SYSTEMS AND METHODS FOR FACILITATING ELECTRONIC SECURITIES TRANSACTIONS

• US 20080262957A1
• Filed: 04/18/2007
• Published: 10/23/2008
• Est. Priority Date: 04/18/2007
• Status: Active Grant

• Current Assignee: Instinet Holdings Incorporated (Instinet Incorporated)
• Original Assignee: State Street Global Markets, LLC (State Street Corporation)
• Inventors: Ford, Preston R.
• Granted Patent: US 8,521,627 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

Abstract

A method for facilitating securities transactions is shown. In one embodiment, the method includes identifying, by a computer system from an OMS comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity; transmitting, by the computer system to an ETM, a non-binding indication corresponding to one order of the subset of orders, the non-binding indication comprising a security identifier and the order type; receiving, by the computer system, an indication that a match exists to the non-binding indication; determining, by the computer system, a total available quantity for the order corresponding to the non-binding indication; and transmitting, by the OMS, a binding order corresponding to the non-binding indication, the binding order comprising the determined total available quantity. Corresponding systems are also described.

Claims

1. A computer implemented method for facilitating securities transactions, the method comprising:

(a) identifying, by a computer system from an order management system (OMS) comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity;

(b) transmitting, by the computer system to an electronic trading marketplace (ETM), a non-binding indication corresponding to one order of the subset of orders, the non-binding indication comprising a security identifier and the order type;

(c) receiving, by the computer system, an indication that a match exists to the non-binding indication;

(d) determining, by the OMS in response to receiving a request from the computer system, a total available quantity for the order corresponding to the non-binding indication; and

(e) transmitting, by the OMS, a binding order corresponding to the non-binding indication, the binding order comprising the determined total available quantity.

2. The method of claim 1, wherein the computer system comprises a computer program executing on at least one computer.

3. The method of claim 1, wherein step (a) comprises identifying, by a computer system from an order management system (OMS) comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity and meeting at least one other criterion.

4. The method of claim 1, wherein step (a) comprises periodically identifying, by a computer system from an order management system (OMS) comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity.

5. The method of claim 1, wherein step (b) comprises periodically transmitting, by the computer system to an electronic trading marketplace (ETM), a non-binding indication corresponding to one of the subset of orders, the non-binding indication comprising a security identifier and the order type.

6. The method of claim 1, wherein step (b) comprises transmitting, by the computer system to an electronic trading marketplace (ETM), a plurality of non-binding indications, each non-binding indication corresponding to one of the subset of orders, and each non-binding indication comprising a security identifier and the order type.

7. The method of claim 6, wherein step (c) comprises receiving, by the computer system, a plurality of indications, each indication indicating that a match exists to one of the plurality of non-binding indications.

8. The method of claim 1, wherein step (e) comprises

(e-a) displaying, to a user, a decision screen with respect to a potential transaction corresponding to the binding order;

and

(e-b) transmitting, to an ETM, the binding order in response to a user decision.

9. The method of claim 1, wherein step (e) comprises transmitting, by the OMS, a binding order, the binding order comprising the determined total available quantity and the security identifier and order type identified by the non-binding indication.

10. The method of claim 1, wherein step (e) comprises transmitting, by the OMS, a binding order, the binding order comprising the determined total available quantity, a minimum executable threshold, and the security identifier and order type identified by the non-binding indication.

11. The method of claim 1, further comprising the step of presenting, to a user after the execution of a transaction of a security, a decision screen which receives a commitment to trade an additional quantity of the security with a counterparty from the transaction.

12. The method of claim 1, further comprising the step of transmitting, after an execution of a transaction of a security, an indication of an opportunity to trade an additional quantity of the security with a counterparty from the transaction.

13. A computer-implemented system for facilitating securities transactions, the system comprising:

an order information collector which identifies, from at least one order management system (OMS) comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity;

an electronic trading marketplace (ETM) interface in communication with the order information collector which transmits, to an ETM, a non-binding indication corresponding to one order of the subset of orders, the non-binding indication comprising a security identifier and the order type; and

receives an indication that a match exists to the non-binding indication; and

an OMS which determines, in response to receiving a request from the computer system, a total available quantity for the order corresponding to the non-binding indication; and

transmits a binding order corresponding to the non-binding indication, the binding order comprising the determined total available quantity.

14. The system of claim 13, wherein one of the order information collector and ETM interface comprises a computer program executing on at least one computer.

15. The system of claim 13, wherein the order information collector identifies, from an order management system (OMS) comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity and meeting at least one other criterion.

16. The system of claim 13, wherein the order information collector periodically identifies, from an order management system (OMS) comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity.

17. The system of claim 13, wherein the ETM interface periodically transmits, to an electronic trading marketplace (ETM), a non-binding indication corresponding to one of the subset of orders, the non-binding indication comprising a security identifier and the order type.

18. The system of claim 13, wherein the ETM interface transmits, to an electronic trading marketplace (ETM), a plurality of non-binding indications, each non-binding indication corresponding to one of the subset of orders, and each non-binding indication comprising a security identifier and the order type.

19. The system of claim 13, wherein the ETM interface receives a plurality of indications, each indication indicating that a match exists to one of the plurality of non-binding indications.

20. The system of claim 13, further comprising a user station which displays, to a user, a decision screen with respect to a potential transaction corresponding to the binding order;

and transmits a received user decision.

21. The system of claim 13, wherein the OMS transmits a binding order, the binding order comprising the determined total available quantity and the security identifier and order type identified by the non-binding indication.

22. The system of claim 13, wherein the OMS transmits a binding order, the binding order comprising the determined total available quantity, a minimum executable threshold, and the security identifier and order type identified by the non-binding indication.

23. The system of claim 13, further comprising a decision screen, in communication with the ETM interface, which receives from a user, after the execution of a transaction of a security, a commitment to trade an additional quantity of the security with a counterparty from the transaction.

24. A computer implemented method for facilitating securities transactions, the method comprising:

(a) identifying, by a computer system from an order management system (OMS) comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity;

(b) transmitting, by the computer system to an electronic trading marketplace (ETM), a first non-binding indication corresponding to one order of the subset of orders, the first non-binding indication comprising a security identifier and the order type;

(c) receiving, by the computer system from an ETM, a request for an available quantity for the first non-binding indication;

(d) determining, by the computer system, a total available quantity corresponding to the first non-binding indication; and

(e) transmitting, by the computer system to the ETM, in response to the received request, the determined total available quantity.

25. The method of claim 24, wherein step (c) comprises receiving, by the computer system from an ETM, a request for an available quantity for the first non-binding indication, the received request comprising a unique identifier.

26. The method of claim 25, wherein step (e) comprises transmitting, by the computer system to the ETM, in response to the received request, the determined total available quantity and the received unique identifier.

27. The method of claim 24, further comprising the step of determining, by the ETM, a transaction quantity for a transaction corresponding to the first non-binding indication and the determined total available quantity.

28. The method of claim 27 further comprising the step of transmitting, by the ETM, a request for a binding order corresponding to the first non-binding indication, the request including the determined transaction quantity.

29. The method of claim 27 further comprising the step of transmitting, by the ETM to the computer system, a request for a binding order corresponding to the first non-binding indication.

30. The method of claim 27 further comprising the step of receiving, by the ETM, a binding order corresponding to the first non-binding indication comprising one of the determined transaction quantity or a second available quantity.

31. The method of claim 27, further comprising the step of presenting, to a user after the execution of a transaction of a security, a decision screen which receives a commitment to trade an additional quantity of the security with a counterparty from the transaction.

32. The method of claim 27, further comprising the step of transmitting, after an execution of a transaction of a security, an indication of an opportunity to trade an additional quantity of the security with a counterparty from the transaction.

33. A computer implemented system for facilitating securities transactions, the system comprising:

an order information collector which identifies, from at least one order management system (OMS) comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity; and

determines a total available quantity corresponding to a first non-binding indication; and

an electronic trading marketplace (ETM) interface in communication with the order information collector which transmits, to an ETM, the first non-binding indication corresponding to one order of the subset of orders, the non-binding indication comprising a security identifier and the order type; and

receives a request for an available quantity corresponding to the non-binding indication; and

transmits, to the ETM in response to the received request, the determined total available quantity.

34. The system of claim 33, wherein the ETM interface receives, from an ETM, a request for an available quantity corresponding to the first non-binding indication, the received request comprising a unique identifier.

35. The system of claim 33, wherein the ETM interface transmits, to the ETM, in response to the received request, the determined total available quantity and the received unique identifier.

36. The system of claim 33, further comprising an ETM which determines a transaction quantity for a transaction corresponding to the first non-binding indication, and the determined total available quantity;

and transmits a request for a binding order corresponding to the first non-binding indication.

37. The system of claim 36, wherein the ETM determines that a minimum transaction quantity threshold has been met.

38. The system of claim 36, further comprising a decision screen, in communication with the ETM interface, which receives from a user, after the execution of a transaction of a security, a commitment to trade an additional quantity of the security with a counterparty from the transaction.