading system of claim 20, further comprising an algorithmic and optimization engine.

37. The trading system of claim 36, wherein the algorithmic and optimization engine is configured to at least perform one item selected from the group consisting of

route a part of a trade-interest for execution when the trade-interest comprises an order;

process the trade-interest comprising an order and if at least part of the order cannot be processed then route that unprocessed part of the order for execution; and

route at least part of the order for execution at the same time the system processes the order.

38. A trading system comprising:

a trade-interest entry engine configured to receive a plurality of trade-interests, wherein at least one trade-interest comprises an indication of interest;

a trade-interest matching engine configured to match trade-interests received by the trade-interest entry engine;

an alert generating engine; and

an anonymous blind auction engine configured to be activated when the trade-interest matching engine matches an indication of interest with a contra-side trade-interest.

39. The trading system of claim 38, wherein the trade-interest matching engine matches trade-interests that are complementary or near-complementary.

40. The trading system of claim 38, further comprising a back office system configured to perform at least one item selected from the group consisting of clearing a transaction, processing a transaction, monitoring a regulatory requirement, and monitoring a compliance requirement.

41. The trading system of claim 38, wherein the alert generating engine provides an alert to a subscriber who has a contra-side trade-interest to the indication of interest.

42. The trading system of claim 38, wherein the alert generating engine notifies a subscriber via at least one item selected from the group consisting of an e-mail, a text message, a phone call, a sound, a color, a graphic, an alphanumeric character, a link, a pop-up, a window, a dialog box, and text.

43. The trading system of claim 38, further comprising an analytics engine.

44. The trading system of claim 43, wherein the analytics engine is configured to provide at least one service selected from the group consisting of a pre-traded service, a post-traded service, and an algorithmic trade service.

45. The trading system of claim 38, wherein the trading system is configured for trading a security.

46. The trading system of claim 38, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, and the anonymous blind auction engine are combined.

47. The trading system of claim 43, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, the anonymous blind auction engine, and the analytics engine are combined.

48. The trading system of claim 38, wherein the trading system is Internet-based.

49. The trading system of claim 38, wherein the anonymous blind auction engine is configured to be activated automatically.

50. The trading system of claim 38, further comprising a mechanism to execute a trade anonymously.

51. The trading system of claim 38, further comprising an algorithmic and optimization engine.

52. The trading system of claim 51, wherein the algorithmic and optimization engine is configured to at least perform one item selected from the group consisting of

route a part of a trade-interest for execution when the trade-interest comprises an order;

process the trade-interest comprising an order and if at least part of the order cannot be processed then route that unprocessed part of the order for execution; and

route at least part of the order for execution at the same time the system processes the order.

53. A trading system comprising:

a trade-interest entry engine configured to receive a trade-interest and a contra-side trade-interest, wherein at least one of the trade-interests is an indication of interest;

a trade-interest matching engine configured to match trade-interests received by the trade-interest entry engine;

an alert generating engine configured to notify a subscriber that a near-complementary trade-interest exists; and

an anonymous blind auction engine configured to be activated when the trade-interest matching engine identifies near-complementary trade-interests.

54. The trading system of claim 53, wherein the trade-interest matching engine matches trade-interests that are complementary or near-complementary.

55. The trading system of claim 53, further comprising a back office system configured to perform at least one item selected from the group consisting of clearing a transaction, processing a transaction, monitoring a regulatory requirement, and monitoring a compliance requirement.

56. The trading system of claim 53, further comprising an analytics engine.

57. The trading system of claim 56, wherein the analytics engine is configured to provide at least one service selected from the group consisting of a pre-trade service, a post-trade service, and an algorithmic trade service.

58. The trading system of claim 53, wherein the trading system is configured for trading a security.

59. The trading system of claim 53, wherein the trading system is Internet-based.

60. The trading system of claim 53, wherein the subscriber notified by the alert generating engine comprises a qualified subscriber.

61. The trading system of claim 53, wherein the matchable trade-interest comprises the indication of interest.

62. The trading system of claim 53, wherein the alert generating engine notifies the subscriber via at least one item selected from the group consisting of an e-mail, a text message, a phone call, a sound, a color, a graphic, an alphanumeric character, a link, a pop-up, a window, a dialog box, and text.

63. The trading system of claim 53, wherein the anonymous blind auction comprises an anonymous blind Dutch auction.

64. The trading system of claim 53, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, and the anonymous blind auction engine are combined.

65. The trading system of claim 57, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, the anonymous blind auction engine, and the analytics engine are combined.

66. The trading system of claim 53, wherein the anonymous blind auction engine is configured to be activated automatically.

67. The trading system of claim 53, further comprising a mechanism for executing a trade anonymously.

68. The trading system of claim 53, wherein the trade-interest and contra-side trade interest each comprise a plurality of trade-interests.

69. The trading system of claim 53, further comprising an algorithmic and optimization engine.

70. The trading system of claim 69, wherein the algorithmic and optimization engine is configured to at least perform one item selected from the group consisting of

route a part of a trade-interest for execution when the trade-interest comprises an order;

process the trade-interest comprising an order and if at least part of the order cannot be processed then route that unprocessed part of the order for execution; and

route at least part of the order for execution at the same time the system processes the order.

71. A method of trading a good comprising:

receiving a trade-interest and a contra-side trade-interest;

determining whether the trade-interest and the contra-side trade-interest are matchable;

generating an alert when at least one of the matchable trade-interest and contra-side trade interest comprises an indication of interest; and

activating an anonymous blind auction to trade the good.

72. The method of claim 71, wherein the trade-interests are received via a trade-interest entry engine.

73. The method of claim 71, wherein the determination step uses a trade-interest matching engine.

74. The method of claim 71, wherein the alert is generated via an alert generating engine.

75. The method of claim 71, wherein the anonymous blind auction is activated via an anonymous blind auction engine.

76. The method of claim 71, wherein the determination step matches trade-interests that are complementary or near-complementary.

77. The method of claim 71, wherein matchable comprises complementary or near-complementary.

78. The method of claim 71, wherein the activating step is automatic.

79. The method of claim 71, further comprising using an analytics engine.

80. The method of claim 79, wherein the analytics engine provides at least one service selected from the group consisting of a pre-trade service, a post-trade service, and an algorithmic trade service.

81. The method claim 71, wherein the good is a security.

82. The method of claim 71, wherein the trade-interest and contra-side trade-interest are entered by an entity or person.

83. The method of claim 71, wherein the anonymous blind auction comprises an anonymous blind Dutch auction.

84. The method of claim 71, further comprising at least one process selected from the group consisting of clearing a transaction, processing a transaction, monitoring a regulatory requirement, and monitoring a compliance requirement.

85. The method of claim 71, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, and the anonymous blind auction engine are combined.

86. The method of claim 79, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, the anonymous blind auction engine, and the analytics engine are combined.

87. The method of claim 71, further comprising executing a trade anonymously when trade-interests that are complementary orders are matched.

88. The method of claim 71, further comprising generating the alert when near-complementary trade-interests are matched.

89. The method system of claim 71, wherein the trade-interest and contra-side trade interest each comprise a plurality of trade-interests.

90. The trading system of claim 71, further comprising performing at least one item selected from the group consisting of

routing a part of a trade-interest for execution when the trade-interest comprises an order;

processing the trade-interest comprising an order and if part of the order cannot be processed then routing that part of the order for execution; and

routing part of the trade-interest comprising an order for execution at the same time the system processes the order.

91. The method of claim 90, wherein the step of performing uses an algorithmic and optimization engine.

92. A method of trading a good comprising:

receiving a first trade-interest for the good in the form of an order from a subscriber via a trade-interest entry engine;

receiving a contra-side trade-interest from a second subscriber via the trade-interest entry engine, wherein the contra-side trade-interest comprises an indication of interest for the good;

determining whether the trade-interest and the contra-side trade-interest match through use of a trade-interest matching engine;

providing an alert, via an alert generating engine, to at least one of the first subscriber and the second subscriber when the trade-interest and the contra-side trade-interest are matchable; and

providing an opportunity for the first and second subscriber to participate in an anonymous blind auction to trade the good.

93. The method of claim 92, wherein the determination step matches trade-interests that are complementary or near-complementary.

94. The method of claim 92, wherein matchable comprises complementary or near-complementary.

95. The method of claim 92, further comprising using an analytics engine.

96. The method of claim 95, wherein the analytics engine provides at least one service selected from the group consisting of a pre-trade service, a post-trade service, and an algorithmic trade service.

97. The method claim 92, wherein the good is a security.

98. The method of claim 92, wherein the first subscriber and the second subscriber are an entity or person.

99. The method of claim 92, wherein the anonymous blind auction comprises an anonymous blind Dutch auction.

100. The method of claim 92, further comprising at least one process selected from the group consisting of clearing a transaction, processing a transaction, monitoring a regulatory requirement, and monitoring a compliance requirement.

101. The method of claim 92, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, and the anonymous blind auction engine are combined.

102. The method of claim 95, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, the anonymous blind auction engine, and the analytics engine are combined.

103. The method of claim 92, further comprising executing a trade anonymously when the contra-side trade-interest becomes a complementary order to the first trade-interest.

104. The method system of claim 92, wherein the trade-interest and contra-side trade interest each comprise a plurality of trade-interests.

105. The trading system of claim 92, further comprising performing at least one item selected from the group consisting of

routing a part of a trade-interest for execution when the trade-interest comprises an order;

processing the trade-interest comprising an order and if part of the order cannot be processed then routing that part of the order for execution; and

routing part of the trade-interest comprising an order for execution at the same time the system processes the order.

106. The method of claim 105, wherein the step of performing uses an algorithmic and optimization engine.

107. A trading system comprising:

a trade-interest entry engine configured to receive a plurality of trade interests;

a trade-interest matching engine configured to match trade-interests received by the trade-interest entry engine;

an alert generating engine configured to notify a subscriber that a near-complementary trade-interest exists;

an anonymous blind auction engine configured to be activated when the trade-interest matching engine identifies near-complementary trade-interests;

a mechanism for executing a trade configured to be activated when the trade-interest matching engine identifies complementary trade-interests that are orders.

108. The trading system of claim 107, wherein the trade-interest matching engine matches trade-interests that are complementary or near-complementary based on at least one of subject matter and price.

109. The trading system of claim 107, further comprising a back office system configured to perform at least one item selected from the group consisting of clearing a transaction, processing a transaction, monitoring a regulatory requirement, and monitoring a compliance requirement.

110. The trading system of claim 107, further comprising an analytics engine.

111. The trading system of claim 110, wherein the analytics engine is configured to provide at least one service selected from the group consisting of a pre-trade service, a post-trade service, and an algorithmic trade service.

112. The trading system of claim 107, wherein the trading system is configured for trading a security.

113. The trading system of claim 107, wherein the trading system is Internet-based.

114. The trading system of claim 107, wherein at least one of the trade-interests comprises an indication of interest.

115. The trading system of claim 107, wherein the subscriber notified by the alert generating engine comprises a qualified subscriber.

116. The trading system of claim 107, wherein the alert generating engine notifies the subscriber via at least one item selected from the group consisting of an e-mail, a text message, a phone call, a sound, a color, a graphic, an alphanumeric character, a link, a pop-up, a window, a dialog box, and text.

117. The trading system of claim 107, wherein the anonymous blind auction comprises an anonymous blind Dutch auction.

118. The trading system of claim 107, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, and the anonymous blind auction engine are combined.

119. The trading system of claim 110, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, the anonymous blind auction engine, and the analytics engine are combined.

120. The trading system of claim 107, wherein the plurality of trade-interests comprise trade-interests and contra-side trade-interests.

121. The trading system of claim 107, further comprising an algorithmic and optimization engine.

122. The trading system of claim 121, wherein the algorithmic and optimization engine is configured to at least perform one item selected from the group consisting of

route a part of a trade-interest for execution when the trade-interest comprises an order;

process the trade-interest comprising an order and if at least part of the order cannot be processed then route that unprocessed part of the order for execution; and

route at lease part of the order for execution at the same time the system processes the order.

123. A method of trading a good comprising:

receiving a trade-interest and a contra-side trade-interest;

determining whether the trade-interest and the contra-side trade-interest are matchable;

generating an alert when at least one of the matchable trade-interest and contra-side trade interest comprises an indication of interest;

activating an anonymous blind auction to trade the good when at least one of the matchable trade-interest and contra-side trade interest comprises an indication of interest; and

executing a trade anonymously when trade-interests that are complementary orders are matched.

124. The method of claim 123, wherein the trade-interests are received via a trade-interest entry engine.

125. The method of claim 123, wherein the determination step uses a trade-interest matching engine.

126. The method of claim 123, wherein the alert is generated via an alert generating engine.

127. The method of claim 123, wherein the anonymous blind auction is activated via an anonymous blind auction engine.

128. The method of claim 123, wherein the determination step matches trade-interests that are complementary or near-complementary.

129. The method of claim 123, wherein matchable comprises complementary or near-complementary.

130. The method of claim 123, wherein the activating step is automatic.

131. The method of claim 123, further comprising using an analytics engine.

132. The method of claim 131, wherein the analytics engine provides at least one service selected from the group consisting of a pre-trade service, a post-trade service, and an algorithmic trade service.

133. The method claim 123, wherein the good is a security.

134. The method of claim 123, wherein the trade-interest and contra-side trade-interest are entered by an entity or person.

135. The method of claim 123, wherein the anonymous blind auction comprises an anonymous blind Dutch auction.

136. The method of claim 123, further comprising at least one process selected from the group consisting of clearing a transaction, processing a transaction, monitoring a regulatory requirement, and monitoring a compliance requirement.

137. The method of claim 123, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, and the anonymous blind auction engine are combined.

138. The method of claim 131, wherein at least two engines from the group consisting of the trade-interest entry engine, the trade-interest matching engine, the alert generating engine, the anonymous blind auction engine, and the analytics engine are combined.

139. The method of claim 123, further wherein the execution of the trade occurs via a mechanism for executing trades.

140. The method system of claim 123, wherein the trade-interest and contra-side trade interest each comprise a plurality of trade-interests.

141. The trading system of claim 123, further comprising performing at least one item selected from the group consisting of

routing a part of a trade-interest for execution when the trade-interest comprises an order;

processing the trade-interest comprising an order and if part of the order cannot be processed then routing that part of the order for execution; and

routing part of the trade-interest comprising an order for execution at the same time the system processes the order.

142. The method of claim 141, wherein the step of performing uses an algorithmic and optimization engine.