PASS THROUGH LIQUIDITY IN A MULTI-TIERED TRADING SYSTEM AND METHOD

• US 20110035310A1
• Filed: 10/18/2010
• Published: 02/10/2011
• Est. Priority Date: 11/17/2004
• Status: Abandoned Application

• Current Assignee: Intercapital Services North America LLC (CME Group Incorporated)
• Original Assignee: ICAP Services North America LLC (TP ICAP Plc)
• Inventors: Cleaves, Daniel O., Purpora, Ronald A.
• Application Number:
  US12/906,655
• Publication Number:
  US 20110035310A1
• 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

The present invention generally relates to brokerage systems and methods, and more particularly, to a multi-tiered trading system and corresponding methods which allow multiple customers and multiple dealers to transact on a single platform while maintaining the distinction of an inter-dealer system and a dealer-customer relationship.

Claims

1. An electronic trading system in communication with a plurality of dealers and a plurality of customers to provide said customers with conditional access to an inter-dealer exchange utilized by said dealers to facilitate the trading of financial instruments, comprising:

a central computer including a memory;

a customer interface in communication with said central computer wherein a customer order for a financial instrument is entered by or for a customer in said memory; and

a dealer interface in communication with said central computer for enabling a first dealer to choose to fill said customer order directly or to send said customer order to said inter-dealer exchange on behalf of said first dealer such that second dealer within said inter-dealer exchange filling said order would appear to be transacting with said first dealer and not said customer.

2. The system of claim 1, wherein said central computer compares said customer order to a current market for said financial instrument within said inter-dealer exchange and communicates a comparison result to said first dealer to enable said first dealer to choose based on said comparison result.

3. The system of claim 2, wherein said memory includes an auto trading profile for said customer entered through said dealer interface, said auto trading profile including one or more of a minimum customer order size, a maximum customer order size, or one or more customer order price parameters for said financial instrument.

4. The system of claim 3, wherein said central computer automatically decides for said first dealer as to whether to choose to fill all or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange based on said comparison result and said auto trading profile.

5. The system of claim 3, wherein said central computer provides a notice to said first dealer as to whether to choose to fill all or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange based on said comparison result and said auto trading profile.

6. The system of claim 5, wherein said first dealer must choose to fill all or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange within a predetermined period after receipt of said notice, or said central computer automatically decides for said first dealer as to whether to choose to fill all or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange based on said comparison result and said auto trading profile.

7. The system of claim 6, wherein said predetermined period is based on said auto profile.

8. The system of claim 2, wherein said memory further includes a customer profile for said customer entered through said dealer interface, said customer profile including one or more of a customer name, a customer location, a customer trader, and one or more financial instruments authorized for said customer orders.

9. The system of claim 8, wherein said customer profile further includes an auto trading profile for said customer, said auto trading profile including one or more of a minimum customer order size, a maximum customer order size, or one or more customer order price parameters for said financial instrument.

10. The system of claim 9, wherein said central computer automatically decides for said first dealer as to whether to choose to fill all or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange based on said customer profile and said comparison result.

11. The system of claim 9, wherein said central computer provides a notice to said first dealer as to whether to choose to fill all or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange based on said comparison result and said customer profile.

12. The system of claim 11, wherein said first dealer must choose to fill or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange within a predetermined period after receipt of said notice, or said central computer automatically decides for said first dealer as to whether to choose to fill all or part of said customer order directly or to all or part of send said customer order to said inter-dealer exchange based on said comparison result and said customer profile.

13. The system of claim 12, wherein said predetermined period is based on said customer profile.

14. The system of claim 1, wherein said customer is registered by a plurality of said dealers, and wherein said memory includes a priority among said plurality of dealers entered through said customer interface.

15. The system of claim 2, wherein said memory includes a rule set for each of two or more of said customers entered through said dealer interface, said rule set including one or more of a financial instrument type, an order size, a customer identification, or a time of day when said customer order was entered.

16. The system of claim 15, wherein said rule set is modified in real-time.

17. The system of claim 15, wherein said central computer enables said first to choose to fill all or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange based on said comparison result and said rule set.

18. The system of claim 15, wherein said central computer automatically filters and organizes multiples of said customer orders based on said rule set for each said customer.

19-44. -44. (canceled)