System and method for trading an instrument

• US 7,386,497 B1
• Filed: 11/22/1999
• Issued: 06/10/2008
• Est. Priority Date: 11/22/1999
• Status: Expired due to Fees

• Current Assignee: Brown Brothers Harriman & Company
• Original Assignee: GFI Group Incorporated (BGC Group, Inc.)
• Inventors: Gooch, Michael
• Primary Examiner(s): Kazimi; Hani M.
• Application Number:
  US09/447,319
• Time in Patent Office: 3,123 Days
• Field of Search: 705/37, 705/35, 705/36, 705/26, 705/27
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and system for trading an instrument such as a financial instrument. A customer generates a request for a price and provides data concerning the instrument for which the price is sought. The price requested may be a price to buy (bid) or sell (offer) the instrument. The request is provided to a group of users via a communication network. Each user is capable of at least generating a price response to the request. The user responses are provided to the customer via the communication network. The best price response generates a first indication to the user which provides such price response. All other users which provide a price response are provided with a second indication, which is different from the first indication and which does not include the best price. At any time, the customer may accept any pending response, amend the request, or cancel the request. The users may adjust their price responses up or down, or cancel their response, at any time prior to customer acceptance, taking into account whether their response generates the first indication or second indication.

Claims

1. A method for trading an instrument, comprising the steps of:

providing a request for a price of the instrument from a customer to a plurality of users via a communication network, the request including request data concerning the instrument;

receiving at least one response to the request from the plurality of users, the at least one response including a user price for the instrument;

providing the at least one response to the customer via the communication network;

determining a best price response to the request based on the at least one response, wherein the best price response is a best one of the at least one response received from the users;

providing a first indication to the user who provided the best price response, the first indication indicating that the response is the best price response; and

providing a second indication to the users who did not provide the best price response, the second indication indicating that the response is not the best price response, the first and second indications being different from one another;

wherein the users, taking into account whether the first indication or the second indication is provided, adjust or cancel a corresponding response at any time before the customer accepts the best price response,

wherein the request is for one of a bid to buy the instrument and an offer to sell the instrument,

wherein the first indication is not an acceptance, and the second indication is not a rejection, and

the second indication does not indicate what the best bid is so that users receiving the second indication do not know the best bid.

2. The method according to claim 1, further comprising the step of:

eliminating a particular response of the at least one response if the particular response is not the best price response.

3. The method according to claim 1, wherein the request data include at least one of an identifier of the instrument, pricing information of the instrument, and quantity information for the instrument.

4. The method according to claim 3, wherein the request data further include at least one predetermined condition.

5. The method according to claim 1, further comprising the steps of:

initiating a settlement procedure when the user accepts a response.

6. The method according to claim 1, further comprising the step of:

eliminating the request by the customer when the customer indicates the request is no longer valid.

7. The method according to claim 1, further comprising the steps of:

amending the request at the direction of the customer; and

providing the amended request to the plurality of users via the communication network.

8. The method according to claim 1, wherein the first and second indications are provided by a predetermined signal selected from the group consisting of one or more of visual indications and sound indications.

9. The method according to claim 1, further comprising the step of:

providing at least one of pricing data, risk management data, and analysis data for the instrument to the plurality of users.

10. The method according to claim 1, wherein the instrument is selected from the group consisting of a stock, a bond, a treasury bill, and a derivative.

11. The method according to claim 1, further comprising the step of:

initiating a private communication between the customer and one of the plurality of users selected by the customer.

12. The method according to claim 11, wherein the private communication includes at least one of a fax, an e-mail, and a real-time chat channel.

13. The method according to claim 1, wherein the request includes at least one subrequest.

14. The method according to claim 1, wherein the communication network includes at least one of an Internet, a dedicated network, a telephone network, and a wireless network.

15. The method according to claim 1, further comprising the step of:

generating at least one predetermined group of the plurality of users.

20. The method according to claim 1, further comprising:

providing an amended request or a counter-request from the customer to the users at any time before the customer accepts the best price response.

16. A system for trading an instrument, comprising:

a communication network;

a first computer for transmitting a request for a price of the instrument from a customer via the communication network, the request including request data; and

at least one second computer for receiving the request via the communication network, the at least one second computer transmitting at least one response to the request from at least one user to the first computer via the communication network,

wherein the first computer determines a best price response to the request based on the at least one response, the first computer transmitting a first indication to the user who provided the best price response, the first indication indicating that the response is the best price response, the first computer transmitting a second indication to the users who did not provide the best price response, the second indication indicating that the response is not the best price response, the first and second indications being different from one another, and the request is for one of a bid to buy the instrument and an offer to sell the instrument,

wherein the first indication is not an acceptance, and the second indication is not a rejection,

wherein the users, taking into account whether the first indication or the second indication is provided, adjust or cancel a corresponding response at any time before the customer accepts the best price response,

wherein the best price response is a best one of the at least one response received from the users, and

the second indication does not indicate what the best bid is so that users receiving the second indication do not know the best bid.

21. The system according to claim 16, wherein the customer is able to provide an amended request or a counter-request to the users at any time before the customer accepts the best price response.

17. A system for trading an instrument, comprising:

a first computer;

a second computer for transmitting a request for a price of the instrument from a customer to the first computer, the request including request data; and

at least one third computer for receiving the request via the first computer, the at least one third computer transmitting to the first computer at least one response to the request from at least one user,

wherein the first computer determines a best price response to the request based on the at least one response, the first computer transmitting a first indication to the user who provided the best price response, the first indication indicating that the response is the best price response, the first computer transmitting a second indication to the users who did not provide the best price response, the second indication indicating that the response is not the best price response, the first and second indications being different from one another, and the request is for one of a bid to buy the instrument and an offer to sell the instrument,

wherein the first indication is not an acceptance, and the second indication is not a rejection,

wherein the users, taking into account whether the first indication or the second indication is provided, adjust or cancel a corresponding response at any time before the customer accepts the best price response,

wherein the best price response is a best one of the at least one response received from the users, and

the second indication does not indicate what the best bid is so that users receiving the second indication do not know the best bid;

wherein the first computer, the second computer and the third computer are coupled to a communication network to provide communications among the computers.

22. The system according to claim 17, wherein the customer is able to provide an amended request or a counter-request to the users at any time before the customer accepts the best price response.

23. The system according to claim 17, wherein the communication network includes an intra-network.

24. The system according to claim 17, wherein the communication network includes an inter-network.

25. The system according to claim 17, wherein the communication network includes an Internet.

26. The system according to claim 17, wherein the communication network includes an inter-network and an intra-network.

27. The system according to claim 17, wherein the communication network includes at least one of an inter-network, an intra-network, a dedicated network, a telephone network, a wireless network, and an Internet.

18. A computer-readable storage medium storing a set of instructions, the set of instructions capable of being executed by a processor to provide for trading of an instrument, the set of instructions performing the steps of:

providing a request for a price of the instrument from a customer to a plurality of users via a communication network, the request including request data concerning the instrument;

receiving at least one response to the request from the plurality of users, the at least one response including a user price of the instrument;

providing the at least one response to the customer via the communication network;

determining a best price response to the request based on the at least one response, wherein the best price response is a best one of the at least one response received from the users;

providing a first indication to the user who provided the best price response, the first indication indicating that the response is the best price response; and

providing a second indication to the users who did not provide the best price response, the second indication indicating that the response is not the best price response, the first and second indications being different from one another;

wherein the users, taking into account whether the first indication or the second indication is provided, adjust or cancel a corresponding response at any time before the customer accepts the best price response,

wherein the request is for one of a bid to buy the instrument and an offer to sell the instrument,

wherein the first indication is not an acceptance, and the second indication is not a rejection, and

the second indication does not include what the best bid is so that users receiving the second indication do not know the best bid.

19. The computer-readable storage medium according to claim 18, wherein the set of instructions enable the customer to provide an amended request or a counter-request to the users at any time before the customer accepts the best price response.