Distributed matching system for displaying a book of credit filtered bids and offers

• US 6,260,025 B1
• Filed: 07/13/1999
• Issued: 07/10/2001
• Est. Priority Date: 05/29/1996
• Status: Expired due to Term

• Current Assignee: Geneva Branch of Reuters Transaction Services Limited
• Original Assignee: Geneva Branch of Reuters Transaction Services Limited
• Inventors: Hoffman, Jack W., Silverman, David L.
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US09/352,130
• Time in Patent Office: 728 Days
• Field of Search: 705/37.1, 705/10.14, 705/35.38, 340/825.26, 340/825.27
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A distributed electronic trading system for displaying a real-time credit filtered view of at least one market in which financial instruments are traded in which the market view includes a predetermined number of orders currently available to a viewing trading entity based upon one or more credit limits entered by the viewing trading entities and/or other trading entities in the system includes a host for receiving and storing orders and credit information entered by a plurality of trading entities including the viewing trading entity, for transmitting the orders and predetermined display parameters, and for selectively transmitting the credit information; a plurality of intelligent nodes linked to the host; and a plurality of keystations respectively linked to one or more of the intelligent nodes. Each intelligent node includes a credit information storage unit for storing the selected credit information, an order book storage unit for storing the orders and display parameters, and a processor for generating real-time credit filtered market view display information for each assigned trading entity. The real-time credit filtered market view display information includes the predetermined number of unilaterally and/or bilaterally credit filtered orders and corresponding available quantities. The displayed market view may consist of individual order prices and quantities, aggregated prices and quantities, and/or average prices at predetermined quantities chosen by the viewing trading entity.

Claims

1. A distributed electronic trading system, comprising:

a host for receiving and storing orders for multiple trading instruments and credit information entered by a plurality of trading entities, for transmitting said orders and display parameters, and for selectively transmitting said credit information;

a plurality of intelligent nodes, each assigned to one or more of the plurality of trading entities, for receiving said orders, said selected credit information and said display parameters from said host, said intelligent nodes comprising means for screening said orders using said selected credit information and said display parameters to generate and transmit individual market display information for each said assigned trading entity, said market display information including a price and a quantity of the top N available orders for at least one of said trading instruments; and

a plurality of keystations, each associated with a trading entity, for receiving and displaying said individual market display information.

2. A distributed electronic trading system according to claim 1, wherein said selected credit information includes bilateral credit availability between an individual trading entity and potential counterparties as determined by said orders in the system, thereby enabling the trading entity to view bilaterally credit filtered individual market display information.

3. A distributed electronic trading system according to claim 1, wherein said selected credit information includes bilateral credit availability between an individual trading entity and potential counterparties as determined by said orders in the system, thereby enabling the trading entity to view unilaterally credit filtered individual market display information.

4. A distributed electronic trading system according to claim 1, wherein N is more than 1.

5. A distributed electronic trading system according to claim 1, wherein said host provides update messages to said intelligent nodes including credit information and order updates, thereby enabling said intelligent nodes to generate and transmit updated display information to said keystations in real time.

6. A distributed electronic trading system according to claim 1, wherein each said intelligent node includes means for determining the top N orders for a standard quantity such that one or more of said top N orders may be a combination of two or more orders in the system and have a price that is a weighted average of prices from said two or more orders.

7. A distributed electronic trading system according to claim 1, wherein said credit information includes monetary credit limits extended by each trading entity to one or more potential counterparties.

8. A distributed electronic trading system according to claim 1, wherein said credit information includes individual and group monetary credit limits extended by each trading entity to one or more potential counterparties.

9. A distributed electronic trading system according to claim 1, wherein said host selects the credit information to be transmitted to each of said plurality of intelligent nodes using a credit threshold value to limit the number of update messages transmitted from the host to the intelligent nodes.

10. A distributed electronic trading system for displaying a real-time credit filtered view of at least one market in which financial instruments are traded, said market view including a predetermined number of orders currently available to a viewing trading entity based upon one or more credit limits entered by the viewing trading entities and/or other trading entities in the system, each said order having an associated price and quantity, said system comprising:

a host for receiving and storing orders and credit information entered by a plurality of trading entities including the viewing trading entity, for transmitting said orders and predetermined display parameters, and for selectively transmitting said credit information;

a plurality of intelligent nodes linked to said host, each said node assigned to at least one trading entity and comprising a credit information storage unit for storing said selected credit information, an order book storage unit for storing said orders and said display parameters, and a processor for generating real-time credit filtered market view display information for each assigned trading entity,

wherein said real-time credit filtered market view display information includes said predetermined number of unilaterally and/or bilaterally credit filtered orders and corresponding available quantities; and

a plurality of keystations, each associated with a trading entity, for receiving and displaying said real-time credit filtered market display information.

11. A distributed electronic trading system according to claim 10, wherein each said unilaterally and/or bilaterally filtered order consists of a single order entered by a trading entity.

12. A distributed electronic trading system according to claim 10, wherein each said unilaterally and/or bilaterally filtered order consists of the aggregate of all available orders of the same price entered into the system.

13. A distributed electronic trading system according to claim 10, wherein each said unilaterally and/or bilaterally filtered order consists of an average price for a predetermined quantity defined by the viewing trading entity.

14. A distributed electronic trading system according to claim 10, wherein said selected credit information includes bilateral credit availability between a trading entity assigned to an intelligent node and all potential counterparties of the assigned trading entity in the system.

15. A distributed electronic trading system according to claim 10, wherein said selected credit information includes monetary credit limits extended by each trading entity to one or more potential counterparties.

16. A distributed electronic trading system according to claim 10, wherein said selected credit information includes individual and group monetary credit limits extended by each trading entity to one or more potential counterparties.

17. A distributed electronic trading system according to claim 10, wherein said host selects the credit information to be transmitted to each of said plurality of intelligent nodes using a credit threshold value to limit the number of update messages transmitted from the host to the intelligent nodes.

18. A distributed electronic trading system according to claim 10, further comprising a user-selectable option for enabling a trader in a first trading entity to view the trader'"'"'s own orders and/or orders entered by one or more other traders in the first trading entity.

19. A distributed electronic trading system according to claim 18, wherein the trader'"'"'s own orders and/or orders entered by one or more other traders in the first trading entity are displayed with a corresponding visual indicator to indicate that the orders are the trader'"'"'s own and/or were entered by one or more other traders in the first trading entity.

20. A distributed electronic trading system according to claim 10, wherein:

said unilaterally credit filtered orders and corresponding available quantities are displayed with a first visual attribute; and

said bilaterally credit filtered orders and corresponding available quantities are displayed with a second visual attribute.

21. A trading system operable to store and provide order information to a plurality of trading entities comprising:

a central computer operable to store (1) a plurality of orders for at least one trading instrument, said orders entered by a plurality of trading entities and (2) credit information for said plurality of trading entities connected to the trading system and further operable to transmit a subset of the stored credit information and said plurality of orders;

a plurality of intelligent nodes, each assigned to one or more of the plurality of trading entities and operable to receive said plurality of orders and said subset of the stored credit information and each intelligent node including a processor generating, using said subset of credit information, said plurality of orders and display parameter information, real-time credit filtered market view display information for each assigned trading entity,

wherein said real-time credit filtered market view display information includes a predetermined number of unilaterally and/or bilaterally credit filtered orders and corresponding available quantities; and

a plurality of keystations, each associated with one of said assigned trading entities, for receiving and displaying said real-time credit filtered market display information.

22. The trading system of claim 21, wherein said subset of said credit information includes unilateral and/or bilateral credit availability between at least one of said assigned trading entities and potential counterparties.

23. The trading system of claim 22, wherein said central computer identifies said subset of credit information using a credit threshold.

24. The trading system of claim 23, wherein said host computer determines said credit threshold by (1) identifying a largest numerically displayable quantity for each trading instrument;

(2) converting said quantity into a common instrument; and

(3) identifying a largest numerically displayable quantity for the common instrument.

25. The trading system of claim 21, wherein one of said plurality of trading entities viewing said displayed real-time credit filtered market display information selects said display parameter information, said display parameter information including one or more of bilaterally credit filtered prices and quantities;

prices for orders from said plurality of orders entered by trading entities other than said viewing trading entity and quantities for said orders based upon unilaterally extended credit; and

prices for orders entered by other trading entities who have extended credit to said viewing trading entity and the quantities of those orders based upon unilaterally extended credit.

26. The trading system of claim 21, wherein each of said predetermined number of unilaterally and/or bilaterally credit filtered orders consists of a single order entered by one of said plurality of trading entities.

27. The trading system of claim 21, wherein each of said predetermined number of unilaterally and/or bilaterally credit filtered orders consists of the aggregate of all available orders of the same price entered into the system.

28. The trading system of claim 21, wherein each of said predetermined number of unilaterally and/or bilaterally credit filtered orders consists of an average price for a predetermined quantity defined by a trading entity viewing said real-time credit filtered market display information.

29. The trading system of claim 21, wherein said subset of credit information includes bilateral credit availability between a trading entity assigned to an intelligent node and all potential counterparties of the assigned trading entity in the system.

30. The trading system of claim 21, wherein said subset of credit information includes monetary credit limits extended by each trading entity to one or more potential counterparties.

31. The trading system of claim 21, wherein said subset of credit information includes individual and group monetary credit limits extended by each trading entity to one or more potential counterparties.