Processing of trades that exceed warning limits

• US 7,519,555 B2
• Filed: 11/22/2006
• Issued: 04/14/2009
• 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 M.
• Assistant Examiner(s): Akintola; Olabode
• Application Number:
  US11/562,674
• Publication Number:
  US 20070088653A1
• Time in Patent Office: 874 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 determines whether a pending trade between a trader and a counterparty exceeds one or more warning limits, and may process the pending trade based upon specifications by the trader and counterparty, which specifications indicate how each party wants to process over-warning-limit pending trades.

Claims

1. A method comprising:

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

a first option to have the trading system prompt the respective trader to query whether the respective trader wants the trading system to execute in part such pending trades, and

a second option to have the trading system prompt the respective trader to query whether the respective trader wants the trading system to execute in full such pending trades;

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

receiving from 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

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, processing the pending trade between the first trader and the second trader based at least in part 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 executing in full the pending trade,

the trading system rejecting the pending trade, and

the trading system executing in part the pending trade.

2. The method of claim 1,

in which the selection of the first trader comprises the second option;

in which the selection of the second trader comprises the second option; and

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

based at least in part on the selection of the first trader comprising the second option, displaying to the first trader via the first workstation a first prompt as to whether the first trader does or does not want the trading system to execute in full the pending trade; and

based at least in part on the selection of the second trader comprising the second option, displaying to the second trader via the second workstation a second prompt as to whether the second trader does or does not want the trading system to execute in full the pending trade.

3. The method of claim 2, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt, receiving from the first trader an indication to execute in full the pending trade;

in response to displaying to the second trader the second prompt, receiving from the second trader an indication to execute in full the pending trade; and

based at least in part on the indication received from the first trader to execute in full the pending trade and the indication received from the second trader to execute in full the pending trade, the trading system executing in full the pending trade.

4. The method of claim 2, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt and displaying to the second trader the second prompt, receiving from at least one the first trader and the second trader an indication to not execute in full the pending trade; and

based at least in part on receiving from at least one the first trader and the second trader the indication to not execute in full the pending trade, the trading system rejecting the pending trade.

5. The method of claim 1,

in which the selection of the first trader comprises the second option;

and

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

based at least in part on the selection of the first trader comprising the second option, displaying to the first trader via the first workstation a prompt as to whether the first trader does or does not want the trading system to execute in full the pending trade; and

in response to displaying to the first trader the prompt, receiving from the first trader an indication to not execute in full the pending trade; and

based at least in part on receiving from the first trader the indication to not execute in full the pending trade, the trading system rejecting the pending trade.

6. The method of claim 2, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt, determining that the first trader has not responded to the first prompt within a given period of time;

based at least in part on determining that the first trader has not responded to the first prompt within the given period of time, selecting for the first trader an option to execute in full the pending trade; and

based at least in part on selecting for the first trader the option to execute in full the pending trade, the trading system executing in full the pending trade.

7. The method of claim 2, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt, determining that the first trader has not responded to the first prompt within a given period of time;

based at least in part on determining that the first trader has not responded to the first prompt within the given period of time, selecting for the first trader an option to not execute in full the pending trade; and

based at least in part on selecting for the first trader the option to not execute in full the pending trade the trading system rejecting the pending trade.

8. The method of claim 1,

in which the selection of the first trader comprises the first option;

in which the selection of the second trader comprises the first option; and

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

based at least in part on the selection of the first trader comprising the first option, displaying to the first trader via the first workstation a first prompt as to whether the first trader does or does not want the trading system to execute in part the pending trade; and

based at least in part on the selection of the second trader comprising the first option, displaying to the second trader a second prompt as to whether the second trader does or does not want to execute in part the pending trade.

9. The method of claim 8, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt, receiving from the first trader an indication to execute in part the pending trade;

in response to displaying to the second trader the second prompt, receiving from the second trader an indication to execute in part the pending trade; and

based at least in part on the indication received from the first trader to execute in part the pending trade and the indication received from the second trader to execute in part the pending trade, the trading system executing in part the pending trade.

10. The method of claim 8, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt and displaying to the second trader the second prompt, receiving from at least one of the first trader and the second trader an indication to not execute in part the pending trade, and

based at least in part on receiving from at least one the first trader and the second trader the indication to not execute in part the pending trade, the trading system rejecting the pending trade.

11. The method of claim 1,

in which the selection of the first trader comprises the first option;

and

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

based at least in part on the selection of the first trader comprising the first option, displaying to the first trader via the first workstation a prompt as to whether the first trader does or does not want the trading system to execute in part the pending trade; and

in response to displaying to the first trader the prompt, receiving from the first trader an indication to not execute in part the pending trade; and

based at least in part on receiving from the first trader the indication to not execute in part the pending trade, the trading system rejecting the pending trade.

12. The method of claim 8, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt, determining that the first trader has not responded to the first prompt within a given period of time;

based at least in part on determining that the first trader has not responded to the first prompt within the given period of time, selecting for the first trader an option to not execute in part the pending trade; and

based at least in part selecting for the first trader the option to not execute in part the pending trade, the trading system rejecting the pending trade.

13. The method of claim 8, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt, determining that the first trader has not responded to the first prompt within a given period of time;

based at least in part on determining that the first trader has not responded to the first prompt within the given period of time, selecting for the first trader an option to execute in part the pending trade; and

based at least in part on selecting for the first trader the option to execute in part the pending trade, the trading system executing in part the pending trade.

14. The method of claim 13, in which executing in part the pending trade comprises executing a portion of the pending trade such that the first warning limit and the second warning limit are not exceeded.

15. The method of claim 9, further comprising the step of:

based at least in part on the trading system executing in part the pending trade between the first trader and the second trader, displaying to another trader via another workstation a remaining portion of the pending trade that was not executed, in which the remaining portion is displayed as at least one of;

an available bid, and

an available offer.

16. 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.

17. The method of claim 1, in which

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

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

18. The method of claim 1, further comprising the steps 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 at least the first trader via the first workstation a prompt as to whether the first trader does or does not want to subsequently trade with the second trader; and

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

19. 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 not subsequently trade with the second trader, causing the subsequent order from the second trader to not be displayed to the first trader.

20. The method of claim 18, 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.

21. 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 not subsequently trade with the second trader, displaying to the first trader, via the first workstation, the subsequent order from the second trader, in which the subsequent order is unavailable to the first trader.

22. The method of claim 21, in which the subsequent order being unavailable to the first trader comprises the subsequent order being an order that the first trader cannot hit and/or take.

23. The method of claim 18, 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, displaying to the second trader, via the second workstation, the subsequent order from the first trader, in which the subsequent order is unavailable to the second trader.

24. The method of claim 23, in which the subsequent order being unavailable to the second trader comprises the subsequent order being an order that the second trader cannot hit and/or take.

25. The method of claim 1,

in which the selection of the first trader comprises the first option;

and

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

based at least in part on the selection of the first trader comprising the first option, displaying to the first trader via the first workstation a prompt as to whether the first trader does or does not want the trading system to execute in part the pending trade;

in response to displaying to the first trader the prompt, determining that the first trader has not responded to the prompt within a given period of time;

based at least in part on determining that the first trader has not responded to the prompt within the given period of time, selecting for the first trader an option to not execute in part the pending trade; and

based at least in part on selecting for the first trader the option to not execute in part the pending trade, the trading system rejecting the pending trade.

26. The method of claim 1,

in which the selection of the first trader comprises the first option;

and

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

based at least in part on the selection of the first trader comprising the first option, displaying to the first trader via the first workstation a prompt as to whether the first trader does or does not want the trading system to execute in part the pending trade;

in response to displaying to the first trader the prompt, determining that the first trader has not responded to the prompt within a given period of time;

based at least in part on determining that the first trader has not responded to the prompt within the given period of time, selecting for the first trader an option to execute in part the pending trade; and

based at least in part on selecting for the first trader the option to execute in part the pending trade, the trading system executing in part the pending trade.

27. The method of claim 1,

in which the selection of the first trader comprises the second option;

and

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

based at least in part on the selection of the first trader comprising the second option, displaying to the first trader via the first workstation a prompt as to whether the first trader does or does not want the trading system to execute in full the pending trade;

in response to displaying to the first trader the prompt, determining that the first trader has not responded to the prompt within a given period of time;

based at least in part on determining that the first trader has not responded to the prompt within the given period of time, selecting for the first trader an option to not execute in full the pending trade; and

based at least in part on selecting for the first trader the option to not execute in full the pending trade, the trading system rejecting the pending trade.

28. The method of claim 1,

in which the selection of the first trader comprises the second option;

and

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

based at least in part on the selection of the first trader comprising the second option, displaying to the first trader via the first workstation a prompt as to whether the first trader does or does not want the trading system to execute in full the pending trade;

in response to displaying to the first trader the prompt, determining that the first trader has not responded to the prompt within a given period of time;

based at least in part on determining that the first trader has not responded to the prompt within the given period of time, selecting for the first trader an option to execute in full the pending trade; and

based at least in part on selecting for the first trader the option to execute in full the pending trade, the trading system executing in full the pending trade.

29. The method of claim 1,

in which the selection of the first trader comprises the first option;

in which the selection of the second trader comprises the second option; and

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

based at least in part on the selection of the first trader comprising the first option, displaying to the first trader via the first workstation a first prompt as to whether the first trader does or does not want the trading system to execute in part the pending trade; and

based at least in part on the selection of the first trader comprising the first option, displaying to the second trader via the second workstation a second prompt as to whether the second trader does or does not want the trading system to execute in part the pending trade.

30. The method of claim 29, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt, receiving from the first trader an indication to execute in part the pending trade;

in response to displaying to the second trader the second prompt, receiving from the second trader an indication to execute in part the pending trade; and

based on the indication received from the first trader to execute in part the pending trade and the indication received from the second trader to execute in part the pending trade, the trading system executing in part the pending trade.

31. The method of claim 30, in which executing in part the pending trade comprises executing a portion of the pending trade such that the first warning limit and the second warning limit are not exceeded.

32. The method of claim 30, further comprising the step of:

based at least in part on the trading system executing in part the pending trade between the first trader and the second trader, displaying to another trader via another workstation a remaining portion of the pending trade that was not executed, in which the remaining portion is displayed as at least one of;

an available bid, and

an available offer.

33. The method of claim 29, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt and displaying to the second trader the second prompt, receiving from at least one the first trader and the second trader an indication to not execute in part the pending trade; and

based on receiving from at least one the first trader and the second trader the indication to not execute in part the pending trade, the trading system rejecting the pending trade.

34. The method of claim 33,

in which at least one of the first order from the first trader and the second order from the second trader comprise at least one of:

a bid, and

an offer; and

in which the method further comprises the step of;

based at least in part on the trading system rejecting the pending trade between the first trader and the second trader, displaying to another trader via another workstation at least one of the first order from the first trader and the second order from the second trader, in which the at least one first and second order is displayed as at least one of;

an available bid, and

an available offer.

35. The method of claim 29, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the first trader the first prompt, receiving from the first trader an indication to not execute in part the pending trade; and

based at least in part on receiving from the first trader the indication to not execute in part the pending trade, the trading system rejecting the pending trade.

36. The method of claim 29, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the second trader the second prompt, receiving from the second trader an indication to not execute in part the pending trade; and

based at least in part on receiving from the second trader the indication to not execute in part the pending trade, the trading system rejecting the pending trade.

37. The method of claim 29, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the second trader the second prompt, determining that the second trader has not responded to the second prompt within a given period of time;

based at least in part on determining that the second trader has not responded to the second prompt within the given period of time, selecting for the second trader an option to not execute in part the pending trade; and

based at least in part on selecting for the second trader the option to not execute in part the pending trade, the trading system rejecting the pending trade.

38. The method of claim 29, in which processing the pending trade between the first trader and the second trader further comprises the steps of:

in response to displaying to the second trader the second prompt, determining that the second trader has not responded to the second prompt within a given period of time;

based at least in part on determining that the second trader has not responded to the second prompt within the given period of time, selecting for the second trader an option to execute in part the pending trade; and

based at least in part on selecting for the second trader the option to execute in part the pending trade, the trading system executing in part the pending trade.

39. The method of claim 1, further comprising the steps 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 at least the first trader via the first workstation a prompt as to whether the first trader does or does not want to subsequently trade with the second trader; and

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

40. The method of claim 39, 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 subsequently trade with the second trader, displaying to the second trader, via the second workstation, the subsequent order from the first trader such that the second trader can hit and/or take the subsequent order.

41. The method of claim 39, further comprising:

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 first workstation, the subsequent order from the second trader such that the first trader can hit and/or take the subsequent order.

42. The method of claim 4,

in which the first order from the first trader comprise at least one of:

a bid, and

an offer; and

in which the method further comprises the step of;

based at least in part on the trading system rejecting the pending trade between the first trader and the second trader, displaying to another trader via another workstation the first order from the first trader, in which the first order is displayed as at least one of;

an available bid, and

an available offer.

43. 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 not subsequently trade with the second trader, making the subsequent order from the second trader unavailable to the first trader.

44. The method of claim 18, 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.

45. The method of claim 5,

in which the first order from the first trader comprise at least one of:

a bid, and

an offer; and

in which the method further comprises the step of;

based at least in part on the trading system rejecting the pending trade between the first trader and the second trader, displaying to another trader via another workstation the first order from the first trader, in which the first order is displayed as at least one of;

an available bid, and

an available offer.

46. The method of claim 9, in which executing in part the pending trade comprises executing a portion of the pending trade such that the first warning limit and the second warning limit are not exceeded.

47. The method of claim 10,

in which the first order from the first trader comprise at least one of:

a bid, and

an offer; and

in which the method further comprises the step of;

based at least in part on the trading system rejecting the pending trade between the first trader and the second trader, displaying to another trader via another workstation the first order from the first trader, in which the first order is displayed as at least one of;

an available bid, and

an available offer.

48. The method of claim 11,

in which the first order from the first trader comprise at least one of:

a bid, and

an offer; and

in which the method further comprises the step of;

based at least in part on the trading system rejecting the pending trade between the first trader and the second trader, displaying to another trader via another workstation the first order from the first trader, in which the first order is displayed as at least one of;

an available bid, and

an available offer.

49. The method of claim 43, 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.

50. The method of claim 44, 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.

51. 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;

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

a first option for the respective trader to be queried as to whether the respective trader wants such pending trades to be executed in part, and

a second option for the respective trader to be queried as to whether the respective trader wants such pending trades to be executed in full;

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

receive from 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

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, process the pending trade between the first trader and the second trader based at least in part 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 execute in full the pending trade,

to reject the pending trade, and

to execute in part the pending trade.

52. The apparatus of claim 51,

in which the selection of the first trader comprises the second option;

in which the selection of the second trader comprises the second option; and

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

based at least in part on the selection of the first trader comprising the second option, display to the first trader via the first workstation a first prompt as to whether the first trader does or does not want the pending trade executed in full; and

based at least in part on the selection of the second trader comprising the second option, display to the second trader via the second workstation a second prompt as to whether the second trader does or does not want the pending trade executed in full.

53. The apparatus of claim 51,

in which the selection of the first trader comprises the first option;

in which the selection of the second trader comprises the first option; and

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

based at least in part on the selection of the first trader comprising the first option, display to the first trader via the first workstation a first prompt as to whether the first trader does or does not want the pending trade executed in part; and

based at least in part on the selection of the second trader comprising the first option, display to the second trader a second prompt as to whether the second trader does or does not want the pending trade executed in part.

54. The apparatus of claim 51,

in which the selection of the first trader comprises the first option;

in which the selection of the second trader comprises the second option; and

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

based at least in part on the selection of the first trader comprising the first option, display to the first trader via the first workstation a first prompt as to whether the first trader does or does not want the pending trade executed in part; and

based at least in part on the selection of the first trader comprising the first option, display to the second trader via the second workstation a second prompt as to whether the second trader does or does not want the pending trade executed in part.