MULTIPLE PROTOCOL TRADING SYSTEM

• US 20100312685A1
• Filed: 06/14/2010
• Published: 12/09/2010
• Est. Priority Date: 10/03/2005
• Status: Active Grant

• Current Assignee: Nex Services North America, LLC (CME Group Incorporated)
• Original Assignee: ICAP Services North America LLC (TP ICAP Plc)
• Inventors: Cleaves, Daniel, Kessler, Deborah
• Granted Patent: US 7,844,542 B1
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A multi-protocol trading system in which traders preferring different trading protocols may coexist within the same system, and access the same liquidity pool, while maintaining their trading rule preferences. The system supports two protocol preferences: a workup preference and a FIFO preference, and includes a single integrated order book that stores orders received from both workup and FIFO traders. Received orders are matched against orders in the order book in accordance with a FIFO and/or workup protocol, as a function of preferences selected by the traders and/or the system operator. Alternatively, the system includes a pair of order books, a workup order book and a FIFO order book. Customers submit linked orders having a workup leg and a FIFO leg which may be matched against the workup and/or FIFO order books, as a function of preferences selected by the traders and/or the system operator.

Claims

1. A method for facilitating electronic trading of a financial instrument by a trader in accordance with a plurality of trading protocols, comprising:

receiving an order to buy or sell a quantity of said financial instruments via a first display area for listing a first set of said financial instrument in accordance with said trader'"'"'s preferred trading protocol, said trading protocol being one of the workup protocol or a FIFO protocol, said first set of financial instrument being maintained with a first order book controlled by said central computer system; and

receiving an order to buy or sell a quantity of said financial instruments via a second display area for listing a second set of said financial instrument in accordance with said trader'"'"'s alternative trading protocol, said trading protocol being the other of the workup protocol or the FIFO protocol, said second set of financial instrument being maintained with a second order book controlled by said central computer system;

said first order book and said second order book being physically or logically separated by said computer system and said first set of said financial instrument and said second set of said financial instrument comprising a pool of said financial instrument.

2. The method of claim 1, wherein a trader using any one of said plurality of trading protocols can use either said first display or said second display to trade any one of said financial instrument.

3. The method of claim 1, wherein said trader may configure said first display area or said second display area to display information based on a workup protocol, a FIFO protocol, or both protocols.

4. The method of claim 1, wherein said first display area is configured according to a workup protocol and wherein said first display area provides a signal to said trader when an order enters a private phase of said workup protocol.

5. The method of claim 1, wherein said first display area is configured according to a workup protocol and wherein said first display area provides a signal to said trader when an order is executed under a FIFO protocol that exceeds an original order size.