SYSTEMS AND METHODS FOR TRADING

• US 20080077523A1
• Filed: 11/29/2007
• Published: 03/27/2008
• 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, Lutnick, Howard, Ginsberg, Philip, Kirwin, Glenn
• Granted Patent: US 8,224,740 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 from a first work station an order, in which the order comprises a first price and a size;

receive from a second work station a trading command against at least a portion of the size of the order;

prior to executing the trading command, change the order from the first price to a second price; and

execute the trading command against the order at the first price.

2. The apparatus of claim 1,

in which the order comprises at least one of:

a bid, and

an offer; and

in which the trading command comprises at least one of;

a hit of at least the portion of the size of the bid, and

a lift of at least the portion of the size of the offer.

3. The apparatus of claim 1,

in which to execute the trading command against the order at the first price comprises to execute the trading command against the order at the first price and at a size that is less than the size of the order, and in which the order comprises a remaining size after executing the trading command against the order at the first price;

and

in which the control logic, that when executed, makes the computing device further operable, after executing the trading command against the order at the first price, to post the order at the second price and at the remaining size.

4. 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 order is changed to the second price is within a predetermined time interval prior to a time of the trading command;

and

in which to execute the trading command against the order at the first price comprises to execute the trading command against the order at the first price based at least in part on determining that the time at which the order is changed to the second price is within the predetermined time interval prior to the time of the trading command.

5. The apparatus of claim 4, in which the control logic, that when executed, makes the computing device further operable to:

determine that the time at which the order is changed to the second price is outside the predetermined time interval prior to the time of the trading command; and

execute the trading command against the order at the second price based at least in part on determining that the time at which the order is changed to the second price is outside the predetermined time interval prior to the time of the trading command.

6. The apparatus of claim 5,

in which to execute the trading command against the order at the first price comprises to execute the trading command against the order at the first price and at a size that is less than the size of the order, and in which the order comprises a remaining size after executing the trading command against the order at the first price;

and

in which the control logic, that when executed, makes the computing device further operable, after executing the trading command against the order at the first price, to post the order at the second price and at the remaining size.

7. The apparatus of claim 5, in which the time of the trading command comprises a time the trading command is placed.

8. The apparatus of claim 5, in which the time of the trading command comprises a time the trading command is executed.

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

determine that the trading command is for at least the size of the order; and

determine that a time at which the order is changed to the second price is within a predetermined time interval prior to a time of the trading command; and

in which to execute the trading command against the order at the first price comprises to execute the trading command against the order at the first price based at least in part on determining that the trading command is for at least the size of the order and determining that the time at which the order is changed to the second price is within the predetermined time interval prior to the time of the trading command.

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

determine that the trading command is for less than the size of the order; and

execute the trading command against the order at the second price based at least in part on determining that the trading command is for less than the size of the order.

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

determine that the time at which the order is changed to the second price is outside the predetermined time interval prior to the time of the trading command; and

execute the trading command against the order at the second price based at least in part on determining that the time at which the order is changed to the second price is outside the predetermined time interval prior to the time of the trading command.

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 order is changed to the second price and a time of the trading command;

determine that the amount of time is less than a predetermined value, and in which to execute the trading command against the order at the first price comprises to execute the trading command against the order at the first 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 the order at the second price based at least in part on determining that 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 1, in which the control logic, that when executed, makes the computing device further operable to:

receive from the first work station a command that changes the order to the second price;

determine an amount of time between the trading command and the command that changes the order to the second price;

determine that the amount of time is less than a predetermined value, and in which to execute the trading command against the order at the first price comprises to execute the trading command against the order at the first 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 the order at the second price based at least in part on determining that the amount of time is greater than the predetermined value.

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

receive from a first work station an order, in which the order comprises a first price and a size;

receive from a second work station a trading command against at least a portion of the size of the order;

prior to executing the trading command, receive from the first work station a command to change the order from the first price to a second price; and

execute the trading command against the order at the first price.

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

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

determine that the amount of time is less than a predetermined value, and in which to execute the trading command against the order at the first price comprises to execute the trading command against the order at the first 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 the order at the second price based at least in part on determining that the amount of time is greater than the predetermined value.

18. A method comprising:

receiving from a first work station an order, in which the order comprises a first price and a size;

receiving from a second work station a trading command against at least a portion of the size of the order;

prior to executing the trading command, changing the order from the first price to a second price; and

executing the trading command against the order at the first price.

19. The method of claim 18,

in which executing the trading command against the order at the first price comprises executing the trading command against the order at the first price and at a size that is less than the size of the order, and in which the order comprises a remaining size after executing the trading command against the order at the first price;

and

in which the method further comprises, after executing the trading command against the order at the first price, posting the order at the second price and at the remaining size.

20. The method of claim 18, further comprising:

determining that a time at which the order is changed to the second price is within a predetermined time interval prior to a time of the trading command; and

in which executing the trading command against the order at the first price comprises executing the trading command against the order at the first price based at least in part on determining that the time at which the order is changed to the second price is within the predetermined time interval prior to the time of the trading command.

21. The method of claim 20, in which the time of the trading command comprises a time the trading command is placed.

22. The method of claim 20, in which the time of the trading command comprises a time the trading command is executed.

23. The method of claim 18, further comprising

determining that the trading command is for at least the size of the order;

determining that a time at which the order is changed to the second price is within a predetermined time interval prior to a time of the trading command; and

in which executing the trading command against the order at the first price comprises executing the trading command against the order at the first price based at least in part on determining that the trading command is for at least the size of the order and determining that the time at which the order is changed to the second price is within the predetermined time interval prior to the time of the trading command.

24. The method of claim 18, further comprising:

determining an amount of time between a time the order is changed to the second price and a time of the trading command; and

determining that the amount of time is less than a predetermined value; and

in which executing the trading command against the order at the first price comprises executing the trading command against the order at the first price based at least in part on determining that the amount of time is less than the predetermined value.

25. The method of claim 24, in which the time of the trading command comprises a time the trading command is placed.

26. The method of claim 24, in which the time of the trading command comprises a time the trading command is executed.

27. The method of claim 18, further comprising:

receiving from the first work station a command that changes the order to the second price;

determining an amount of time between the trading command and the command that changes the order to the second price; and

determining that the amount of time is less than a predetermined value; and

in which executing the trading command against the order at the first price comprises executing the trading command against the order at the first price based at least in part on determining that the amount of time is less than the predetermined value.

28. A method comprising:

receiving from a first work station an order, in which the order comprises a first price and a size;

receiving from a second work station a trading command against at least a portion of the size of the order;

prior to executing the trading command, receiving from the first work station a command to change the order from the first price to a second price; and

executing the trading command against the order at the first price.

29. The method of claim 28, further comprising:

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

determining that the amount of time is less than a predetermined value; and

in which executing the trading command against the order at the first price comprises executing the trading command against the order at the first price based at least in part on determining that the amount of time is less than the predetermined value.