Bond trading system

• US 7,310,051 B2
• Filed: 11/17/2004
• Issued: 12/18/2007
• Est. Priority Date: 11/21/1994
• Status: Expired due to Fees

• Current Assignee: BGC Partners LP (BGC Group, Inc.)
• Original Assignee: eSpeed Incorporated (BGC Group, Inc.)
• Inventors: Lawrence, David
• Primary Examiner(s): Cumming; William D.
• Application Number:
  US10/990,575
• Publication Number:
  US 20050097030A1
• Time in Patent Office: 1,126 Days
• Field of Search: 340/825.76, 340/825.26, 705/1
• 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 method for trading bonds electronically in a silent auction, the method comprising:

transmitting bid wanted information for a specific identified bond lot from a computer station of a selling user to computer stations of a plurality of bidding users;

receiving bids from the computer stations of the bidding users, wherein each bid from a bidding user is not transmitted to the other bidding users;

transmitting to the computer station of the selling user a list of the bids received from the computer stations of the bidding users, the selling user able to accept one of the bids; and

in response to the selling user accepting one of the bids, executing a transaction for the sale of the specific identified bond lot with the bidding user that transmitted the accepted bid.

2. The method of claim 1, further comprising determining the highest bid and allowing the selling user to accept the highest bid.

3. The method of claim 1, wherein the bid wanted information for the specific identified bond lot comprises a current and authentic description of the specific identified bond lot.

4. The method of claim 3, wherein the specific identified bond lot is identified by a unique identifier.

5. The method of claim 1, further comprising delaying the transmission of the bid wanted information in response to the selling user placing the bid wanted on hold.

6. The method of claim 1, further comprising re-transmitting bid wanted information for an untraded bond lot at a later time.

25. The method of claim 1, comprising displaying at the computer station of the selling user an interface comprising a sorted list of bids received.

26. The method of claim 1, comprising identifying from the plurality of bids received a high bid and displaying at the computer station of the selling user an interface screen comprising a list of the bids received including the high bid.

27. The method of claim 1, comprising transmitting a list of bonds to the selling user and receiving from the selling user a selection of at least one bond from the list to be included in the bid wanted.

28. The method of claim 27, comprising displaying at the computer station of the selling user an interface screen comprising the list of bonds sorted by maturity.

29. The method of claim 27, wherein the list of bonds comprises at least one item of bond data for each of a plurality of listed bonds.

30. The method of claim 29, wherein the at least one item of bond data for each of a plurality of listed bonds comprises market data.

31. The method of claim 30, wherein the at least one item of market data comprises at least one of coupon, maturity, issuer, and yield data.

32. The method of claim 27, wherein the list of bonds comprises a plurality of bond offerings that have not traded.

33. The method of claim 27, comprising incorporating at least one item of bond data of the selected bond into the bid wanted.

34. The method of claim 33, wherein the at least one item of bond data comprises at least one of a unique issue identifier, a description, a maturity date, a par value, a coupon value, a yield, and a settlement date.

35. The method of claim 33, wherein the at least one item of bond data is system-incorporated into the bid wanted.

36. The method of claim 27, comprising receiving a query specifying at least one of an issuer, a maturity, a yield, and a coupon, the list of bonds comprising a plurality of bonds retrieved in response to the query.

37. The method of claim 1, comprising posting with the bids received a system-calculated price or yield based on data specified by the bidding users.

38. The method of claim 1, wherein the bid wanted is transmitted to a plurality of specified bidding users selected from a list of bidding users.

39. The method of claim 1, wherein the bid wanted is transmitted to a plurality of specified bidding users selected from a predetermined destination list of brokerage firms.

7. A system for trading bonds electronically in a silent auction, the system comprising:

means for transmitting bid wanted information for a specific identified bond lot from a computer station of a selling user to computer stations of a plurality of bidding users;

means for receiving bids from the computer stations of the bidding users, wherein each bid from a bidding user is not transmitted to the other bidding users;

means for transmitting to the computer station of the selling user a list of the bids received from the computer stations of the bidding users, the selling user able to accept one of the bids; and

in response to the selling user accepting one of the bids, means for executing a transaction for the sale of the specific identified bond lot with the bidding user that transmitted the accepted bid.

8. The system of claim 7, further comprising means for determining the highest bid and means for allowing the selling user to accept the highest bid.

9. The system of claim 7, wherein the bid wanted information for the specific identified bond lot comprises a current and authentic description of the specific identified bond lot.

10. The system of claim 9, wherein the specific identified bond lot is identified by a unique identifier.

11. The system of claim 7, further comprising means for delaying the transmission of the bid wanted information in response to the selling user placing the bid wanted on hold.

12. The system of claim 7, further comprising means for re-transmitting bid wanted information for an untraded bond lot at a later time.

13. A system for trading bonds electronically in a silent auction, the system comprising at least one computer connected over a computer network to:

a plurality of computer stations operated by bidding users; and

a computer station operated by a selling user, wherein the at least one computer is configured to;

transmit bid wanted information for a specific identified bond lot from the computer station of the selling user to the computer stations of the plurality of bidding users;

receive bids for the specific identified bond lot from the computer stations of the bidding users, wherein each bid from a buying participant is not transmitted to the other bidding users;

transmit to the computer station of the selling user a list of the bids received from the computer stations of the bidding users, the selling user able to accept one of the bids; and

execute a transaction for the sale of the specific identified bond lot with the bidding user that transmitted the accepted bid.

14. The system of claim 13, wherein the at least one computer is further configured to determine the highest bid and allow the selling user to accept the highest bid.

15. The system of claim 13, wherein the bid wanted information for the specific identified bond lot comprises a current and authentic description of the specific identified bond lot.

16. The system of claim 15, wherein the specific identified bond lot is identified by a unique identifier.

17. The system of claim 13, wherein the at least one computer is further configured to delay the transmission of the bid wanted information in response to the selling user placing the bid wanted on hold.

18. The system of claim 13, wherein the at least one computer is further configured to re-transmit bid wanted information for an untraded bond lot at a later time.

19. A computer-readable medium for trading bonds electronically in a silent auction, the computer-readable medium comprising software stored thereon that when executed performs a method comprising:

transmitting bid wanted information for a specific identified bond lot from a computer station of a selling user to computer stations of a plurality of bidding users;

receiving bids from the computer stations of the bidding users, wherein each bid from a bidding user is not transmitted to the other bidding users;

transmitting to the computer station of the selling user a list of the bids received from the computer stations of the bidding users, the selling user able to accept one of the bids; and

in response to the selling user accepting one of the bids, executing a transaction for the sale of the specific identified bond lot with the bidding user that transmitted the accepted bid.

20. The computer-readable medium of claim 19, the method further comprising determining the highest bid, wherein the bid accepted by the selling user is the highest bid.

21. The computer-readable medium of claim 19, wherein the bid wanted information for the specific identified bond lot comprises a current and authentic description of the specific identified bond lot.

22. The computer-readable medium of claim 21, wherein the specific identified bond lot is identified by a unique identifier.

23. The computer-readable medium of claim 19, the method further comprising delaying the transmission of the bid wanted information in response to the selling user placing the bid wanted on hold.

24. The computer-readable medium of claim 19, the method further comprising re-transmitting bid wanted information for an untraded bond lot at a later time.

40. A method for trading bonds electronically comprising:

transmitting bid wanted information for a bond lot from a computer station of a selling user to computer stations of a plurality of bidding users;

receiving bids from the computer stations of the bidding users, the bids received in a silent auction wherein bids from bidding users are not disclosed to the other bidding users;

displaying on the computer station of the selling user an ordered list of the bids received, the selling user able to accept one of the bids displayed; and

executing a transaction for the sale of the bond lot in response to the selling user accepting one of the bids.

41. The method of claim 40, comprising identifying from the plurality of bids received a high bid, wherein the interface screen displayed at the computer station of the selling user comprises a list of the bids received including the identified high bid.

42. The method of claim 41, wherein the interface screen displayed at the computer station of the selling user comprises an ordered list of bids received.

43. A method for trading bonds electronically comprising:

displaying at a computer station of a selling uses an interface screen comprising a list of bonds;

receiving from the selling user a selection of a bond from the list of bonds to be included in a bid wanted for a bond lot;

displaying at the computer station of the selling user an interface screen for submitting bid wanted information for the bond lot, the bid wanted comprising at least one item of bond data of the selected bond system-incorporated into the bid wanted;

transmitting the bid wanted information from the computer station of the selling user to computer stations of a plurality of bidding users;

receiving a plurality of bids the bids received in a silent auction;

displaying at the computer station of the selling user an ordered list of the bids received from the computer stations of the bidding users, wherein bids are not disclosed to other bidding users, the selling user able to accept one of the bids displayed; and

executing a transaction for the sale of the bond lot in response to the selling user accepting one of the bids.

44. The method of claim 43, wherein the at least one item of bond data comprises at least one of a unique issue identifier, a description, a maturity date, a par value, a coupon value, a yield, and a settlement date.

45. The method of claim 43, the list of bonds displayed at the computer station of the seller sorted by maturity.

46. The method of claim 43, the list of bonds comprising at least one item of bond data comprising at least one of coupon, maturity, issuer, and yield data.

47. A method for trading bonds electronically comprising:

receiving at a computer station of a bidding user bid wanted information for a bond lot from a computer station of a selling user, the bid wanted transmitted to computer stations of at least one other bidding user;

transmitting a bid from the computer station of the bidding user, the bid not disclosed to the at least one other bidding user, the bid displayed at the computer station of the selling user on an interface screen comprising an ordered list of bids transmitted from the bidding user and the at least one other bidding user, the selling user able to accept one of the bids displayed; and

executing a transaction for the sale of the bond lot in response to the selling user accepting one of the bids.

48. The method of claim 47, the bid wanted comprising at least one blank bid entry area for bidding users to specify at least one of a price and a yield for the bid.

49. The method of claim 48, wherein the bid comprises a system-calculated price or yield based on data specified by at least one bidding user.

50. The method of claim 47, comprising receiving at the computer station of the bidding user bid wanted information for a plurality of bid wanteds, the plurality of bid wanteds indexed chronologically.

51. A method for trading bonds electronically comprising:

transmitting from a computer station of a selling user a selection of a bond from a list of bonds to be included in a bid wanted for a bond lot;

displaying at the computer station of the selling user an interface screen for submitting bid wanted information for the bond lot, the bid wanted comprising at least one item of bond data of the selected bond system-incorporated into the bid wanted;

transmitting the bid wanted information from the computer station of the selling user to computer stations of a plurality of bidding users;

receiving a plurality of bids from the computer stations of the bidding users, the bids received in a silent auction wherein bids from bidding users are not disclosed to the other bidding users; and

displaying at the computer station of the selling user an ordered list of the bids received, the selling user able to accept one of the bids displayed for execution.