Electronic securities marketplace having integration with order management systems

• US 8,548,898 B2
• Filed: 09/22/2011
• Issued: 10/01/2013
• Est. Priority Date: 10/19/2000
• Status: Expired due to Term

• Current Assignee: Liquidnet Holdings Incorporated (Liquidnet Incorporated)
• Original Assignee: Liquidnet Holdings Incorporated (Liquidnet Incorporated)
• Inventors: Merrin, Seth I., Halloran, John, Kosofsky, Demian, Lupowitz, Kevin
• Primary Examiner(s): Kalinowski, Alexander
• Assistant Examiner(s): Vyas, Abhishek
• Application Number:
  US13/240,593
• Publication Number:
  US 20120016788A1
• Time in Patent Office: 740 Days
• Field of Search: 705 35- 37
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An electronic trading marketplace (ETM) communicates with interfacing modules interfacing directly with order management systems (OMS'"'"'s) at trading institutions. The interfacing modules automatically transmit orders from the OMS databases to the ETM and update the OMS databases in response to orders executed at the ETM. Traders can communicate with the ETM to anonymously negotiate trades of securities.

Claims

1. A computer-implemented method comprising:

(i) automatically, periodically identifying, without manual intervention, from a data storage associated with an order management system comprising a plurality of open orders for securities, a subset of all open orders satisfying at least one predetermined filtering criterion, wherein;

a. the data storage is associated with a securities trading firm; and

b. the subset of all open orders is identified by a computer with one or more processors and a non-transient memory;

(ii) automatically transmitting, without manual intervention, data concerning the subset of all open orders to a data integration module associated with or having access to at least one electronic marketplace, the data comprising at least a security identifier and a transaction type, wherein;

a. at least one further manual affirmative action is required before each and any of the subset of all open orders is executable in a trade at the electronic marketplace;

b. the data integration module comprises a computer with one or more processors and a memory; and

c. the data is transmitted by a computer with one or more processors and a non-transient memory;

(iii) automatically converting the data into at least one non-binding indication of trading interest by the data integration module, wherein each non-binding indication of trading interest comprises at least the security identifier and the transaction type; and

(iv) automatically, periodically transmitting, without manual intervention, to the data integration module, updated data for at least one of the subset of orders that has changed since previously identified in step (i), wherein the updated data is transmitted by a computer with one or more processors and a non-transient memory.

2. The method of claim 1, wherein the data transmitted in step (ii) further comprises a total available quantity for the security determined from the order management system data storage.

3. The method of claim 1, further comprising automatically matching at least one of the subset of all open orders with a contra interest and providing an indication of the match to a to a workstation utilized by the trading firm, wherein the matching is performed by a computer with one or more processors and a non-transient memory.

4. The method of claim 3, further comprising receiving an indication of a further manual affirmative action by a party and executing a trade based upon the match of at least one of the subset of all open orders and the contra interest, wherein the indication is received by a computer with one or more processors and a non-transient memory.

5. The method of claim 1, wherein the further manual affirmative action is a negotiation between parties, or agents of parties, to a potential transaction.

6. The method of claim 1, further comprising converting, in response to an instruction received at the data integration module, at least one of the subset of all open orders into an executable order to trade securities.

7. The method of claim 6, further comprising executing a trade based upon the match of the executable order with a contra interest.

8. The method of claim 1, wherein the further manual affirmative action is an instruction from a party, or an agent for a party, to convert the at least one non-binding indication of trading interest into an executable order to trade securities.

9. The method of claim 1, wherein the at least one predetermined filtering criterion is based upon the type of security.

10. The method of claim 1, wherein the at least one predetermined filtering criterion is based upon the total available quantity of security to be traded.

11. The method of claim 1, wherein the at least one predetermined filtering criterion is established before entry of the plurality of open orders into the order management system.

12. The method of claim 1, wherein the at least one predetermined filtering criterion is established after entry of the plurality of open orders into the order management system.

26. The method of claim 1, wherein the computer of the automatically identifying step and the computer of the automatically transmitting of (ii) step are the same computer.

27. The method of claim 1, wherein the computer of the automatically identifying step and the computer of the automatically converting step are the same computer.

28. The method of claim 1, wherein the computer of the automatically identifying step and the computer of the automatically transmitting of (iv) step are the same computer.

29. The method of claim 1, wherein the computer of the automatically identifying step, the computer of the automatically transmitting of (ii) step, the computer of the automatically converting step, and the computer of the automatically transmitting of (iv) step are the same computer.

13. A programmed computer system, comprising:

a non-transient memory having at least one region for storing computer executable program code; and

a processor for executing the program code stored in the non-transient memory, wherein the program code comprises;

(i) code to automatically, periodically identify, without manual intervention, from a data storage associated with an order management system comprising a plurality of open orders for securities, a subset of all open orders satisfying at least one predetermined filtering criterion, wherein the data storage is associated with a securities trading firm;

(ii) code to automatically transmit, without manual intervention, data concerning the subset of all open orders to a data integration module associated with or having access to at least one electronic marketplace, the data comprising at least a security identifier and a transaction type, wherein at least one further manual affirmative action is required before each and any of the subset of all open orders is executable in a trade at the electronic marketplace;

(iii) code to automatically convert the data into at least one non-binding indication of trading interest by the data integration module, wherein each non-binding indication of trading interest comprises at least the security identifier and the transaction type; and

(iv) code to automatically, periodically transmit, without manual intervention, to the data integration module, updated data for at least one of the subset of orders that has changed since previously identified from the data storage associated with the order management system.

14. The programmed computer system of claim 13, wherein the data transmitted to the data integration module further comprises a total available quantity for the security determined from the order management system data storage.

15. The programmed computer system of claim 13, wherein the program code further comprises code to automatically match at least one of the subset of all open orders with a contra interest and provide an indication of the match to a workstation utilized by the trading firm.

16. The programmed computer system of claim 15, wherein the program code further comprises code to receive an indication of a further manual affirmative action by a party and execute a trade based upon the match of at least one of the subset of all open orders and the contra interest.

17. The programmed computer system of claim 13, wherein the further manual affirmative action is a negotiation between parties, or agents of parties, to a potential transaction.

18. The programmed computer system of claim 13, wherein the program code further comprises code to convert, in response to an instruction received at the data integration module, at least one of the subset of all open orders into an executable order to trade securities.

19. The programmed computer system of claim 18, wherein the program code further comprises code to execute a trade based upon the match of the executable order with a contra interest.

20. The programmed computer system of claim 13, wherein the further manual affirmative action is an instruction from a party, or an agent for a party, to convert at least one of the subset of all open orders into an executable order to trade securities.

21. The programmed computer system of claim 13, wherein the at least one predetermined filtering criterion is based upon the type of security.

22. The programmed computer system of claim 13, wherein the at least one predetermined filtering criterion is based upon the quantity of security to be traded.

23. The programmed computer system of claim 13, wherein the predetermined filtering criterion is established before entry of the plurality of open orders into the order management system.

24. The programmed computer system of claim 13, wherein the predetermined filtering criterion is established after entry of the plurality of open orders into the order management system.

25. The programmed computer system of claim 13, wherein the further manual affirmative action is an instruction from a party, or an agent for a party, to convert the at least one non-binding indication of trading interest into an executable order to trade securities.