Offer matching system having timed match acknowledgment

• US 5,727,165 A
• Filed: 12/27/1994
• Issued: 03/10/1998
• Est. Priority Date: 12/17/1990
• Status: Expired due to Term

• Current Assignee: Reuters Limited (The Woodbridge Co. Ltd.)
• Original Assignee: Reuters Limited (The Woodbridge Co. Ltd.)
• Inventors: Richards, John M., Ordish, Christopher J., Mackenzie, Clifford A.
• Primary Examiner(s): Hayes, Gail O.
• Assistant Examiner(s): Yount, Steven R.
• Application Number:
  US08/364,009
• Time in Patent Office: 1,169 Days
• Field of Search: 395/237
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

An improved matching system for trading instruments in which the occurrence of automatically confirmed trades is dependent on receipt of match acknowledgement messages by the host computer (200) from all counterparties (KS A, KS B) to the matching trade. The host computer (200) matches like bids and offers provided thereto by the various keystations (KS A, KS B) in accordance with a predetermined matching criteria. Each of the keystations (KS A, KS B) includes a trade status timer (300, 302) and a display (310, 312) for timing receipt of a confirmed trade and/or ticket generation message from the host (200) after the keystation (KS A, KS B) has sent a match acknowledgement message and for displaying an "unconfirmed trade" status message awaiting receipt of the "confirmed trade" indication from the host (200). An alarm and a display message is provided at the keystation (KS A, KS B) when the "confirmed trade" indication is not timely received. The host (200) receives match acknowledgement messages from all of the counterparties (KS A, KS B) to the match before confirming a trade. A ticket is not generated at the keystation (KS A, KS B) until the trade has been confirmed by the host (200).

Claims

1. In a matching system for trading instruments in which bids for said trading instruments are automatically matched against offers for given trading instruments for automatically providing matching transactions in order to provide confirmed trades for said given trading instruments, said system comprising a host computer means for matching like bids and offers provided thereto in accordance with a predetermined matching criteria, a transaction originating keystation means for providing a bid on a given trading instrument to said system for providing a potential matching transaction, a counterparty keystation means for providing an offer on said given trading instrument involved in said potential matching transaction, and network means for interconnecting said host computer means, said transaction originating keystation means, and said counterparty keystation means in said system for enabling data communications therebetween;

said host computer means comprising match notification data message generation means for providing a match notification data message to said transaction originating keystation means and said counterparty keystation means via said network means in response to the occurrence of a matching transaction at said host computer means, said match notification data message comprising an unconfirmed matching transaction for said given trading instrument;

and match acknowledgement data message generation means disposed at each of said keystation means for respectively providing a match acknowledgement data message to said host computer means via said network means in response to receipt of said match notification data message by said transaction originating keystation means and said counterparty keystation means, respectively;

said host computer means further comprising confirmed trade data message generation means for providing a confirmed trade data message to said transaction originating keystation means and said counterparty keystation means via said network means in response to receipt of said match acknowledgement data messages from both said transaction originating keystation means and said counterparty keystation means;

said transaction originating keystation means and said counterparty keystation means each further comprising trade status timing means for timing a duration between transmission of said match acknowledgment data message and an expected receipt of said confirmed trade data message by said respective keystation means for providing a trade status display at said respective keystation means based on said timed receipt of said confirmed trade data message;

whereby the occurrence of automatically confirmed trades is dependent on match acknowledgement from all counterparties to the matching trade.

2. An improved matching system in accordance with claim 1 wherein said trade status timing means further comprises means for timing receipt of said confirmed trade data message by said respective keystation means for providing a confirmed trade status display in response to receipt of said confirmed trade data message by said respective keystation means within a predetermined time interval.

3. An improved matching system in accordance with claim 2 wherein said trade status timing means further comprises means for providing an unconfirmed trade status display during said predetermined time interval.

4. An improved matching system in accordance with claim 3 wherein said trade status timing means further comprises alarm means for providing an alarm condition for said respective keystation means when said confirmed trade data message is not received within said predetermined time interval.

5. An improved matching system in accordance with claim 4 wherein said trade status timing means further comprises means for providing a late confirmed trade status display in response to receipt of said confirmed trade data message after said predetermined time interval.

6. An improved matching system in accordance with claim 5 wherein said trade status timing means further comprises message display means for displaying said trade status display at said respective keystation means.

7. An improved matching system in accordance with claim 6 wherein said trading instruments comprise financial trading instruments.

8. An improved matching system in accordance with claim 1 wherein said trade status timing means further comprises alarm means for providing an alarm condition for said respective keystation means when said confirmed trade data message is not received within a predetermined time interval.

9. An improved matching system in accordance with claim 8 wherein said trade status timing means further comprises means for timing receipt of said confirmed trade data message by said respective keystation means for providing a confirmed trade status display in response to receipt of said confirmed trade data message by said respective keystation within said predetermined time interval.

10. An improved matching system in accordance with claim 9 wherein said trade status timing means further comprises means for providing an unconfirmed trade status display during said predetermined time interval.

11. An improved matching system in accordance with claim 10 wherein said trade status timing means further comprises means for providing a late confirmed trade status display in response to receipt of said confirmed trade data message after said predetermined time interval.

12. An improved matching system in accordance with claim 1 wherein said trade status timing means further comprises message display means for displaying said trade status display at said respective keystation means.

13. An improved matching system in accordance with claim 12 wherein said trade status timing means further comprises alarm means for providing an alarm condition for said respective keystation means when said confirmed trade data message is not received within a predetermined time interval.

14. An improved matching system in accordance with claim 1 wherein said trading instruments comprise financial trading instruments.

15. An improved matching system in accordance with claim 1 wherein said confirmed trade data message generation means further comprises trading ticket data generation means, each of said keystation means further comprising means responsive to receipt of a trading ticket data message from said trading ticket data generation means for automatically providing a trading ticket corresponding to said confirmed trade.

16. An improved matching system in accordance with claim 15 wherein said trade status timing means further comprises alarm means for providing an alarm condition for said respective keystation means when said confirmed trade data message is not received within a predetermined interval.

17. An improved matching system in accordance with claim 16 wherein said host computer means further comprises host alarm means for timing receipt of said match acknowledgement data message from said counterparty keystation means for providing an alert condition data message to said transaction originating keystation means when said match acknowledgement data message is not received from said counterparty keystation means within a predetermined time interval, said transaction originating keystation means alarm means further comprising means responsive to receipt of said alert condition data message for providing an alarm condition for said transaction originating keystation means.

18. An improved matching system in accordance with claim 1 wherein said host computer means further comprises host alarm means for timing receipt of said match acknowledgement data message from said counterparty keystation means for providing an alert condition data message to said transaction originating keystation means when said match acknowledgement data message is not received from said counterparty keystation means within a predetermined time interval.

19. An improved matching system in accordance with claim 18 wherein said trade status timing means further comprises alarm means for providing an alarm condition for said respective keystation means when said confirmed trade data message is not received within a predetermined interval.

20. An improved matching system in accordance with claim 19 wherein said transaction originating keystation means alarm means further comprises means responsive to receipt of said alert condition data message for providing an alarm condition for said transaction originating keystation means.

21. An improved matching system in accordance with claim 1 wherein each of said keystation means further comprises store and print means for storing and printing received messages and their status.

22. An improved matching system in accordance with claim 21 wherein said trade status timing means further comprises alarm means for providing an alarm condition for said respective keystation means when said confirmed trade data message is not received within a predetermined time interval.

23. An improved matching system in accordance with claim 1 wherein each of said keystation means further comprises storage means for storing an initial data message, said match acknowledgement data message generation means comprising means for acknowledging said initial message after storage thereof.

24. An improved matching system in accordance with claim 23 wherein said trade status timing means further comprises alarm means for providing an alarm condition for said respective keystation means when said confirmed trade data message is not received within a predetermined time interval.

25. In an offer matching system comprising a host station, a plurality of client stations respectively connected to the host station by a communication link, said host station comprising means for matching bids and offers provided to said host station by said client stations;

wherein each of said client stations comprises timing means for generating an acknowledgement signal for trading messages received at one of said client stations from said host station, said timing means being started in response to receipt of a particular type of trading message at said one client station, said particular type representing a match between said one client station and another of said plurality of client stations; and

an alarm at said one client station for generating an alarm signal responsive to said timing means continuing beyond a predetermined time, said predetermined lime corresponding to an expected time interval between receipt of said particular type of trading message by said one client station and expected receipt by said one client station of a signal from said host station indicating a confirmed trade between said one client station and another of said plurality of client stations.

26. A system as claimed in claim 25 wherein said particular type of trading message is a trading message received from another client station in response to an offer made from said one client station.

27. A system as claimed in claim 26 wherein said one client station comprises, a status indicator, said status indicator being responsive to the expiration of said predetermined time of said timer device to indicate `unconfirmed` status and being set to `confirmed` status by the receipt of another particular type of trading message at said one client station.

28. A system as claimed in claim 25 wherein said particular type of trading message is a trading message from said one client station acknowledging a trading message received from another client station.

29. A system as claimed in claim 28 wherein said one client station comprises a status indicator, said status indicator being responsive to the expiration of said predetermined time of said timer device to indicate `unconfirmed` status and being set to `confirmed` status by the receipt of another particular type of trading message at said one client station.

30. A system as claimed in claim 25 wherein said one client station comprises a status indicator, said status indicator being responsive to the expiration of said predetermined time of said timer device to indicate `unconfirmed` status and being set to `confirmed` status by the receipt of another particular type of trading message at said one client station.

31. A system as claimed in claim 30 wherein said one client station comprises an alarm operable in response to said unconfirmed status.

32. A system as claimed in claim 31 wherein said one client station comprises a store and print device to store and print received messages and their status.

33. A system as claimed in claim 25 wherein said one client station comprises a store and print device to store and print received messages and their status.

34. A system as claimed in claim 25 wherein said one client station comprises means for storing an initial message, said one client station further comprising means for acknowledging said initial message after storage thereof.

35. A system as claimed in claim 25 wherein said host station comprises a timer being initiated in response to a message received from a client station involved in a transaction and re-settable in response to a message received from an associated client station involved in said transaction.

36. In a matching system for trading instruments in which bids for said trading instruments are automatically matched against offers for given trading instruments for automatically providing matching transactions in order to provide confirmed trades for said given trading instruments, said system comprising a host computer means for matching like bids and offers provided thereto in accordance with a predetermined matching criteria, a transaction originating keystation means for providing a bid on a given trading instrument to said system for providing a potential matching transaction, a counterparty keystation means for providing an offer on said given trading instrument involved in said potential matching transaction, and network means for interconnecting said host computer means, said transaction originating keystation means, and said counterparty keystation means in said system for enabling data communications therebetween;

said host computer means comprising match notification data message generation means for providing a match notification data message to said transaction originating keystation means and said counterparty keystation means via said network means in response to the occurrence of a matching transaction at said host computer means, said match notification data message comprising an unconfirmed matching transaction for said given trading instrument;

and match acknowledgement data message generation means disposed at each of said keystation means for respectively providing a match acknowledgement data message to said host computer means via said network means in response to receipt of said match notification data message by said transaction originating keystation means and said counterparty keystation means, respectively;

said host computer means further comprising confirmed trade data message generation means for providing a confirmed trade data message to said transaction originating keystation means and said counterparty keystation means via said network means in response to receipt of said match acknowledgement data messages from both said transaction originating keystation means and said counterparty keystation means;

said transaction originating keystation means and said counterparty keystation means each further comprising trade status timing means for timing a duration between receipt of said match notification data message and an expected receipt of said confirmed trade data message by said respective keystation means for providing a trade status display at said respective keystation means based on said timed receipt of said confirmed trade data message;

whereby the occurrence of automatically confirmed trades is dependent on match acknowledgement from all counterparties to the matching trade.

37. In an offer matching system comprising a host station, a plurality of client stations respectively connected to the host station by a communication link, said host station comprising means for matching bids and offers provided to said host station by said client stations;

wherein each of said client stations comprises timing means for generating an acknowledgement signal for trading messages received at one of said client stations from said host station, said timing means being started in response to receipt of a particular type of trading message at said one client station, said particular type representing a match between said one client station and another of said plurality of client stations; and

an alarm at said one client station for generating an alarm signal responsive to said timing means continuing beyond a predetermined time, said predetermined time corresponding to an expected time interval between generation of said acknowledgement signal by said one client station and expected receipt by said one client station of a signal from said host station indicating a confirmed trade between said one client station and another of said plurality of client stations.

38. A keystation for use with a system incorporating a host computer for determining matches of offers and bids between keystations for given trading instruments according to predetermined matching criteria, said host computer communicating with said keystations via a network and sending to said keystations both match notification signals in response to the occurrence of a match determined by said host computer, and trade confirmation signals in response to receipt of acknowledgement signals from said keystations indicating receipt of the match notification signals, said keystation comprising:

receiving means for receiving at least said match notification signals and said trade confirmation signals from said host computer;

output means for providing signals generated by said keystation to at least said host computer; and

timing means for timing a duration from the receipt of said match notification signals to an expected receipt of said trade confirmation signals.

39. A keystation as claimed in claim 38, further comprising:

keyboard means for entering data; and

display means for displaying information related to at least said match notification signals, said trade confirmations signals, and said data entered via said keyboard means.

40. A keystation for use with a system incorporating a host computer for determining matches of offers and bids between keystations for given trading instruments according to predetermined matching criteria, said host computer communicating with said keystations via a network and sending to said keystations both match notification signals in response to the occurrence of a match determined by said host computer, and trade confirmation signals in response to receipt of acknowledgement signals from said keystations indicating receipt of the match notification signals, said keystation comprising:

receiving means for receiving at least said match notification signals and said trade confirmation signals from said host computer;

output means for providing signals generated by said keystation to at least said host computer;

timing means for timing a duration from providing of said match acknowledgement signals to said host computer and an expected receipt of said trade confirmation signals by said keystation.

41. A keystation as claimed in claim 40, further comprising:

keyboard means for entering data; and

display means for displaying information related to at least said match notification signals, said trade confirmations signals, and said data entered via said keyboard means.

42. In a matching system for trading instruments, wherein a host computer matches like bids and offers provided thereto from at least two keystations, said host computer and said keystations being connected via a network;

means for preventing the occurrence of broken trades comprising;

notification means in said host computer for notifying said at least two keystations of a match;

acknowledgement means in said keystations for respectively acknowledging to said host computer the notification received from said notification means;

confirmation means in said host computer for confirming to said keystations the acknowledgment received from said keystations;

wherein each of said keystations monitors a duration between an expected receipt time of confirmation received by said keystations and at least one of said notification received by said keystations and said acknowledgement by said keystations.

43. A matching system for trading instruments comprising:

host computer means for matching like bids and offers provided thereto;

a plurality of client keystation means each comprising first timing means, at least a first one of said client keystation means being a transaction originating client keystation means for providing a bid to said host computer means, and at least a second one of said client keystation means being a counterparty keystation means for providing an offer to said host computer means;

network means for providing communication between said host computer means and said plurality of client keystation means;

said host computer means generating a match notification message and transmitting said match notification message via said network means to said transaction originating client keystation means and said counterparty keystation means upon determining the occurrence of a match;

said transaction originating client keystation means and said counterparty keystation means each generating and transmitting a match acknowledgment message to said host computer means via said network means upon receipt of said match notification message;

said host computer means further generating and transmitting a confirmed trade message via said network means in response to receipt of said match acknowledgement message from each of said transaction originating client keystation means and said counterparty keystation;

wherein said first timing means in each of said keystation means measures a duration of time between at least one of said received match notification message and said transmitted match acknowledgement message, and an expected time for receiving said confirmed trade message.

44. The matching system of claim 43, further comprising:

second timing means in said host computer means for timing a duration between transmission of said match notification message and transmission of said confirmed trade message.

45. The matching system of claim 43, further comprising:

second timing means in said host computer means for timing a duration between transmission of said match notification message and receipt of said match acknowledgment message.

46. In a matching system for matching trading instruments in which bids for said trading instruments are automatically matched against offers for said trading instruments supplied by client keystations, said system for automatically providing matching transactions in order to provide confirmed trades for said trading instruments, wherein a host computer matches said offers and bids for said trading instruments according to predetermined matching criteria, said host computer communicating with said client keystations via a network, timing means in said client keystations for timing a duration between a first signal sent to said client keystations from said host computer to indicate the existence of a match and an expected receipt time of a second signal sent by said host computer to said client keystations to verify a confirmed trade.

47. In a matching system for matching trading instruments in which bids for said trading instruments are automatically matched against offers for said trading instruments supplied by client keystations, said system for automatically providing matching transactions in order to provide confirmed trades for said trading instruments, wherein a host computer matches said offers and bids for said trading instruments according to predetermined matching criteria, said host computer communicating with said keystations via a network, timing means in said client keystations for timing a predetermined duration between a first signal sent by said client keystations to said host computer to indicate acknowledgement of a match and an expected receipt time of a second signal sent by said host computer to said client keystations to verify a confirmed trade.

48. A matching system for trading instruments in which bids for said trading instruments are automatically matched against offers for given trading instruments, said matching system comprising:

a host computer for automatically matching like bids and offers provided thereto in accordance with predetermined matching criteria;

a first transaction terminal for providing a bid on a given trading instrument to said host computer;

a second transaction terminal for providing an offer on said given trading instrument to said host computer; and

a network for interconnecting said host computer, said first transaction terminal, and said second transaction terminal for enabling data communications therebetween, wherein

said host computer transmits an unconfirmed match notification dam message to said first transaction terminal and said second transaction terminal via said network if the bid and the offer for the given trading instrument satisfy the predetermined matching criteria,

said first and second transaction terminals each transmit a match confirmation data message to said host computer via said network in response to reception of the unconfirmed match notification data message,

said host computer further transmits a confirmed trade data message to said first and second transaction terminals via said network means in response to reception of said match confirmation data messages from both of said first and second transaction terminals, and

said first and second transaction terminals each comprise a trade status displaying means for displaying a trade confirmed indication if said confirmed trade data message is received within a predetermined time and for displaying a trade not confirmed indication if said confirmed trade data message is not received within said predetermined time.