SYSTEM, METHOD AND COMPUTER PROGRAM PRODUCT FOR PROVIDING AN EFFICIENT TRADING MARKET

• US 20090177572A1
• Filed: 11/03/2008
• Published: 07/09/2009
• Est. Priority Date: 05/18/2001
• Status: Active Grant

• Current Assignee: Chemtron Research LLC (Intellectual Ventures LLC)
• Original Assignee: Network Resonance Incorporated
• Inventors: Rescorla, Eric Kenneth, Dick, Kevin Stewart
• Granted Patent: US 7,979,343 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 system, method and computer program product for providing a trading exchange are disclosed. A request for conducting trade of a security is received from a user. The security associated with requested trade is evaluated to generate a derivative security. A trade is then executed for the user using the derivative security. Information relating to the executed trade is captured utilizing a network so that the captured information can be utilized to adjust an account of the user in accordance with the executed trade.

Claims

1. A method, comprising:

receiving a request to execute a trade of a security from a user;

generating a derivative security having a price equal to a price of the security at a time the request was issued;

executing the requested trade using the derivative security instead of the security and without finding a counterparty for the trade of the security;

obtaining a market price of the security at the time of the request from a financial market quotes provider; and

adjusting an account of the user in accordance with the executed trade utilizing the captured information.

2. The method of claim 1, wherein the derivative security is dynamically generated.

3. The method of claim 1, wherein the trade comprises a purchase.

4. The method of claim 3, wherein the derivative security has a limited lifetime, and the derivative security is automatically sold if the derivative security is held by the user at the end of the limited lifetime.

5. The method of claim 1, wherein the user is limited by the trading exchange to hold an amount of the derivate security having a value equal to less than a predetermined percentage of an aggregate value of the security.

6. The method of claim 1, wherein the request includes a timestamp identifying the time of the request.

7. The method of claim 6, wherein the timestamp is compared to a recorded data feed of market quotes to determine the price of the security.

8. The method of claim 1, wherein the user is permitted to add or remove funds from the account.

9. The method of claim 1, wherein the request is received utilizing a network.

10. A system for providing a trading exchange, comprising:

a capture component for receiving a request to execute a trade of a security from a user;

a derivative component for generating a derivative security having a price equal to a price of the security at a time the request was issued;

a transaction component for executing the requested trade using the derivative security instead of the security and without finding a counterparty for the trade of the security;

the capture component obtaining a market price of the security at the time of the request from a financial market quotes provider; and

a component for adjusting an account of the user in accordance with the executed trade utilizing the captured information.

11. The method of claim 10, wherein the derivative security is dynamically generated.

12. The method of claim 10, wherein the trade comprises a purchase.

13. The method of claim 12, wherein the derivative security has a limited lifetime, and the derivative security is automatically sold if the derivative security is held by the user at the end of the limited lifetime.

14. The method of claim 10, wherein the user is limited by the trading exchange to hold an amount of the derivate security having a value equal to less than a predetermined percentage of an aggregate value of the security.

15. The method of claim 10, wherein the request includes a timestamp identifying the time of the request.

16. The method of claim 15, wherein the component for adjusting an account of the user compares the timestamp to a recorded data feed of market quotes to determine the price of the security.

17. The method of claim 10, wherein the user is permitted to add or remove funds from the account.

18. The method of claim 10, wherein the capture component receives the request utilizing a network.

19. A computer-readable medium having computer-executable instructions for causing a computer to perform a method, the method comprising:

receiving a request to execute a trade of a security from a user;

generating a derivative security having a price equal to a price of the security at a time the request was issued;

executing the requested trade using the derivative security instead of the security and without finding a counterparty for the trade of the security;

obtaining a market price of the security at the time of the request from a financial market quotes provider; and

adjusting an account of the user in accordance with the executed trade utilizing the captured information.