CREDIT DERIVATIVE TRADING PLATFORM

• US 20080215430A1
• Filed: 11/01/2007
• Published: 09/04/2008
• Est. Priority Date: 07/28/2005
• Status: Abandoned Application

• Current Assignee: Creditex Group, Inc. (TP ICAP Plc)
• Original Assignee: Creditex Group, Inc. (TP ICAP Plc)
• Inventors: Etkin, Henry, ELLIS, William Paul Basil, ROWELL, Mark
• Application Number:
  US11/933,960
• Publication Number:
  US 20080215430A1
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A credit derivative trading platform comprises a credit derivative authority configured to create contracts and allow market participants to trade credit derivative contracts in real-time. One or more credit sponsors provide credit to the market participants on the platform. One or more liquidity sponsors may provide a predetermined level of price support on the platform.

Claims

1. A credit derivative trading platform comprising:

a credit derivative authority that accepts orders from one or more market participants and executes trades between participants;

one or more market participant systems for placing orders into the platform;

one or more credit sponsors that provide credit to the one or more market participants on the platform.

2. The credit derivative trading platform of claim 1, further comprising one or more liquidity sponsors that provide a predetermined level of price support on the platform.

3. The credit derivative trading platform of claim 1, wherein the credit derivative authority is configured to create one or more single name credit default contracts.

4. The credit derivative trading platform of claim 1, wherein the platform supports market orders, limit orders, and market-to-limit orders.

5. The credit derivative trading platform of claim 1, wherein the platform supports iceberg orders.

6. The credit derivative trading platform of claim 1, wherein the credit derivative authority is configured to net trades between market participants.

7. The credit derivative trading platform of claim 1, wherein the credit derivative authority is configured to support fill or kill, immediate or cancel and minimum volume orders.

8. A method of transacting credit derivatives on an electronic trading platform comprising:

matching orders between a first market participant and a second market participant on the platform;

executing a trade between the first market participant and the second market participant; and

automatically executing an agreement between the first market participant and a first credit sponsor involving credit for the executed trade.

9. The method of claim 8, further comprising executing an agreement between the second market participant and a second credit sponsor involving credit for the executed trade.

10. The method of claim 9, further comprising executing an agreement between the second credit sponsor and the second credit sponsor involving credit for the executed trade.

11. The method of claim 8, wherein the first market participant or second market participant is a liquidity sponsor that provides a predetermined level of price support on the platform.

12. The method of claim 8, wherein the matching orders include a market order a limit order, or a market-to-limit order.

13. The method of claim 8, wherein the matching orders include an iceberg order.

14. The method of claim 8, further comprising netting trades between market participants.

15. The method of claim 8, wherein the matching orders include a fill or kill, immediate or cancel, or minimum volume order.

16. A method of creating a single name credit default swap contract on an electronic trading platform comprising:

polling one or more market participants on the platform concerning the reference obligors;

choosing one or more of the polled reference obligors;

requesting that one or more market participants provide fixed coupons for each of the chosen reference obligors.

17. A method of creating and trading an index of credit default swap contracts on an electronic trading platform comprising:

creating an index of credit default swaps on the platform; and

trading the index on the platform.