Non-Deterministic Trading Systems and Methods

• US 20080177654A1
• Filed: 01/17/2008
• Published: 07/24/2008
• Est. Priority Date: 01/19/2007
• Status: Abandoned Application

• Current Assignee: Trayport Ltd. (TMX Group Limited)
• Original Assignee: Trayport Ltd. (TMX Group Limited)
• Inventors: Hor, Edmund Hon Wah, Bihari, Pranav
• Application Number:
  US12/015,796
• Publication Number:
  US 20080177654A1
• 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

Abstract

Financial instruments are traded within an electronic marketplace. A proposed trade is received from one market constituent. Trade probabilities representing an estimate that the proposed trade can occur between the party entering the trade and other parties participating in the market are determined. The proposed trades are then presented to other participants in the marketplace, along with (or in some cases coded according to) the trade probabilities.

Claims

1. A method for trading financial instruments within an electronic marketplace, the method comprising:

receiving a proposed trade from a first market constituent;

receiving trade probabilities for the proposed trade, the trade probabilities representing an estimate that the proposed trade can be executed between the first market constituent and a second market participant and based, at least in part, on one or more trade parameters; and

presenting the proposed trade and the respective trade probability to the second market participant.

2. The method of claim 1 wherein the financial instrument is one or more of stocks, equities, corporate bonds, government bonds, commodities, mutual funds, fixed-income investments, exchange traded funds, futures, currency contracts, and any derivatives thereof.

3. The method of claim 1 further comprising receiving instructions from the second market constituent to execute the proposed trade.

4. The method of claim 3 further comprising confirming the trade upon receiving the instructions to execute the proposed trade.

5. The method of claim 1 further comprising filtering the proposed trades based on the trade probabilities and presenting only those proposed trades that exceed a trade probability threshold.

6. The method of claim 5 wherein the trade probability threshold is defined by the second market constituent.

7. The method of claim 1 further comprising calculating the trade probabilities.

8. The method of claim 1 wherein the trade probabilities are further based, at least in part, on technical features of the electronic marketplace.

9. The method of claim 1 wherein the trade probabilities are further based, at least in part, on one or more characteristics of the first market constituent.

10. The method of claim 7 wherein the trade probabilities are further based, at least in part, on one or more characteristics of the second market constituent.

11. The method of claim 1 wherein the trade probabilities vary among market constituents.

12. The method of claim 1 wherein the trade probabilities vary as a function of time.

13. The method of claim 1 wherein the trade probabilities vary as a function of the number of market constituents.

14. The method of claim 1 wherein the trade probabilities are further bases, at least in part, on a historical record of previously proposed trades.

15. A system for trading financial instruments within an electronic multi-constituent marketplace, the system comprising:

a plurality of trading client machines, each machine comprising trading client interface software for displaying proposed trades to market participants;

a transaction server for calculating trade probabilities for the proposed trade, the trade probabilities representing an estimate that the proposed trade can be executed among the market participants and based, at least in part, on one or more trade parameters; and

a distribution server for providing information regarding the proposed trades and trade probabilities to the trading client machines.