Method for directing and executing certified trading interests

• US 7,865,425 B2
• Filed: 07/17/2008
• Issued: 01/04/2011
• Est. Priority Date: 06/01/2000
• Status: Expired due to Fees

• Current Assignee: Virtu ITG Software Solutions LLC
• Original Assignee: Aritas Group, Inc.
• Inventors: Federspiel, Fred J., Waelbroeck, Henri, Angel, James J.
• Primary Examiner(s): PATEL, JAGDISH
• Application Number:
  US12/219,163
• Publication Number:
  US 20090018949A1
• Time in Patent Office: 901 Days
• Field of Search: 705/37, 705/26
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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

Abstract

Preferred embodiments of the subject invention comprise: (a) electronically receiving securities order-related data regarding a set of securities market participants; (b) electronically storing the received order-related data regarding the set of securities market participants; (c) electronically receiving a securities order-related query (or order parameters) from a first securities market participant; (d) based on the order-related query (or order parameters) received from the first securities market participant and on the securities order-related data regarding the set of securities market participants, computing a dissemination list of securities market participants based on ranking likely contras by probability of execution; and (e) transmitting that dissemination list to an entity who has been granted the privilege of receiving such lists in exchange for being contractually bound to respect confidentiality of the dissemination list and to use the list only for the purpose of sending securities-related information to members of the list.

Claims

1. A method of managing orders in a financial securities market, comprising the steps of:

(a) electronically receiving data comprising a securities order and conditions on said securities order from a first securities market participant;

(b) electronically storing said received data in a database;

(c) electronically receiving and storing in said database data comprising contra securities orders from other securities market participants;

(d) searching with a first processor in communication with said database for contra securities orders that satisfy said conditions on said securities order from said first securities market participant;

(e) ranking with a second processor contra securities orders that satisfy said conditions according to criteria comprising said conditions; and

(f) routing with a third processor said securities order received from said first securities market participant or portions thereof to securities market participants from which said ranked contra securities orders were received, according to ranking obtained in step (e),

wherein said first, second, and third processors may the same processor, separate processors linked via a communications link, or a combination thereof.

2. A method according to claim 1, wherein said conditions comprise having a designated portion of said securities order sent out to third-party systems.

3. A method according to claim 2, wherein the aggregate size of portions of said securities order that are routed to third-party systems does not exceed the size of said securities order.

4. A method according to claim 1, wherein a count is maintained of the residual size that has not been routed to likely contras, and said count is decremented when routed-to contras decline to accept the securities order.

5. A method according to claim 4, wherein said residual size count is not permitted to become negative.

6. A method according to claim 2, wherein said conditions comprise a combination of possible third-party execution options.

7. A method according to claim 1, wherein said first securities market participant transmits said conditions by entering a script through a graphical user interface.

8. A method according to claim 7, wherein said script specifies a sequence of operations to be executed in the process of working said securities order.

9. A method according to claim 7, wherein said graphical user interface comprises a script-editing screen displaying a blank horizontal field with a downward-pointing arrow.

10. A method according to claim 9, wherein upon clicking on the downward-pointing arrow a drop list of securities order management options appears for the user to choose from.

11. A method according to claim 7, wherein said graphical user interface displays a list of securities order management options.

12. A method according to claim 11, wherein said list of securities order management options includes options to route parts of the securities order to third party systems.

13. A method according to claim 11, wherein said list of securities order management options includes an option of sending targeted notifications of the residual part of the securities order that was not routed to other parties in order to attract responsive securities orders.

14. A method according to claim 11, wherein, upon selecting an option from said list, a user enters a dialog to edit relevant dissemination parameters.

15. A method according to claim 7, wherein a user specifies a time to be allotted for each step of said script.

16. A system for managing orders in a financial securities market, comprising:

(1) memory operable to store at least one program to and to store

(a) data comprising a securities order and conditions on said securities order, received from a first securities market participant;

(b) data comprising contra securities orders received from other securities market participants;

(2) a first processor, in communication with said memory and executing at least part of said at least one program, that searches for contra securities orders that satisfy said conditions on said securities order from said first securities market participant;

(e) a second processor, in communication with said memory and executing at least part of said at least one program, that ranks contra securities orders that satisfy said conditions according to criteria comprising said conditions; and

(f) a third processor, in communication with said memory and executing at least part of said at least one program, that routes said securities order received from said first securities market participant or portions thereof to securities market participants from which said ranked contra securities orders were received, according to said ranking by said second processor,

wherein said first, second, and third processors may the same processor, separate processors linked via a communications link, or a combination thereof.