SYSTEMS AND METHODS OF FACILITATING TRADING OF INSTRUMENTS

• US 20110016036A1
• Filed: 09/15/2010
• Published: 01/20/2011
• Est. Priority Date: 07/23/2007
• Status: Active Grant

• Current Assignee: Nex Services North America, LLC (CME Group Incorporated)
• Original Assignee: ICAP Services North America LLC (TP ICAP Plc)
• Inventors: Schneider, Michael, Rosenberg, Richard, Morgan, Patrick
• Granted Patent: US 8,938,397 B2
• 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

Abstract

Systems and methods of facilitating trades of instruments are provided. A master node and a plurality of intermediate nodes store counterparty credit matrices. Trades are executed based on the information stored in these matrices. The systems and methods allow selection of trading options that not only accept or reject a trade, but also can indicate a credit status to be assigned to a counterparty to the trade.

Claims

1. A method for facilitating trading of instruments, the method comprising the acts of:

receiving a first intermediate node credit profile from a first intermediate node;

generating a master trader credit matrix using the first intermediate node credit profile;

allowing or denying a trade based on the master trader credit matrix; and

updating the master trader credit matrix based on information received in connection with an acceptance or rejection of a trade.

2. The method of claim 1, wherein the information is a credit status assigned from a first party to the trade to a second party to the trade.

3. The method of claim 1, wherein the information is a credit status assigned from a second party to the trade to a first party to the trade.

4. The method of claim 1, wherein the information is a credit status of always accept, reject for the day, always reject, or check.

5. The method of claim 1, further comprising the act of:

outputting a window identifying at least one instrument available for trading.

6. The method of claim 5, wherein the window also identifies a tradeable status of the at least one instrument.

7. The method of claim 5, further comprising the act of

outputting a trade acceptance screen providing options associated with a trade for the available instrument.

8. The method of claim 7, wherein the options for trade include accept for trade, always reject, reject for day or always accept.

9. The method of claim 8, wherein selecting one of the options for trade indicates acceptance or rejection of the trade and credit information regarding a counterparty.

10. The method of claim 7, wherein the trade acceptance screen also indicates a time remaining for accepting or rejecting the trade.

11. A master node comprising:

an intermediate node interface;

a memory; and

a processor, coupled to the intermediate node interface and memory, the processor comprising

intermediate node credit profile receiving logic that receives a first intermediate node credit profile from a first intermediate node;

master trader credit matrix generating logic that generates a master trader credit matrix using the first intermediate node credit profile and stores the generated matrix in the memory;

trade execution controlling logic that allows or denies a trade based on the master trader credit matrix; and

credit matrix updating logic that updates the master trader credit matrix based on information received in connection with an acceptance or rejection of a trade.

12. The master node of claim 11, wherein the information is a credit status assigned from a first party to the trade to a second party to the trade.

13. The master node of claim 11, wherein the information is a credit status assigned from a second party to the trade to a first party to the trade.

14. The master node of claim 11, wherein the information is a credit status of always accept, reject for the day, always reject, or check.

15. The master node of claim 11, wherein a window is output that identifies at least one instrument available for trading.

16. The master node of claim 15, wherein the window also identifies a tradeable status of the at least one instrument.

17. The master node of claim 15, wherein a trade acceptance screen, providing options associated with a trade for the available instrument, is output.

18. The master node of claim 17, wherein the options for trade include accept for trade, always reject, reject for day or always accept.

19. The master node of claim 18, wherein selecting one of the options for trade indicates acceptance or rejection of the trade and credit information regarding a counterparty.

20. The master node of claim 17, wherein the trade acceptance screen also indicates a time remaining for accepting or rejecting the trade.

21. A method for facilitating trading of instruments, the method comprising the acts of:

generating a master trader credit matrix;

allowing or denying a trade based on the master trader credit matrix; and

updating the master trader credit matrix based on information received in connection with an acceptance or rejection of a trade.

22. The method of claim 21, wherein the generated master trader credit matrix includes a default credit status for all parties listed in the credit matrix.

23. The method of claim 22, wherein the default credit status is a check credit status.

24. The method of claim 21, wherein the information is a credit status assigned from a first party to the trade to a second party to the trade.

25. The method of claim 21, wherein the information is a credit status assigned from a second party to the trade to a first party to the trade.

26. The method of claim 21, wherein the information is a credit status of always accept, reject for the day, always reject, or check.

27. The method of claim 21, further comprising the act of:

outputting a window identifying at least one instrument available for trading.

28. The method of claim 27, wherein the window also identifies a tradeable status of the at least one instrument.

29. The method of claim 27, further comprising the act of:

outputting a trade acceptance screen providing options associated with a trade for the available instrument.

30. The method of claim 29, wherein the options for trade include accept for trade, always reject, reject for day or always accept.

31. The method of claim 30, wherein selecting one of the options for trade indicates acceptance or rejection of the trade and credit information regarding a counterparty.

32. The method of claim 29, wherein the trade acceptance screen also indicates a time remaining for accepting or rejecting the trade.