Systems and methods for facilitating electronic securities transactions

• US 8,583,544 B2
• Filed: 02/22/2013
• Issued: 11/12/2013
• Est. Priority Date: 04/18/2007
• Status: Active Grant

• Current Assignee: Instinet Holdings Incorporated (Instinet Incorporated)
• Original Assignee: State Street Global Markets, LLC (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): Holly, John H
• Application Number:
  US13/774,126
• Publication Number:
  US 20130166434A1
• Time in Patent Office: 263 Days
• Field of Search: 705/1.1, 705/37, 705/26.1, 705/36.R, 705/35, 705/77, 705/26.4, 705/30, 705/80, 428/447, 348/211.2
• 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

Abstract

Systems and methods for facilitating securities transactions are shown. In one embodiment, the method provides for receiving order information from an order management system, sending a subset of the order information to an electronic trading marketplace, receiving a quantity value from the electronic trading marketplace corresponding to a quantity of shares in a matched contra-interest, determining whether an available quantity of shares in the order information is at least the received quantity value, sending a commitment message to the electronic trading marketplace if the received quantity value is less than or equal to the available quantity of shares in the order information, and sending a deny trade message to the electronic trading marketplace if the received quantity value is greater than the available quantity of shares in the order information.

Claims

1. A system for facilitating security transactions comprising:

a memory module;

a processor programmed to;

receive order information from an order management system, the order information including an available quantity of shares;

store the order information in the memory module;

send a subset of the order information to an electronic trading marketplace;

receive a CheckQuantity value from the electronic trading marketplace, wherein the CheckQuantity value corresponds to a quantity of shares in a matched contra-interest;

determine whether the available quantity of shares in the order information is at least the CheckQuantity value;

send a commitment message to the electronic trading marketplace if the CheckQuantity value is less than or equal to the available quantity of shares in the order information; and

send a deny trade message to the electronic trading marketplace if the CheckQuantity value is greater than the available quantity of shares in the order information.

2. The system of claim 1 wherein the processor is programmed to send the subset of the order information to the electronic trading marketplace, and the subset of the order information does not include the available quantity of shares.

3. The system of claim 1 wherein the processor is programmed to send the commitment message to the electronic trading marketplace, and the commitment message includes a binding order specifying a total quantity of committed shares.

4. The system of claim 1 wherein the processor is programmed to send a cancel message to the electronic trading marketplace if the available quantity of shares has fallen below a user defined variable.

5. The system of claim 4 wherein the processor is programmed to:

determine if the available quantity of shares has fallen below the user defined variable, wherein the user defined variable is associated with an execution mode; and

send an execution mode specific cancel message.

6. An electronic trading marketplace for facilitating security transactions, comprising:

a memory module;

a processor programmed to;

receive order information including a name, a side, an execution mode, a minimum execution range, and a maximum execution range, wherein the order information is stored in the memory module;

determine a matching contra-interest based on the name, the side, the minimum execution range, and the maximum execution range, wherein the contra-interest includes a quantity of shares request;

send a CheckQuantity request based on the matched contra-interest;

receive an ExternalPlacement message including instructions for the electronic trading marketplace to attempt to execute a trade for a number of shares equal to the quantity of shares request; and

send a confirm request if the execution mode is a Confirm mode, or attempt to execute the trade if the execution mode is an AutoEx mode.

7. The electronic trading marketplace of claim 6, wherein the processor is programmed to:

receive a DenyTrade message in response to the CheckQuantity request; and

set the maximum execution range of the order information to be below the number of shares in the quantity of shares request.

8. The electronic trading marketplace of claim 6, wherein the processor is programmed to:

set the maximum execution range of the order information to be equal to the number of shares in the ExternalPlacement if the attempt to execute the trade in AutoEx mode fails.

9. A method for facilitating security transactions comprising:

receiving, by a computer, order information from an order management system, the order information including an available quantity of shares;

sending, by the computer, a subset of the order information to an electronic trading marketplace;

receiving, by the computer, a CheckQuantity value from the electronic trading marketplace, wherein the CheckQuantity value corresponds to a quantity of shares in a matched contra-interest;

utilizing the computer to determine whether the available quantity of shares in the order information is at least the CheckQuantity value;

sending, by the computer, a commitment message to the electronic trading marketplace if the CheckQuantity value is less than or equal to the available quantity of shares in the order information; and

sending, by the computer, a deny trade message to the electronic trading marketplace if the CheckQuantity value is greater than the available quantity of shares in the order information.

10. The method of claim 9 wherein the subset of the order information sent by the computer does not include the available quantity of shares.

11. The method of claim 9 wherein the commitment message sent by the computer includes a binding order specifying a total quantity of committed shares.

12. The method of claim 9 comprising sending, by the computer, a cancel message to the electronic trading marketplace if the available quantity of shares has fallen below a user defined variable.

13. The method of claim 12 comprising:

using the computer to determine if the available quantity of shares has fallen below the user defined variable, wherein the user defined variable is associated with an execution mode; and

sending, by the computer, an execution mode specific cancel message.

14. The method of claim 9 wherein sending the subset of the order information to the electronic trading marketplace with the computer includes sending an execution mode to the electronic trading marketplace.

15. The method of claim 14 wherein the execution mode is an AutoEx mode or a Confirm mode.

16. The method of claim 9 comprising sending, by the computer, the order information to a user workstation, wherein the user workstation is a computer.

17. The method of claim 16 comprising:

receiving, by the user work station, a user defined execution range; and

sending the user defined execution range from the user workstation to the electronic trading marketplace.