Credit management for electronic brokerage system

• US 6,996,541 B2
• Filed: 09/22/2003
• Issued: 02/07/2006
• Est. Priority Date: 02/03/1992
• Status: Expired due to Fees

• Current Assignee: EBS Dealing Resources, Inc. (CME Group Incorporated)
• Original Assignee: EBS Dealing Resources, Inc. (CME Group Incorporated)
• Inventors: Dunne, Michael F., Hartheimer, Richard, Togher, Michael
• Primary Examiner(s): Colbert, Ella
• Application Number:
  US10/665,570
• Publication Number:
  US 20040059669A1
• Time in Patent Office: 869 Days
• Field of Search: 705 35- 37, 705/38, 705/39
• 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 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: H04L 12/1804 for stock exchange and similar applications

Abstract

An anonymous trading system identifies the best bids and offers from those counterparties with which each party is currently eligible to deal, while maintaining the anonymity of the potential counterparty and the confidentiality of any specific credit limitations imposed by the anonymous potential counterparty. To that end, each bid or offer for a particular type of financial instrument is prescreened by the system for compatibility with limited credit information (for example, a one bit flag indicating whether a predetermined limit has already been exceeded) and an anonymous “Dealable” price is calculated for each of the traders dealing with that particular financial instrument.

Claims

1. A method of trading on a computerized trading system, said method comprising:

displaying a composite quote which can be accepted by a trader on a trading terminal used by said trader, said composite quote including a displayed price at which said trader can accept an offer to buy or sell a known quantity of an item of value, said composite quote being a composite of two or more smaller quotes made by two or more other traders using said computerized trading system, each of said smaller quotes being for a quantity which is less than said known quantity and for a price which is at least as good as said displayed price; and

said trader accepting said best bid.

3. The method of claim 1, wherein said best quote is for a standard quantity of said item of value.

4. A method according to claim 1, wherein the composite quote is for the best price available to said trader.

2. A method for trading on a computerized trading system, said method comprising:

entering a quote from a trader into the trading system, said quote including a quantity and a price;

displaying said quote to other traders using the trading system;

at least one of said other traders making a partial acceptance of said quote, said partial acceptance covering less than the full quantity of said quote; and

thereafter

canceling a remaining portion of said quote, regardless of its size.