Computer Method and System for Intermediated Exchanges

• US 20080059359A1
• Filed: 10/30/2007
• Published: 03/06/2008
• 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:
  US11/928,935
• Publication Number:
  US 20080059359A1
• 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-implemented method for electronically representing participants in an intermediated exchange of commodities, the method comprising steps of:

a) receiving, by a participant computer process executing on at least one computer coupled to a network, an electronic order message from a participant computer coupled to the network, the order message including data representing intermediated exchange objectives of the participant;

b) receiving, by the participant computer process, electronic request messages from an intermediary process associated with an intermediated exchange, executing on at least one computer, the electronic request messages including an opening message query and at least one offer message, the offer message including digital data representing amounts of commodities offered to the agent process; and

c) sending, from the participant computer process to the intermediary process, one or more electronic response messages including an opening message and at least one counter-offer message, the opening message including digital data representing maximum amounts of commodities that the participant is willing to exchange during the intermediated exchange, the counter-offer message including digital data representing amounts of commodities accepted by the agent process based on the exchange objectives of the participant, the accepted amounts being less than or equal to the amounts of commodities offered by the intermediary process within the electronic offer message;

wherein said steps (b) and (c) are repeated until a maximum number of commodities is exchanged with the participant that satisfy both the intermediated exchange objectives of the participant and intermediated exchange objectives of the intermediated exchange.