Method for providing aggregation of trading on multiple alternative trading systems

• US 7,487,125 B2
• Filed: 01/14/2005
• Issued: 02/03/2009
• Est. Priority Date: 01/14/2005
• Status: Active Grant

• Current Assignee: Virtu ITG Software Solutions LLC
• Original Assignee: ITG Incorporated
• Inventors: Littlewood, Margaret G.
• Primary Examiner(s): Kramer; Jay A
• Assistant Examiner(s): Wood; David L
• Application Number:
  US11/036,113
• Publication Number:
  US 20060161494A1
• Time in Patent Office: 1,481 Days
• Field of Search: 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method for performing financial trading amongst a plurality of alternative trading systems using a common financial computer platform. The method including the steps of receiving at the common financial computer platform a buy-order for a prescribed number shares at a prescribed price. Electronic communication is then established between the common financial computer platform and each of the plurality of alternative trading systems. At least a portion of the buy-order is then submitted from the common financial computer platform to each of the plurality of alternative trading systems. The common financial common platform then monitors each of the plurality of alternative trading systems to determine if at least a portion of the buy-order was executed by one of the plurality of alternative trading systems. And if yes, then that indicated execution for one of the plurality of alternative trading systems is automatically accepted and automatically canceled are the remaining buy orders that were submitted to the other alternative trading system which were not yet executed.

Claims

1. A method for performing financial trading amongst a plurality of alternative trading systems using a common financial computer platform, said method comprising the steps of:

receiving at said common financial computer platform a buy-order for a prescribed trading commodity;

establishing communication between said common financial computer platform and each of said plurality of alternative trading systems;

seperating said buy-order into a plurality of portions;

submitting each said portion of said buy-order simultaneously from said common financial computer platform respectivly to each said alternative trading systems;

monitoring each of said plurality of alternative trading systems to determine if a said at least a portion of said buy-order was executed by one of said plurality of alternative trading systems;

automatically accepting a determined execution from a said alternative trading systems for a submitted at least a portion of said buy-order; and

automatically canceling by said common financial computer platform said other portions of said buy-order submitted to each of said other plurality of alternative trading systems upon execution by said executing alternating trading system.

2. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 wherein in the receiving step the buy-order includes the number of stock shares to be purchased, price limits for the number of stock shares to be purchased and the percentage of the buy-order that may be consummated during a business day.

3. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 wherein the establishing communication step includes the common financial computer platform being configured to individually communicate with each of said plurality of alternative trading systems without any further modification to said common financial computer platform.

4. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 wherein the plurality of alternative trading systems are chosen from the group consisting of:

ITG Post;

Liquidnet;

Harborside;

Instinet Cross;

Pipeline; and

NYFIX Millenium.

5. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 wherein the step of sperating a portion of said buy-order includes dividing a number of shares prescribed in said buy-order by a number equal to the number of alternative trading systems contained in said plurality of alternative trading systems and submitting said divided number of shares to each of said plurality of alternative trading systems.

6. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 5 wherein the step of separating a portion of said buy-order includes submitting said divided number of shares to each of said plurality of alternative trading systems.

7. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 further including the step determining an alternative trading system from one of said plurality of alternative trading systems that is receive a balance of the outstanding buy-order after said executting alternative trading systems executed said submitted at least a portion of said buy-order.

8. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 1 further including the steps:

providing a smart router; and

transmitting said buy-order from said smart router to at least one predetermined alternative trading system based upon historical trading data.

15. Amethod for performing financial trading amongst a plurality af alternative trading systems as recited in claim 1 wherein the step of separating a portion of said buy-order includes dividing a number of shares perscribed in said buy-order by a number proportionate to the number of alternative trading systems in said plurality of alternative trading systems and submitting said divided number of shares to each of said plurality of alternative trading systems.

9. A method for performing financial trading amongst a plurality of alternitive trading systems using a common financial computer platform, said method comprising the steps of:

recieving at said common financial computer platform, said method comprising the prescribed trading commodity;

establishing communication between said common financial computer platform and each of said plurality of alternitive trading systems;

separating said buy-order into a plurality of portions, said plurality being a number equal to the number of alternative trading systems contained in said plurality of alternative trading systems;

submitting each said portion of said buy-order simultaniously from said common financial computer platform and each said plurality of alternative trading systems including dividing a number of shares prescribed in said buy-order by a number equal to the number of alternative trading systems contained in said plurality of alternative trading systems;

monitoring each of said plurality of alternative trading systems to determine if a said at least a portion of said buy-order was executed by one of said plurality of alternative trading systems;

automatically accepting a determined execution from a said alternitive trading systems for a submitted at least a portion of said buy-order; and

automatically canceling by said common financial computer platform said other portions of said buy-order submitted to each of said other plurality of alternative trading systems upon execution by said executing alternating trading system.

10. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 wherein in the receiving step the buy-order includes the number of stock shares to be purchased, price limits for the number of stock shares to be purchased and the percentage of the buy-order that may be consummated during a business day.

11. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 wherein the establishing communication step includes the common financial computer platform being configured to individually communicate with each of said plurality of alternative trading systems without any further modification to said common financial computer platform.

12. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 wherein the plurality of alternative trading systems are chosen from the group consisting of:

ITG Post;

Liquidnet;

Harborside;

Instinet Cross;

Pipeline; and

NYFIX Millenium.

13. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 wherein the step of submitting a portion of said buy-order includes submitting said divided number of shares to each of said plurality of alternative trading systems.

14. A method for performing financial trading amongst a plurality of alternative trading systems as recited in claim 9 further including the step determining an alternative trading system from one of said plurality of alternative trading systems that is receive a balance of the outstanding buy-order after said executing alternative trading systems executed said submitted at least a portion of said buy-order.

16. A method for performing financial tradining amongst a plurality of alternative trading systems as recited in claim 9 wherein the step of separating a portion of said buy-order includes dividing a number of shares perscribed in said buy-order by a number proportionate to the number of alternative trading systems contained in said plurality of alternative trading systems and submitting said divided number of shares to each of said plurality of alternative trading systems.

17. A system for performing financial trading amongst a plurality of alternative trading systems using a common financial computer platform, said system comprising:

a common financial computer platform that receives a buy-order for a prescribed trading commodity;

said common financial computer platform configured to;

establish communication with each of said plurality of alternative trading systems;

separate said buy-order into a plurality of portions;

simultaneously submit each said buy-order portion respectively to each of said plurality of alternative trading systems;

simultaneously monitor each of said plurality of alternative trading systems to determine if a submitted portion of said buy-order was executed by one of said plurality of alternative trading systems; and

simultaneously cancel said submission of each said portion of said buy-order that were not executed upon execution of said executing portion of said buy-order.