METHOD AND SYSTEM FOR PROVIDING OPTION SPREAD INDICATIVE QUOTES
First Claim
1. A computer implemented method for electronically trading derivative instruments comprising:
- receiving, by a network computer, an indicative quote data set for a plurality of derivative instruments from at least one market maker computer of a plurality of market maker computers;
receiving, by the network computer, a request for a non-binding quote for at least one of the plurality of derivative instruments from at least one of a market maker computer or subscriber computer over a communications network;
generating, by the network computer on behalf of the at least one market maker computer, a non-binding quote based on the indicative quote data set;
transmitting, by the network computer, the generated non-binding quote to the at least one of the market maker computer or subscriber computer over the communications network;
receiving, by the network computer, a request for binding quote for the at least one derivative instrument from at least one of the at least one of the market maker computer or subscriber computer over the communications network;
transmitting, by the network computer, the request for binding quote over the communications network to at least one of the plurality of market maker computers;
receiving, by the network computer, a binding quote from the at least one of the plurality of market maker computers in response to the transmitted request for binding quote; and
transmitting, by the network computer, the binding quote to the at least one of the market maker computer or subscriber computer.
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Accused Products
Abstract
A computer network and method for electronically trading combinations of derivatives. One preferred method of trading includes providing quotes information to a central server, and determining indicative quotes for combination trades, and providing the non-binding, indicative quotes to market participants (which typically includes subscribers, but may also include market makers). A participant may then submit an e-RFQ, which is a request for a binding quote for the combination of derivatives. Market Makers may then elect to submit a binding quote for the corresponding derivative combination. Market participants may then elect to enter a binding order.
48 Citations
17 Claims
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1. A computer implemented method for electronically trading derivative instruments comprising:
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receiving, by a network computer, an indicative quote data set for a plurality of derivative instruments from at least one market maker computer of a plurality of market maker computers; receiving, by the network computer, a request for a non-binding quote for at least one of the plurality of derivative instruments from at least one of a market maker computer or subscriber computer over a communications network; generating, by the network computer on behalf of the at least one market maker computer, a non-binding quote based on the indicative quote data set; transmitting, by the network computer, the generated non-binding quote to the at least one of the market maker computer or subscriber computer over the communications network; receiving, by the network computer, a request for binding quote for the at least one derivative instrument from at least one of the at least one of the market maker computer or subscriber computer over the communications network; transmitting, by the network computer, the request for binding quote over the communications network to at least one of the plurality of market maker computers; receiving, by the network computer, a binding quote from the at least one of the plurality of market maker computers in response to the transmitted request for binding quote; and transmitting, by the network computer, the binding quote to the at least one of the market maker computer or subscriber computer. - View Dependent Claims (2, 3, 4, 5, 6)
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7. A computer implemented method for electronically trading derivative instruments comprising the steps of:
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receiving, by a network computer, at least one indicative quote data set from at least one market maker computer for a plurality of option contracts, wherein the at least one indicative quote data set comprises at least bid and ask non-binding prices for the plurality of options contracts; providing, by the network computer, at least one non-binding quote to at least one of a market maker computer or subscriber computer for at least one specific combination of at least one options contract based on the received at least one indicative quote data set; receiving, by the network computer, at least one request from at least one of the market maker computer or subscriber computer for at least one binding quote for the at least one specific combination of at least one options contract; and requesting, by the network computer, at least one market maker computer to provide at least one binding quote for the at least one specific combination of at least one options contract. - View Dependent Claims (8, 9, 10, 11)
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12. A computer implemented method for electronically trading derivative instruments comprising the steps of:
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receiving, by a network computer, at least one indicative quote data set from at least one market maker computer for a plurality of option contracts, wherein the at least one indicative quote data set comprises at least bid and ask non-binding prices for the plurality of options contracts; receiving, by the network computer, at least one spread parameter; providing, by the network computer, at least one non-binding quote to at least one of a market maker computer or subscriber computer for at least one specific combination of at least one options contract based on the received at least one indicative quote data set and the at least one spread parameter; receiving, by the network computer, at least one request from at least one of the market maker computer or subscriber computer for at least one binding quote for the at least one specific combination of at least one options contract; requesting, by the network computer, at least one market maker computer to provide at least one binding quote for the at least one specific combination of at least one options contract; and archiving, by the network computer, quote generation data used to provide the at least one non-binding quote to the at least one of the market maker computer or subscriber computer. - View Dependent Claims (13, 14)
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15. A computer implemented method for electronically trading derivative instruments comprising the steps of:
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receiving, by a network computer, a request for a binding quote for a combination of selected derivative instruments from at least one of a market maker computer or subscriber computer over a communication network; transmitting, by the network computer, the request for binding quote over the communication network to at least one market maker computer; displaying, by the network computer, to the at least one market maker via the at least one market maker'"'"'s computer, the market maker'"'"'s indicative quote, and a corresponding aggregate best indicative quote; receiving, by the network computer, a binding quote in response to the transmitted request for binding quote; and transmitting, by the network computer, the binding quote to the at least one of the market maker computer or subscriber computer. - View Dependent Claims (16, 17)
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Specification