GENERATING RISK POOLS

• US 20100076883A1
• Filed: 09/25/2008
• Published: 03/25/2010
• Est. Priority Date: 09/25/2008
• 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:
  US12/237,958
• Publication Number:
  US 20100076883A1
• 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 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:

transmitting a plurality of sets of queries to a plurality of participants, in which each set of queries asks the plurality of participants about a respective order, in which each query of each set of queries asks a respective participant if a respective matching order to the respective order is stored in a respective order management system associated with a respective participant and if the respective participant accepts a respective offer to enter into a respective trade that fulfills at least a portion of each of the order and the respective matching order;

for each query, if a participant accepts the respective offer, facilitating an execution of the respective trade,

based on results from the plurality of sets of queries, assigning each of the plurality of participants to a respective one of a plurality of risk pools, in which each risk pool corresponds to at least one rate of positive responses to offers to enter into trades; and

allowing a submitter of an order to identify one or more risk pools to which queries regarding the order should not be transmitted.

2. The method of claim 1, in which the at least one rate of positive responses includes a rate of positive responses to all offers to enter into a trade when a matching order is stored in an order management system.

3. The method of claim 1, in which the rate of positive responses includes a rate of positive responses to offers to enter into a trade when a matching order is stored in an order management system and associated with the submitter.

4. The method of claim 1, in which the rate of positive responses includes a rate of positive responses to offers to enter into a trade when a matching order is stored in an order management system and associated with an order having at least one similar characteristic to the order of the submitter.

5. The method of claim 4, in which the at least one characteristic includes at least one of a financial instrument, a quantity range, a price range, a market capitalization, an industry, and a financial instrument type.

6. The method of claim 1, in which the rate of positive responses includes a comparison between a number of positive responses and a number of offers.

7. The method of claim 1, in which the order includes a firm order.

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

9. The method of claim 1, in which allowing includes providing an interface through which the one or more risk pools may be selected.

10. 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 perform the method of claim 1.

11. A method comprising submitting an order to a system operable to perform the method of claim 1.

12. A method comprising:

for each of a plurality of firm orders, determining if each of a plurality of participants has a respective matching order stored in an order management systems associated with the participant and if the participant accepts a respective offer to enter into a respective trade that fulfills at least a portion of each of the firm order and the respective matching order;

for each offer, if a respective participant accepts the respective offer, facilitating an execution of the respective trade;

based on the outcomes of the offers, assigning each of the plurality of participants to a respective one of a plurality of risk pools, in which each risk pools correspond to at least one rate of positive responses to the offers to enter into trades; and

allowing a submitter of an order to identify one or more risk pools to which offers regarding the order should not be made.

13. The method of claim 12, in which the at least one rate of positive responses includes a rate of positive responses to all offers to enter into a trade when a matching order is stored in an order management system.

14. The method of claim 12, in which the rate of positive responses includes a rate of positive responses to offers to enter into a trade when a matching order is stored in an order management system and associated with the submitter.

15. The method of claim 12, in which the rate of positive responses includes a rate of positive responses to offers to enter into a trade when a matching order is stored in an order management system and associated with an order having at least one similar characteristic to the order of the submitter.

16. The method of claim 15, in which the at least one characteristic includes at least one of a financial instrument, a quantity range, a price range, a market capitalization, an industry, and a financial instrument type.

17. The method of claim 12, in which the rate of positive responses includes a comparison between a number of positive responses and a number of offers.

18. The method of claim 12, in which the order includes a firm order.

19. The method of claim 12, in which the order includes a non-firm order.

20. The method of claim 12, in which allowing includes providing an interface through which the one or more risk pools may be selected.

21. 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 perform the method of claim 12.

22. A method comprising submitting an order to a system operable to perform the method of claim 12.

23. A method comprising:

receiving an indication of a plurality of risk pools, in which each risk pool corresponds to a range of positive response rates to offers for acceptance of respective orders, and in which each risk pool includes a number of participants that correspond to respective positive response rates in the respective ranges;

receiving a selection of at least one risk pool;

transmitting an indication that participants associated with the at least one selected risk pool should be queried regarding an order, in which the order defines a side of a trade for a financial instrument;

receiving an indication that a matching order to the order was stored in an order management system associated with a participant in the at least one risk pool, that the participant accepted an offer to enter into a trade that fulfills at least a portion of each of the order and the matching order, and that an execution of the trade was facilitated; and

providing an indication that the execution was facilitated.

24. The method of claim 23, in which the positive response rates include rates of positive responses to all offers sent to participants to enter into a trade when a matching order is stored in an order management system associated with the participants.

25. The method of claim 23, in which the positive response rates include rates of positive responses to offers sent to participants to enter into a trade when a matching order is stored in an order management system associated with the participants and associated with a submitter of the order.

26. The method of claim 23, in which the positive response rates include rates of positive responses to offers sent to participants to enter into a trade when a matching order is stored in an order management system associated with the participant and associated with a second order having at least one similar characteristic to the order.

27. The method of claim 26, in which the at least one characteristic includes at least one of a financial instrument, a quantity range, a price range, a market capitalization, an industry, and a financial instrument type.

28. The method of claim 23, in which providing the indication that the execution was facilitated includes at least one of providing a display on an interface, and transmitting an electronic message.

29. The method of claim 23, in which the positive response rates includes a comparison between a number of positive responses and a number of offers.

30. The method of claim 23, in which the order includes a firm order.

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

32. The method of claim 23, in which the execution was facilitated without a negotiation about a price of the trade and without a negotiation about a quantity of financial instruments in the trade.

33. 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 perform the method of claim 23.