Compound order handling in an anonymous trading system

• US 8,566,221 B2
• Filed: 05/17/2011
• Issued: 10/22/2013
• Est. Priority Date: 06/23/2000
• Status: Expired due to Fees

• Current Assignee: EBS Group Ltd. (CME Group Incorporated)
• Original Assignee: EBS Group Ltd. (CME Group Incorporated)
• Inventors: Neyman, Vladimir, Iaccheo, Steven, Jain, Neena, Shu, James, Howorka, Edward, Foray, Andrew, Merold, Michael
• Primary Examiner(s): Kazimi, Hani M
• Application Number:
  US13/109,211
• Publication Number:
  US 20110276457A1
• Time in Patent Office: 889 Days
• Field of Search: 705 35- 37
• US Class Current: 705/37
• CPC Class Codes: G06F 21/6254 by anonymising data, e.g. decorrelating personal data from the owner's identification
• CPC Class Codes: G06Q 30/0615 Anonymizing
• 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

Joint execution type compound orders can be processed in an anonymous trading system comprising a plurality of broker nodes each of which includes an order matching functionality and a market distribution functionality. Trader agent nodes are connected to a number of dealer terminals grouped in trading floors and also to a broker node. Joint execution orders are entered as hit orders and are all matched by the broker during the hit or the order is cancelled. If matches are made the taker'"'"'s trading agent does not complete any of the deals marking up the order until it knows that all the deals are executable. The system may be used to allow traders to hit bids and offers in currency pairs synthesised from other currency pairs. In this arrangement the dealer enters a simple order in the synthetic currency and the taker'"'"'s trading agent converts it into a joint execution order.

Claims

1. A computer system for trading instruments between traders, the computer system comprising:

a plurality of order input devices, at least one of said order input devices for entering into the computer system a joint execution order comprising two or more linked orders;

means for matching and executing joint execution orders, the means for matching and executing performing only one of;

executing, as separate trades, all of the linked orders of the joint execution order; and

rejecting all of the linked orders of the joint execution order.

2. The computer system according to claim 1, wherein the computer system is an anonymous trading system.

3. The computer system according to claim 1, further comprising at least one matching engine for matching bid and offer orders entered into the computer system and assisting in the execution of deals where bid and offer orders have been matched.

4. The computer system according to claim 3, further comprising at least one broker, at least one of the at least one brokers comprising a matching engine, for matching bid and offer orders entered into the system and assisting in the execution of deals where bid and offer orders have been matched.

5. The computer system according to claim 3, further comprising market distribution means for distributing information relating to bid and offer orders in the computer system to the order input devices.

6. The computer system according to claim 5, further comprising an interface between trading floors each having one or more of the order input devices and the matching engines.

7. The computer system according to claim 5, further comprising a plurality of trading agents, each of said plurality of trading agents being connected to one of the at least one matching engines and providing an interface between a trading floor and said plurality of order input devices and the matching engine to which the trading agent is connected.

8. The computer system according to claim 7, wherein the means for matching and executing joint execution orders is located at the at least one matching engine and at the trading agents connected thereto.

9. The computer system according to claim 3, wherein the means for matching and executing joint execution orders is located at the at least one matching engine.

10. The computer system according to claim 6, wherein the means for matching and executing joint execution orders is also located at the interface.

11. The computer system according to claim 3, comprising a plurality of matching engines arranged in a network.

12. The computer system according to claim 4, comprising a plurality of brokers arranged in a network.

13. A computer system for trading instruments between traders, the computer system comprising:

a matching engine that performs a function of matching and executing joint execution orders,

wherein the matching engine performs only one of;

executing, as separate trades, all linked orders of a joint execution order entered into the computer system; and

rejecting all linked orders of a joint execution order entered into the computer system.

14. A method, on a computerized system having one or more computers on a network, of trading instruments between traders on the computerized system, the method comprising:

at least one of the one or more computers matching and executing joint execution orders by performing only one of;

executing, as separate trades, all linked orders of a joint execution order entered into the computer system; and

rejecting all linked orders of a joint execution order entered into the computer system.

15. The method according to claim 14, the method further comprising at least one of the one or more computers receiving, from an order input device, a joint execution order comprising two or more linked orders.

16. A computer system comprising:

one or more computers configured to receive, from at least one of a plurality of order input devices, a joint execution order comprising two or more linked orders;

one or more computers configured to;

match and execute joint execution orders, so as to perform only one of;

executing, as separate trades, all of the linked orders of the joint execution order; and

rejecting all of the linked orders of the joint execution order.

17. A computer system comprising:

one or more computers configured to match and execute joint execution orders, so as to perform only one of;

executing, as separate trades, all linked orders of a joint execution order entered into the computer system; and

rejecting all linked orders of a joint execution order entered into the computer system.