Computer Method and System for Intermediated Exchanges

• US 20080052222A1
• Filed: 10/30/2007
• Published: 02/28/2008
• Est. Priority Date: 05/15/1997
• Status: Abandoned Application

• Current Assignee: ITG Software Solutions, Inc. (Virtu Financial, Inc.)
• Original Assignee: ITG Software Solutions, Inc. (Virtu Financial, Inc.)
• Inventors: Karchmer, Mauricio, Ferstenberg, Robert, Hilai, Ran
• Application Number:
  US11/929,004
• Publication Number:
  US 20080052222A1
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

In a preferred embodiment, this invention includes software processes distributed on one or more computer systems that exchange messages in order to facilitate an intermediated exchange of financial commodities between a plurality of participants. The messages are exchanged according to a preferred protocol that leads to a satisfactory exchange that meets the objectives of the participants, and that substantially maximizes in a fair manner the total amount of financial commodities exchanged. Optionally, the invention employs heuristic rules in association with the preferred protocol that adapt the protocol to the time and exchange requirements of financial commodities. In other embodiments, this invention is equally applicable to the exchange of any tangible or intangible commodities. In a general embodiment, this invention further includes a preferred message-exchange protocol for the construction of computer programs representing exchange participants and an intermediary. These constructed computer programs exchange messages such that a satisfactory intermediated exchange of commodities is substantially certain to be achieved.

Claims

1. A computer-based method for an intermediated exchange of commodities among a plurality of participants, each participant being associated with an agent process executing on a computer coupled to a network, the method comprising:

sending, from the agent processes to an intermediary process executing on the computer, electronic opening messages that include digital data representing the maximum amount of each commodity that each agent process will exchange during the intermediated exchange;

sending, from the intermediary process to the agent processes, electronic offer messages that include digital data representing amounts of commodities currently offered to each respective agent process, the amounts being determined so that for each commodity the amount being offered for sale by all the agent processes equals the amount being offered for purchase by all the agent processes;

receiving, by the intermediary program, electronic counter-offer messages from the agent processes, each counter-offer message including digital data representing amounts of offered commodities accepted by each agent process, the accepted commodity amounts being less than or equal to the associated offered commodity amounts;

repeating the previous two steps in order, each ordered repetition being a round of an electronic negotiation, until the agent processes accept all the amounts of commodities offered, the accepted amounts being final commodity amounts; and

sending electronic results messages to participant computers over the network, the results messages including digital data representing the final commodity amounts.