NON-FIRM ORDERS IN ELECTRONIC MARKETPLACES

• US 20100057627A1
• Filed: 09/04/2008
• Published: 03/04/2010
• Est. Priority Date: 09/04/2008
• Status: Abandoned Application

• Current Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Original Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Inventors: Miller, Mark, Foley, Kevin, Lutnick, Howard W., Alderucci, Dean P., Plott, Charles, Fishkind, Andrew, Gay, Brian L.
• Application Number:
  US12/204,403
• Publication Number:
  US 20100057627A1
• Time in Patent Office: Days
• US Class Current: 705/80
• 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
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A trading platform and trading method that allows access to additional pools of liquidity is described. Other embodiments are also described.

Claims

1. A method comprising:

receiving, by a computer system of a marketplace, an indication of a non-firm order from a first participant, in which the non-firm order defines a side of a trade for a financial instrument, in which the non-firm order must be confirmed with a submitter of the non-firm order before execution of the trade fulfilling at least a part of the non-firm order, and in which the non-firm order defines a quantity of the financial instrument;

determining a portion of the quantity of the financial instrument;

transmitting an order query identifying only the portion of the quantity of the non-firm order to each of a plurality of systems, in which each of the plurality of systems is associated with a respective order management system;

determining, by a respective system of the plurality of systems, that a matching order is stored in a respective order management system associated with the respective system, in which the matching order defines an opposite side of the trade for the financial instrument;

in response to the determination, providing, by the respective system, a request for acceptance of a trade involving the portion of the quantity of the non-firm order through a user interface;

receiving, by the respective system, a positive reply to the request indicating that a trade fulfilling at least a part of the non-firm order that involves at least a part of the portion of the quantity should be executed;

in response to receiving the positive reply, transmitting from the respective system to the computer system of the marketplace, an indication that a trade fulfilling at least the part of the non-firm order and at least a part of the matching order should be executed without a negotiation involving either party to the trade;

receiving, by the computer system of the marketplace, the indication the that the trade should be executed;

in response to receiving the indication, transmitting a request for confirmation of the non-firm order from the computer system of the marketplace to the submitter of the non-firm order;

receiving an indication of a confirmation of the non-firm order; and

in response to receiving the indication of the confirmation, facilitating execution of the trade fulfilling at least the part of each of the the non-firm order and the matching order without the negotiation.

2. The method of claim 1, in which facilitating the execution includes facilitating the execution with a price that may be identified from the query.

3. The method of claim 1, further comprising preventing the submitter from changing at one of a price associated with the trade, and a quantity associated with the trade non firm order.

4. The method of claim 1, in which facilitating the execution without the negotiation includes facilitating the execution without initiating a negotiation about a price of the trade and without initiating a negotiation about a quantity of financial instruments traded.

5. The method of claim 1, further comprising requiring the submitter to respond to the request for confirmation in a time period.

6. The method of claim 5, in which the time period begins when the request for confirmation is transmitted.

7. The method of claim 5, in which the time period begins when the request for confirmation is received by the submitter.

8. The method of claim 5, in which the time period includes a time period between about 10 milliseconds and about 1 second.

9. The method of claim 5, in which the indication of the confirmation is received in the time period.

10. The method of claim 5, in which the indication of the confirmation is transmitted in the time period.

11. The method of claim 1, further comprising receiving an indication of an agreement that the submitter will confirm the non-firm order unless at least one of the non-firm order is cancelled and at least a part of the non- firm order is fulfilled so that the at least the part of the non-firm order is no longer available before at least one of the transmission of the request for confirmation and a receipt of the request for confirmation.

12. The method of claim 11, further comprising determining whether the at least the part of the non-firm order is fulfilled.

13. The method of claim 12, in which determining whether the at least the part of the non-firm order is fulfilled includes determining if at least one of an agreement to execute a trade fulfilling the at least the part of the non-firm order and another order has been entered into by the first participant, a trade fulfilling the at least the part of the non-firm order and another order has been executed, and an act entering the first participant into a trade fulfilling the at least the part of the non-firm order and another order has occurred.

14. The method of claim 12, in which determining whether the at least the part of the non-firm order is fulfilled includes receiving an indication of whether the at least the part of the non-firm order is fulfilled.

15. The method of claim 11, further comprising determining whether the non- firm order is cancelled.

16. The method of claim 15, in which determining whether the non-firm order is cancelled includes determining if at least one of a request to cancel the non-firm order is received from an originator of the non-firm order by the first participant, a request to cancel the non-firm order is processed by the first participant, and a time period during which the non-firm order is scheduled to remain active expires.

17. The method of claim 15, in which determining whether the non-firm order is cancelled includes receiving an indication of whether the non-firm order is cancelled.

18. The method of claim 1, further comprising receiving an indication that the first participant agrees to prevent a human from obtaining information regarding confirming unless the non-firm order is confirmed.

21. The method of claim 1, further comprising algorithmically determining the portion of the quantity of the non-firm order.

22. The method of claim 1, further comprising determining the portion of the quantity of the non-firm order based on historical information regarding prior order queries and respective portions of associated non-firm orders that remained pending upon receipt of respective responses to the prior order queries.

23. The method of claim 1, in which the portion of the non-firm order includes a percentage of the non-firm order.

24. The method of claim 1, in which the portion includes a portion that is expected to be confirmed by the submitter.

25. The method of claim 1, in which the query includes an indication that the order is not a firm order.

26. The method of claim 1, in which the query includes an indication that the non-firm order is a firm order.

29. The method of claim 1, in which the confirmation includes an acceptance of an offer to enter into the trade.

19. (canceled)

20. (canceled)

27. (canceled)

28. (canceled)

30. (canceled)

31. (canceled)

32. (canceled)

33. A method comprising:

receiving an indication of a non-firm order from a first participant, in which the non-firm order defines a side of a trade for a financial instrument, in which the non-firm order must be confirmed with a submitter of the non-firm order before execution of the trade fulfilling at least a part of the non-firm order;

determining that a matching order to the non-firm order is stored in an order management system and that an offer to enter into a trade that fulfills at least a portion of each of the non-firm order and the matching order is accepted, in which the matching order defines an opposite side of the trade for the financial instrument;

in response to the determination, transmitting a request for confirmation of the non-firm order to the first participant;

receiving an indication of a confirmation of the non-firm order; and

facilitating execution of the trade fulfilling at least the portion of each of the non-firm order and the matching order without initiating a negotiation about a price or quantity of the trade.

35. The method of claim 33, further comprising preventing the first participant from changing a price associated with the non-firm order, and a quantity associated with the non-firm order.

36. The method of claim 33, further comprising requiring the first participant to confirm the non-firm order in a time period.

37. The method of claim 36, in which the time period begins when the request for confirmation is transmitted.

38. The method of claim 36, in which the time period begins when the request for confirmation is received by the first participant.

39. The method of claim 36, in which the time period includes a time period between about 10 milliseconds and about 1 second.

40. The method of claim 36, in which the indication of the confirmation is received in the time period.

41. The method of claim 36, in which the indication of the confirmation is transmitted in the time period.

42. The method of claim 33, further comprising receiving an indication of an agreement that the first participant will confirm the non-firm order unless at least one of the non-firm order is cancelled and at least a part of the non-firm order is fulfilled so that the at least the portion of the non-firm order is no longer available before at least one of the transmission of the request for confirmation and a receipt of the request for confirmation.

43. The method of claim 42, further comprising determining whether the at least the part of the non-firm order is fulfilled.

44. The method of claim 43, in which determining whether the at least the part of the non-firm order is fulfilled includes determining if at least one of an agreement to execute a trade fulfilling the at least the part of the non-firm order and another order has been entered into by the first participant, a trade fulfilling the at least the part of the non-firm order and another order has been executed, and an act that entering the first participant into a trade fulfilling the at least the part of the non-firm order and another order has occurred.

45. The method of claim 43, in which determining whether the at least the part of the non-firm order is fulfilled includes receiving an indication of whether the at least the part of the non-firm order is fulfilled.

46. The method of claim 42, further comprising determining whether the non-firm order is cancelled.

47. The method of claim 46, in which determining whether the non-firm order is cancelled includes determining if at least one of a request to cancel the non-firm order is received from an originator of the non-firm order by the first participant, a request to cancel the non-firm order is processed by the first participant, and a time period during which the non-firm order is scheduled to remain active expires.

48. The method of claim 46, in which determining whether the non-firm order is cancelled includes receiving an indication of whether the non-firm order is cancelled.

49. The method of claim 33, further comprising receiving an indication that the first participant agrees to prevent a human from obtaining information regarding confirming unless the non-firm order is confirmed.

50. The method of claim 33, in which the offer includes an offer to enter into a trade that fulfills only a portion of the non-firm order.

51. The method of claim 50, further comprising determining the portion of the non-firm order.

52. The method of claim 50, further comprising algorithmically determining the portion of the non-firm order.

53. The method of claim 50, further comprising determining the portion of the non-firm order based on historical information.

54. The method of claim 50, in which the portion of the non-firm order includes a percentage of the non-firm order.

55. The method of claim 50, in which the portion includes a portion that is expected to be confirmed by the first participant.

56. The method of claim 33, in which determining includes querying a second participant.

57. The method of claim 56, in which the query includes an indication that the order is not a firm order.

58. The method of claim 56, in which the query includes an indication that the non-firm order is a firm order.

59. The method of claim 33, in which determining includes transmitting a single query to a computer system configured to interpret the single query as asking if the matching order is stored in the order management system and, if the matching order is stored in the order management system, if the offer is accepted, and receiving an indication of an acceptance of the non-firm order.

60. The method of claim 33, in which the confirmation includes an acceptance of an offer to enter into the trade.

34. (canceled)

61. (canceled)

62. (canceled)

63. (canceled)

64. A system comprising:

a processor operable to execute a plurality of instructions stored on a machine readable medium; and

the machine readable medium having stored thereon a plurality of instructions that, when executed by the processor, cause the processor to;

determine if a matching order to a non-firm order is stored in an order management system and if an offer to enter into a trade that fulfills at least a portion of each of a non-firm order and the matching order is accepted, in which the non-firm order defines a side of a trade for a financial instrument, and in which the matching order defines an opposite side of the trade for the financial instrument;

if it is determined that the offer is accepted, transmit a request for confirmation of the non-firm order;

determine whether an indication of a confirmation of the non-firm order was received; and

if it is determined that the indication of the confirmation of the non-firm order was received, facilitate execution of the trade fulfilling at least the portion of each of the non-firm order and the matching order.

65. The system of claim 64, in which the plurality of instructions, when executed by the processor, further cause the processor to:

if it is determined that the indication of the confirmation of the non-firm order was not received, receive information identifying circumstances that overcome an agreement to confirm the non-firm order.

66. The system of claim 65, in which the circumstances include at least one of a cancelation of the non-firm order and a fulfillment of at least a portion of the non-firm order by another order.

67. The system of claim 65 further comprising receiving an indication of the agreement, in which the agreement includes an agreement to confirm the non-firm order if the non-firm order is available.

68. The system of claim 67, in which the non-firm order is available if the non- firm order is not cancelled, and if at least a part of the non-firm order sufficient to fulfill the matching order has not been fulfilled by another order.

69. The system of claim 64, in which facilitating the execution includes facilitating the execution without initiating a negotiation about a price of the trade and without initiating a negotiation about a quantity of financial instruments traded.

70. The system of claim 64, in which the plurality of instructions, when executed by the processor, further cause the processor to:

prevent a change in a price associated with the non-firm order, and a quantity associated with the non-firm order.

71. The system of claim 64, in which determining whether the indication of the confirmation was received, includes determining whether the indication of the confirmation was received in a time period.

72. The system of claim 71, in which the time period begins when the request for confirmation is transmitted.

73. The system of claim 71, in which the time period includes a time period between about 10 milliseconds and about 1 second.

74. The system of claim 71, in which the plurality of instructions, when executed by the processor, further cause the processor to:

determine if the time period has expired and if either an indication of the confirmation has been received or an indication of a non-confirmation has been received; and

if it is determined that the time period has expired and neither an indication of the confirmation nor an indication of a non-confirmation has been received, facilitate execution of the trade fulfilling at least the portion of each of the non-firm order and the matching order.

75. The system of claim 64, in which the plurality of instructions, when executed by the processor, further cause the processor to:

receive an indication that a submitter of the non-firm order agrees to prevent a human from obtaining information regarding confirming unless the non-firm order is confirmed before determine if the matching order is stored in the order management system and if the offer to enter into a trade that fulfills at least the portion of each of the non-firm order and the matching order is accepted,

76. The system of claim 64, in which the offer includes an offer to enter into a trade that fulfills only a portion of the non-firm order.

77. The system of claim 76, in which the plurality of instructions, when executed by the processor, further cause the processor to:

determine the portion of the non-firm order.

78. The system of claim 77, in which determining the portion of the non-firm order includes algorithmically determining the portion of the non-firm order.

79. The system of claim 77, in which determining the portion of the non-firm order includes determining the portion of the non-firm order based on historical information.

80. The system of claim 77, in which determining the portion of the non-firm order includes determining a percentage of the non-firm order.

81. The system of claim 77, in which determining the portion of the non-firm order includes determining a portion that is expected to be confirmed.

82. The system of claim 64, in which determining if the matching order is stored in the order management system and if the offer to enter into a trade that fulfills at least a portion of each of the non-firm order and the matching order is accepted, includes querying a participant.

83. The system of claim 82, in which the query includes an indication that the non-firm order is not a firm order.

84. The system of claim 82, in which the query includes an indication that the non-firm order is a firm order.

85. (canceled)

86. (canceled)

87. An apparatus comprising:

one or more machine-readable media having stored thereon a plurality of instructions that when executed by one or more processors cause the processors to;

transmit an indication of an agreement to confirm a non-firm order unless at least one of the non-firm order is cancelled and at least a part of the non-firm order is fulfilled so that the non-firm order cannot be used to fulfill another order before at least one of the transmission of a request for confirmation and a receipt of the request for confirmation;

transmit an indication of a non-firm order, in which the non-firm order defines a side of a trade for a financial instrument;

receive, from a system configured to find matching orders to the non-firm order in the content of a plurality of order management systems, an indication defining a matching firm order, in which the matching firm order defines an opposite side of the trade for the financial instrument;

determine whether at least one of the non-firm order has been cancelled and the at least the part of the non-firm order has been fulfilled;

if a determination is made that the at least one of the non-firm order has not been cancelled and that the part of the non-firm order has not been fulfilled, transmit a confirmation identifying that an execution of the trade should be facilitated and if a determination is made that at least one of the non-firm order has been cancelled and the at least the part of the non-firm order has been fulfilled, not confirming the non-firm order.

88. The apparatus of claim 87, in which the confirmation identifies that the execution should take place without a negotiation about a price of the trade and without a negotiation about a quantity of financial instruments traded.

89. The apparatus of claim 87, in which the confirmation is transmitted within a prescribed time period.

90. The apparatus of claim 89, in which the time period begins when the indication defining the matching firm order is received.

91. The apparatus of claim 89, in which the time period begins when the indication defining the matching firm order is transmitted.

92. The apparatus of claim 89, in which the time period includes a time period between about 10 milliseconds and about 1 seconds.

93. The apparatus of claim 87, in which not confirming the non-firm order includes transmitting auditing information identifying that at least one of the non-firm order has been cancelled and the at least the part of the non-firm order has been fulfilled.

94. The apparatus of claim 87, in which determining whether the at least the part of the non-firm order has been fulfilled includes determining whether at least one of an agreement to execute a trade that fulfills at least a part of the portion has been entered into, a trade fulfilling at least a part of the portion has been executed, and an entering into a trade that fulfills at least part of the portion has occurred.

95. The apparatus of claim 94, in which determining whether the non-firm order has been cancelled includes determining whether at least one of a request to cancel the non-firm order is received from an originator of the non-firm order, a request to cancel the non-firm order is processed, and a time period during which the non-firm order is scheduled to remain active is expired.

96. The apparatus of claim 87, further comprising preventing a change to at one of a price associated with the non-firm order, and a quantity associated with the non-firm order.

97. The apparatus of claim 87, in which the confirmation includes an acceptance of an offer to enter into the trade.

98. (canceled)