System and method for generating liquidity

• US 8,577,772 B2
• Filed: 10/27/2005
• Issued: 11/05/2013
• Est. Priority Date: 10/27/2004
• Status: Active Grant

• Current Assignee: Virtu ITG Software Solutions LLC
• Original Assignee: ITG Software Solutions, Inc. (Virtu Financial, Inc.)
• Inventors: Heckman, Chris, Sugden, Eric, Provensal, Jerome, Watmore, Greg
• Primary Examiner(s): Ebersman, Bruce I
• Application Number:
  US11/259,363
• Publication Number:
  US 20060136326A1
• Time in Patent Office: 2,931 Days
• Field of Search: 705/1, 705/35, 705/36.R, 705/37, 705/38
• US Class Current: 705/36.R
• 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 system for generating liquidity includes a plurality of client user interfaces and a matching system. Each client user interface includes a trading desktop which stores unexecuted trading positions. The matching system is coupled with the plurality of client user interfaces and configured to receive information about the unexecuted trading positions. The system can identify as a match one or more first indications of interest which can fulfill one or more second indications of interest, based upon the information about the unexecuted trading positions. For the identified matches, the system can provide a notification of the match and an invitation to execute the match to corresponding client user interfaces. When an invitation is accepted, the system forwards an order to an order execution system for execution.

Claims

1. A computerized system for generating executable trade orders, comprising:

a computerized non-executable indication of interest matching system coupled with a plurality of client trading computers, each said client trading computer including a trading desktop configured to monitor trades for execution and store unexecuted trading positions to trade a given amount of a tradable asset, and configured to receive from said plurality of client trading computers a plurality of non-executable indications of interest based on the unexecuted trading positions stored by respective trading desktops, to identify as a match one or more first non-executable indications of interest from said plurality of non-executable indications of interest which fulfill one or more second non-executable indications of interest from said plurality of non-executable indications of interest, and, for the identified matches, to provide a trading opportunity notification to said client trading computers from which said matched first and second non-executable indications of interest originated;

a computerized executable trade order generation systems coupled with each of said plurality of client trading computers and configured to receive instructions to convert the non-executable indication of interest associated with the trading opportunity notification into a binding, executable trade order from said client trading computers that received said trading opportunity notifications, based on said instructions, and to send said binding, executable trade orders to a computerized executable order matching and execution system that is distinct from said computerized non-executable indication of interest matching system,

wherein said instructions indicate sides and symbols of said executable trade orders to be generated and said sides and symbols are the same as sides and symbols of said matched first and second non-executable indications of interest; and

wherein said trading opportunity notification expires within a predetermined period of time and includes an indication of said predetermined period of time.

2. The computerized system as recited in claim 1, wherein said computerized executable order matching and execution system includes a pricing module for determining a price at which to execute said binding, executable trade orders corresponding to a match.

3. The computerized system as recited in claim 2, wherein said pricing module calculates a mid-point of a current highest and lowest offer price for a matched symbol, which is used as the price at which to execute said binding, executable trade orders corresponding to a match.

4. The computerized system as recited in claim 1, wherein each said client trading computers includes a graphical user interface for displaying said unexecuted trading positions and said trading opportunity notification.

5. The computerized system as recited in claim 1, wherein each said client trading computer is configured to create a filter definition, and said computerized non-executable indication of interest matching system can only receive unexecuted trading positions which satisfy said filter definition.

6. The computerized system as recited in claim 1, wherein said computerized executable order matching and execution system is further configured to receive a plurality of binding, executable trade orders from each said executable trade order generation system, to identify as a match one or more first binding, executable trade orders from said plurality of binding, executable trade orders with fulfill one or more second binding, executable trade orders from said plurality of binding, executable trade orders, and to execute the matched first and second binding, executable trade orders.

7. The computerized system as recited in claim 4, wherein unexecuted trading positions are anonymous and confidential within said system.

8. The computerized system as recited in claim 4, wherein said graphical user interface includes a dynamic display of said predetermined period of time and an elapsing of said predetermined period of time to indicate an amount of time left to send said binding, executable trade order generation instructions.

9. A computer-implemented method for generating executable trade orders, comprising the steps of:

at a computerized non-executable indication of interest matching system, receiving, via an electronic data network, a plurality of non-executable indications of interest to trade an amount of a tradable asset, each non-executable indication of interest being associated with a trader;

at the computerized non-executable indication of interest matching system, identifying as a match, one or more first non-executable indications of interest from said plurality of non-executable indications of interest which fulfill one or more second non-executable indications of interest from said plurality of non-executable indications of interest;

for said match, providing via said electronic data network, a trading opportunity notification to each party corresponding to the one or more first non-executable indications of interest and one or more second non-executable indications of interest, wherein the trading opportunity notification maintains anonymity and confidentiality of the associated trader of the associated non-executable indications of interest;

at a computerized executable trade order generation system, receiving, via said electronic data network, executable trade order generation instructions from one or more of said parties receiving said trading opportunity notification to convert the non-executable indication associated with the executable trade order generation instructions to a binding, executable trade order, based on said instructions; and

electronically sending said binding, executable trade orders to a computerized executable order matching and execution system that is separate from said computerized non-executable indication of interest matching system;

wherein said instructions indicate sides and symbols of said binding, executable trade orders to be generated and said sides and symbols are the same as sides and symbols of said matched first and second non-executable indications of interest; and

wherein said trading opportunity notification expires within a predetermined period of time and includes an indication of said predetermined period of time.

10. The computer-implemented method as recited in claim 9, wherein said step of receiving a plurality of non-executable indications includes a step of accessing a plurality of trading desktops and reading unexecuted trading positions stored by each of said plurality of trading desktops, said non-executable indications of interest being based upon said unexecuted trading positions.

11. The computer-implemented method as recited in claim 9, further comprising the steps of:

at said computerized executable order matching and execution system, receiving, via said electronic data network, a plurality of said binding, executable trade orders, identifying as a match one or more first binding, executable trade orders from said plurality of binding, executable trade orders which fulfill one or more second binding, executable trade orders from said plurality of binding, executable trade orders, and executing the matched first and second binding, executable trade orders.

12. The computer-implemented method as recited in claim 9, further including a step of calculating, at said computerized executable order matching and execution system, a price at which to execute said binding, executable trade orders corresponding to a match.

13. The computer-implemented method as recited in claim 12, wherein said step of calculating calculates a mid-point of a current highest and lowest offer price for a matched symbol.

14. The computer-implemented method as recited in claim 9, including a step of displaying said non-executable indications of interest and said trading opportunity notification to the corresponding parties via a client user interface.

15. The computer-implemented method as recited in claim 14, wherein each non-executable indication of interest includes a size of a trade, an asset name of an asset to be traded, and a side of the trade.

16. The computer-implemented method as recited in claim 14, wherein said non-executable indications of interest can be based on executable or nonexecutable orders.

17. The computer-implemented method as recited in claim 14, wherein said graphical user interface includes a dynamic display of said predetermined period of time and an elapsing of said predetermined period of time to indicate an amount of time left for said trading opportunity notification.