Bond trading system

• US 6,876,309 B1
• Filed: 05/28/1999
• Issued: 04/05/2005
• Est. Priority Date: 11/21/1994
• Status: Expired due to Term

• Current Assignee: BGC Partners LP (BGC Group, Inc.)
• Original Assignee: eSpeed Incorporated (BGC Group, Inc.)
• Inventors: Lawrence, David
• Primary Examiner(s): Cumming, William
• Application Number:
  US09/321,638
• Time in Patent Office: 2,139 Days
• Field of Search: 340/825.26, 395/611, 455/31.2, 705/35, 705/37
• 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 50/188 Electronic negotiation
• CPC Class Codes: H04L 67/04 specially adapted for terminals or networks with limited capabilities; specially adapted for terminal portability
• CPC Class Codes: H04W 4/02 Services making use of location information
• CPC Class Codes: Y10S 707/99934 Query formulation, input preparation, or translation
• CPC Class Codes: Y10S 707/99952 Coherency, e.g. same view to multiple users

Abstract

A computer-implemented, transaction-making, municipal bond trading system having a capability to conduct a private electronic auction of bid wanteds between a central brokers'"'"' broker and multiple prospective remote bidders and to maintain a reference database of accurate individual bond lot descriptions and identifications, including CUSIP (trademark) numbers.

Claims

1. A computer-implemented bond trading system for trading bonds, the system employing a silent anonymous auction, the auction being conducted electronically between multiple bond brokers having computer stations, the computer stations being capable of communicating one with another, at least one of the bond brokers being designated a selling broker and the other bond brokers being designated buying brokers for sale of a specific identified bond lot, wherein the bond trading system comprises a bond software component at each bond broker'"'"'s computer wherein the selling broker'"'"'s software component enables conduct of the silent anonymous auction for the specific identified lot by transmitting bid wanted information regarding the specific identified bond lot to the other brokers, by receiving of bids for the bond lot from the other brokers and by executing a transaction for the sale of the bond lot with a broker transmitting an accepted bid, wherein the other broker'"'"'s software components enable each other broker to receive the bid wanted information transmitted and permit a receiving broker to transmit a bid for the auctioned bond lot to the selling broker, and wherein the selling broker'"'"'s software component can receive multiple bids for the auctioned lot and determine a high bidder.

2. A system according to claim 1 wherein the acceptable bid is the high bid.

3. A system according to claim 2 wherein the selling broker'"'"'s software component transmits to receiving brokers an auction deadline for transmission of bids for the auctioned lot.

4. A system according to claim 2 wherein the selling broker'"'"'s software component compiles a database of transaction particulars from multiple auctions of lots to high bidders.

5. A computer-implemented bond trading system for trading bonds, the system employing a silent anonymous auction, the auction being conducted electronically between multiple bond brokers having computer stations, the computer stations being capable of communicating one with another, at least one of the bond brokers being designated a selling broker and the other bond brokers being designated buying brokers for sale of a specific identified bond lot, wherein the bond trading system comprises a bond software component at each bond broker'"'"'s computer wherein the selling broker'"'"'s software component enables conduct of the silent anonymous auction for the specific identified lot by transmitting bid wanted information regarding the specific identified bond lot to the other brokers, by receiving of bids for the bond lot from the other brokers and by executing a transaction for the sale of the bond lot with a broker transmitting an accepted bid, wherein the other broker'"'"'s software components enable each other broker to receive the bid wanted information transmitted and permit a receiving broker to transmit a bid for the auctioned bond lot to the selling broker, and wherein the selling broker'"'"'s software component provides a unique identifier to identify the auctioned bond lot.

6. A bond trading system according to claim 5 wherein the selling broker'"'"'s software component obtains the unique identifier from a reference database.

7. A computer-implemented bond trading system for trading bonds, the system employing a silent anonymous auction, the auction being conducted electronically between multiple bond brokers having computer stations, the computer stations being capable of communicating one with another, at least one of the bond brokers being designated a selling broker and the other bond brokers being designated buying brokers for sale of a specific identified bond lot, wherein the bond trading system comprises a bond software component at each bond broker'"'"'s computer wherein the selling broker'"'"'s software component enables conduct of the silent anonymous auction for the specific identified lot by transmitting bid wanted information regarding the specific identified bond lot to the other brokers, by receiving of bids for the bond lot from the other brokers and by executing a transaction for the sale of the bond lot with a broker transmitting an accepted bid, wherein the other broker'"'"'s software components enable each other broker to receive the bid wanted information transmitted and permit a receiving broker to transmit a bid for the auctioned bond lot to the selling broker, and wherein the bond brokers include remotely located bond brokers.

8. A bond trading system according to claim 7 wherein the computer stations communicate one with another via a WAN.

9. A computer-implemented bond trading system for trading bonds, the system employing a silent anonymous auction, the auction being conducted electronically between multiple bond brokers having computer stations, the computer stations being capable of communicating one with another, at least one of the bond brokers being designated a selling broker and the other bond brokers being designated buying brokers for sale of a specific identified bond lot, wherein the bond trading system comprises a bond software component at each bond broker'"'"'s computer wherein the selling broker'"'"'s software component enables conduct of the silent anonymous auction for the specific identified lot by transmitting bid wanted information regarding the specific identified bond lot to the other brokers, by receiving of bids for the bond lot from the other brokers and by executing a transaction for the sale of the bond lot with a broker transmitting an accepted bid, wherein the other broker'"'"'s software components enable each other broker to receive the bid wanted information transmitted and permit a receiving broker to transmit a bid for the auctioned bond lot to the selling broker, and wherein the selling broker'"'"'s software component includes a procedure for submitting received bids to a seller for acceptance of a bid.

10. A computer-implemented method of trading bonds employing a silent anonymous auction of lots of securities the method being conducted electronically between multiple bond brokers having computer stations capable of communicating one with another, at least one of the bond brokers being designated a selling broker and the other bond brokers being designated buying brokers for sale of a specific identified bond lot, wherein the method comprises conducting a silent anonymous auction for the specific identified lot by marking up an untraded offering and including the marked up offering in a subsequent silent auction, transmitting bid wanted information regarding the specific identified bond lot to the other brokers, receiving of bids regarding the specific identified bond lot from the other brokers, executing a transaction for the sale of the specific identified lot with a broker transmitting an accepted bid, wherein each other broker receives the bid wanted information transmitted, and transmission of bids for the auctioned bond lot from the other brokers to the selling broker.

15. A method according to claim 10 comprising completing the execution of the sale to the accepted bidder and electronically transmitting buy and sell tickets to the buyer and seller.

11. A computer-implemented method of trading bonds employing a silent anonymous auction of lots of securities the method being conducted electronically between multiple bond brokers having computer stations capable of communicating one with another, at least one of the bond brokers being designated a selling broker and the other bond brokers being designated buying brokers for sale of a specific identified bond lot, wherein the method comprises conducting a silent anonymous auction for the specific identified lot transmitting bid wanted information regarding the specific identified bond lot to the other brokers, receiving of bids regarding the specific identified bond lot from the other brokers, submitting received bids to a seller for acceptance of a bid, after acceptance of a bid by the seller, marking the bond lot “

for sale”

, executing a transaction for the sale of the specific identified lot with a broker transmitting an accepted bid, wherein each other broker receives the bid wanted information transmitted, and transmission of bids for the auctioned bond lot from the other brokers to the selling broker.

12. A computer-implemented method of trading bonds employing a silent anonymous auction of lots of securities the method being conducted electronically between multiple bond brokers having computer stations capable of communicating one with another, at least one of the bond brokers being designated a selling broker and the other bond brokers being designated buying brokers for sale of a specific identified bond lot, wherein the method comprises conducting a silent anonymous auction for the specific identified lot within two days, transmitting bid wanted information regarding the specific identified bond lot to the other brokers, the bid wanted having a deadline for submission of bids to the selling broker, receiving of bids regarding the specific identified bond lot from the other brokers, submitting received bids to a seller for acceptance of a bid, after acceptance of a bid by the seller, executing a transaction for the sale of the specific identified lot with a broker transmitting an accepted bid, wherein each other broker receives the bid wanted information transmitted, and transmission of bids for the auctioned bond lot from the other brokers to the selling broker.

13. A computer-implemented method of trading bonds employing a silent anonymous auction of lots of securities the method being conducted electronically between multiple bond brokers having computer stations capable of communicating one with another, at least one of the bond brokers being designated a selling broker and the other bond brokers being designated buying brokers for sale of a specific identified bond lot, wherein the method comprises conducting a silent anonymous auction for the specific identified lot by simultaneously transmitting a complete and accurate bid wanted regarding the specific identified bond lot to a large number, optionally tens or hundreds, of other brokers, receiving of bids regarding the specific identified bond lot from the other brokers, executing a transaction for the sale of the specific identified lot with a broker transmitting an accepted bid, wherein each other broker receives the bid wanted information transmitted, and transmission of bids for the auctioned bond lot from the other brokers to the selling broker.

14. A method according to claim 13 wherein the bid wanted has a deadline for submission of bids to the selling broker, the method comprising conducting the silent auction within two days, evaluating the bids received by the selling broker to determine the high bidder and transmitting a compilation of bids to the seller for action.