SYSTEMS AND METHODS FOR TRADING

• US 20080071671A1
• Filed: 11/29/2007
• Published: 03/20/2008
• Est. Priority Date: 04/30/1999
• Status: Active Grant

• Current Assignee: BGC Partners LP (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Williams, Michael, Gilbert, Andrew, Fraser, Stuart, Ginsberg, Philip, Kirwin, Glenn, Lutnick, Howard
• Granted Patent: US 8,285,614 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present invention is systems and methods for trading. In accordance with these systems and methods, a plurality of trader work stations that are connected to a central server may be provided. Through the work stations and central server, the systems and methods may perform participant qualification, instrument creation, bid/offer entry and response, when hit and take, workup, price retention, price improvement, request for market, bid/off restoration, price generation, position conversion, marking to market, and delivery functions.

Claims

1. An apparatus comprising at least one computing device having control logic associated therewith that when executed makes the computing device operable to:

receive on a first side of a market a first order, in which the first order comprises a first price;

receive from a work station a trading command against at least a portion of the first side of the market, including the first order;

prior to executing the trading command, update the first side of the market to include a second order, in which the second order comprises a second price, in which the second price is different from the first price, and in which the second order is within the at least portion of the first side of the market such that the trading command applies to the second order;

execute the trading command against the first order; and

enable a participant via the work station to refuse to trade the second order at the second price.

2. The apparatus of claim 1,

in which the first and second orders comprise at least one of:

bids, and

offers; and

in which the trading command comprises at least one of;

a hit command, and

a lift command.

3. The apparatus of claim 1,

in which the first and second orders comprise bids;

and

in which the second price is lower than the first price.

4. The apparatus of claim 1,

in which first and second orders comprise offers;

and

in which the second price is higher than the first price.

5. The apparatus of claim 1,

in which the control logic, that when executed, makes the computing device further operable to determine that a time at which the first side of the market is updated to include the second order is within a predetermined time interval prior to a time of the trading command;

and

in which to enable the participant to refuse to trade the second order at the second price comprises to enable the participant via the work station to refuse to trade the second order at the second price based at least in part on determining that the time at which the first side of the market is updated to include the second order is within the predetermined time interval prior to the time of the trading command.

6. The apparatus of claim 5, in which the control logic, that when executed, makes the computing device further operable to:

determine that the time at which the first side of the market is updated to include the second order is outside the predetermined time interval prior to the time of the trading command; and

execute the trading command against at least a portion of the second order at the second price based at least in part on determining that the time at which the first side of the market is updated to include the second order is outside the predetermined time interval prior to the time of the trading command.

7. The apparatus of claim 6, in which the time of the trading command comprises a time the trading command is placed.

8. The apparatus of claim 6, in which the time of the trading command comprises a time the trading command is executed.

9. The apparatus of claim 5, in which the control logic, that when executed, makes the computing device further operable to:

based at least in part on determining that the time at which the first side of the market is updated to include the second order is within the predetermined time interval prior to the time of the trading command, enable the participant via the work station to;

trade the second order at the second price.

10. The apparatus of claim 9, in which the control logic, that when executed, makes the computing device further operable to:

receive from the work station an indication to refuse to trade the second order at the second price; and

based at least in part on receiving the indication to refuse to trade the second order at the second price, enable at least another participant via another work station to trade the second order at the second price.

11. The apparatus of claim 10, in which the control logic, that when executed, makes the computing device further operable to:

receive from the work station an indication to trade the second order at the second price;

determine that all of the second order at the second price is to be traded; and

based at least in part on determining that all of the second order is to be traded, provide the participant via the work station an ability to trade exclusively additional volume of the item with at least a further participant.

12. The apparatus of claim 1, in which the control logic, that when executed, makes the computing device further operable to:

determine an amount of time between a time the first side of the market is updated to include the second order and a time of the trading command;

determine that the amount of time is less than a predetermined value, and in which to enable the participant to refuse to trade the second order at the second price comprises to enable the participant via the work station to refuse to trade the second order at the second price based at least in part on determining that the amount of time is less than the predetermined value;

determine that the amount of time is greater than the predetermined value; and

execute the trading command against at least a portion of the second order at the second price based at least in part on determining that the amount of time is greater than the predetermined value.

13. The apparatus of claim 12, in which the time of the trading command comprises a time the trading command is placed.

14. The apparatus of claim 12, in which the time of the trading command comprises a time the trading command is executed.

15. The apparatus of claim 12, in which the control logic, that when executed, makes the computing device further operable to:

based at least in part on determining that the amount of time is less than the predetermined value, enable the participant via the work station to;

trade the second order at the second price.

16. The apparatus of claim 1, in which the control logic, that when executed, makes the computing device further operable to:

receive the second order;

determine an amount of time between the trading command and the second order;

determine that the amount of time is less than a predetermined value, and in which to enable the participant to refuse to trade the second order at the second price comprises to enable the participant via the work station to refuse to trade the second order at the second price based at least in part on determining that the amount of time is less than the predetermined value;

determine that the amount of time is greater than the predetermined value; and

execute the trading command against at least a portion of the second order at the second price based at least in part on determining that the amount of time is greater than the predetermined value.

17. An apparatus comprising at least one computing device having control logic associated therewith that when executed makes the computing device operable to:

receive on a first side of a market a first order, in which the first order comprises a first price;

receive from a work station a trading command against at least a portion of the first side of the market, including the first order;

prior to executing the trading command, receive on the first side of the market a second order, in which the second order comprises a second price, in which the second price is different from the first price, and in which the second order is within the at least portion of the first side of the market such that the trading command applies to the second order;

execute the trading command against the first order; and

enable a participant via the work station to refuse to trade the second order at the second price.

18. The apparatus of claim 17, in which the computing device is further operable to:

determine an amount of time between the trading command and the second order;

determine that the amount of time is less than a predetermined value, and in which to enable the participant to refuse to trade the second order at the second price comprises to enable the participant via the work station to refuse to trade the second order at the second price based at least in part on determining that the amount of time is less than the predetermined value;

determine that the amount of time is greater than the predetermined value; and

execute the trading command against at least a portion of the second order at the second price based at least in part on determining that the amount of time is greater than the predetermined value.

19. The apparatus of claim 18, in which the control logic, that when executed, makes the computing device further operable to:

based at least in part on determining that the amount of time is less than the predetermined value, enable the participant via the work station to;

trade the second order at the second price.

20. A method comprising:

receiving on a first side of a market a first order, in which the first order comprises a first price;

receiving from a work station a trading command against at least a portion of the first side of the market, including the first order;

prior to executing the trading command, updating the first side of the market to include a second order, in which the second order comprises a second price, in which the second price is different from the first price, and in which the second order is within the at least portion of the first side of the market such that the trading command applies to the second order;

executing the trading command against the first order; and

enabling a participant via the work station to;

refuse to trade the second order at the second price, and

trade the second order at the second price.

21. The method of claim 20, further comprising

determining that a time at which the first side of the market is updated to include the second order is within a predetermined time interval prior to a time of the trading command;

and

in which enabling the participant to refuse to trade the second order at the second price and to trade the second order at the second price comprises enabling the participant via the work station to refuse to trade the second order at the second price and to trade the second order at the second price based at least in part on determining that the time at which the first side of the market is updated to include the second order is within the predetermined time interval prior to the time of the trading command.

22. The method of claim 21, in which the time of the trading command comprises a time the trading command is placed.

23. The method of claim 21, in which the time of the trading command comprises a time the trading command is executed.

24. The method of claim 21, further comprising:

receiving from the work station an indication to refuse to trade the second order at the second price; and

based at least in part on receiving the indication to refuse to trade the second order at the second price, enabling at least another participant via another work station to trade the second order at the second price.

25. The method of claim 21, further comprising:

receiving from the work station an indication to trade the second order at the second price;

determining that all of the second order at the second price is to be traded; and

based at least in part on determining that all of the second order is to be traded, providing the participant via the work station an ability to trade exclusively additional volume of the item with at least a further participant.

26. The method of claim 20, further comprising:

determining an amount of time between a time the first side of the market is updated to include the second order and a time of the trading command;

determining that the amount of time is less than a predetermined value, and in which enabling the participant to refuse to trade the second order at the second price and to trade the second order at the second price comprises enabling the participant via the work station to refuse to trade the second order at the second price and to trade the second order at the second price based at least in part on determining that the amount of time is less than the predetermined value.

27. The method of claim 26, in which the time of the trading command comprises a time the trading command is placed.

28. The method of claim 26, in which the time of the trading command comprises a time the trading command is executed.

29. The method of claim 20, further comprising:

receiving the second order;

determining an amount of time between the trading command and the second order;

determining that the amount of time is less than a predetermined value, and in which enabling the participant to refuse to trade the second order at the second price and to trade the second order at the second price comprises enabling the participant via the work station to refuse to trade the second order at the second price and to trade the second order at the second price based at least in part on determining that the amount of time is less than the predetermined value.

30. A method comprising:

receiving on a first side of a market a first order, in which the first order comprises a first price;

receiving from a work station a trading command against at least a portion of the first side of the market, including the first order;

prior to executing the trading command, receiving on the first side of the market a second order, in which the second order comprises a second price, in which the second price is different from the first price, and in which the second order is within the at least portion of the first side of the market such that the trading command applies to the second order;

executing the trading command against the first order; and

enabling a participant via the work station to;

refuse to trade the second order at the second price, and

trade the second order at the second price.

31. The method of claim 30, further comprising:

determining an amount of time between the trading command and the second order;

determining that the amount of time is less than a predetermined value, and in which enabling the participant to refuse to trade the second order at the second price and to trade the second order at the second price comprises enabling the participant via the work station to refuse to trade the second order at the second price and to trade the second order at the second price based at least in part on determining that the amount of time is less than the predetermined value.