PRICE IMPROVEMENT IN REQUEST FOR QUOTATION TRADING

• US 20140067648A1
• Filed: 11/11/2013
• Published: 03/06/2014
• Est. Priority Date: 11/23/2005
• Status: Abandoned Application

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Foley, Kevin
• Application Number:
  US14/076,516
• Publication Number:
  US 20140067648A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

Systems and methods for providing valid responses to requests for quotations are provided. In one embodiment of the invention, a system according to the invention preferably includes a server. The server includes a server storage device and a server processor connected to the server storage device. The server storage device preferably stores a server program for controlling the server processor. The server processor is preferably operative to receive a request from a requesting participant for a market-validated offer to sell an item; receive an offer price from a responding participant in response to the request; and provide a bid to an electronic marketplace, the bid including a price that is lower than the received offer price.

Claims

1. A method of electronic trading comprising the steps of:

by a computer of an electronic trading system, receiving a request from an initiating trader a request for quote for a security, and publishing the request for quote to other traders using the system;

by the computer, receiving a responsive quote from a responding trader in response to the request for quote;

by the computer, in response to receiving the initiating trader'"'"'s acceptance of the responding trader'"'"'s quote;

publishing to traders using the system an executable order synthesized from the responsive quote with the price improved in favor of the responsive trader, in a form permitting traders of the system to accept the synthesized order, thereby to outbid the originating trader.

2. The method of claim 1 further comprising:

if the offer is accepted in the marketplace, providing a commission to the responding participant.

3. The method of claim 1 wherein a price difference between the bid and the offer provided to the electronic marketplace is user-definable.

4. The method of claim 1 further comprising:

pre-configuring a price difference between the bid and the offer provided to the electronic marketplace.

5. The method of claim 1 further comprising:

maintaining the offer that is provided to the electronic marketplace in an available state in the electronic marketplace for a predetermined period of time before the transaction between the requesting participant and the responding participant is executed.

6. The method of claim 1 the selling the item at the higher price of the offer comprising selling on behalf of the requesting participant.

7. A method of electronic trading comprising:

receiving a request from a requesting participant for a market-validated offer to sell an item;

receiving an offer price from a responding participant in response to the request;

providing a bid to an electronic marketplace, the bid comprising a price that is lower than the received offer price;

if the bid is accepted in the marketplace, buying the item at the lower price of the bid on behalf of the requesting participant; and

if the bid is not accepted in the marketplace, executing a transaction for the item between the requesting participant and the responding participant at the offer price received from the responding participant.

8. The method of claim 7 further comprising:

if the bid is accepted in the marketplace, providing a commission to the responding participant.

9. The method of claim 7 wherein:

a price difference between the offer and the bid provided to the electronic marketplace is user-definable.

10. The method of claim 7 further comprising:

preconfiguring a price difference between the offer and the bid provided to the electronic marketplace.

11. The method of claim 7 further comprising:

maintaining the bid that is provided to the electronic marketplace in an available state in the electronic marketplace for a predetermined period of time before the transaction between the requesting participant and the responding participant is executed.

12. The method of claim 7 the buying the item at the lower price of the bid comprising buying on behalf of the requesting participant.

13-24. -24. (canceled)

25. A computer for trading an item in an electronic trading system, comprising:

a processor;

a tangible, non-volatile memory;

a network connector supporting token ring and Ethernet protocols designed to pass trading messages to processing nodes and traders'"'"' workstations of the trading system, each message to be divided into message packets, each packets having a header specifying addresses of source and destination nodes of the computers sending and to receiving the packet, the packet having no maximum time for delivery