SYSTEMS AND METHODS FOR MATCHING DESIRED PURCHASES AND SALES OF MIS-MATCHED ITEMS

• US 20100287032A1
• Filed: 05/07/2009
• Published: 11/11/2010
• Est. Priority Date: 05/07/2009
• Status: Abandoned Application

• Current Assignee: BGC Partners LP (BGC Group, Inc.)
• Original Assignee: BGC Partners LP (BGC Group, Inc.)
• Inventors: Jones, Timothy D., Wang, Weibin, Wallace, Roy, Gilbert, Andrew C.
• Application Number:
  US12/437,410
• Publication Number:
  US 20100287032A1
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present invention is systems and methods for matching desired purchases and sales of mis-matched items. These systems and methods compare the requirements of potential buyers and sellers of items against those of sets of other potential buyers and sellers of items to construct transaction sets that will enable an optimal transaction or set of transactions for the parties involved. The present invention may be used to match purchases and sales of any items, such as goods, services, financial instruments, and property interests (e.g., ownership interests in real property, possessory interests in personal property, etc.).

Claims

1. A method for matching a purchase or sale of a first item with a respective sale or purchase of a second item and a third item, wherein each of the first item, the second item, and the third item has a first trait and a second trait, the method comprising:

receiving first information relating to the purchase or sale of the first item, second information relating to the respective sale or purchase of the second item, and third information relating to the respective sale or purchase of the third item, wherein the first information indicates whether the first item is to be bought or sold, the second information indicates that the second item is to be respectively sold or bought, and the third information indicates that the third item is to be respectively sold or bought, and wherein at least one of the first information, the second information, and the third information respectively define the first trait and the second trait of a corresponding at least one of the first item, the second item, and the third item;

using a processor to determine that the first trait of the first item substantially corresponds to the first trait of the second item, and that the second trait of the second item substantially corresponds to the first trait of the third item; and

designating the first item, the second item, and the third item as forming at least a portion of a transaction match when the first trait of the first item substantially corresponds to the first trait of the second item, and the second trait of the second item substantially corresponds to the first trait of the third item.

2. The method of claim 1, wherein the first item, the second item, and the third item are each Forward Rate Agreements, wherein each first trait is a near date, and wherein each second trait is a far date.

3. The method of claim 1, wherein the first item, the second item, and the third item are each Non-Deliverable Forward Spreads, wherein each first trait is a near date, and wherein each second trait is a far date.

4. The method of claim 1, wherein each first trait and each second trait is a date.

5. The method of claim 1, wherein each of the first item, the second item, and the third item is a financial instrument.

6. The method of claim 1, wherein each of the first item, the second item, and the third item is an interest in property.

7. The method of claim 1, wherein at least one of the first information, the second information, and the third information includes at least one parameter, and wherein the method further comprises determining at least one other parameter using the at least one parameter, the first trait, and the second trait for at least a corresponding one of the first item, the second item, and the third item.

8. The method of claim 7, wherein the at least one parameter includes a date convention, and the at least one other parameter includes a day count.

9. The method of claim 1, wherein at least one of the first item, the second item, and the third item has a prohibition against being bought from or sold to at least one specified party, and wherein at least one of the first item, the second item, and the third item is not designated as forming part of the transaction match when the transaction match would violate the prohibition.

10. The method of claim 1, wherein at least one of the first item, the second item, and the third item has a requirement of only being bought from or sold to at least one specified party, and wherein the at least one of the first item, the second item, and the third item is not designated as forming part of the transaction match when the transaction match would violate the requirement.

11. The method of claim 1, wherein at least one of the first item, the second item, and the third item has a requirement of only being bought or sold as at least a minimum amount, and wherein the at least one of the first item, the second item, and the third item is not designated as forming part of the transaction match when the transaction match would violate the requirement.

12. The method of claim 1, wherein the first trait and the second trait of each of the first item, the second item, and the third item define limits of ranges associated with the first item, the second item, and the third item, and wherein the method further comprises not designating at least one of the first item, the second item, and the third item as part of the transaction match when a corresponding first trait or second trait is below a lower limit of an acceptable range for matching.

13. The method of claim 1, wherein the first trait and the second trait of each of the first item, the second item, and the third item define limits of ranges associated with the first item, the second item, and the third item, and wherein the method further comprises not designating at least one of the first item, the second item, and the third item as part of the transaction match when a corresponding first trait or second trait is above an upper limit of an acceptable range for matching.

14. The method of claim 1, further comprising generating transaction matches that include other items, and limiting the number of transaction matches that are generated to a specified number.

15. The method of claim 1, further comprising not designating the first item, the second item, and the third item as forming part of the transaction match when the transaction match would involve a specified party participating in the transaction match twice.

16. The method of claim 1, further comprising not designating the first item, the second item, and the third item as forming part of the transaction match when the transaction match would involve a specified party purchasing an item having a first trait that substantially corresponds to a second trait of another item being sold by the specified party.

17. The method of claim 1, further comprising not designating the first item, the second item, and the third item as forming part of the transaction match when the transaction match would have a net price that is outside a specified tolerance.

18. The method of claim 1, further comprising determining the first trait and the second trait of at least one of the first item, the second item, and the third item in order to form a transaction match.

19. The method of claim 1, wherein at least one of the first item, the second item, and the third item uses a default price, and wherein the method further comprises applying the default price to the at least one of the first item, the second item, and the third item when designating the first item, the second item, and the third item as forming at least a portion of the transaction match.

20. The method of claim 1, further comprising generating a second transaction match that is at least in part formed from a fourth item and at least one of the first item, the second item, and the third item, and indicating which of that the transaction match and the second transaction match are mutually exclusive.

21. The method of claim 20, further comprising removing the transaction match from a set of matches that are available to be transacted if the second transaction match is transacted.

22. The method of claim 20, further comprising removing the second transaction match from a set of matches that are available to be transacted if the transaction match is transacted.

23. The method of claim 1, wherein a price associated with the first item does not match another price associated with both the second item and the third item, and wherein the method further comprises selecting a match price that is equal to the price associated with the first item.

24. The method of claim 1, wherein a price associated with the first item does not match another price associated with both the second item and the third item, and wherein the method further comprises selecting a match price that is equal to the other price associated with both the second item and the third item.

25. The method of claim 1, wherein a price associated with the first item does not match another price associated with both the second item and the third item, and wherein the method further comprises selecting a match price that is between the price associated with the first item and the other price associated with both the second item and the third item.

26. The method of claim 1, wherein the first trait and the second trait of one of the first item, the second item, and the third item matches a first trait and a second trait of another item, and wherein the method further comprises selecting one of the other item and the one of the first item, the second item, and the third item as to be restricted from the transaction match.

27. The method of claim 26, wherein the selecting is based upon an order of entry of the other item and the one of the first item, the second item, and the third item.

28. The method of claim 26, wherein the selecting is based upon which of the other item and the one of the first item, the second item, and the third item has a better price.

29. A system for matching a purchase or sale of a first item with a respective sale or purchase of a second item and a third item, wherein each of the first item, the second item, and the third item has a first trait and a second trait, the system comprising:

a processor that;

receives first information relating to the purchase or sale of the first item, second information relating to the respective sale or purchase of the second item, and third information relating to the respective sale or purchase of the third item, wherein the first information indicates whether the first item is to be bought or sold, the second information indicates that the second item is to be respectively sold or bought, and the third information indicates that the third item is to be respectively sold or bought, and wherein at least one of the first information, the second information, and the third information respectively define the first trait and the second trait of a corresponding at least one of the first item, the second item, and the third item,

determines that the first trait of the first item substantially corresponds to the first trait of the second item, and that the second trait of the second item substantially corresponds to the first trait of the third item, and

designates the first item, the second item, and the third item as forming at least a portion of a transaction match when the first trait of the first item substantially corresponds to the first trait of the second item, and the second trait of the second item substantially corresponds to the first trait of the third item.

30. A method for matching a purchase or sale of a first item with a respective sale or purchase of a second item, wherein each of the first item and the second item has a first trait and a second trait, the method comprising:

receiving first information relating to the purchase or sale of the first item and second information relating to the respective sale or purchase of the second item, wherein the first information indicates whether the first item is to be bought or sold and the second information indicates that the second item is to be respectively sold or bought, wherein at least one of the first information and the second information respectively define the first trait and the second trait of a corresponding at least one of the first item and the second item, and wherein at least one of the first information and the second information includes at least one parameter;

using a processor to determine at least one other parameter using the at least one parameter, the first trait, and the second trait for at least a corresponding one of the first item and the second item;

using the processor to determine that the first trait of the first item substantially corresponds to the first trait of the second item; and

designating the first item and the second item as forming at least a portion of a transaction match when the first trait of the first item substantially corresponds to the first trait of the second item.

31. The method of claim 30, wherein the at least one parameter includes a date convention, and the at least one other parameter includes a day count.

32. A method for matching a purchase or sale of a first item with a respective sale or purchase of a second item, wherein each of the first item and the second item has a first trait and a second trait, the method comprising:

receiving first information relating to the purchase or sale of the first item and second information relating to the respective sale or purchase of the second item, wherein the first information indicates whether the first item is to be bought or sold and the second information indicates that the second item is to be respectively sold or bought, wherein at least one of the first information and the second information respectively define the first trait and the second trait of a corresponding at least one of the first item and the second item, and wherein a price associated with the first item does not match another price associated with the second item;

using a processor to select a match price that is equal to one of the first price, the second price, or a price between the first price and the second price;

using the processor to determine that the first trait of the first item substantially corresponds to the first trait of the second item; and

designating the first item and the second item as forming at least a portion of a transaction match when the first trait of the first item substantially corresponds to the first trait of the second item.

33. A method for matching a purchase or sale of a first item with a respective sale or purchase of a second item, wherein each of the first item and the second item has a first trait and a second trait, the method comprising:

receiving first information relating to the purchase or sale of the first item and second information relating to the respective sale or purchase of the second item, wherein the first information indicates whether the first item is to be bought or sold and the second information indicates that the second item is to be respectively sold or bought;

using a processor to determine the first trait and the second trait of at least one of the first item and the second item;

using the processor to determine that the first trait of the first item substantially corresponds to the first trait of the second item; and

designating the first item and the second item as forming at least a portion of a transaction match when the first trait of the first item substantially corresponds to the first trait of the second item.