GLOBAL ELECTRONIC TRADING SYSTEM

• US 20110145130A1
• Filed: 02/21/2011
• Published: 06/16/2011
• Est. Priority Date: 11/17/2000
• Status: Active Grant

• Current Assignee: Setec Astronomy Limited
• Original Assignee: Scale Semiconductor FLG LLC (Intellectual Ventures LLC)
• Inventors: Glodjo, Arman, Bronson, Nathan D., Harrington, Scott E.
• Granted Patent: US 8,615,462 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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

Methods, systems, and computer readable media for facilitating trading two items (L,Q) from the group of items comprising commodities and financial instruments. At least two agents (2) want to trade the items (L,Q). There is a trading channel (3) between the two agents (2) allowing for the execution of trades. There are flow (trading) limits on the items being traded. A central computer (1) is coupled to the two agents (2). Said computer (1) is adapted to convey to each agent (2) current tradable bid and offered prices and sizes subject to the agent'"'"'s (2) trading limits.

Claims

1-55. -55. (canceled)

56. A method, comprising:

determining, based at least in part on a proposal to trade an item, a first customized proposal for trading the item with a first trading entity, wherein the first customized proposal is based at least in part on a first associated trading cost, and wherein the determining the first customized proposal is performed by a computer system; and

determining, based at least in part on the proposal to trade the time item, a second customized proposal for trading the item with a second trading entity, wherein the second customized proposal is based at least in part on a second associated trading cost, wherein the second customized proposal is different from the first customized proposal, and wherein the determining the second customized proposal is performed by the computer system;

conveying, by the computer system, the first customized proposal to the first trading entity; and

conveying, by the computer system, the second customized proposal to the second trading entity.

57. The method of claim 56, wherein the first associated trading cost comprises a first settlement cost for trading the item, wherein the second associated trading cost comprises a second settlement cost for trading the item, and wherein the second settlement cost is different from the first settlement cost.

58. The method of claim 57,

wherein the first settlement cost is based at least in part on a first credit path;

wherein the second settlement cost is based at least in part on a second credit path that is different from the first credit path; and

wherein the second customized proposal differs from the first customized proposal based at least in part on the first customized proposal including a first quantity that is greater than a second quantity included in the second customized proposal, wherein the first quantity is greater than the second quantity based at least in part on the first settlement cost being lower than the second settlement cost.

59. The method of claim 57, wherein the second customized proposal differs from the first customized proposal based at least in part on the first customized proposal including a first price that is greater than a second price included in the second customized proposal, and wherein the first price is greater than the second price based at least in part on the first settlement cost being greater than the second settlement cost.

60. The method of claim 56, wherein the proposal to trade the item is a bid and an offer to trade one or more foreign exchange instruments.

61. The method of claim 56, wherein the proposal to trade the item is a bid to purchase a commodity.

62. The method of claim 56, wherein the proposal to trade the item is an offer to sell a stock.

63. The method of claim 56, wherein the determining the first customized proposal is further based at least in part on values specified by the first trading entity.

64. The method of claim 56, wherein the determining the first customized proposal is further based at least in part on preference information.

65. The method of claim 56,

wherein the determining the first customized proposal is further based at least in part on first preference information specified by the first trading entity;

and

wherein the determining the second customized proposal is further based at least in part on second preference information specified by the second trading entity.

66. The method of claim 56, wherein the conveying the first and second customized proposals comprises conveying first and second custom limit order books.

67. The method of claim 56, further comprising:

receiving the proposal to trade the item.

68. A system, comprising:

a computing device configured to execute program instructions that cause the computing device to perform operations comprising;

generating, based at least in part on a proposal to trade an item, a first customized proposal to trade the item, wherein the first customized proposal is based at least in part on a first trading cost associated with trading with a first trading entity of a plurality of trading entities; and

generating, based at least in part on the proposal to trade the item, a second customized proposal to trade the item, wherein the second customized proposal is based at least in part on a second trading cost associated with trading with a second trading entity of the plurality of trading entities, wherein the second customized proposal is different from the first customized proposal;

conveying the first customized proposal to the first trading entity; and

conveying the second customized proposal to the second trading entity.

69. The system of claim 68, wherein the computing device is further configured to receive the proposal to trade the item.

70. The system of claim 68, wherein the computing device is further configured to:

convey the first customized proposal to the first entity as part of a first customized limit order book; and

convey the second customized proposal to the second entity as part of a second customized limit order book.

71. The system of claim 68, wherein the first trading cost comprises a first settlement cost, and wherein the second trading cost comprises a second settlement cost that is different from the first settlement cost.

72. The system of claim 71,

wherein the first customized proposal includes a first quantity;

wherein the second customized proposal includes a second quantity; and

wherein the second customized proposal differs from the first customized proposal based at least in part on the first quantity being lower than the second quantity, and wherein the first quantity is lower than the second quantity based at least in part on the first settlement cost being greater than the second settlement cost.

73. The system of claim 71,

wherein the first customized proposal includes a first price;

wherein the second customized proposal includes a second price; and

wherein the second customized proposal differs from the first customized proposal based at least in part on the first price being greater than the second price, and wherein the first price is greater than the second price based at least in part on the first settlement cost being greater than the second settlement cost.

74. An article of manufacture including a non-transitory computer readable medium having instructions stored thereon that, responsive to execution by a computer system, cause the computer system to perform operations comprising:

determining, in response to a proposal to trade an item, a first customized proposal to trade the item with a first trading entity, the first customized proposal being based at least in part on a first associated trading cost; and

determining, in response to the proposal to trade the item, a second customized proposal to trade the item with a second trading entity, the second customized proposal being based at least in part on a second associated trading cost, wherein the second customized proposal is different from the first customized proposal; and

conveying the first and second customized proposals to the first and second trading entities, respectively.

75. The article of manufacture of claim 74, wherein the proposal to trade an item is a bid to purchase a derivative or an offer to sell the derivative.

76. The article of manufacture of claim 74, wherein the first associated trading cost comprises a first settlement cost of a first credit path, wherein the second associated trading cost comprises a second settlement cost of a second credit path, wherein the second credit path is different from the first credit path.

77. The article of manufacture of claim 74,

wherein the first customized proposal includes a first quantity;

wherein the second customized proposal includes a second quantity; and

wherein the second customized proposal differs from the first customized proposal based at least in part on the first quantity being lower than the second quantity, and wherein the first quantity is lower than the second quantity based at least in part on the first associated trading cost being greater than the second associated trading cost.

78. The article of manufacture of claim 74,

wherein the first customized proposal includes a first price;

wherein the second customized proposal includes a second price; and

wherein the second customized proposal differs from the first customized proposal based at least in part on the first price being greater than the second price, and wherein the first price is greater than the second price based at least in part on the first associated trading cost being greater than the second associated trading cost.

79. The article of manufacture of claim 74, wherein the operations further comprise:

determining the proposal to trade based at least in part on one or more limit orders;

wherein the conveying the first and second customized proposals comprises conveying one or more customized limit order books.