Method and system for managing distributed trading data

• US 7,565,313 B2
• Filed: 12/05/2002
• Issued: 07/21/2009
• Est. Priority Date: 12/05/2001
• Status: Expired due to Fees

• Current Assignee: Virtu ITG Software Solutions LLC
• Original Assignee: Aritas Group, Inc.
• Inventors: Federspiel, Fred J., Waelbroeck, Henri, Lopez, John E.
• Primary Examiner(s): Dixon; Thomas
• Assistant Examiner(s): MADAMBA, CLIFFORD B
• Application Number:
  US10/310,345
• Publication Number:
  US 20040034591A1
• Time in Patent Office: 2,420 Days
• Field of Search: 705 35- 45, 705/99
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0251 Targeted advertisements
• CPC Class Codes: G06Q 30/0255 based on user history
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

In a preferred embodiment, the invention comprises a computer-implemented system and method of managing market information across a network of data providers, comprising the steps of: (a) electronically receiving first data including confidential information regarding market participants in a first system that protects said first data behind a firewall; (b) electronically receiving second data including confidential information regarding market participants in a second system that protects said second data behind a firewall; (c) electronically receiving an order and targeting parameters from a first market participant; (d) electronically issuing an advertisement request message to said first system and said second system, said advertisement message comprising display attributes of said order and comprising said targeting parameters; (e) electronically prompting said first system and said second system via the advertisement request message to each send a coordination request message to a Coordination Hub, said coordination request message comprising information deduced from said confidential information regarding market participants in said first and second systems, wherein the selection of the information that is sent to the Coordination Hub is based at least in part on said first market participant'"'"'s targeting parameters; (f) electronically prompting based on the coordination request message said Coordination Hub to issue permissions to advertise the order to selected market participants, wherein market participants are selected based, at least in part, on said received information regarding market participants; and (g) electronically prompting based on the permission to advertise the order said first system and said second system to route information about said order from first participant to said selected market participants.

Claims

1. A computer-implemented method of managing market information across a network of data providers, comprising the steps of:

(a) electronically receiving first data including confidential trading interest information regarding market participants in a first system that protects said first data behind a firewall;

(b) electronically receiving second data including confidential trading interest information regarding market participants in a second system that protects said second data behind a firewall;

(c) electronically issuing an advertisement request message from said first system to said second system, said advertisement request message comprising display attributes of said confidential trading interest information from said first system;

(d) electronically prompting said second system via the advertisement request message to send a coordination request message to a Coordination Hub, said coordination request message comprising information deduced from said confidential trading interest information regarding market participants in said first and second systems;

(e) electronically prompting based on the coordination request message said Coordination Hub to issue permissions to advertise the display attributes of the confidential trading interest information from said first system to said second system; and

(f) electronically prompting said second system to display said display attributes of the confidential trading interest information from said first system based on the permissions to advertise.

3. The method of claim 1, wherein said confidential trading interest information regarding market participants from a first system comprises an order.

4. The method of claim 1, wherein said confidential trading interest information regarding market participants from a first system comprises an indication of interest.

5. The method of claim 1, wherein said confidential trading interest information comprises targeting parameters.

6. The method of claim 1, wherein said confidential trading interest information comprises an advertisement request message.

7. The method of claim 1, wherein said display attributes comprise symbol.

8. The method of claim 1, wherein said display attributes comprise side.

9. The method of claim 1, wherein said display attributes comprise quantity.

10. The method of claim 1, wherein said display attributes comprise minimum quantity.

11. The method of claim 1, wherein said display attributes comprise advertisement request message duration.

12. The method of claim 1, wherein said display attributes comprise advertisement request message ID.

13. The method of claim 1, wherein said display attributes comprise current midpoint price of symbol.

14. The method of claim 5, wherein said targeting parameters further comprise an advertisement request message reason.

15. The method of claim 5, wherein said targeting parameters further comprise minimum requirements for issuing permissions to advertise the display attributes of the confidential trading interest information display.

16. The method of claim 1, wherein said deduction of information from said confidential trading interest information regarding market participants in said first and second systems comprises checking for appropriate advertisement request message reason.

17. The method of claim 1, wherein said deduction of information from said confidential trading interest information regarding market participants in said first and second systems comprises calculating an advertisement request message qualification score.

18. The method of claim 1, wherein said electronically prompting said second system via the advertisement request message to send a coordination request message to a Coordination Hub is based on said advertisement request message qualification score.

19. The method of claim 1, wherein multiple sets of said second data are aggregated.

20. The method of claim 19, wherein the market participants in the second system choose whether or not to enable aggregation of their sets of second data.

21. The method of claim 19, wherein the multiple sets of the second data are aggregated using an aggregation table.

22. The method of claim 21, wherein the aggregation table comprises a table of a plurality of character strings, each of the character strings being used by one of the participants in the second system to identify a client of said one of the participants in the second system.

23. The method of claim 19, wherein the multiple sets of second data are aggregated in the Coordination Hub.

24. The method of claim 23, wherein the Coordination Hub issues the permissions to advertise to each of the second systems from which the multiple sets of the second data are aggregated.

25. The method of claim 23, wherein the Coordination Hub issues the permissions to advertise to one of the second systems having a greatest number of items to be traded relating to the confidential trading interest information.

26. The method of claim 23, wherein the Coordination Hub issues the permissions to advertise to one of the second systems identified in the confidential trading interest information.

27. The method of claim 23, wherein the Coordination Hub issues the permissions to advertise to one of the second systems that has most recently traded items relating to the confidential trading interest information.

28. The method of claim 23, wherein the Coordination Hub issues the permissions to advertise to one of the second systems that is selected randomly.

29. The method of claim 23, wherein a plurality of rules are provided to determine to which of the second systems the Coordination Hub sends the permissions to advertise.

30. The method of claim 29, wherein the confidential trading interest information comprises a selection of one of the rules.

31. The method of claim 30, wherein the second systems determine whether or not to allow aggregation in response to the selection.

32. The method of claim 23, wherein a single rule is provided to determine to which of the second systems the Coordination Hub sends the permissions to advertise.

33. The method of claim 23, wherein the Coordination Hub issues the permissions to advertise in accordance with a highest matching priority among the sets of second data.

34. The method of claim 33, wherein the highest matching priority is determined from a price time priority rule.

35. The method of claim 33, wherein the highest matching priority is determined from a price size.

36. The method of claim 33, wherein the sets of second data include differing prices for differing order sizes, and wherein the highest matching priority is determined in accordance with the differing prices for the differing order sizes in the sets of second data.

37. The method of claim 1, wherein the advertisement request message is validated as corresponding to either a new indication of interest or a response to a previous indication of interest.

38. The method of claim 1, wherein an order may be placed in response to the display of said display attributes.

39. The method of claim 38, wherein, if the order cannot be filled with a specified condition, that order is sent as a sweep order.

40. The method of claim 38, wherein the order is divided into smaller orders.

41. The method of claim 40, wherein either the order or the smaller orders are advertised in accordance with market conditions.

42. The method of claim 40, wherein the order is divided into the smaller orders through an algorithm or algorithmic trading engine.

43. The method of claim 42, wherein the confidential trading interest information comprises an indication of a rate at which the order should be worked through the algorithm or algorithmic trading engine.

44. The method of claim 43, wherein, if the order is not filled at the rate indicated in the confidential trading interest information, the algorithm or algorithmic trading engine re-divides the order so as to accelerate execution of the order.

45. The method of claim 42, wherein the order is advertised simultaneously with an operation of the algorithm or algorithmic trading engine to process the smaller orders.

46. The method of claim 45, wherein, when a contra order is placed in response to the order, the smaller orders that are still open are pulled back as needed to fill the contra order.

47. The method of claim 46, wherein the confidential trading interest information comprises an indication of a rate at which the order should be worked through the algorithm or algorithmic trading engine.

48. The method of claim 47, wherein, if the order is not filled at the rate indicated in the confidential trading interest information, the algorithm or algorithmic trading engine re-divides the order so as to accelerate execution of the order.

49. The method of claim 1, wherein a counter-offer may be placed in response to the display of said display attributes.

50. The method of claim 1, wherein the confidential trading information from the first system comprises a price range in which an order is immediately executable.

51. The method of claim 1, wherein the confidential trading information from the first system further comprises a price range in which the order is negotiable.

52. The method of claim 51, wherein the price range in which the order is immediately executable comprises a first price range for a first order size range and a second price range for a second order size range.

53. The method of claim 1, wherein the first system does not receive any information in response to the confidential trading interest information until the second system has received a matching response order.

54. The method of claim 1, wherein the first system receives information in response to the confidential trading interest information, the information received in response comprising an indication of whether the confidential trading interest information successfully identified one or more targets in the second system.

55. The method of claim 54, wherein, when there are no such targets, the confidential trading interest information is declined.

56. The method of claim 54, wherein the information received in response further comprises an indication of whether said display attributes have been displayed.

57. The method of claim 56, wherein the information received in response further comprises an indication of a number of parties to whom the display attributes have been displayed.

58. The method of claim 57, wherein the indication of the number of parties is delayed.

59. The method of claim 1, wherein the display attributes are displayed only to parties who tend to act on the display attributes.

60. The method of claim 1, wherein the confidential trading interest information comprises an indication of a interest in selling a first item and buying a second item as part of a transaction.

61. The method of claim 60, wherein one of the selling and the buying is conditioned on the other of the selling and the buying.

2. A computer system for managing market information across a network of data providers, comprising:

(a) a first system for electronically receiving first data including confidential trading interest information regarding market participants, said first system protecting said first data behind a firewall;

(b) a second system for electronically receiving second data including confidential trading interest information regarding market participants, said second system protecting said second data behind a firewall;

said first system electronically issuing an advertisement request message to said second system, said advertisement request message comprising display attributes of said confidential trading interest information from said first system; and

(c) a Coordination Hub, said second system being prompted via the advertisement request message to send a coordination request message to said Coordination Hub, said coordination request message comprising information deduced from said confidential trading interest information regarding market participants in said first and second systems;

said Coordination Hub being electronically prompted based on the coordination request message to issue permissions to advertise the display attributes of the confidential trading interest information from said first system to said second system; and

said second system being electronically prompted to display said display attributes of the confidential trading interest information from said first system based on the permissions to advertise.

62. The system of claim 2, wherein said confidential trading interest information regarding market participants from a first system comprises an order.

63. The system of claim 2, wherein said confidential trading interest information regarding market participants from a first system comprises an indication of interest.

64. The system of claim 2, wherein said confidential trading interest information comprises targeting parameters.

65. The system of claim 2, wherein said confidential trading interest information comprises an advertisement request message.

66. The system of claim 2, wherein said display attributes comprise symbol.

67. The system of claim 2, wherein said display attributes comprise side.

68. The system of claim 2, wherein said display attributes comprise quantity.

69. The system of claim 2, wherein said display attributes comprise minimum quantity.

70. The system of claim 2, wherein said display attributes comprise advertisement request message duration.

71. The system of claim 2, wherein said display attributes comprise advertisement request message ID.

72. The system of claim 2, wherein said display attributes comprise current midpoint price of symbol.

73. The system of claim 64, wherein said targeting parameters further comprise an advertisement request message reason.

74. The system of claim 64, wherein said targeting parameters further comprise minimum requirements for issuing permissions to advertise the display attributes of the confidential trading interest information display.

75. The system of claim 2, wherein said deduction of information from said confidential trading interest information regarding market participants in said first and second systems comprises checking for appropriate advertisement request message reason.

76. The system of claim 2, wherein said deduction of information from said confidential trading interest information regarding market participants in said first and second systems comprises calculating an advertisement request message qualification score.

77. The system of claim 2, wherein said electronically prompting said second system via the advertisement request message to send a coordination request message to a Coordination Hub is based on said advertisement request message qualification score.

78. The system of claim 2, wherein multiple sets of said second data are aggregated.

79. The system of claim 78, wherein the market participants in the second system choose whether or not to enable aggregation of their sets of second data.

80. The system of claim 78, wherein the multiple sets of the second data are aggregated using an aggregation table.

81. The system of claim 80, wherein the aggregation table comprises a table of a plurality of character strings, each of the character strings being used by one of the participants in the second system to identify a client of said one of the participants in the second system.

82. The system of claim 78, wherein the multiple sets of second data are aggregated in the Coordination Hub.

83. The system of claim 82, wherein the Coordination Hub issues the permissions to advertise to each of the second systems from which the multiple sets of the second data are aggregated.

84. The system of claim 82, wherein the Coordination Hub issues the permissions to advertise to one of the second systems having a greatest number of items to be traded relating to the confidential trading interest information.

85. The system of claim 82, wherein the Coordination Hub issues the permissions to advertise to one of the second systems identified in the confidential trading interest information.

86. The system of claim 82, wherein the Coordination Hub issues the permissions to advertise to one of the second systems that has most recently traded items relating to the confidential trading interest information.

87. The system of claim 82, wherein the Coordination Hub issues the permissions to advertise to one of the second systems that is selected randomly.

88. The system of claim 82 wherein a plurality of rules are provided to determine to which of the second systems the Coordination Hub sends the permissions to advertise.

89. The system of claim 88, wherein confidential trading interest information comprises a selection of one of the rules.

90. The system of claim 89, wherein the second systems determine whether or not to allow aggregation in response to the selection.

91. The system of claim 82, wherein a single rule is provided to determine to which of the second systems the Coordination Hub sends the permissions to advertise.

92. The system of claim 82, wherein the Coordination Hub issues the permissions to advertise in accordance with a highest matching priority among the sets of second data.

93. The system of claim 92, wherein the highest matching priority is determined from a price time priority rule.

94. The system of claim 92, wherein the highest matching priority is determined from a price size.

95. The system of claim 92, wherein the sets of second data include differing prices for differing order sizes, and wherein the highest matching priority is determined in accordance with the differing prices for the differing order sizes in the sets of second data.

96. The system of claim 2, wherein the advertisement request message is validated as corresponding to either a new indication of interest or a response to a previous indication of interest.

97. The system of claim 2, wherein an order may be placed in response to the display of said display attributes.

98. The system of claim 97, wherein, if the order cannot be filled with a specified condition, that order is sent as a sweep order.

99. The system of claim 97, wherein the order is divided into smaller orders.

100. The system of claim 99, wherein either the order or the smaller orders are advertised in accordance with market conditions.

101. The system of claim 97, wherein the order is divided into the smaller orders through an algorithm or algorithmic trading engine.

102. The system of claim 101, wherein the confidential trading interest information comprises an indication of a rate at which the order should be worked through the algorithm or algorithmic trading engine.

103. The system of claim 102, wherein, if the order is not filled at the rate indicated in the confidential trading interest information, the algorithm or algorithmic trading engine re-divides the order so as to accelerate execution of the order.

104. The method of claim 101, wherein the order is advertised simultaneously with an operation of the algorithm or algorithmic trading engine to process the smaller orders.

105. The method of claim 104, wherein, when a contra order is placed in response to the order, the smaller orders that are still open are pulled back as needed to fill the contra order.

106. The method of claim 105, wherein the confidential trading interest information comprises an indication of a rate at which the order should be worked through the algorithm or algorithmic trading engine.

107. The method of claim 106, wherein, if the order is not filled at the rate indicated in the confidential trading interest information, the algorithm or algorithmic trading engine re-divides the order so as to accelerate execution of the order.

108. The system of claim 2, wherein a counter-offer may be placed in response to the display of said display attributes.

109. The system of claim 2, wherein the confidential trading information from the first system comprises a price range in which an order is immediately executable.

110. The system of claim 2, wherein the confidential trading information from the first system further comprises a price range in which the order is negotiable.

111. The system of claim 110, wherein the price range in which the order is immediately executable comprises a first price range for a first order size range and a second price range for a second order size range.

112. The system of claim 2, wherein the first system does not receive any information in response to the confidential trading interest information until the second system has received a matching response order.

113. The system of claim 2, wherein the first system receives information in response to the confidential trading interest information, the information received in response comprising an indication of whether the confidential trading interest information successfully identified one or more targets in the second system.

114. The system of claim 113, wherein, when there are no such targets, the confidential trading interest information is declined.

115. The system of claim 113, wherein the information received in response further comprises an indication of whether said display attributes have been displayed.

116. The system of claim 115, wherein the information received in response further comprises an indication of a number of parties to whom the display attributes have been displayed.

117. The system of claim 116, wherein the indication of the number of parties is delayed.

118. The system of claim 2, wherein the display attributes are displayed only to parties who tend to act on the display attributes.

119. The system of claim 2, wherein the confidential trading interest information comprises an indication of a interest in selling a first item and buying a second item as part of a transaction.

120. The system of claim 119, wherein one of the selling and the buying is conditioned on the other of the selling and the buying.

121. An article of manufacture for managing market information across a network of data providers, the article of manufacture comprising:

a computer-readable storage medium; and

code on the computer-readable storage medium, the code, when executed on one or more computers, controlling the one or more computers for;

(a) electronically receiving first data including confidential trading interest information regarding market participants in a first system that protects said first data behind a firewall;

(b) electronically receiving second data including confidential trading interest information regarding market participants in a second system that protects said second data behind a firewall;

(c) electronically issuing an advertisement request message from said first system to said second system, said advertisement request message comprising display attributes of said confidential trading interest information from said first system;

(d) electronically prompting said second system via the advertisement request message to send a coordination request message to a Coordination Hub, said coordination request message comprising information deduced from said confidential trading interest information regarding market participants in said first and second systems;

(e) electronically prompting based on the coordination request message said Coordination Hub to issue permissions to advertise the display attributes of the confidential trading interest information from said first system to said second system; and

(f) electronically prompting said second system to display said display attributes of the confidential trading interest information from said first system based on the permissions to advertise.