Dual quote market system

• US 7,599,875 B1
• Filed: 12/10/1998
• Issued: 10/06/2009
• Est. Priority Date: 12/10/1998
• Status: Expired due to Fees

• Current Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated), Nasdaq, Inc.
• Original Assignee: Nasdaq OMX Group Incorporated (Nasdaq, Inc.)
• Inventors: Della Rosa, Joseph, Berkeley, Alfred R. III, Ketchum, Richard G.
• Primary Examiner(s): Nguyen; Nga B.
• Application Number:
  US09/208,942
• Time in Patent Office: 3,953 Days
• Field of Search: 705/37, 705/35, 705/36, 705/38, 705/39
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system for securities quotes is described. The system and allows posting of a bid and offer price for a security for a proprietary account. The system use a unique market maker identifier for a market maker proprietary account. In response to a customer order, a bid and/or offer price of the customer is posted for the security for an agency account, using a unique market maker agency identifier for an agency account. The quotes are sent to a server that disseminates the proprietary and agency quotes with other quotes for the same security from other market makers.

Claims

1. A computer implemented method for quoting securities in a market maker quotation system, executed over a networked computer system, the method comprising:

receiving by a computer system for display in the market, at least one quote reflecting at least one of a bid and offer price for a security to reflect a proprietary position of a market maker type of participant; and

receiving by the computer system for display in the market, using a separate quote reflecting at least one of a bid and/or offer price for the security to reflect a customer order or interest.

2. The method of claim 1 wherein posting for the proprietary position comprises:

entering quotes for bids and offers into a quote system; and

sending the quotes to a server that disseminates the bid and offer quotes from the market maker, along with quotes for the same security from other market makers.

3. The method of claim 2 wherein quotes by the market maker and the plurality of other market makers are identified by unique market maker identifiers.

4. The method of claim 3 wherein posting in response to a client order or interest comprises:

entering an order for a security and reflecting that as an agency bid quote and/or offer quote into the quote system over a different session of the quote system than posting of quotes for the proprietary position; and

sending the agency bid or offer quote to a server that disseminates that agency bid or offer quote, for display and by a unique agency identifier with other quotes for the same security from the market makers.

5. The method of claim 4 wherein each agency quote that is entered by the market maker is identified with a unique market maker agency identifier that is comprised of the market maker'"'"'s identification and a symbol adjacent the market maker'"'"'s identification indicating that the quote is an agency quote.

6. The method of claim 1 wherein posting for a proprietary position further comprises:

using a unique market maker identifier for the market maker that is different from market maker identifiers for other market makers, and wherein posting in an agency position further comprises;

using a unique market maker agency identifier for the agency quote that is posted by the market maker that is different from market maker agency identifiers for other market makers.

7. The method of claim 1 further comprising:

receiving posted proprietary quotes and agency quotes by a server that disseminates quotes for display from the market maker and other market makers for the same security.

8. The method of claim 6 further comprising:

disseminating for display the bid and ask proprietary quotes from the market maker to the other market makers and the public for the security, identifying the bid and ask proprietary quotes by the unique market maker identifier; and

sending the bid and/or ask quotes identified by a market maker agency identifier, from customers of the market maker to the other market makers and the public for the security.

9. The method of claim 8 wherein disseminating quotes comprises:

sorting the quotes by best bid and best offer so that a public display of the quotes displays the best bid and best offer quotes on the top of the display.

21. The method of claim 1 wherein market maker type of participant includes a market maker, an electronic communication network or any entity that posts quotes that represent a proprietary position.

10. A method for quoting securities executed over a networked computer system, the method comprising:

receiving by a computer system, for display on a display device a bid and offer proprietary quotes of a market maker for a security using a unique market maker identifier corresponding to the market maker that is different from market maker identifiers for other market makers; and

in response to a customer order,

by the computer system, for display on the display device a bid and/or offer, as a separate quote, reflecting a order for a customer, using the unique market maker identifier and an additional symbol that indicates the separate quote is an agency quote for a customer of the market maker; and

sending the agency quote to a server that disseminates that agency quote with other quotes for the same security from the market makers.

22. The method of claim 10 wherein market maker includes a market maker, an electronic communication network or any entity that posts quotes that represent a proprietary position.

23. The method of claim 10 wherein posting proprietary quotes comprises:

entering quotes for bids and offers into a quote system.

24. The method of claim 23 wherein posting in response to a customer order comprises:

entering an order for a security and reflecting that order as a bid quote or an offer quote into the quote system over a different session of the quote system than was used for posting of the proprietary quotes.

25. The method of claim 10 further comprising:

disseminating for display the bid and ask proprietary quotes from the market maker and any agency quotes of the market maker to the other market makers and the public.

26. The method of claim 25 wherein disseminating quotes comprises:

sorting all of the quotes by best bid and best offer so that a display of the quotes displays the best bid and best offer quotes on the top of the display.

11. A quotation system for entering quotes for securities by a market maker, the system comprising:

a computer, comprising

a processor; and

a computer readable medium storing a computer program product for executing a process to cause the quotation system to;

post a bid and offer quote for a security for a proprietary account of a market maker; and

to reflect a customer order or interest,

post a separate bid and/or offer quote of the customer for the security to reflect to the market customer interest separate from proprietary interest in the security.

12. The system of claim 11 further comprising:

a server; and

wherein the process that posts for the proprietary account further comprises a process to cause the networked computer system to;

allow entry of quotes for bids and offers into the quote system; and

send the quotes to the server that disseminates the bid and offer quotes from the market maker along with quotes for the same security from other market makers.

13. The system of claim 12 wherein quotes by the market maker and the other market makers are identified by unique market maker identifiers.

14. The system of claim 11 wherein the quotation system is a client system to post quotes in response to a customer order and a client system to post quotes for a proprietary account.

15. The system of claim 11 wherein the computer program product further comprises instructions to cause the quotation system to:

post quotes for a proprietary account with a unique market maker identifier for the market maker.

16. The system of claim 11 wherein the computer program product further comprises instructions to cause the quotation system to:

post quotes for the customer account, as an agency quote having a unique market maker identifier and agency indication that identifies those quotes for the customer account as customer quotes of the market maker associated with the unique market maker identifier.

17. A client system to enter quotes for securities to reflect a customer order or interest comprises:

a computer executing a process to;

enter an agency quote for a bid and/or offer for an agency account into a quote system; and

send the agency quote identified with a unique market maker agency identifier to a server that disseminates for display to the market that agency quote with other quotes for the same security from other market makers.

18. The client system of claim 17 wherein the unique market maker agency identifier is comprised of a market marker identifier that is different from other market maker identifiers in the market and a symbol that indicates that the quote is an agency quote.

19. A computer program product residing on a computer readable medium for providing quotations for securities, the computer program product comprising computer executable instructions for causing a computer to:

post, for display to the market a bid and offer quote for a security for a proprietary account; and

to reflect a customer order or interest,

post, for display to the market a separate bid and/or offer quote of the customer for the security.

20. The computer program product of claim 19 wherein instructions that cause the computer to post quotes for a proprietary account further comprises instructions to cause the computer to:

use a unique market maker identifier corresponding to the market maker to post the bid and offer quote for the proprietary account, and wherein instructions to post the separate quote of the customer further comprises instructions to;

use a unique market maker agency identifier to represent the separate quote.