Negotiated matching system

• US 5,924,082 A
• Filed: 06/07/1995
• Issued: 07/13/1999
• Est. Priority Date: 08/17/1994
• Status: Expired due to Term

• Current Assignee: Geneva Branch of Reuters Transaction Services Limited
• Original Assignee: Geneva Branch of Reuters Transaction Services Limited
• Inventors: Ordish, Christopher J., Silverman, David L., Donner, William L.
• Primary Examiner(s): Cosimano, Edward R.
• Application Number:
  US08/475,499
• Time in Patent Office: 1,497 Days
• Field of Search: 395/325, 395/327, 340/825.26, 705/1, 705/35, 705/37, 705/38
• US Class Current: 705/37
• 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 50/188 Electronic negotiation
• CPC Class Codes: Y10T 70/45 Divided jaw type

Abstract

A negotiated matching system includes a plurality of remote terminals associated with respective potential counterparties, a communications network for permitting communication between the remote terminals, and a matching station. Each user enters trading information and ranking information into his or her remote terminal. The matching station then uses the trading and ranking information from each user to identify transactions between counterparties that are mutually acceptable based on the ranking information, thereby matching potential counterparties to a transaction. Once a match occurs, the potential counterparties transmit negotiating messages to negotiate some or all terms of the transaction. Thus, the negotiated matching system first matches potential counterparties who are acceptable to each other based on trading and ranking information, and then enables the two counterparties to negotiate and finalize the terms of a transaction.

Claims

1. A negotiated matching system for identifying potential counterparties to a transaction and enabling communication between the parties to negotiate the terms of the transaction, said system comprising:

a matching computer;

a plurality of remote terminals corresponding to a plurality of users, said remote terminals enabling said users to enter transaction data into the system; and

a communications network for transmitting negotiating messages between two or more of said remote terminals in response to control signals from said matching computer;

wherein said matching computer is coupled to said plurality of remote terminals by said communications network and matches potential counterparties to a transaction based on said transaction data, said matching computer generating said control signals in response to an identified match.

2. A negotiated matching system according to claim 1, wherein said transaction data include ranking data whereby each user ranks potential counterparties based on objective criteria, said ranking data indicative of the extent to which the user wishes to deal with each potential counter party.

3. A negotiated matching system according to claim 1, wherein said negotiating messages transmitted between said remote terminals comprise messages having a free-style format.

4. A negotiated matching system according to claim 1, wherein said negotiating messages transmitted between said remote terminals comprise messages having a predetermined format.

5. A negotiated matching system according to claim 1, wherein said transaction data include ranking data whereby each user ranks potential counterparties based on subjective criteria, said ranking data indicative of the extent to which the user wishes to deal with each potential counter party.

6. A negotiated matching system according to claim 1, wherein said negotiating messages transmitted between said remote terminals comprise free-style electronic dialogue which is displayed on each user'"'"'s remote terminal.

7. A negotiated matching system according to claim 6, wherein said electronic dialogue is pre-defined to limit the ability of the parties to negotiate one or more of the terms of the transaction.

8. A negotiated matching system according to claim 6, wherein said electronic dialogue is unstructured, thereby permitting the parties to negotiate all terms of the transaction.

9. A negotiated matching system for identifying potential counterparties to a transaction and enabling communication between the parties to negotiate the terms of the transaction, said system comprising:

a matching computer;

a plurality of remote terminals corresponding to a plurality of users, said remote terminals enabling said users to enter transaction data and ranking data into the system; and

a communications network for transmitting negotiating messages between two or more of said remote terminals in response to control signals from said matching computer;

wherein said matching computer is coupled to said plurality of remote terminals by said communications network and matches potential counterparties to a transaction by comparing said transaction data and filtering said transaction data using said ranking data, said matching computer generating said control signals in response to an identified match.

10. A negotiated matching system according to claim 9, further comprising display means coupled to each of said plurality of remote terminals for displaying to each user available transactions in one or more markets.

11. A negotiated matching system according to claim 10, further comprising:

filtering means for providing a filtered display of potential transactions to said display means of each of said remote terminals, wherein each user views only potential transactions with counterparties whom the user ranks acceptable.

12. A negotiated matching system according to claim 10, further comprising:

filtering means for providing a filtered display of potential transactions to said display means of each of said remote terminals, wherein each user views only potential transactions with counterparties who rank the user acceptable.

13. A negotiated matching system according to claim 10, further comprising:

filtering means for providing a filtered display of potential transactions to said display means of each of said remote terminals, wherein each user views only potential transactions with counterparties who have been ranked by said user as acceptable and wherein said potential transactions have been initiated by counterparties who have ranked said user as acceptale.

14. A method of identifying potential counterparties to a transaction, comprising the steps of:

receiving ranking data and transaction data from a plurality of remote terminals corresponding to a plurality of potential counterparties to a type of transaction;

filtering said transaction data using said ranking data to identify for each user transactions with potential counterparties who are mutually acceptable based on said ranking data, thereby matching potential counterparties to a transaction; and

transmitting negotiating messages between said potential counterparties, thereby enabling said potential counterparties to negotiate terms of said transaction.

15. A method of identifying potential counterparties according to claim 14, wherein said step of receiving said ranking data and transaction data further includes the step of:

receiving subjective ranking data.

16. A method of identifying potential counterparties according to claim 14, wherein said step of receiving said ranking data and transaction data further includes the step of:

receiving objective ranking data.

17. In a negotiated matching system for identifying potential counterparties to a transaction and enabling communication between the parties to negotiate the terms of the transaction, said system including a matching computer, a plurality of terminals corresponding to a plurality of users, and a communications network for transmitting negotiating messages between two or more of said terminals in response to control signals from said matching computer, said matching computer generating said control signals in response to an identified match of at least some transaction data, at least one of said terminals comprising:

a transaction data entry device enabling one of said users to enter transaction data;

a communications circuit for communicating with at least said matching computer over said communications network, said communications circuit communicating at least some of said transaction data to said matching computer; and

,

a receiving circuit for receiving from said matching computer at least an indication that potential counterparties to a transaction exist as based on said identified match.

18. A terminal according to claim 17, wherein said transaction data includes ranking data whereby each user ranks potential counterparties based on objective criteria, said ranking data indicative of the extent to which the user wishes to deal with each potential counterparty.

19. A terminal according to claim 17, wherein said transaction data includes ranking data whereby each user ranks potential counterparties based on subjective criteria, said ranking data indicative of the extent to which the user wishes to deal with each potential counterparty.

20. A terminal according to claim 17, wherein said transaction data includes ranking data whereby each user inputs said ranking data before said matching computer identifies said match.

21. A negotiated matching system for identifying potential counterparties to a transaction and enabling communication between the parties to negotiate the terms of the transaction, said system comprising:

a matching computer;

a plurality of remote terminals corresponding to a plurality of users, said remote terminals enabling said users to enter transaction data into the system; and

,

a communications network;

wherein said matching computer is coupled to said plurality of remote terminals by said communications network, matches potential counterparties to a transaction by comparing said transaction data, and enables communication between said potential counterparties in response to an identified match.

22. A negotiated matching system according to claim 21, wherein said transaction data include ranking data whereby each user ranks potential counterparties based on objective criteria, said ranking data indicative of the extent to which the user wishes to deal with each potential counter party.

23. A negotiated matching system according to claim 21, wherein said negotiating messages transmitted between said remote terminals comprise messages having a free-style format.

24. A negotiated matching system according to claim 21, wherein said negotiating messages transmitted between said remote terminals comprise messages having a predetermined format.

25. A negotiated matching system according to claim 21, wherein said negotiating messages transmitted between said remote terminals comprise electronic dialogue which is displayed on each user'"'"'s remote terminal, said electronic dialogue being pre-defined to limit the ability of the parties to negotiate one or more of the terms of the transaction.

26. A negotiated matching system according to claim 22, wherein said matching computer filters out parties who do not meet said ranking data.

27. A negotiated matching system according to claim 21, wherein said transaction data include ranking data whereby each user ranks potential counterparties based on subjective criteria, said ranking data indicative of the extent to which the user wishes to deal with each potential counter party.

28. A negotiated matching system according to claim 27, wherein said matching computer filters out parties who do not meet said ranking data.

29. A method of identifying potential counterparties to a transaction, comprising the steps of:

receiving transaction data from a plurality of remote terminals corresponding to a plurality of potential counterparties to a type of transaction;

matching at a matching computer said potential counterparties as based on said transaction data; and

,

in response to a match, transmitting negotiating messages between said potential counterparties, thereby enabling said potential counterparties to negotiate terms of said transaction.

30. A method of identifying potential counterparties to a transaction according to claim 29, wherein said receiving step includes the step of:

receiving ranking data from said plurality of remote terminals.

31. A method of identifying potential counterparties to a transaction according to claim 30, wherein said matching step includes the step of:

matching said potential counterparties based on said ranking data.

32. A negotiated matching system comprising:

a matching computer for executing transactions between counterparties;

a plurality of remote terminals corresponding to a plurality of users, said remote terminals enabling said users to enter fixed trading parameters into the system; and

,

a communications network for enabling communication between said remote terminals and said matching computer;

said matching computer having;

a detection system for identifying potential counterparties to a potential transaction based upon said fixed trading parameters,

a notification system for notifying the potential counterparties identified by said detection system of the potential transaction,

a communication enablement system for enabling communication between the potential counterparties detected by said detection system in order to negotiate variable trading parameters for the potential transaction, and

a trade execution system for executing said potential transaction when said variable trading parameters are received from the potential counterparties and for canceling said potential transaction when the potential counterparties do not agree on said variable trading parameters.

33. A negotiated matching system according to claim 32, further characterized in that said fixed trading parameters including ranking data whereby each user ranks potential counterparties based on objective and/or subjective criteria, said ranking data indicative of the extent to which the user wishes to deal with each potential counterparty.

34. A negotiated matching system according to claim 32, further characterized in that the potential counterparties negotiate said variable trading parameters in a free-style electronic format.

35. A negotiated matching system according to claim 32 further characterized in that the potential counterparties negotiate said variable trading parameters in a pre-defined electronic format.

36. A negotiated matching system according to claim 32, further characterized in that said potential counterparties may negotiate both said fixed trading parameters and said variable trading parameters after said detection system has identified a potential transaction.

37. A negotiated matching system according to claim 32, further characterized by display means coupled to each of said plurality of remote terminals for displaying to each user available transactions in one or mote markets.

38. A negotiated matching system according to claim 37, further characterized by filtering means for filtering said available transactions using said fixed trading parameters entered by potential counterparties to each available transaction to identify potential transactions and providing said potential transactions to said display means of each of said remote terminals.

39. A method of executing transactions between counterparties, comprising the steps of:

identifying potential counterparties to a potential transaction based upon fixed trading parameters,

notifying the identified potential counterparties of the potential transaction,

enabling communication between the identified potential counterparties in order to negotiate variable trading parameters for the potential transaction, and

executing said potential transaction when said variable trading parameters are received from the potential counterparties, otherwise canceling said potential transaction when the potential counterparties do not agree on said variable trading parameters.