Systems and methods for anonymous electronic trading

• US 7,516,097 B2
• Filed: 05/10/2001
• Issued: 04/07/2009
• Est. Priority Date: 08/04/2000
• Status: Active Grant

• 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:
  US09/853,430
• Publication Number:
  US 20020019799A1
• Time in Patent Office: 2,889 Days
• Field of Search: 705 35- 40
• 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

Systems and methods for anonymous electronic trading that allow a trader to hide his or her identity and inhibit trading interactions are provided. Using these systems and methods, a trader can, using various trading interfaces, control a level of trading anonymously and configure warnings that are provided to protect against inadvertent completion of potential-risk-involved trades.

Claims

1. A method comprising:

causing to be presented to at least a respective first trader and second trader an interface comprising a plurality of options on how the respective trader wants a 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, and

the trading system automatically executing in full the pending trades;

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

in addition to the selection of the first trader, receiving from the first trader a first warning limit specified against the second trader;

in addition to the selection of the second trader, receiving from the second trader a second warning limit specified against the first trader;

after receiving the selection of the first trader, the selection of the second trader, the first warning limit, and the second warning limit;

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

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 based on the selection of the first trader and the selection of the second trader, in which processing the pending trade comprises at least one of;

the trading system automatically rejecting the pending trade,

the trading system automatically 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 automatically executing in full the pending trade.

2. The method of claim 1,

in which at least one of the selection of the first trader and the selection of the second trader comprises the option of the trading system automatically rejecting the pending trades;

and

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader comprises the trading system automatically rejecting the pending trade.

3. The method of claim 1,

in which the selection of the first trader and the selection of the second trader each comprises the option of the trading system automatically executing in part the pending trades;

and

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader comprises the trading system automatically 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.

4. The method of claim 1,

in which the selection of the first trader comprises the option of the trading system automatically executing in part the pending trades;

in which the selection of the second trader comprises the option of the trading system automatically executing in full the pending trades; and

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader comprises the trading system automatically 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.

5. The method of claim 1,

in which the selection of the first trader and the selection of the second trader each comprises the option of the trading system automatically executing in full the pending trades;

and

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader comprises the trading system automatically executing in full the pending trade.

6. The method of claim 1, further comprising:

based 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, causing the first trader to be prompted as to whether the first trader would like the trading system to subsequently make at least one of bids and offers received from the second trader unavailable to the first trader.

7. The method of claim 1, further comprising:

based 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, causing the first trader to be prompted as to whether the first trader would like the trading system to subsequently make at least one of bids and offers received from the first trader unavailable to the second trader.

8. The method of claim 1, further comprising:

subsequent to processing the pending trade between the first trader and the second trader, causing at least one of;

an order received from the second trader not to be displayed to the first trader, and

an order received from the first trader not to be displayed to the second trader.

9. The method of claim 8, in which:

the order from the second trader comprise at least one of a bid and an offer, and

the order from the first trader comprise at least one of a bid and an offer.

10. The method of claim 1, in which the first warning limit of the first trader and the second 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.

11. The method of claim 1, in which the first trader and the second trader each specifies against the other at least two counterparty warning limits including:

a total dollar amount of buy side transactions, and

a total dollar amount of sell side transactions, and

in which the first warning limit of the first trader and the second warning limit of the second trader each comprises one of the at least two counterparty warning limits.

12. The method of claim 1, in which

the first warning limit of the first trader comprises a total dollar amount of buy side transactions, and

the second warning limit of the second trader comprises a total dollar amount of sell side transactions.

13. The method of claim 1, in which the plurality of options further include:

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

14. The method of claim 13,

in which the selection of the first trader comprises the option of prompting the first trader as to whether the first trader wants the trading system to execute in part the pending trades;

in which the selection of the second trader comprises at least one of;

the option of the trading system automatically executing in part the pending trades,

the option of the trading system automatically executing in full the pending trades,

the option of prompting the second trader as to whether the second trader wants the trading system to execute in part the pending trades; and

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

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises causing the first trader to be prompted as to whether the first trader wants the trading system 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.

15. The method of claim 13,

in which the selection of the second trader comprises the option of the trading system automatically executing in part the pending trades;

in which the selection of the first trader comprises the option of prompting the first trader as to whether the first trader wants the trading system to execute in full the pending trades; and

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises causing the first trader to be prompted as to whether the first trader wants the trading system 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.

16. The method of claim 13,

in which the selection of the first trader comprises the option of prompting the first trader as to whether the first trader wants the trading system to execute in full the pending trades;

in which the selection of the second trader comprises at least one of;

the option of the trading system automatically executing in full the pending trades, and

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

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises causing the first trader to be prompted as to whether the first trader wants the trading system to execute in full the pending trade.

17. The method of claim 14,

in which the selection of the second trader comprises the option of prompting the second trader as to whether the second trader wants the trading system to execute in full the pending trades;

and

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises causing the second trader to be prompted as to whether the second trader wants the trading system 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.

18. The method of claim 17, in which processing the pending trade between the first trader and the second trader further comprises:

based on causing the first trader to be prompted, receiving from the first trader an indication for the trading system to execute in part the pending trade;

based on causing the second trader to be prompted, receiving from the second trader an indication for the trading system to execute in part the pending trade; and

based on the indication of the first trader and the indication of the second trader, 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.

19. The method of claim 18, further comprising causing a remaining part of the pending trade not executed to be displayed as at least one of:

a bid, and

an offer.

20. The method of claim 17, in which processing the pending trade between the first trader and the second trader further comprises:

based on causing the first trader to be prompted and based on causing the second trader to be prompted, receiving from at least one of the first trader and the second trader an indication for the trading system not to execute in part the pending trade; and

based on the indication of the at least one of the first trader and the second trader, the trading system rejecting the pending trade.

21. The method of claim 15, in which processing the pending trade between the first trader and the second trader further comprises:

based on causing the first trader to be prompted, receiving from the first trader an indication for the trading system to execute in part the pending trade; and

based on the indication of the first trader, 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.

22. The method of claim 15, in which processing the pending trade between the first trader and the second trader further comprises:

based on causing the first trader to be prompted, receiving from the first trader an indication for the for the trading system not to execute in part the pending trade; and

based on the indication of the first trader, the trading system rejecting the pending trade.

23. The method of claim 16,

in which the selection of the second trader comprises the option of prompting the second trader as to whether the second trader wants the trading system to execute in full the pending trades;

and

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises causing the second trader to be prompted as to whether the second trader wants the trading system to execute in full the pending trade.

24. The method of claim 23, in which processing the pending trade between the first trader and the second trader further comprises:

based on causing the first trader to be prompted, receiving from the first trader an indication for the trading system to execute in full the pending trade;

based on causing the second trader to be prompted, receiving from the second trader an indication for the trading system to execute in full the pending trade; and

based on the indication of the first trader and the indication of the second trader, the trading system executing in full the pending trade.

25. The method of claim 23, in which processing the pending trade between the first trader and the second trader further comprises:

based on causing the first trader to be prompted and based on causing the second trader to be prompted, receiving from at least one of the first trader and the second trader an indication for the trading system not to execute in full the pending trade; and

based on the indication of the at least one of the first trader and the second trader, the trading system rejecting the pending trade.

26. The method of claim 14,

in which the selection of the second trader comprises the option of prompting the second trader as to whether the second trader wants the trading system to execute in part the pending trades;

and

in which processing the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises causing the second trader to be prompted as to whether the second trader wants the trading system 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.

27. The method of claim 16,

in which the selection of the second trader comprises the option of automatically executing in full the pending trades;

and

in which processing the pending trade between the first trader and the second trader further comprises;

based on causing the first trader to be prompted, receiving from the first trader an indication for the trading system not to execute in full the pending trade; and

based on the indication of the first trader, the trading system rejecting the pending trade.

28. An apparatus comprising a computing device operable to:

cause to be presented to at least a respective first trader and second trader an interface comprising a plurality of options on how the respective trader wants pending trades that cause warning limits to be exceeded to be processed, the plurality of options including to;

automatically reject the pending trades,

automatically execute in part the pending trades such that the executed in part trades do not cause the warning limits to be exceeded, and

automatically execute in full the pending trades;

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

in addition to the selection of the first trader, receive from the first trader a first warning limit specified against the second trader;

in addition to the selection of the second trader, receive from the second trader a second warning limit specified against the first trader;

after receiving the selection of the first trader, the selection of the second trader, the first warning limit, and the second warning limit;

receive a first order from the first trader; and

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; and

process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader, in which to process the pending trade comprises at least one of to;

automatically reject the pending trade,

automatically 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

automatically execute in full the pending trade.

29. The apparatus of claim 28,

in which at least one of the selection of the first trader and the selection of the second trader comprises the option to automatically reject the pending trades;

and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader comprises to automatically reject the pending trade.

30. The apparatus of claim 28,

in which the selection of the first trader and the selection of the second trader each comprises the option to automatically execute in part the pending trades;

and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader comprises to automatically 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.

31. The apparatus of claim 28,

in which the selection of the first trader comprises the option to automatically execute in part the pending trades;

in which the selection of the second trader comprises the option to automatically execute in full the pending trades; and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader comprises to automatically 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.

32. The apparatus of claim 28,

in which the selection of the first trader and the selection of the second trader each comprises the option to automatically execute in full the pending trades;

and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader comprises to automatically execute in full the pending trade.

33. The apparatus of claim 28, in which the computing device is further operable to:

based 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, cause the first trader to be prompted as to whether the first trader would like to subsequently make at least one of bids and offers received from the second trader unavailable to the first trader.

34. The apparatus of claim 28, in which the computing device is further operable to:

based 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, cause the first trader to be prompted as to whether the first trader would like to subsequently make at least one of bids and offers received from the first trader unavailable to the second trader.

35. The apparatus of claim 28, in which the plurality of options further include to:

prompt the respective first trader and second trader as to whether the respective trader wants the pending trades to be executed in part such that the executed in part trades do not cause the warning limits to be exceeded, and

prompt the respective first trader and second trader as to whether the respective trader wants the pending trades to be executed in full.

36. The apparatus of claim 35,

in which the selection of the first trader comprises the option to prompt the first trader as to whether the first trader wants the pending trades to be executed in part;

in which the selection of the second trader comprises at least one of;

the option to automatically execute in part the pending trades,

the option to automatically execute in full the pending trades,

the option to prompt the second trader as to whether the second trader wants the pending trades to be executed in part; and

the option to prompt the second trader as to whether the second trader wants the pending trades to be executed in full; and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises to cause the first trader to be prompted as to whether the first trader wants the pending trade to be executed in part such that the executed in part trade does not cause the first warning limit nor the second warning limit to be exceeded.

37. The apparatus of claim 35,

in which the selection of the second trader comprises the option to automatically execute in part the pending trades;

in which the selection of the first trader comprises the option to prompt the first trader as to whether the first trader wants the pending trades to be executed in full; and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises to cause the first trader to be prompted as to whether the first trader wants the pending trade to be executed in part such that the executed in part trade does not cause the first warning limit nor the second warning limit to be exceeded.

38. The apparatus of claim 35,

in which the selection of the first trader comprises the option to prompt the first trader as to whether the first trader wants the pending trades to be executed in full;

in which the selection of the second trader comprises at least one of;

the option to automatically execute in full the pending trades, and

the option to prompt the second trader as to whether the second trader wants the pending trades to be executed in full; and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises to cause the first trader to be prompted as to whether the first trader wants the pending trade to be executed in full.

39. The apparatus of claim 36,

in which the selection of the second trader comprises the option to prompt the second trader as to whether the second trader wants the pending trades to be executed in full;

and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises to cause the second trader to be prompted as to whether the second trader wants the pending trade to be executed in part such that the executed in part trade does not cause the first warning limit nor the second warning limit to be exceeded.

40. The apparatus of claim 39, in which to process the pending trade between the first trader and the second trader further comprises to:

based on causing the first trader to be prompted, receive from the first trader an indication for the pending trade to be executed in part;

based on causing the second trader to be prompted, receive from the second trader an indication for the pending trade to be executed in part; and

based on the indication of the first trader and the indication of the second trader, 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.

41. The apparatus of claim 39, in which to process the pending trade between the first trader and the second trader further comprises to:

based on causing the first trader to be prompted and based on causing the second trader to be prompted, receive from at least one of the first trader and the second trader an indication for the pending trade not to be executed in part; and

based on the indication of the at least one of the first trader and the second trader, reject the pending trade.

42. The apparatus of claim 36,

in which the selection of the second trader comprises the option to prompt the second trader as to whether the second trader wants the pending trades to be executed in part;

and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises to cause the second trader to be prompted as to whether the second trader wants the pending trade to be executed in part such that the executed in part trade does not cause the first warning limit nor the second warning limit to be exceeded.

43. The apparatus of claim 37, in which to process the pending trade between the first trader and the second trader further comprises to:

based on causing the first trader to be prompted, receive from the first trader an indication for the pending trade to be executed in part; and

based on the indication of the first trader, 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.

44. The apparatus of claim 37, in which to process the pending trade between the first trader and the second trader further comprises to:

based on causing the first trader to be prompted, receive from the first trader an indication for the pending trade not to be executed in part; and

based on the indication of the first trader, reject the pending trade.

45. The apparatus of claim 38,

in which the selection of the second trader comprises the option to prompt the second trader as to whether the second trader wants the pending trades to be executed in full;

and

in which to process the pending trade between the first trader and the second trader based on the selection of the first trader and the selection of the second trader further comprises to cause the second trader to be prompted as to whether the second trader wants the pending trade to be to executed in full.

46. The apparatus of claim 45, in which to process the pending trade between the first trader and the second trader further comprises to:

based on causing the first trader to be prompted, receive from the first trader an indication for the pending trade to be executed in full;

based on causing the second trader to be prompted, receive from the second trader an indication for the pending trade to be executed in full; and

based on the indication of the first trader and the indication of the second trader, execute in full the pending trade.

47. The apparatus of claim 45, to process the pending trade between the first trader and the second trader further comprises to:

based on causing the first trader to be prompted and based on causing the second trader to be prompted, receive from at least one of the first trader and the second trader an indication for the pending trade not to be executed in full; and

based on the indication of the at least one of the first trader and the second trader, reject the pending trade.

48. The apparatus of claim 38,

in which the selection of the second trader comprises the option to automatically execute in full the pending trades;

and

in which to process the pending trade between the first trader and the second trader further comprises to;

based on causing the first trader to be prompted, receive from the first trader an indication for the pending trade not to be executed in full; and

based on the indication of the first trader, reject the pending trade.