TRADING RELATED TO FUND COMPOSITIONS

• US 20100076884A1
• Filed: 09/25/2008
• Published: 03/25/2010
• Est. Priority Date: 09/25/2008
• Status: Active Grant

• 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.
• Granted Patent: US 8,712,903 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06F 16/9538 Presentation of query results
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

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 an indication of a composition of a fund, in which the composition includes a plurality of financial instruments that are owned by the fund;

receiving a plurality of orders, in which each order defines a side of a trade for a financial instrument;

for each order, determining if a respective financial instrument of a respective trade is part of the composition of the fund; and

for each order, if it is determined that the respective financial instrument of the respective trade is part of the composition of the fund, transmitting a respective first query asking if a respective offer to enter into a respective trade that fulfills at least a portion of each of the order and a respective matching order that matches the order is accepted by an operator of the fund.

2. The method of claim 1, further comprising:

receiving an indication of an acceptance of a trade defined by a respective first query; and

facilitating an execution of the trade.

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

4. The method of claim 3, in which facilitating the execution includes facilitating the execution with a price and a quantity that may be identified from the respective first query.

5. The method of claim 3, in which facilitating the execution includes facilitating the execution without initiating a negotiation about a price and without initiating a negotiation about a quantity.

6. The method of claim 3, in which facilitating the execution includes facilitating the execution in response to receiving the indication of the acceptance.

7. The method of claim 1, further comprising suppressing evidence of the transmission of the respective queries.

8. The method of claim 1, in which the fund includes at least one of a mutual fund and an exchange traded fund.

9. The method of claim 1, comprising:

for each order, if it is determined that the respective financial instrument of the respective trade defined by the order is part of the composition of the fund, transmitting a respective second query asking if a respective matching order to the respective order is stored in an order management system associated with the fund.

10. The method of claim 9, in which transmitting each respective first query and each respective second query includes transmitting a respective single query to a computer system configured to interpret the single query as asking if the respective matching order is stored in the respective order management system and, if the respective matching order is stored in the respective order management system, if the respective offer is accepted.

11. The method of claim 1, in which transmitting each respective first query includes transmitting the respective query to a respective system configured to determine if the respective matching order is stored in a respective order management system, determine if the respective offer is accepted, and respond to the respective query only if the respective matching order is stored in the respective order management system and the respective offer is accepted.

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

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

14. 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.

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

16. A method comprising:

receiving an indication of a composition of a fund, in which the composition includes a plurality of financial instruments that are owned by the fund;

receiving an indication of an order, in which the order defines a side of a trade for a financial instrument;

determining that the financial instrument is part of the composition of the fund;

determining that an offer to enter into a that fulfills at least a portion of each of the order and a matching order to the order is accepted by an operator of the fund, in which the matching order defines an opposite side of the trade for the financial instrument; and

facilitating an execution of the trade.

17. The method of claim 16, in which determining that the offer is accepted includes determining that the matching order to the order is stored in an order management system associated with the fund.

18. The method of claim 17, in which determining that the offer is accepted includes:

transmitting a first query asking if the matching order to the order is stored in the order management system;

transmitting a second query asking if the offer is accepted; and

receiving an indication of an acceptance of the offer.

19. The method of claim 18, in which transmitting the first query and the second query 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.

20. The method of claim 19, further comprising suppressing evidence of the transmission of the single query.

21. The method of claim 17, in which facilitating the execution includes facilitating the execution in response to receiving the indication of the acceptance.

22. The method of claim 16, in which the fund includes at least one of a mutual fund and an exchange traded fund.

23. The method of claim 16, in which facilitating includes facilitating the execution without a negotiation about a price of the trade and without a negotiation about a quantity of financial instruments in the trade.

24. The method of claim 16, in which facilitating the execution includes facilitating the execution without initiating a negotiation about a price and without initiating a negotiation about a quantity.

25. The method of claim 16, in which the order includes a firm order.

26. The method of claim 16, in which the order includes a non-firm order.

27. 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 16.

28. A method comprising submitting an order to a system operable to perform the method of claim 16.

29. A method comprising:

receiving an indication of a composition of a fund, in which the composition includes a plurality of financial instruments that are owned by the fund;

receiving an indication of an order, in which the order defines a side of a trade for a financial instrument;

determining that the financial instrument is part of the composition of the fund;

determining a change in price of the financial instrument;

based on the change in price of the financial instrument, determining if an operator of the fund is likely to be interested in an opposite side of the trade for the financial instrument;

if the operator is determined to be likely to be interested in the opposite side of the trade for the financial instrument, determining that an offer to enter into a that fulfills at least a portion of each of the order and a matching order to the order is accepted by an operator of the fund

facilitating an execution of the trade fulfilling.

30. The method of claim 29, in which determining that the offer is accepted includes determining that the matching order to the order is stored in an order management system associated with the fund.

31. The method of claim 30, in which determining that the offer is accepted includes:

transmitting a first query asking if the matching order to the order is stored in the order management system;

transmitting a second query asking if the offer is accepted; and

receiving an indication of an acceptance of the offer.

32. The method of claim 31, in which transmitting the first query and the second query 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.

33. The method of claim 32, further comprising suppressing evidence of the transmission of the single query.

34. The method of claim 30, in which facilitating the execution includes facilitating the execution in response to receiving the indication of the acceptance.

35. The method of claim 29, in which determining if the operator is likely to be interested in the opposite side of the trade for the financial instrument includes determining if the price change includes an increase or a decrease in price.

36. The method of claim 35, in which if the opposite side of the trade includes a sale of the financial instrument, then the operator is determined to be interested if the price change includes an increase.

37. The method of claim 35, in which if the opposite side of the trade includes a buy of the financial instrument, then the operator is determined to be interested if the price change includes a decrease.

38. The method of claim 29, in which the fund includes at least one of a mutual fund and an exchange traded fund.

39. The method of claim 29, in which facilitating includes facilitating the execution without a negotiation about a price of the trade and without a negotiation about a quantity of financial instruments in the trade.

40. The method of claim 29, in which facilitating the execution includes facilitating the execution without initiating a negotiation about a price and without initiating a negotiation about a quantity.

41. The method of claim 29, in which the order includes a firm order.

42. The method of claim 29, in which the order includes a non-firm order.

43. The method of claim 29, in which the change in price includes a change in price from a receipt of the indication of the composition.

44. 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 29.

45. A method comprising submitting an order to a system operable to perform the method of claim 29.