Processing of orders in an trading system once warning limits are exceeded

• US 7,509,284 B2
• Filed: 11/22/2006
• Issued: 03/24/2009
• Est. Priority Date: 08/04/2000
• Status: Expired due to Fees

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Lutnick, Howard W., Ginsberg, Philip M., Gilbert, Andrew C.
• Primary Examiner(s): Kazimi; Hani
• Assistant Examiner(s): Akintola; Olabode
• Application Number:
  US11/562,719
• Publication Number:
  US 20070100737A1
• Time in Patent Office: 853 Days
• Field of Search: None
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A trading system allows a trader and/or counterparty to control whether the trader and/or counterparty wants to continue to be able to trade with the other when a pending trade between the trader and counterparty exceeds one or more warning limits.

Claims

1. A method comprising the steps of:

receiving from a first trader a first warning limit specified against a second trader;

receiving from the second trader a second warning limit specified against the first trader;

receiving at a trading system a first order from the first trader;

receiving at the trading system a second order from the second trader,

in which the first order and the second order result in a pending trade between the first trader and the second trader;

determining that execution of the pending trade between the first trader and the second trader causes at least one of the first warning limit and the second warning limit to be exceeded; and

processing the pending trade between the first trader and the second trader, in which processing the pending trade comprises one of;

the trading system rejecting the pending trade,

the trading system executing in part the pending trade such that the executed in part trade does not cause the first warning limit nor the second warning limit to be exceeded, and

the trading system executing in full the pending trade; and

based at least in part on determining that execution of the pending trade between the first trader and the second trader causes at least one of the first warning limit and the second warning limit to be exceeded, displaying to the first trader via a workstation a prompt as to whether the first trader does or does not want to subsequently trade with the second trader.

2. The method of claim 1, in which a selection by the first trader to not subsequently trade with the second trader results in subsequent orders entered by the second trader being unavailable to the first trader.

3. The method of claim 1, further comprising the step of:

based at least in part on determining that execution of the pending trade between the first trader and the second trader causes at least one of the first warning limit and the second warning limit to be exceeded, displaying to the second trader via another workstation a prompt as to whether the second trader does or does not want to subsequently trade with the first trader.

4. The method of claim 1, further comprising the step of:

in response to the prompt, receiving from the first trader a selection to not subsequently trade with the second trader.

5. The method of claim 3,

in which a selection by the first trader to not subsequently trade with the second trader results in subsequent orders entered by the second trader being unavailable to the first trader;

and

in which a selection by the second trader to not subsequently trade with the first trader results in subsequent orders entered by the first trader being unavailable to the second trader.

6. The method of claim 2, in which the subsequent orders entered by the second trader comprise at least one of:

bids, and

offers.

7. The method of claim 4, further comprising the steps of:

receiving a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, making the subsequent order from the second trader, unavailable to the first trader.

8. The method of claim 7, in which the subsequent order comprises at least one of:

a bid, and

an offer.

9. The method of claim 4, further comprising the steps of:

receiving a subsequent order from the first trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, making the subsequent order from the first trader, unavailable to the second trader.

10. The method of claim 1, further comprising the step of:

in response to the prompt, receiving from the first trader a selection to subsequently trade with the second trader.

11. The method of claim 10, further comprising the steps of:

receiving a subsequent order from the first trader; and

based at least in part on receiving from the first trader the indication to subsequently trade with the second trader, displaying to the second trader, via another workstation, the subsequent order from the first trader such that the second trader can hit and/or take the subsequent order from the first trader.

12. The method of claim 10, further comprising:

receiving a subsequent order from the second trader; and

based at least in part on receiving from the first trader the indication to subsequently trade with the second trader, displaying to the first trader via the workstation, the subsequent order such that the first trader can hit and/or take the subsequent order from the second trader.

13. The method of claim 12,

in which the subsequent order from the second trader is displayed using one or more alphanumeric characters;

in which displaying the subsequent order comprises displaying the subsequent order as being available to the first trader such that the first trader can hit and/or take the subsequent order from the second trader; and

in which displaying the subsequent order as being available to the first trader comprises displaying the subsequent order using at least one of;

a particular color for the alphanumeric characters,

a particular font for the alphanumeric characters,

a flashing font for the alphanumeric characters, and

a non-flashing font for the alphanumeric characters.

14. The method of claim 1, in which processing the pending trade comprises executing in full of the pending trade.

15. The method of claim 14, further comprising the step of:

in response to the prompt, receiving from the first trader a selection to subsequently trade with the second trader.

16. The method of claim 14, further comprising the step of:

in response to the prompt, receiving from the first trader a selection to not subsequent trade with the second trader.

17. The method of claim 1, in which processing the pending trade comprises executing in part the pending trade such that the executed in part trade does not cause the first warning limit nor the second warning limit to be exceeded.

18. The method of claim 17, further comprising the step of:

in response to the prompt, receiving from the first trader a selection to subsequently trade with the second trader.

19. The method of claim 1, in which processing the pending trade comprises one of:

executing in full the pending trade,

executing at least in part the pending trade such that the executed in part trade does not cause the first warning limit nor the second warning limit to be exceeded, and

rejecting the pending trade.

20. The method of claim 19, further comprising the steps of:

displaying to the first trader via the workstation and to the second trader via another workstation an interface comprising a plurality of options on how the respective trader wants the trading system to process pending trades that cause warning limits to be exceeded, the plurality of options including;

the trading system automatically rejecting the pending trades,

the trading system automatically executing in part the pending trades such that the executed in part trades do not cause the warning limits to be exceeded,

the trading system automatically executing in full the pending trades,

prompting the respective trader as to whether the respective trader wants the trading system to execute in part the pending trades such that the executed in part trades do not cause the warning limits to be exceeded, and

prompting the respective trader as to whether the respective trader wants the trading system to execute in full the pending trades; and

receiving from each of the first trader and the second trader a selection of one of the plurality of options; and

in which processing the pending trade comprises processing the pending trade based at least in part on the selected option of the first trader and the selected option of the second trader.

21. The method of claim 20, in which the selected option of the first trader and the selected option of the second trader are received prior to receiving the first order from the first trader and the second order from the second trader.

22. The method of claim 1, in which the warning limit of the first trader and the warning limit of the second trader each comprises at least one of:

a total dollar amount of buy side transactions,

a total dollar amount of sell side transactions, and

a total dollar amount of buy side transactions and sell side transactions.

23. The method of claim 1, in which a selection by the first trader to not subsequently trade with the second trader results in subsequent orders entered by the second trader not being displayed to the first trader.

24. The method of claim 1, in which the prompt as to whether the first trader does or does not want to subsequently trade with the second trader comprises a prompt as to whether the first trader does or does not want subsequent orders entered by the second trader being displayed to the first trader.

25. The method of claim 2, in which the subsequent orders entered by the second trader being unavailable to the first trader comprises the subsequent orders being orders that the first trader cannot hit and/or take.

26. The method of claim 3, further comprising the steps of:

in response to the prompt displayed to the first trader, receiving from the first trader a selection to not subsequently trade with the second trader;

in response to the prompt displayed to the second trader, receiving from the second trader a selection to subsequently trade with the first trader;

receiving a subsequent order from the first trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, making the subsequent order from the first trader unavailable to the second trader.

27. The method of claim 26, in which making the subsequent order from the first trader unavailable to the second trader comprises making the subsequent order an order that the second trader cannot hit and/or take.

28. The method of claim 3, further comprising the steps of:

in response to the prompt displayed to the first trader, receiving from the first trader a selection to not subsequently trade with the second trader;

in response to the prompt displayed to the second trader, receiving from the second trader a selection to subsequently trade with the first trader;

receiving a subsequent order from the first trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, causing the subsequent order from the first trader to not be displayed to the second trader.

29. The method of claim 4, further comprising the steps of:

receiving a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, causing the subsequent order from the second trader to not be displayed to the first trader.

30. The method of claim 4, further comprising the steps of:

receiving a subsequent order from the first trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, causing the subsequent order from the first trader to not be displayed to the second trader.

31. The method of claim 4, further comprising the steps of:

receiving a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, displaying to the first trader, via the workstation, the subsequent order from the second trader, in which the subsequent order is unavailable to the first trader.

32. The method of claim 31, in which the subsequent order being unavailable to the first trader comprises the subsequent order from the second trader being an order that the first trader cannot hit and/or take.

33. The method of claim 7, in which making the subsequent order from the second trader unavailable to the first trader comprises making the subsequent order an order that the first trader cannot hit and/or take.

34. The method of claim 9, in which making the subsequent order from the first trader unavailable to the second trader comprises making the subsequent order an order that the second trader cannot hit and/or take.

35. The method of claim 15, further comprising the steps of:

receiving a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to subsequently trade with the second trader, displaying to the first trader, via the workstation, the subsequent order such that the first trader can hit and/or take the subsequent order from the second trader.

36. The method of claim 18, further comprising the steps of:

receiving a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to subsequently trade with the second trader, displaying to the first trader, via the workstation, the subsequent order such that the first trader can hit and/or take the subsequent order from the second trader.

37. The method of claim 31,

in which the subsequent order from the second trade is displayed to the first trader as being unavailable to the first trader;

in which the subsequent order is displayed using one or more alphanumeric characters; and

in which to display the subsequent order as being unavailable to the first trader comprises displaying the subsequent order using at least one of;

a particular color for the alphanumeric characters,

a particular font for the alphanumeric characters,

a flashing font for the alphanumeric characters, and

a non-flashing font for the alphanumeric characters.

38. An apparatus comprising:

a memory operable to store at least one program; and

at least one processor communicatively coupled to the memory;

in which the at least one program, when executed by the at least one processor, causes the at least one processor to;

receive from a first trader a first warning limit specified against a second trader;

receive from the second trader a second warning limit specified against the first trader;

receive a first order from the first trader;

receive a second order from the second trader,

in which the first order and the second order result in a pending trade between the first trader and the second trader;

determine that execution of the pending trade between the first trader and the second trader causes at least one of the first warning limit and the second warning limit to be exceeded;

process the pending trade between the first trader and the second trader, in which to process the pending trade comprises one of;

to reject the pending trade,

to execute in part the pending trade such that the executed in part trade does not cause the first warning limit nor the second warning limit to be exceeded, and

to execute in full the pending trade; and

based at least in part on determining that execution of the pending trade between the first trader and the second trader causes at least one of the first warning limit and the second warning limit to be exceeded, display to the first trader via a workstation a prompt as to whether the first trader does or does not want to subsequently trade with the second trader.

39. The apparatus of claim 38, in which the at least one program, when executed by the at least one processor, further causes the at least one processor to:

in response to the prompt, receive from the first trader a selection to not subsequently trade with the second trader.

40. The apparatus of claim 39, in which the at least one program, when executed by the at least one processor, further causes the at least one processor to:

receive a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, make the subsequent order from the second trader unavailable to the first trader.

41. The apparatus of claim 40, in which to make the subsequent order from the second trader unavailable to the first trader comprises to make the subsequent order an order that the first trader cannot hit and/or take.

42. The apparatus of claim 39, in which the at least one program, when executed by the at least one processor, further causes the at least one processor to:

receive a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, cause the subsequent order from the second trader to not be displayed to the first trader.

43. The apparatus of claim 39, in which the at least one program, when executed by the at least one processor, further causes the at least one processor to:

receive a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to not subsequently trade with the second trader, display to the first trader, via the workstation, the subsequent order from the second trader, in which the subsequent order is unavailable to the first trader.

44. The apparatus of claim 43, in which the subsequent order being unavailable to the first trader comprises the subsequent order from the second trader being an order that the first trader cannot hit and/or take.

45. The apparatus of claim 38,

in which to process the pending trade comprises to execute in full of the pending trade;

in which the at least one program, when executed by the at least one processor, further causes the at least one processor to;

in response to the prompt, receive from the first trader a selection to subsequently trade with the second trader;

receive a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to subsequently trade with the second trader, display to the first trader, via the workstation, the subsequent order such that the first trader can hit and/or take the subsequent order from the second trader.

46. The apparatus of claim 38,

in which to process the pending trade comprises to execute in part the pending trade such that the executed in part trade does not cause the first warning limit nor the second warning limit to be exceeded;

in which the at least one program, when executed by the at least one processor, further causes the at least one processor to;

in response to the prompt, receive from the first trader a selection to subsequently trade with the second trader;

receive a subsequent order from the second trader; and

based at least in part on receiving from the first trader the selection to subsequently trade with the second trader, display to the first trader, via the workstation, the subsequent order such that the first trader can hit and/or take the subsequent order from the second trader.