Systems and methods for controlling traders from manipulating electronic trading markets

• US 8,725,623 B2
• Filed: 02/15/2008
• Issued: 05/13/2014
• Est. Priority Date: 05/09/2001
• Status: Expired due to Fees

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Gilbert, Andrew C., Stergiopoulos, Andrew, Tselepis, William P.
• Primary Examiner(s): Akintola, Olabode
• Application Number:
  US12/031,843
• Publication Number:
  US 20080133401A1
• Time in Patent Office: 2,279 Days
• Field of Search: 705 37- 40
• US Class Current: 705/37
• 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
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

Systems and methods are provided to control gaming in electronic trading markets. These systems and methods alleviate the problem of a seller or buyer trying to act on a trader'"'"'s original bid or offer only to trade at an unfavorable level after the trader changes the bid or offer. A pricing method suspends trading for a period of time if a price difference between two bids or offers by the same trader is too great. A timing method prevents a trader from canceling or replacing a bid or offer for a period of time. These methods provide a more fair and efficient way of executing electronic trades.

Claims

1. A method for controlling manipulation of an electronic trading market by a trader comprising the steps of:

providing, via a processor, an exclusive trading period wherein only a first trader is allowed to submit a bid or offer and a second trader is allowed to submit a hit or take; and

automatically providing, via the processor, a bid-offer period upon completion of the exclusive trading period, during which the processor prevents the first trader from canceling or replacing a submitted bid or offer.

2. The method of claim 1, wherein during the bid-offer period the processor prevents the first trader from replacing the bid or offer.

3. The method of claim 1 wherein during the exclusive trading period, the processor allows the first trader to submit multiple bids or offers.

4. The method of claim 1 further comprising the steps of:

restarting the exclusive trading period upon the second trader submitting a hit or take.

5. The method of claim 1, wherein during the bid-offer period the processor prevents the first trader from canceling the bid or offer.

6. The method of claim 1 further comprising allowing the second trader to respond to the bid or offer with a hit or take during the bid-offer period.

7. The method of claim 1 further comprising allowing the first trader to cancel or replace the bid or offer upon completion of the bid-offer period.

8. A system for controlling manipulation of an electronic trading market by a trader comprising:

a tangible memory storing programs to instruct a trading server to provide;

an exclusive trading period wherein a first trader is allowed to submit a bid or offer and a second trader is allowed to submit a hit or take, and

a bid-offer period that starts automatically upon completion of the exclusive trading period, during which the processor prevents the first trader from canceling or replacing a submitted bid or offer.

9. The system of claim 8 wherein the programs instruct the trading server to restart the exclusive trading period upon the second trader submitting a hit or take.

10. The system of claim 8 wherein the programs instruct the trading server to, during the bid-offer period, prevent the first trader from replacing the bid or offer.

11. The system of claim 8 wherein the programs instruct the trading server to, during the bid-offer period, allow the second trader to respond to the bid or offer with a hit or take.

12. The system of claim 8 wherein the programs instruct the trading server to allow the first trader to cancel or replace the bid or offer upon completion of the bid-offer period.