SUBSTITUTABILITY OF FINANCIAL INSTRUMENTS

• US 20100076896A1
• 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: Eishkind, Andrew, Miller, Mark, Foley, Kevin, Lutnick, Howard W., Alderucci, Dean P., Plott, Charles, Gay, Brian L.
• Application Number:
  US12/237,941
• Publication Number:
  US 20100076896A1
• 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 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 an indication of an order, in which the order defines a side of a trade for a first financial instrument;

transmitting a first query asking if a matching order to the order is stored in an order management system, in which the matching order defines an opposite side of a trade for a second financial instrument, and in which the first financial instrument is substitutable for the second financial instrument;

transmitting a second query asking if an offer to enter into a trade that fulfills at least a portion of each of the order and the matching order is accepted;

receiving an indication of an acceptance of the order; and

in response to receiving the acceptance, facilitating execution of the trade fulfilling at least the portion of each of the order and the matching order.

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

3. The method of claim 2, further comprising preventing a submitter of the order from changing at least one of a price associated with the order, and a quantity associated with the order.

4. The method of claim 2, 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.

5. The method of claim 1, in which the second financial instrument includes a financial instrument with at least one similar characteristic to the first financial instrument.

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

7. The method of claim 1, in which the order management system identifies whether the first financial instrument is substitutable for the second financial instrument.

8. The method of claim 1, in which the first query identifies whether the first financial instrument is substitutable for the second financial instrument.

9. The method of claim 1, in which a quantity of the first financial instrument to be traded is based on at least one of on an exchange rate determined by the order management system between the first financial instrument and the second financial instrument, an exchange rate determined from a market price of the first financial instrument compared to a market price of the second financial instrument, and an exchange rate indicated by the first query.

10. The method of claim 1, in which transmitting the first query and transmitting 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.

11. 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.

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

13. A method comprising:

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

determining that a matching order to the 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 order and the matching order is accepted, in which the matching order defines an opposite side of a trade for a second financial instrument, and in which the first financial instrument is substitutable for the second financial instrument;

receiving an acceptance of the order; and

in response to receiving the acceptance, facilitating execution of the trade fulfilling at least the portion of each of the order and the matching order.

14. The method of claim 13, further comprising preventing a submitter of the order from changing at least one of a price associated with the order, and a quantity associated with the order.

15. The method of claim 13, 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.

16. The method of claim 13, in which the second financial instrument includes a financial instrument with at least one similar characteristic to the first financial instrument.

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

18. The method of claim 13, in which the order management system identifies whether a financial instrument is substitutable for another financial instrument.

19. The method of claim 13, in which a quantity of the first financial instrument to be traded is based on at least one of on an exchange rate determined by the order management system between the first financial instrument and the second financial instrument, and an exchange rate determined from a market price of the first financial instrument compared to a market price of the second financial instrument.

20. 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 13.

21. A method comprising submitting an order to a system operable to perform the method of claim 13.

22. A method comprising:

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

determining that a matching order to the order is stored in an order management system, in which the matching order defines an opposite side of a trade for a second financial instrument, and in which the first financial instrument is substitutable for the second financial instrument;

soliciting a binding acceptance of a trade, in which the trade fulfills at least a portion of the matching order and the order; and

only if an acceptance of the trade is received, facilitating execution of the trade.

23. The method of claim 22, in which the second financial instrument includes a financial instrument with at least one similar characteristic to the first financial instrument.

24. The method of claim 23, in which the at least one characteristic includes at least one of an industry, a type of financial instrument, and a market capitalization.

25. The method of claim 22, in which the order management system identifies whether a financial instrument is substitutable for another financial instrument.

26. The method of claim 22, 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.

27. The method of claim 22, in which soliciting includes at least one of providing an interface through which the binding acceptance is requested, and transmitting a request for the binding acceptance.

28. The method of claim 22, in which the indication of the order identifies whether a financial instrument is substitutable for another financial instrument.

29. 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 22.