Method and system for effecting straight-through-processing of trades of various financial instruments

• US 7,882,019 B2
• Filed: 07/23/2010
• Issued: 02/01/2011
• Est. Priority Date: 03/25/2003
• Status: Active Grant

• Current Assignee: Tradeweb Markets LLC (Tradeweb Markets, Inc.)
• Original Assignee: Tradeweb Markets LLC (Tradeweb Markets, Inc.)
• Inventors: Toffey, James Worden
• Primary Examiner(s): Havan; Thu Thao
• Application Number:
  US12/842,516
• Publication Number:
  US 20100287091A1
• Time in Patent Office: 193 Days
• Field of Search: 705 37- 38
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• 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 40/12 Accounting
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A Straight-Through-Processing (STP) trading platform provides a fully electronic and seamless solution to all substantially aspects of the trading cycle for fixed income instruments and other financial instruments. In an exemplary embodiment, all participants to a trade transaction have access to computer software that facilitates trade order management, trade order generation, trade execution (including electronic axes), trade allocation, allocation acknowledgement, trade confirmation, and finally acquisition of settlement instructions. In said exemplary embodiment, the STP trading platform includes computer software modules including at least an account management module and an electronic trading module to handle the various stages of executing a trade, confirming the trade, and facilitating settlement of the trade.

Claims

1. A computer-implemented method of electronically presenting an axe trade inquiry to at least one selected buy-side entity, the method comprising:

providing an axe generation module enabling the creation of the axe trade inquiry on behalf of a sell-side entity;

receiving axe trade details input on behalf of the sell-side entity into an interface provided by the axe generation module;

generating an electronic axe trade ticket based on the axe trade details wherein the axe trade ticket is actionable by at least one selected buy-side entity;

causing the display of the electronic axe trade ticket to the at least one selected buy-side entity; and

receiving an indication that the axe details in the electronic axe are acceptable to the at least one buy-side entity.

2. The method of claim 1, wherein the axe generation module is triggered by an action of the buy-side entity.

3. The method of claim 2, wherein the action of the buy-side entity is the cancellation of a price received from the sell-side entity in response to a buy-side entity initiated trade inquiry.

4. The method of claim 1, wherein the axe generation module is initiated by an action of the sell-side entity.

5. The method of claim 1, further comprising:

electronically executing an axe trade based on the axe trade details.

6. The method of claim 5 further comprising:

receiving an allocation from the buy-side entity for the axe trade;

generating electronic trade tickets for each allocation of the axe trade;

enriching the electronic trade tickets with settlement instructions; and

generating an electronic confirmation.

7. The method of claim 1, wherein the buy-side entity is an institutional investor.

8. The method of claim 1, wherein the sell-side entity is a dealer.