Protocol-independent asset trading system and methods

• US 7,536,343 B2
• Filed: 11/26/2004
• Issued: 05/19/2009
• Est. Priority Date: 11/26/2003
• Status: Active Grant

• Current Assignee: Refinitiv US Organization, LLC (Refinitiv US Holdings, Inc.)
• Original Assignee: FX Alliance (The Woodbridge Co. Ltd.)
• Inventors: Brann, John Edwin Thomas, Penney, Neill
• Primary Examiner(s): Kyle; Charles R
• Assistant Examiner(s): Wood; David L
• Application Number:
  US10/996,603
• Publication Number:
  US 20050137960A1
• Time in Patent Office: 1,635 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

Systems and methods for executing trades on an interconnected computer network, such as the Internet, using a catalog of protocol-independent fundamental asset trading messages, called “gestures,” that support multiple higher-level trading protocols which characterize most asset trading transactions. Trading transactions requiring protocol-dependent workflows are composed from protocol-independent gestures selected from the catalogue of gestures and then passed one at a time to an online asset trading server. The online asset trading server transitions pending quotes and trades through a series of distinct states, based on the current state, the selected protocol-independent gestures it receives and a set of state transition rules, thereby implementing the higher-level protocol-dependent workflows.

Claims

1. A computer network for processing trading transactions, comprising:

a customer trading system comprising a customer trading application;

a provider trading system comprising a provider trading application;

an online trading server comprising a state machine processor, a collection of state transition rules and a memory;

a first data communications link connecting said online trading server to said customer trading system; and

a second data communications link connecting said online trading server to said provider trading system;

wherein

said online trading server receives, via said first data communications link, a request from said customer trading system to process a quote or trade, said processing to be carried out according to a particular trading protocol, stores a current state for said quote or trade in said memory, and sends said request to said provider trading system via said second data communications link,

said provider trading application creates a defined sequence of protocol-independent gestures, the defined sequence being arranged to model a protocol-dependent workflow for said particular trading protocol, and serially transmits each protocol-independent gesture in said defined sequence to said online trading server, and

in response to receiving said each protocol-independent gesture in said defined sequence, said state machine processor modifies said memory to reflect a new state for said quote or trade, said new state being determined based on said current state, said each protocol-independent gesture received and a state transition rule retrieved from said collection of state transition rules;

whereby the state machine processor transitions the quote or trade through a series of distinct states to carry out the protocol-dependent workflow in a manner that does not require the state machine processor to know the protocol-dependent workflow for the particular trading protocol.

2. The computer network of claim 1, wherein said new state and said current state are the same.

3. The computer network of claim 1, wherein said online trading server is configured:

to generate a return protocol-independent gesture based on said state transition rule and said each protocol-independent gesture received; and

transmit said return protocol-independent gesture to said provider trading system.

4. The computer network of claim 1, wherein said provider trading application creates said defined sequence by:

selecting one or more protocol-independent gestures from a catalog of protocol-independent gestures, each protocol-independent gesture in said catalog comprising a fundamental asset trading message that supports said particular trading protocol; and

arranging said selected one or more protocol-independent gestures into said defined sequence.

5. The computer network of claim 1, wherein said provider trading system further comprises a provider application interface, coupled to said provider trading application and said second data communications link, which transmits said defined sequence of protocol-independent gestures to said online trading server.

6. The computer network of claim 1, wherein:

said customer trading application creates a second defined sequence of protocol-independent gestures, the second defined sequence being arranged to model a second protocol-dependent workflow for said particular trading protocol, and serially transmits each protocol-independent gesture in said second defined sequence to said online trading server, and

said state machine processor, in response to receiving said each protocol-independent gesture in said second defined sequence, modifies said memory to reflect a second new state for said quote or trade, said second new state being determined based on said current state, said each protocol-independent gesture in said second defined sequence received and a second state transition rule retrieved from said collection of state transition rules.

7. The computer network of claim 6, wherein said customer trading application creates said second defined sequence by:

selecting one or more protocol-independent customer gestures from a catalog of protocol-independent customer gestures, each protocol-independent customer gesture in said catalog comprising a fundamental asset trading message that supports said particular trading protocol; and

arranging said selected one or more protocol-independent customer gestures into said second defined sequence.

8. The computer network of claim 7, wherein said customer trading system further comprises a customer application interface, coupled to said customer trading application and said second data communications link, which transmits said second defined sequence of protocol-independent customer gestures to said online trading server.

9. The computer network of claim 1, wherein

each state transition rule in said collection is configured to identify a state that follows from receiving at least one of said each protocol-independent gestures in said defined sequence.

10. The computer network of claim 1, wherein said first data communications link comprises a message delivery subsystem.

11. The computer network of claim 1, wherein said second data communications link comprises a message delivery subsystem.

12. The computer network of claim 1, wherein said provider trading system further comprises a financial information exchange engine, coupled to said provider trading application and said second data communications link, which converts said defined sequence of protocol-independent gestures into a series of financial information exchange messages and transmits said financial information exchange messages to said online trading server via said second data communications link.

13. The computer network of claim 12, wherein said second data communications link comprises financial information exchange transport subsystem.

14. The computer network of claim 13, wherein said online trading server further comprises:

a second financial information exchange engine, coupled to said second data communications link, which receives said series of financial information exchange messages from said provider trading system; and

a financial information exchange message translator that which converts said series of financial information exchange messages into said defined sequence of protocol-independent gestures.

15. An online trading server, comprising:

a network interface configured to receive from a customer trading system a request to process a quote or trade, said processing to be carried out according to a particular trading protocol, and to send said request to a provider trading system;

a memory configured to store a current state for said quote or trade; and

a state machine processor that receives from said provider trading system, via said network interface, a defined sequence of protocol-independent gestures, the defined sequence being arranged to model a protocol-dependent workflow for said particular trading protocol, and in response to receiving each protocol-independent gesture in said defined sequence, modifies said memory to reflect a new state for said quote or trade;

wherein said new state is determined based on said current state, said each protocol-independent gesture received and a state transition rule;

whereby the state machine processor transitions the quote or trade through a series of distinct states to carry out the protocol-dependent workflow in a manner that does not require the state machine processor to know the protocol-dependent workflow for the particular trading protocol.

16. The online trading server of claim 15, further comprising:

a collection of state transition rules, each state transition rule in said collection being configured to identify a state that follows from receiving at least one of said each protocol-independent gestures in said defined sequence;

wherein said state machine processor retrieves said state transition rule from said collection.

17. The online trading server of claim 15, wherein said new state and said current state are the same.

18. The online trading server of claim 15, wherein said trading engine is configured:

to generate a return protocol-independent gesture responsive to said each protocol-independent gesture received; and

transmit said return protocol-independent gesture to said provider trading system via said network interface.

19. In a computer network comprising a provider trading system and an online trading server having a state machine processor, a method of processing trading transactions, comprising:

receiving at said online trading server a request from a customer trading system to process a quote or trade, said processing to be carried out according to a particular trading protocol;

storing a current state for said quote or trade in a memory at said online trading server;

sending said request to said provider trading system;

on said provider trading system, creating a defined sequence of protocol-independent gestures, the defined sequence being arranged to model a protocol-dependent workflow for said particular trading protocol;

serially transmitting each protocol-independent gesture in said defined sequence from said provider trading system to said online trading server; and

on said online trading server, in response to receiving said each protocol-independent gesture in said defined sequence, causing the state machine processor to modify said memory to reflect a new state for said quote or trade, said new state being determined based on said current state, said each protocol-independent gesture received and a state transition rule;

thereby causing the state machine processor to transition the quote or trade through a series of distinct states to carry out the protocol-dependent workflow on said online trading server in a manner that does not require said state machine processor to know the protocol-dependent workflow for said particular trading protocol.

20. The method of claim 19, further comprising defining a catalog of protocol-independent gestures, each protocol-independent gesture in said catalog comprising a fundamental asset trading message that supports a multiplicity of trading protocols.

21. The method of claim 20, further comprising creating said defined sequence by:

selecting one or more protocol-independent gestures from said catalog which support said particular trading protocol; and

arranging said selected one or more protocol-independent gestures into said defined sequence.

22. The method of claim 19, further comprising:

storing on said online trading server a collection of state transition rules, each state transition rule in said collection being configured to identify a state that follows from receiving one of said each protocol-independent gestures in said defined sequence; and

retrieving said state transition rule from said collection.

23. The method of claim 19, wherein said new state and said current state are the same.

24. The method of claim 19, further comprising:

generating a return protocol-independent gesture based on said each protocol-independent gesture received and said state transition rule; and

transmitting said return protocol-independent gesture to said provider trading system.

25. In a computer network comprising a customer trading system and an online trading server having a state machine processor, a method of processing trading transactions, comprising:

receiving at said online trading server a request from said customer trading system to process a quote or trade, said processing to be carried out according to a particular trading protocol;

storing a current state for said quote or trade in a memory at said online trading server;

sending said request to a provider trading system;

on said customer trading system, creating a defined sequence of protocol-independent gestures, the defined sequence being arranged to model a protocol-dependent workflow for said particular trading protocol;

serially transmitting each protocol-independent gesture in said defined sequence from said customer trading system to said online trading server; and

on said online trading server, in response to receiving said each protocol-independent gesture in said defined sequence, causing the state machine processor to modify said memory to reflect a new state for said quote or trade, said new state being determined based on said current state, said each protocol-independent gesture received and a state transition rule;

thereby causing the state machine processor to transition the quote or trade through a series of distinct states to carry out the protocol-dependent workflow on said online trading server in a manner that does not require the state machine processor to know the protocol-dependent workflow for the particular trading protocol.

26. The method of claim 25, further comprising defining a catalog of protocol-independent gestures, each protocol-independent gesture in said catalog comprising a fundamental asset trading message that supports a multiplicity of trading protocols.

27. The method of claim 26, further comprising creating said defined sequence by:

selecting one or more protocol-independent gestures from said catalog which support said particular trading protocol; and

arranging said selected one or more protocol-independent gestures into said defined sequence.

28. The method of claim 25, further comprising:

storing on said online trading server a collection of state transition rules, each state transition rule in said collection being configured to identify a state that follows from receiving at least one of said each protocol-independent gestures in said defined sequence; and

retrieving said state transition rule from said collection.

29. The method of claim 25, wherein said new state and said current state are the same.

30. The method of claim 25, further comprising:

generating a return protocol-independent gesture said each protocol-independent gesture received and the state transition rule; and

transmitting said return protocol-independent gesture to said customer trading system.

31. A method of processing trading transactions on an online trading server having a state machine processor, comprising:

on said online trading server, receiving from a customer trading system, via a network interface, a request to process a quote or trade, said processing to be carried out according to a particular trading protocol;

on said online trading server, storing a current state for said quote or trade in a memory;

sending said request to a provider trading system via said network interface;

on said online trading server, receiving from said provider trading system, via said network interface, a defined sequence of protocol-independent gestures, the defined sequence being arranged to model a protocol-dependent workflow for said particular trading protocol; and

on said online trading server, in response to receiving each protocol-independent gesture in said defined sequence, causing said state machine processor to modify said memory to reflect a new state for said quote or trade, said new state being determined based on said current state, said each protocol-independent gesture received and a state transition rule;

thereby causing the state machine processor to transition the quote or trade through a series of distinct states to carry out the protocol-dependent workflow on said online trading server in a manner that does not require the state machine processor to know the protocol-dependent workflow for the particular trading protocol.

32. The method of claim 31, further comprising:

storing a collection of state transition rules, each state transition rule in said collection being configured to identify a state that follows from receiving at least one of said each protocol-independent gestures in said defined sequence; and

retrieving said state transition rule from said collection.

33. The method of claim 31, wherein said new state and said current state are the same.

34. The method of claim 31, further comprising:

generating a return protocol-independent gesture based on said each protocol-independent gesture received and the state transition rule; and

transmitting said return protocol-independent gesture to said customer trading system.

35. The method of claim 31, further comprising:

generating a return protocol-independent gesture based on said each protocol-independent gesture received and the state transition rule; and

transmitting said return protocol-independent gesture to said provider trading system.

36. A method of processing trading transactions on an online trading server having a state machine processor, comprising:

receiving from a counterparty, via a network interface, a request to process a quote or trade, said processing to be carried out according to a particular trading protocol;

storing a current state for said quote or trade in a memory associated with said online trading server;

sending said request to an opposite counterparty via said network interface;

on said online trading server, receiving from said counterparty or said opposite counterparty or both a defined sequence of protocol-independent gestures, the defined sequence being arranged to model a protocol-dependent workflow for said particular trading protocol; and

on said online trading server, in response to receiving each protocol-independent gesture in said defined sequence, causing said state machine processor to modify said memory to reflect a new state for said quote or trade, said new state being determined based on said current state, said each protocol-independent gesture received and a state transition rule;

thereby causing the state machine processor to transition the quote or trade through a series of distinct states to carry out the protocol-dependent workflow on said online trading server in a manner that does not require the state machine processor to know the protocol-dependent workflow for the particular trading protocol.

37. The method of claim 36, further comprising:

storing a collection of state transition rules, each state transition rule in said collection being configured to identify a state that follows from receiving at least one of said each protocol-independent gestures in said defined sequence; and

retrieving said state transition rule from said collection.

38. The method of claim 36, wherein said new state and said current state are the same.

39. An online trading server, comprising:

request-receiving means for receiving from a counterparty a request to process a quote or trade, said processing to be carried out according to a particular trading protocol;

storage means, responsive to said request-receiving means, for storing a current state for said quote or trade;

transmission means for sending said request to an opposite counterparty;

gesture-receiving means for receiving from said counterparty or said opposite counterparty or both a defined sequence of protocol-independent gestures, the defined sequence being arranged to model a protocol-dependent workflow for said particular trading protocol; and

state transition means for changing said current state to a new state based on said current state, each protocol-independent gesture in said defined sequence received, and a state transition rule;

whereby the state transition means transitions the quote or trade through a series of distinct states to carry out the protocol-dependent workflow in a manner that does not require the state transition means to know the protocol-dependent workflow for the particular trading protocol.

40. The online trading server of claim 39, wherein said state transmission means comprises a state machine processor.

41. The online trading server of claim 39, wherein said new state and said current state are the same.

42. The online trading server of claim 39, further comprising:

means for generating a return protocol-independent gesture responsive to said gesture-receiving means; and

means for transmitting said return protocol-independent gesture to said counterparty.

43. The online trading server of claim 39, further comprising:

means for generating a return protocol-independent gesture responsive to said gesture-receiving means; and

means for transmitting said return protocol-independent gesture to said opposite counterparty.