Method for directing and executing certified trading interests

• US 20090018971A1
• Filed: 07/17/2008
• Published: 01/15/2009
• Est. Priority Date: 06/01/2000
• Status: Active Grant

• Current Assignee: Virtu ITG Software Solutions LLC
• Original Assignee: Aritas Group, Inc.
• Inventors: Federspiel, Fred J., Waelbroeck, Henri, Angel, James J.
• Granted Patent: US 7,908,205 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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

Preferred embodiments of the subject invention comprise: (a) electronically receiving securities order-related data regarding a set of securities market participants; (b) electronically storing the received order-related data regarding the set of securities market participants; (c) electronically receiving a securities order-related query (or order parameters) from a first securities market participant; (d) based on the order-related query (or order parameters) received from the first securities market participant and on the securities order-related data regarding the set of securities market participants, computing a dissemination list of securities market participants based on ranking likely contras by probability of execution; and (e) transmitting that dissemination list to an entity who has been granted the privilege of receiving such lists in exchange for being contractually bound to respect confidentiality of the dissemination list and to use the list only for the purpose of sending securities-related information to members of the list.

Claims

1. A method of managing securities market information, comprising the steps of:

(a) electronically receiving securities order- or trade-related data regarding a set of securities market participants;

(b) electronically storing said received order-related data regarding said set of securities market participants;

(c) electronically receiving securities order parameters from a first securities market participant;

(d) based on said securities order parameters received from said first securities market participant and on said securities order- or trade-related data regarding said set of securities market participants, computing a dissemination list of securities market participants based on ranking likely contras by probability of execution; and

(e) transmitting said dissemination list to an entity who has been granted a privilege of receiving such lists in exchange for being contractually bound to respect confidentiality of the dissemination list and to use the list only for the purpose of sending securities-related information to members of the list.

2. A method as in claim 1, wherein the likely contras are ranked based on probability of execution.

3. A method as in claim 1, wherein likely contras are ranked based on the expected price impact following the delivery of said securities-related information to said members of said lists.

4. A method as in claim 1, wherein said securities order- or trade-related information sent by said entity to members of said list comprises orders or information about orders.

5. A method as in claim 1, wherein said entity is said first securities market participant.

6. A method as in claim 1, wherein said entity is:

(a) further contractually bound to permit an auditing firm to audit the entity'"'"'s information dissemination practices; and

(b) subject to termination of its privilege of receiving dissemination lists if said auditing firm determines that the entity has failed to satisfactorily maintain confidentiality of dissemination lists or has failed to use said lists only for the purpose of sending information to members of said lists.

7. A method as in claim 1, wherein said entity uses a software system to receive, store, and transmit dissemination lists and is:

(a) further contractually bound to permit a consulting firm to inspect the software system that will receive the dissemination lists prior to initiating the service; and

(b) subject to termination of its privilege of receiving dissemination lists if said consulting firm determines that said software system, in its initial form or in a modified form, does not satisfactorily maintain confidentiality of dissemination lists or does not ensure that said lists are used only for the purpose of sending securities-related information to members of said lists.