Electronic trading system including an auto-arbitrage feature or name switching feature

• US 7,080,033 B2
• Filed: 12/23/2002
• Issued: 07/18/2006
• Est. Priority Date: 12/12/1995
• Status: Expired due to Fees

• Current Assignee: Reuters Limited (The Woodbridge Co. Ltd.)
• Original Assignee: Reuters Limited (The Woodbridge Co. Ltd.)
• Inventors: Silverman, David L., Wilton, Rosalyn S.
• Primary Examiner(s): Poinvil, Franzy
• Assistant Examiner(s): Dass, Harish T.
• Application Number:
  US10/325,982
• Publication Number:
  US 20030088509A1
• Time in Patent Office: 1,303 Days
• Field of Search: 705/37, 705/35, 705/36, 705/1, 273/278, 340/7.23, 707/100
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/00 Commerce
• 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: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An electronic trading system is provided that includes a plurality of trader terminals for receiving credit parameter data, arbitrage parameter data, and trading data from a trading entity and displaying trade information to the trading entity. The trading data includes bid and/or offer information input by the trading entity. The system further includes a computer connected to the plurality of trader terminals via a communications network which receives and stores the credit parameter data and the trading data from the plurality of trader terminals. The system may include a detector circuit or program for automatically detecting an available arbitrage opportunity including a plurality of trades based on the credit parameter data, the arbitrage parameter data, and the trading data; and a circuit or program for automatically executing the available arbitrage opportunity by executing all of the plurality of trades.

Claims

1. An electronic trading system comprising:

a plurality of trader terminals;

a computer connected to said plurality of trader terminals via a communications network, said computer receiving and storing trading data from said plurality of trader terminals;

detecting means for automatically detecting an available arbitrage transaction, said available arbitrage transaction including a plurality of potential trades based on said trading data;

executing means for automatically executing said available arbitrage transaction by executing said plurality of potential trades, said executing means including locking means by which said plurality of potential trades are locked prior to execution of said available arbitrage transaction.

2. An electronic trading system according to claim 1, further comprising notification means by which a trading entity associated with one of said trader terminals is notified that said arbitrage transaction has been executed.

3. An electronic trading system according to claim 1, further comprising alert means for alerting a trading entity associated with one of said trader terminals of a detected arbitrage opportunity detected by said detecting means and providing said trading entity with an option to pursue said detected arbitrage opportunity.

4. An electronic trading system according to claim 1, wherein said available arbitrage transaction is one in which a first trading entity enables a trade requested by a second trading entity and a third trading entity, said first trading entity having sufficient credit with said second and third trading entities to complete said trade, said second and third trading entities being unable to trade directly with one another.

5. An electronic trading system, comprising:

a plurality of trader terminals;

a computer connected to said plurality of trader terminals via a communications network, said computer receiving and storing name switch parameter data from said plurality of trader terminals;

detecting means for automatically detecting an available name switch transaction based on said name switch parameter data;

executing means for executing said available name switch transaction.

6. An electronic trading system according to claim 5, further comprising notification means by which a trading entity associated with one of said plurality of trader terminals is notified that said name switch transaction has been executed.

7. An electronic trading system according to claim 5, wherein said name switch parameter data includes a minimum spread parameter and/or a minimum size parameter and/or a maximum size parameter.

8. An electronic trading system according to claim 5, wherein said name switch parameter data includes a minimum spread parameter, an average spread parameter, a minimum size parameter, and a maximum size parameter.

9. An electronic trading system according to claim 5, wherein said available name switch transaction is one in which a first trading entity enables a trade requested by a second trading entity and a third trading entity by allowing said second trading entity to trade with said third trading entity using said first trading entity'"'"'s credit line, said first trading entity having sufficient credit with said second and third trading entities to complete said trade, said second and third trading entities being unable to trade directly with one another.

10. An electronic trading system comprising:

a plurality of trader terminals;

a computer connected to said plurality of trader terminals via a communications network, said computer receiving and storing trading data from said plurality of trader terminals;

a detector for automatically detecting an available arbitrage transaction, said available arbitrage transaction including a plurality of potential trades based on said trading data;

an executing circuit for automatically executing said available arbitrage transaction by executing said plurality of potential trades, said executing circuit including a locking circuit by which said plurality of potential trades are locked prior to execution of said available arbitrage transaction.

11. An electronic trading system according to claim 10, further comprising a notification circuit by which a trading entity associated with one of said plurality of trader terminals is notified that an arbitrage transaction has been performed.

12. An electronic trading system according to claim 10, further comprising an alert circuit for alerting a trading entity associated with one of said plurality of trader terminals of a detected arbitrage opportunity detected by said detector and providing said trading entity with the option to pursue said detected arbitrage opportunity.

13. An electronic trading system according to claim 10, wherein said available arbitrage transaction is one in which a first trading entity enables a trade requested by a second trading entity and a third trading entity, said first trading entity having sufficient credit with said second and third trading entities to complete said trade, said second and third trading entities being unable to trade directly with one another.

14. An electronic trading system, comprising:

a plurality of trader terminals;

a computer connected to said plurality of trader terminals via a communications network, said computer receiving and storing said name switch parameter data from said plurality of trader terminals;

a detector for automatically detecting an available name switch transaction based on said name switch parameter data; and

an executing circuit for executing said available name switch transaction.

15. An electronic trading system according to claim 14, further comprising a notification circuit by which a trading entity associated with one of said trader terminals is notified that a name switch transaction has been executed.

16. An electronic trading system according to claim 14, wherein said name switch parameter data includes a minimum spread parameter and/or a minimum size parameter and/or a maximum size parameter.

17. An electronic trading system according to claim 14, wherein said available name switch transaction is one in which a first trading entity enables a trade requested by a second trading entity and a third trading entity by allowing said second trading entity to trade with said third trading entity using said first trading entity'"'"'s credit line, said first trading entity having sufficient credit with said second and third trading entities to complete said trade, said second and third trading entities being unable to trade directly with one another.

18. A trader terminal in communication with a network, said trader terminal comprising:

an input receiving arbitrage parameter data and trading data, said trading data including information about at least two trades;

a detector for detecting an arbitrage transaction opportunity based on said arbitrage parameter data and said trading data;

an arbitrage availability lock for locking in the availability of said at least two trades; and

an executor for executing said arbitrage transaction opportunity by executing said at least two trades.