Electronic Bartering System with Facilitating Tools

• US 20100325061A1
• Filed: 12/15/2009
• Published: 12/23/2010
• Est. Priority Date: 08/05/1999
• Status: Active Grant

• Current Assignee: Bartersecurities Incorporated
• Original Assignee: Bartersecurities Incorporated
• Inventors: Himmelstein, Richard, Neff, Roy
• Granted Patent: US 8,793,178 B2
• Time in Patent Office: Days
• US Class Current: 705/36R
• 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 method for responding to order flow is disclosed. The method comprises establishing for a market maker a rule for automatically generating a contra order in response to an order. The rule comprises at least one condition comprising at least one characteristic describing the order. The at least one condition allowing matching based on a security in the order is in a security list specified by the market maker. The method further comprises receiving from a trader the order; matching on the computer the order to the at least one condition of the rule; automatically generating the contra order in response to the order, if the rule is satisfied; and providing the contra order for acceptance.

Claims

1. A method operable on a computer for responding to order flow, the method comprising:

establishing for a market maker a rule for automatically generating a contra order in response to an order, the rule comprising at least one condition comprising at least one characteristic describing the order, the at least one condition allowing matching based on a security in the order being in a security list specified by the market maker;

receiving from a trader the order;

matching on the computer the order to the at least one condition of the rule;

automatically generating the contra order in response to the order, if the rule is satisfied; and

providing the contra order for acceptance.

2. The method of claim 1 wherein the executing comprises utilizing a software program through an application program interface to establish the rule for automatically generating the contra order in response to the order.

3. A method for facilitating buying and selling securities on a computerized system, comprising:

identifying a plurality of traders including a first trader;

receiving a plurality of orders, each order identifying one of the plurality of traders, the plurality of orders including a first order, the first order identifying the first trader, a first security to trade and a condition for trading the first security;

receiving an offer from a second trader, the offer identifying at least one parameter of at least one security to trade;

matching the first order with the plurality of orders and the offer to determine whether the first order may be linked with at least one of the plurality of orders and the offer to define a multi-order transaction; and

processing the multi-order transaction if the condition for each order is satisfied.

4. The method of claim 3 wherein the offer is a barter order including a sell order, a buy order and at least one condition associated with the buy order.

5. The method of claim 3 wherein the offer is a barter order including a sell order, a buy order and at least one condition associated with the sell order.

6. The method of claim 3 wherein the offer is created based on at least one characteristic.

7. The method of claim 3 wherein the offer identifies a security to be specifically included in the offer.

8. The method of claim 3 wherein the offer identifies a security to be specifically excluded from the offer.

9. The method of claim 3 wherein the offer identifies a basket of securities.

10. The method of claim 3 wherein receiving the offer includes automatically generating the offer.

11. The method of claim 10 wherein automatically generating the offer includes automatically generating a plurality of offers, each offer representing a tier.

12. The method of claim 3 wherein the offer is a barter order;

and further including alerting one of the plurality of traders.

13. The method of claim 3 wherein receiving the offer includes utilizing an application programming interface.

14. The method of claim 3 wherein the offer is a barter order including a sell order identifying a value of securities to sell and a buy order identifying a value of securities to buy in a transaction, and

wherein the value of securities to sell is compared to the value of securities to buy.

15. The method of claim 3 further including assisting one of the plurality of traders in determining whether the offer is financially advantageous.

16. The method of claim 3 wherein the multi-order transaction includes no more than one order associated with the first trader.

17. The method of claim 3 wherein the condition for trading an associated security includes a minimum amount of the associated security which must be traded in a single transaction.

18. The method of claim 3 wherein the condition for trading an associated security includes a time restraint.

19. The method of claim 3 wherein the condition for trading the first security includes specifying a fluctuating price of the first security.

20. The method of claim 19 wherein the fluctuating price includes a range around the fluctuating price specified as a percentage.

21. The method of claim 19 wherein the fluctuating price includes a range around the fluctuating price specified as a dollar amount

22. The method of claim 3 wherein receiving the offer occurs without displaying the first order to the second trader.

23. The method of claim 3 wherein the first order is selected from the group of:

a basket order, a single-security buy order, a single-security sell order, a barter order, and a barter-basket order.

24. The method of claim 3 wherein the offer identifies a plurality of conditions and only a subset of the conditions are to be satisfied.

25. A method for facilitating buying and selling securities on a computerized system, comprising:

identifying a plurality of traders including a first trader and a second trader;

receiving a plurality of orders, each order identifying one of the plurality of traders, the plurality of orders including a first order, the first order identifying the first trader, a first security to trade and a condition for trading the first security;

receiving a barter order from the second trader, the barter order identifying at least one characteristic of the plurality of orders without directly identifying the first security;

matching the first order with the plurality of orders and the barter order to determine whether the first order may be linked with at least one of the plurality of orders and the barter order to define a multi-order transaction; and

processing the multi-order transaction if the condition for each order is satisfied.

26. A computerized system for facilitating buying and selling securities, comprising:

a processor;

an input device connected to the processor;

an output device connected to the processor;

a memory connected to the processor and storing instructions to control the operation of the processor;

the input device receiving and the memory storing data identifying a plurality of traders including a first trader;

the input device receiving a plurality of orders, each order identifying one of the plurality of traders, the plurality of orders including a first order, the first order identifying the first trader, a first security to trade and a condition for trading the first security;

the input device receiving an offer from a second trader, the offer identifying at least one parameter of at least one security to trade;

the processor matching the first order with the plurality of orders and the offer to determine whether the first order may be linked with at least one of the plurality of orders and the offer to define a multi-order transaction; and

the processor completing the multi-order transaction if the condition for each order is satisfied.