TRADING SYSTEM ACCESSIBILITY

• US 20100082495A1
• Filed: 09/28/2008
• Published: 04/01/2010
• Est. Priority Date: 09/28/2008
• Status: Abandoned Application

• Current Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Original Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Inventors: Miller, Mark, Gay, Brian L., Foley, Kevin, Lutnick, Howard W., Alderucci, Dean P., Plott, Charles, Fishkind, Andrew
• Application Number:
  US12/239,804
• Publication Number:
  US 20100082495A1
• 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. An apparatus 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;

receive an indication of a plurality of orders;

store information about the orders in an order book of a first trading system;

transmit an indication of a first order of the plurality of orders to a second trading system, in which the first order defines a side of a trade for a financial instrument;

receive an indication of an acceptance of an offer to enter into a first trade that fulfills at least part of the first order;

if the acceptance is identified before a matching order to the first order is identified by the first trading system, execute the first trade; and

if the matching order to the first order is identified by the first trading system before the acceptance is identified, execute a second trade that fulfills at least part of the matching order and the first order.

2. The apparatus of claim 1, in which the matching order is identified when at least one of:

an indication of the matching order is received by the first trading system,

the matching order is stored in the order book,

a matching engine of the first trading system identifies that the matching order and the first order match,

the first order is removed from the order book, and

the matching order is processed by the first trading system.

3. The apparatus of claim 1, in which the acceptance is identified when at least one of:

an indication of the acceptance is received by the second trading system,

an indication of the acceptance is transmitted from the second trading system to the first trading system,

an indication of the acceptance is received by the first trading system, and

the indication of the acceptance is processed by the first trading system.

4. The apparatus of claim 1, in which the order book includes at least one of a database, a queue, a list, and a collection.

5. The apparatus of claim 1, in which the first trading system includes a first alternative trading system.

6. The apparatus of claim 5, in which the first alternative trading system includes a non-exchange trading venue

7. The apparatus of claim 1, in which the first trading system includes a matching engine configured to find matches between pending orders.

8. The apparatus of claim 1, in which the apparatus is part of the first trading system.

9. The apparatus of claim 1, in which the instructions, when executed by the processor, further cause the processor to:

receive an indication of at least one possible characteristic of orders; and

determine that the first order matches the at least one characteristic before transmitting the indication to the second trading system.

10. The apparatus of claim 9, in which the at least one characteristic includes at least one of a quantity of the order, and a financial instrument associated with the order.

11. The apparatus of claim 1, in which the instructions, when executed by the processor, further cause the processor to:

determine that a number of the plurality of orders exceeds a predetermined number before transmitting the indication to the second trading system.

12. The apparatus of claim 1, in which transmitting the indication includes responding to a query from the second trading system.

13. The apparatus of claim 12, in which the instructions, when executed by the processor, further cause the processor to:

receive the query, and wherein responding to the query includes processing the query.

14. The apparatus of claim 1, in which transmitting the indication includes providing access to the order book to the second trading system.

15. The apparatus of claim 1, in which the instructions, when executed by the processor, further cause the processor to:

transmit an indication of an agreement that the first trading system will execute the first trade if the acceptance of the offer is identified unless at least one of the first order is cancelled and at least a part of the first order is fulfilled such that the at least the part of the first order is no longer available when the acceptance is identified.

16. A method comprising submitting an order to the apparatus of claim 1.

17. A method comprising:

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

storing information about the order in an order book;

transmitting an indication of the order to a second trading system;

receiving, from the second trading system, an indication of an acceptance of an offer to enter into a trade that fulfills at least part of the order;

determining if the order is available, and

if the order is available, facilitating execution of the trade.

18. The method of claim 17, in which the indication of the acceptance identifies a matching order to the order, in which the matching order defines a trade for an opposite side of the financial instrument.

19. The method of claim 17, in which the second trading system is configured to query a participant to determine if a matching order is stored in an order management system associated with the participant and if the participant accepts the offer.

20. The method of claim 17, in which determining if the order is available includes determining if the order is available in the order book.

21. The method of claim 17, in which the order book includes at least one of a database, a queue, a list, and a collection.

22. The method of claim 17, in which the method is performed by a first trading system, and the order book includes an order book of the first trading system.

23. The method of claim 22, in which the first trading system includes a first alternative trading system.

24. The method of claim 23, in which the first alternative trading system includes a non-exchange trading venue.

25. The method of claim 22, in which the first trading system includes a matching engine configured to find matches between pending orders.

26. The method of claim 17, further comprising:

receiving an indication of at least one possible characteristic of orders; and

determining that the first order matches the at least one characteristic before transmitting the indication to the second trading system.

27. The method of claim 26, in which the at least one characteristic includes at least one of a size of the order, and a financial instrument associated with the order.

28. The method of claim 17, further comprising:

determining that a number orders in the order book exceeds a predetermined number before transmitting the indication to the second trading system.

29. The method of claim 17, in which transmitting the indication includes responding to a query from the second trading system.

30. The method of claim 29, further comprising receiving the query, and wherein responding to the query includes processing the query.

31. The method of claim 17, in which transmitting the indication includes providing access to the order book to the second trading system.

32. The method of claim 17, further comprising:

transmitting an indication of an agreement that the first trading system will execute the trade if the acceptance of the offer is identified unless at least one of the order is cancelled and at least a part of the order is fulfilled such that the at least the part of the order is no longer available when the acceptance is identified.

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 17.

34. 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 perform the method of claim 17; and

the one or more processors.

35. A method comprising submitting an order to the system of claim 34.

36. An alternative trading 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;

receive an indication of a plurality of orders;

store information about the orders in an order book of the alternative trading system;

transmit an indication of a first order of the plurality of orders to a second trading system, in which the first order defines a side of a trade for a financial instrument;

receive an indication of an acceptance of an offer to enter into a first trade that fulfills at least part of the first order;

if the acceptance is identified before a matching order to the first order is identified by the alternative trading system, execute the first trade; and

if the matching order to the first order is identified by the alternative trading system before the acceptance is identified, execute a second trade that fulfills at least part of the matching order and the first order.

37. The alternative trading system of claim 36, in which the matching order is identified when at least one of:

an indication of the matching order is received by the alternative trading system,

the matching order is stored in the order book,

a matching engine of the alternative trading system identifies that the matching order and the first order match,

the first order is removed from the order book, and

the matching order is processed by the alternative trading system.

38. The alternative trading system of claim 37, in which the acceptance is identified when at least one of:

an indication of the acceptance is received by the second trading system,

an indication of the acceptance is transmitted from the second trading system to the alternative trading system,

an indication of the acceptance is received by the alternative trading system, and

the indication of the acceptance is processed by the alternative trading system.

39. The alternative trading system of claim 37, in which the order book includes at least one of a database, a queue, a list, and a collection.

40. The alternative trading system of claim 39, in which the alternative trading system includes a non-exchange trading venue.

41. The alternative trading system of claim 37, in which the alternative trading system includes a matching engine configured to find matches between pending orders.

42. The alternative trading system of claim 37, in which the instructions, when executed by the processor, further cause the processor to:

receive an indication of at least one possible characteristic of orders; and

determine that the first order matches the at least one characteristic before transmitting the indication to the second trading system.

43. The alternative trading system of claim 42, in which the at least one characteristic includes at least one of a quantity of the order, and a financial instrument associated with the order.

44. The alternative trading system of claim 37, in which the instructions, when executed by the processor, further cause the processor to:

determine that a number of the plurality of orders exceeds a predetermined number before transmitting the indication to the second trading system.

45. The alternative trading system of claim 37, in which transmitting the indication includes responding to a query from the second trading system.

46. The alternative trading system of claim 45, in which the instructions, when executed by the processor, further cause the processor to:

receive the query, and wherein responding to the query includes processing the query.

47. The alternative trading system of claim 37, in which transmitting the indication includes providing access to the order book to the second trading system.

48. The alternative trading system of claim 37, in which the instructions, when executed by the processor, further cause the processor to:

transmit an indication of an agreement that the alternative trading system will execute the first trade if the acceptance of the offer is identified unless at least one of the first order is cancelled and at least a part of the first order is fulfilled such that the at least the part of the first order is no longer available when the acceptance is identified.

49. A method comprising submitting an order to the alternative trading system of claim 37.

50. A method comprising:

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

determining which of a plurality of trading systems first identifies a matching order to the order, in which the matching order defines an opposite side of a trade for the financial instrument;

based on the determination, executing an execution of a trade that fulfills at least a part of each of the matching order and the order.

51. The method of claim 50, in which determining includes determining whether an indication of an acceptance was received from one of the plurality of trading systems before an indication of a second matching order is received.

52. The method of claim 50, in which the method is performed by a first trading system.

53. The method of claim 52, in which the first trading system includes a first alternative trading system.

54. The method of claim 53, in which the first alternative trading system includes a non-exchange trading venue.

55. The method of claim 52, in which the first trading system includes a matching engine configured to find matches between pending orders.

56. 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 50.

57. 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 perform the method of claim 50; and

the one or more processors.

58. A method comprising submitting an order to the system of claim 57.