SYSTEMS AND METHODS FOR CONTROLLING TRADERS FROM MANIPULATING ELECTRONIC TRADING MARKETS

• US 20080133401A1
• Filed: 02/15/2008
• Published: 06/05/2008
• Est. Priority Date: 05/09/2001
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Gilbert, Andrew C., Tselepis, William P., Stergiopoulos, Andrew
• Granted Patent: US 8,725,623 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• 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

Systems and methods are provided to control gaming in electronic trading markets. These systems and methods alleviate the problem of a seller or buyer trying to act on a trader'"'"'s original bid or offer only to trade at an unfavorable level after the trader changes the bid or offer. A pricing method suspends trading for a period of time if a price difference between two bids or offers by the same trader is too great. A timing method prevents a trader from canceling or replacing a bid or offer for a period of time. These methods provide a more fair and efficient way of executing electronic trades.

Claims

1. A method for controlling manipulation of an electronic trading market by a trader comprising:

providing an exclusive trading period wherein only a first trader may submit a bid or offer and a second trader may submit a hit or take; and

automatically providing a bid-offer period upon completion of the trading period.

2. The method of claim 1 further comprising preventing the first trader from canceling or replacing the bid or offer.

3. The method of claim 1 wherein providing the exclusive trading period further comprises allowing the first trader to submit multiple bids or offers.

4. The method of claim 1 further comprising restarting the exclusive trading period upon the second trader submitting a hit or take.

5. The method of claim 1 further comprising preventing the first trader from canceling or replacing the bid or offer during the bid-offer period.

6. The method of claim 1 further comprising allowing the second trader to respond to the bid or offer with a hit or take during the bid-offer period.

7. The method of claim 1 further comprising allowing the first trader to cancel or replace the bid or offer upon completion of the bid-offer period.

8. A system for controlling manipulation of an electronic trading market by a trader comprising:

a trading server that provides an exclusive trading period wherein a first trader may submit a bid or offer and a second trader may submit a hit or take, and a bid-offer period that starts automatically upon completion of the trading period.

9. The system of claim 8 wherein the trading server restarts the exclusive trading period upon the second trader submitting a hit or take.

10. The system of claim 8 wherein the bid-offer period prevents the first trader from canceling or replacing the bid or offer.

11. The system of claim 8 wherein the bid-offer period allows the second trader to respond to the bid or offer with a hit or take.

12. The system of claim 8 wherein the trading server allows the first trader to cancel or replace the bid or offer upon completion of the bid-offer period.