Systems and methods for facilitating electronic securities transactions

• US 8,117,105 B2
• Filed: 03/18/2008
• Issued: 02/14/2012
• Est. Priority Date: 04/18/2007
• Status: Active Grant

• Current Assignee: Instinet Holdings Incorporated (Instinet Incorporated)
• Original Assignee: Blockcross Holdings LLC, Pulse Trading Incorporated (State Street Corporation)
• Inventors: Ford, Preston R., Filipski, Paul D., Dubois, Christian A., Enriquez, John Mark, Russel, Robert J., Sorber, Kevin K.
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): Holly, John H
• Application Number:
  US12/050,863
• Publication Number:
  US 20090018945A1
• Time in Patent Office: 1,428 Days
• Field of Search: 705/1, 705/35, 705/1.1, 705/36, 705/37, 705/5, 705/26.1, 705/321, 705/36.R, 715/810, 379/321
• US Class Current: 705/35
• 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 method for facilitating securities transactions is shown. In one embodiment, the method includes identifying, by a computer system from an OMS comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity; transmitting, by the computer system to an ETM, a non-binding indication corresponding to one order of the subset of orders, the non-binding indication comprising a security identifier and the order type; receiving, by the computer system, an indication that a match exists to the non-binding indication; determining, by the computer system, a total available quantity for the order corresponding to the non-binding indication; and transmitting, by the OMS, a binding order corresponding to the non-binding indication, the binding order comprising the determined total available quantity. Corresponding systems are also described.

Claims

1. A method for allowing prospective traders to selectively match indications of interest or binding orders with contra parties based on reliability ratings of potential contra-parties and the trading characteristics or market capitalization for the security desired to be traded, the method comprising:

(a) receiving, by a computer system, from a party, for each of a plurality of security characteristics, a minimum credit rating for desired contra parties for trades having the specified security characteristic;

(b) receiving, by the computer system, from the party, order information corresponding to a security, the order information consisting of a security identifier and the order type;

(c) determining, by the computer system, a security characteristic corresponding to the identified security;

(d) identifying, by the computer system, the minimum credit rating specified by the party for the determined security characteristic; and

(e) matching, by the computer system, the trading indication only to a contra party satisfying the identified minimum credit rating.

2. The method of claim 1 wherein the plurality of security characteristics comprises a plurality of ranges of one of:

average trading volumes, average daily trading volumes or market capitalizations.

3. The method of claim 1 wherein the plurality of security characteristics comprises a plurality of market capitalization ranges, a market capitalization comprising a total number of outstanding shares multiplied by a current share price.

4. The method of claim 1 wherein step (a) comprises receiving, from a party, for each of a high, medium, and low average daily trading volume range, a minimum credit rating for desired contra parties for trades involving securities specified for the respective volume ranges.

5. The method of claim 1, further comprising executing a trade corresponding to the trading indication between the party and the identified contra party.

6. A system for allowing prospective traders to selectively match indications of interest or binding orders with contra parties based on reliability ratings of potential contra-parties and the trading characteristics or market capitalization for the security desired to be traded, the system comprising:

a receiver executing on a computer processor, which receives, from a party, for security order information corresponding to a security, the order information consisting of a security identifier and the order type;

a storage element maintaining, for each of a plurality of security characteristics, a minimum credit rating for desired contra parties for trades involving securities with the specified security characteristic; and

a processor in communication with the storage element and receiver which determines a security characteristic corresponding to the identified security;

identifies the minimum credit rating specified for the determined security characteristic;

and matches the indication order information only to a contra party satisfying the identified minimum credit rating.

7. The system of claim 6 wherein the plurality of security characteristics comprises a plurality for ranges of one of:

average trading volumes, average daily trading volumes or market capitalizations.

8. The system of claim 6 wherein the storage element maintains, for each of a high, medium, and low average daily trading volume range, a minimum credit rating for desired contra parties for trades involving securities specified for the respective volume ranges.

9. The system of claim 6, further comprising means for executing a trade corresponding to the and order information with the identified contra party.