SYSTEMS AND METHODS FOR MARKET ORDER VOLUME CLEARING IN ONLINE TRADING OF CREDIT DERIVATIVES
First Claim
1. An online trading system, comprising:
- a database configured to store information for certain reference entities;
memory configured to store execution instructions; and
a processor coupled with the database and the memory, the processor configured to execute the instructions, the instructions configured to cause the system to;
receive from each of a plurality of trader clients a position for a financial instrument associated with a reference entity, the position having either a buy or sell position and a price and a notional;
receive an acceptance from a transacting trader client to the position for the financial instrument of one of the plurality of trader clients;
invite a selected plurality of trader clients, based on predefined criteria, to transact at the price of the accepted position;
receive a position for the financial instrument from a number of the selected trader clients in response to said invitation;
match the received positions of the plurality of selected trader clients to each other based on the notional of each position; and
finalize the transactions of all positions which are matched at the plice of the accepted position.
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Abstract
Systems and methods for market order volume clearing in online trading of credit derivatives are disclosed. In one embodiment, a method for market order volume clearing may comprise: selecting, from a plurality of credit derivatives, at least one most liquid credit derivative; determining a volume clearing price level for the selected credit derivative; inviting trading clients of the electronic trading system to submit, within a time limit, buy orders and sell orders for the selected credit derivative at the volume clearing price level, each buy order or sell order specifying a desired volume; matching the buy orders and the sell orders submitted within the time limit to maximize a total notional amount of the selected credit derivative that can be traded at the volume clearing price level; and completing trades at the volume clearing price level according to the matching of orders.
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Citations
11 Claims
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1. An online trading system, comprising:
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a database configured to store information for certain reference entities; memory configured to store execution instructions; and a processor coupled with the database and the memory, the processor configured to execute the instructions, the instructions configured to cause the system to; receive from each of a plurality of trader clients a position for a financial instrument associated with a reference entity, the position having either a buy or sell position and a price and a notional; receive an acceptance from a transacting trader client to the position for the financial instrument of one of the plurality of trader clients; invite a selected plurality of trader clients, based on predefined criteria, to transact at the price of the accepted position; receive a position for the financial instrument from a number of the selected trader clients in response to said invitation; match the received positions of the plurality of selected trader clients to each other based on the notional of each position; and finalize the transactions of all positions which are matched at the plice of the accepted position. - View Dependent Claims (2, 3, 4, 5)
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6. A computer implemented method for online trading of financial instruments, comprising:
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receiving, via a computing device comprising a processor executing program instructions, from each of a plurality of trader clients a position for a financial instrument associated with a reference entity, the position having either a buy or sell position and a price and a notional; receiving via the computing device an acceptance from a transacting trader client to the position for the financial instrument of one of the plurality of trader clients; inviting via the computing device a selected plurality of trader clients, based on predefined criteria, to transact at the price of the accepted position; receiving via the computing device a position for the financial instrument from a number of the selected trader clients in response to said invitation; matching via the computing device the received positions of the plurality of selected trader clients to each other based on the notional of each position; and finalizing via the computing device the transactions of all positions which are matched at the price of the accepted position. - View Dependent Claims (7, 8, 9, 10, 11)
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Specification