System and method for managing trading order requests

• US 8,799,121 B2
• Filed: 04/23/2004
• Issued: 08/05/2014
• Est. Priority Date: 05/15/2003
• Status: Active Grant

• Current Assignee: Cantor Index LLC
• Original Assignee: Cantor Index LLC
• Inventors: Crosthwaite, Dominic, Findlay, Lewis C.
• Primary Examiner(s): Hammond, III, Thomas M
• Application Number:
  US10/831,614
• Publication Number:
  US 20040260640A1
• Time in Patent Office: 3,756 Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/34 Betting or bookmaking, e.g. Internet betting
• CPC Class Codes: G07F 15/00 Coin-freed apparatus with meter-controlled dispensing of liquid, gas or electricity
• CPC Class Codes: G07F 17/3288 Betting, e.g. on live events, bookmaking

Abstract

A method of determining whether to approve trading order requests is provided. A request to place a first trading order is received from a user using a trading account associated with the user. A risk value is determined for the first trading order. A plurality of balances associated with the trading account are determined. The balances may include an available cash balance, an available credit balance, and an available waived margin balance for the trading account. A determination of whether to approve the first trading order is made based at least in part on the risk value for the first trading order and the available cash balance, the available credit balance, and the available waived margin balance determined for the trading account. If the first trading order is approved, the first trading order is placed.

Claims

1. A method comprising the steps of:

receiving by at least one processor from a first user a first order, wherein;

the first order comprises a bet on at least one sporting event,

the first user has an account that has a plurality of balances associated therewith, and

the first order is received from the first user via a computer system in use by the first user, the computer system being communicatively coupled to the at least one server via a communications network;

based at least in part on receiving the first order;

determining by the at least one processor a risk value for the first order, wherein the risk value comprises an amount that the first user could lose on the bet;

comparing by the at least one processor the risk value to at least one of the plurality of balances associated with the account;

approving by the at least one processor the first order based at least in part on comparing the risk value to the at least one balance; and

based at least in part on approving the first order, making by the at least one processor the first order available for matching with other orders;

receiving by the at least one processor from the first user a second order,

wherein the second order comprises a bet on at least one of (i) the a least one sporting event and (ii) at last one other sporting event, and wherein the second order further comprises or defines an amount that the first user wishes to wager on the at least one of (i) the at least one sporting event and (ii) the at least one other sporting event;

approving by the at least one processor the second order;

based at least in part on approving the second order, making by the at least one processor the second order available for matching with other orders;

receiving by the at least one processor from a second user an order, wherein the order from the second user comprises a bet on the sporting event and further comprises or defines an amount that the second user wishes to wager on the sporting event;

matching by the at least one processor the first order from the first user with the order from the second user;

based at least in part on matching the first order from the first user with the order from the second user, adjusting by the at least one processor at least one of the plurality of balances associated with the account;

based at least in part on adjusting the at least one balance associated with the account and subsequent to making the second order available for matching with other orders, automatically reducing by the at least one processor the wager amount of the second order; and

based at least in part on at least one of the plurality of balances associated with the account, determining by the at least one processor not to place a margin call on the account.

2. The method of claim 1,

wherein comparing the risk value to the at least one balance comprises making at least a first comparison and a second comparison:

the first comparison including a comparison between the risk value and at least a first of the plurality of balances associated with the account to obtain a first result, and

the second comparison including a comparison between the risk value and at least a second of the plurality of balances associated with the account to obtain a second result; and

wherein approving the first order comprises approving the first order based at least in part on a combination of the first result and the second result.

3. The method of claim 2,

wherein one of the plurality of balances associated with the account comprises a guaranteed profits balance, the guaranteed profits balance representing an amount of profits guaranteed but not yet paid to the account based on at least one other order placed by the first user;

and

wherein at least the first comparison includes a comparison between the risk value and at least the guaranteed profits balance.

4. The method of claim 1,

wherein one of the plurality of balances associated with the account comprises a guaranteed profits balance, the guaranteed profits balance representing an amount of profits guaranteed but not yet paid to the account based on at least one other order placed by the first user;

and

wherein approving the first order further comprises approving the first order based at least in part on a value of the guaranteed profits balance.

5. The method of claim 1, wherein one of the plurality of balances associated with the account comprises a guaranteed profits balance, the guaranteed profits balance representing an amount of profits guaranteed but not yet paid to the account based on at least one other bet placed by the first user.

6. The method of claim 1,

wherein determining not to place the margin call comprises:

making at least a first comparison and a second comparison;

the first comparison including a comparison of at least a first of the plurality of balances associated with the account to the value zero to obtain a first result, and

the second comparison including a comparison of at least a second of the plurality of balances associated with the account to the value zero to obtain a second result; and

determining not to place the margin call on the user'"'"'s account based at least in part on a combination of the first result and the second result.

7. The method of claim 1,

wherein comparing the risk value to the at least one balance comprises comparing the risk value to at least two of the plurality of balances associated with the account to obtain at least a first result and a second result;

wherein approving the first order comprises approving the first order based at least in part on a combination of the first result and the second result; and

wherein determining not to place the margin call comprises;

comparing at least two of the plurality of balances associated with the account to the value zero to obtain at least a third result and a fourth result; and

determining not to place the margin call on the account based at least in part on a combination of the third result and the fourth result.

8. The method of claim 1, wherein determining the risk value for the first order comprises determining the risk value based at least in part on an estimated maximum tick liability associated with the at least one sporting event, the estimated maximum tick liability representing an amount a user could lose by wagering one unit of currency on the at least one sporting event.

9. The method of claim 8, wherein the estimated maximum tick liability is determined based at least in part on statistical data regarding the at least one sporting event.

10. The method of claim 1,

wherein matching the first order from the first user with the order from the second user comprises matching at least a portion of the first order from the first user with at least a portion of the order from the second user.

11. The method of claim 1, further comprising the steps of:

based at least in part on event results of the at least one sporting event that occur during an overall duration of the at least one sporting event, updating by the at least one processor the risk value for the first order, wherein the updating occurs during the overall duration of the at least one sporting event;

based at least in part on updating the risk value for the first order, further adjusting by the at least one processor the at least one balance associated with the account; and

based at least in part on further adjusting the at least one balance, automatically adjusting by the at least one processor the reduced wager amount of the second order.

23. The method of claim 1, wherein matching the first order from the first user with the order from the second user comprises establishing a bet between the first user and the second user on the at least one sporting event.

24. The method of claim 8,

wherein determining the risk value for the first order comprises determining the risk value based at least in part on the estimated maximum tick liability and the wager amount of the first order.

27. The method of claim 1, wherein comparing the risk value to the at least one balance associated with the account comprises comparing the risk value to at least one combination of a plurality of the balances associated with the account.

28. The method of claim 1, wherein comparing the risk value to the at least one balance associated with the account comprises comparing the risk value to at least a margin balance associated with the account.

29. The method of claim 1,

wherein the method further comprises the steps of:

based at least in part on the wager amount of the second order, determining by the at least one processor a risk value for the second order, wherein the risk value for the second order comprises an amount that the first user could lose on the bet associated with the second order; and

wherein reducing the wager amount of the second order comprises reducing the wager amount based at least in part on the risk value for the second order and the adjusted at least one balance.

30. The method of claim 29,

wherein the method further comprises the steps of:

comparing by the at least one processor the risk value for the second order to at least the adjusted at least one balance; and

wherein reducing the wager amount of the second order comprises reducing the wager amount based at least in part on the comparison.

31. The method of claim 30,

wherein the method further comprises the steps of:

based at least in part on comparing the risk value for the second order to at least the adjusted at least one balance, determining by the at least one processor that the risk value exceeds at least one of (i) the adjusted at least one balance and (ii) at least one value determined from the adjusted at least one balance; and

wherein reducing the wager amount of the second order comprises reducing the wager amount based at least in part on determining that the risk value for the second order exceeds the at least one of (i) the adjusted at least one balance and (ii) the at least one value determined from the adjusted at least one balance.

32. The method of claim 31,

wherein the method further comprises the steps of:

based at least in part on matching the first order from the first user with the order from the second user, updating by the at least one processor the risk value for the first order; and

wherein adjusting the at least one balance associated with the account comprises adjusting the at least one balance by an amount that is based at least in part on the updated risk value for the first order.

33. The method of claim 31, wherein the adjusted at least one balance comprises a margin balance.

34. The method of claim 11,

wherein the method further comprises the steps of:

based at least in part on the reduced wager amount of the second order, determining by the at least one processor a risk value for the second order, wherein the risk value for the second order comprises an amount that the first user could lose on the bet associated with the second order; and

comparing by the at least one processor the risk value for the second order to at least the further adjusted at least one balance; and

wherein adjusting the reduced wager amount comprises adjusting the reduced wager amount based at least in part on the comparison.

35. The method of claim 11, wherein adjusting the reduced wager amount of the second order comprises one of:

increasing the reduced wager amount, and

reducing the reduced wager amount.

12. An apparatus comprising:

at least one processor; and

a memory electronically coupled to the at least one processor, wherein the memory stores instructions that when executed by the at least one processor, direct the at least one processor to at least;

receive from a first user a first order, wherein;

the first order comprises a bet on at least one sporting event,

the first user has an account that has a plurality of balances associated therewith, and

the apparatus is operable to receive the first order from the first user via a computer system in use by the first user, the apparatus being further operable to communicate with the computer system via a communications network;

based at least in part on receiving the first order;

determine a risk value for the first order, wherein the risk value comprises an amount that the first user could lose on the bet;

compare the risk value to at least one of the plurality of balances associated with the account;

approve the first order based at least in part on comparing the risk value to the at least one balance; and

based at least in part on approving the first order, make the first order available for matching with other orders;

receive from the first user a second order,

wherein the second order comprises a bet on at least one of (i) the a least one sporting event and (ii) at last one other sporting event, and wherein the second order further comprises or defines an amount that the first user wishes to wager on the at least one of (i) the at least one sporting event and (ii) the at least one other sporting event;

approve the second order;

based at least in part on approving the second order, make the second order available for matching with other orders;

receive from a second user an order, wherein the order from the second user comprises a bet on the sporting event and further comprises or defines an amount that the second user wishes to wager on the sporting event;

match the first order from the first user with the order from the second user;

based at least in part on matching the first order from the first user with the order from the second user, adjust at least one of the plurality of balances associated with the account;

based at least in part on adjusting the at least one balance associated with the account and subsequent to making the second order available for matching with other orders, automatically reduce the wager amount of the second order; and

based at least in part on at least one of the plurality of balances associated with the account, determine not to place a margin call on the account.

13. The apparatus of claim 12,

wherein comparing the risk value to the at least one balance comprises making at least a first comparison and a second comparison:

the first comparison including a comparison between the risk value and at least a first of the plurality of balances associated with the account to obtain a first result, and

the second comparison including a comparison between the risk value and at least a second of the plurality of balances associated with the account to obtain a second result; and

wherein to approve the first order comprises to approve the first order based at least in part on a combination of the first result and the second result.

14. The apparatus of claim 13,

wherein one of the plurality of balances associated with the account comprises a guaranteed profits balance, the guaranteed profits balance representing an amount of profits guaranteed but not yet paid to the account based on at least one other order placed by the first user;

and

wherein at least the first comparison includes a comparison between the risk value and at least the guaranteed profits balance.

15. The apparatus of claim 12,

wherein one of the plurality of balances associated with the account comprises a guaranteed profits balance, the guaranteed profits balance representing an amount of profits guaranteed but not yet paid to the account based on at least one other order placed by the first user;

and

wherein approving the first order further comprises approving the first order based at least in part on a value of the guaranteed profits balance.

16. The apparatus of claim 12, wherein one of the plurality of balances associated with the account comprises a guaranteed profits balance, the guaranteed profits balance representing an amount of profits guaranteed but not yet paid to the account based on at least one other bet placed by the first user.

17. The apparatus of claim 12,

wherein determining not to place the margin call comprises:

making at least a first comparison and a second comparison;

the first comparison including a comparison of at least a first of the plurality of balances associated with the account to the value zero to obtain a first result, and

the second comparison including a comparison of at least a second of the plurality of balances associated with the account to the value zero to obtain a second result; and

determining not to place the margin call on the account based at least in part on a combination of the first result and the second result.

18. The apparatus of claim 12,

wherein comparing the risk value to the at least one balance comprises comparing the risk value to at least two of the plurality of balances associated with the account to obtain at least a first result and a second result;

wherein approving the first order comprises approving the first order based at least in part on a combination of the first result and the second result; and

wherein determining not to place the margin call comprises;

comparing at least two of the plurality of balances associated with the account to the value zero to obtain at least a third result and a fourth result; and

determining not to place the margin call on the account based at least in part on a combination of the third result and the fourth result.

19. The apparatus of claim 12, wherein determining the risk value for the first order comprises determining the risk value based at least in part on an estimated maximum tick liability associated with the at least one sporting event, the estimated maximum tick liability representing an amount a user could lose by wagering one unit of currency on the at least one sporting event.

20. The apparatus of claim 19, wherein the estimated maximum tick liability is determined based at least in part on statistical data regarding the at least one sporting event.

21. The apparatus of claim 12, wherein matching the first order from the first user with the order from the second user comprises matching at least a portion of the first order from the first user with at least a portion of a the order from the second user.

22. The apparatus of claim 21, wherein the instructions, when executed by the at least one processor, further direct the at least one processor to at least:

based at least in part on event results of the at least one sporting event that occur during an overall duration of the at least one sporting event, update the risk value for the first order, wherein the updating occurs during the overall duration of the at least one sporting event;

based at least in part on updating the risk value for the first order, further adjust the at least one balance associated with the account; and

based at least in part on further adjusting the at least one balance, automatically adjust the reduced wager amount of the second order.

25. The apparatus of claim 12, wherein matching the the first order from the first user with the order from the second user comprises establishing a bet between the first user and the second user on the at least one sporting event.

26. The apparatus of claim 19,

wherein determining the risk value for the first order comprises determining the risk value based at least in part on the estimated maximum tick liability and the wager amount of the first order.

36. The apparatus of claim 12, wherein comparing the risk value to the at least one balance associated with the account comprises comparing the risk value to at least one combination of a plurality of the balances associated with the account.

37. The apparatus of claim 12, wherein comparing the risk value to the at least one balance associated with the account comprises comparing the risk value to at least a margin balance associated with the account.

38. The apparatus of claim 12,

wherein the instructions, when executed by the at least one processor, further direct the at least one processor to at least:

based at least in part on the wager amount of the second order, determine a risk value for the second order, wherein the risk value for the second order comprises an amount that the first user could lose on the bet associated with the second order; and

wherein reducing the wager amount of the second order comprises reducing the wager amount based at least in part on the risk value for the second order and the adjusted at least one balance.

39. The apparatus of claim 38,

wherein the instructions, when executed by the at least one processor, further direct the at least one processor to at least:

compare the risk value for the second order to at least the adjusted at least one balance; and

wherein reducing the wager amount of the second order comprises reducing the wager amount based at least in part on the comparison.

40. The apparatus of claim 39,

wherein the instructions, when executed by the at least one processor, further direct the at least one processor to at least:

based at least in part on comparing the risk value for the second order to at least the adjusted at least one balance, determine that the risk value exceeds at least one of (i) the adjusted at least one balance and (ii) at least one value determined from the adjusted at least one balance; and

wherein reducing the wager amount of the second order comprises reducing the wager amount based at least in part on determining that the risk value for the second order exceeds the at least one of (i) the adjusted at least one balance and (ii) the at least one value determined from the adjusted at least one balance.

41. The apparatus of claim 40,

wherein the instructions, when executed by the at least one processor, further direct the at least one processor to at least:

based at least in part on matching the first order from the first user with the order from the second user, update the risk value for the first order; and

wherein adjusting the at least one balance associated with the account comprises adjusting the at least one balance by an amount that is based at least in part on the updated risk value for the first order.

42. The apparatus of claim 40, wherein the adjusted at least one balance comprises a margin balance.

43. The apparatus of claim 22,

wherein the instructions, when executed by the at least one processor, further direct the at least one processor to at least:

based at least in part on the reduced wager amount of the second order, determine a risk value for the second order, wherein the risk value for the second order comprises an amount that the first user could lose on the bet associated with the second order; and

compare the risk value for the second order to at least the further adjusted at least one balance; and

wherein adjusting the reduced wager amount comprises adjusting the reduced wager amount based at least in part on the comparison.

44. The apparatus of claim 22, wherein adjusting the reduced wager amount of the second order comprises one of:

increasing the reduced wager amount, and

reducing the reduced wager amount.