SYSTEMS AND METHODS FOR ELECTRONIC TRADING THAT PROVIDE INCENTIVES AND LINKED AUCTIONS

• US 20080243622A1
• Filed: 06/11/2008
• Published: 10/02/2008
• Est. Priority Date: 06/15/1999
• Status: Active Grant

• Current Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Original Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Inventors: Lutnick, Howard W., Ginsberg, Philip M., Kirwin, Glenn D., FRASER, STUART A
• Granted Patent: US 7,797,227 B2
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0231 Awarding of a frequent usage incentive independent of the monetary value of a good or service purchased, or distance travelled
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

Systems and methods for electronic trading that provide incentives for gathering orders, making markets, and submitting block orders, and that enable linking of multiple auctions are provided. These systems and methods may first determine if the trader qualifies for an incentive. This determination may be made based upon one or more characteristics, such as price, size, duration, etc., of orders submitted to the trading system by the trader. Once the trader has been determined as being eligible for one or more incentives, the incentives that are provided may include reduced transaction costs, cash payments, priority or exclusivity in trading, self execution of transactions, etc. Similarly, before an order is eligible to be traded in an auction that is linked to another auction in the trading system, the order is preferably confirmed as qualifying to be auctioned in such a manner. Once an order is confirmed as qualifying for a linked auction, the auction is created and preferably linked to another auction based upon a characteristic of the order, such as price. In addition to being linked, information from each auction may be made available to traders in the other auctions.

Claims

1. A method for electronic trading comprising:

receiving a plurality of orders that are submitted by a trader;

determining that the trader qualifies for an incentive based upon a price of the plurality of orders that are received from the trader; and

for a period of time, providing the trader with an opportunity to trade exclusively in the marketplace.

2. The method of claim 1, further comprising

operating a network server that communicates with a plurality of workstations and receives the order for at least one item from at least one of the plurality of workstations.

3. The method of claim 1, in which the incentive comprises:

executing orders that are submitted by the trader before executing orders that are submitted by at least one other trader, in which the trader'"'"'s orders are submitted after the other trader'"'"'s orders have been submitted.

4. An apparatus comprising:

a processor; and

a memory that stores instructions which, when executed by the processor, direct the processor to perform the method of claim 1.

5. The apparatus of claim 5, in which the instructions, when executed by the processor, further direct the processor to perform the method of claim 2.

6. The apparatus of claim 5, in which the instructions, when executed by the processor, further direct the processor to perform the method of claim 3.

7. An article of manufacture comprising:

a storage medium, in which the storage medium stores instructions which, when executed by a processor, direct the processor to perform the method of claim 1.

8. The article of manufacture of claim 7, in which the instructions, when executed by the processor, further direct the processor to perform the method of claim 2.

9. The article of manufacture of claim 7, in which the instructions, when executed by the processor, further direct the processor to perform the method of claim 3.