Electronic trading among principals and brokers
First Claim
1. A method comprising the steps of:
- receiving computer data signals conveying two passive trading orders for proposed transactions to be mediated with assistance of an electronic trading system, stored data for the orders indicating that a first of the two passive orders is entered with authority of a principal of the principal'"'"'s real party in interest, and the stored data indicating that a second of the two passive orders is entered with authority of a broker acting on behalf of the broker'"'"'s real party in interest from a broker workstation;
electronically determining presentation of the first and second passive orders to a prospective aggressor counterparty, a difference between the determined presentation of the two passive orders to the prospective aggressor counterparty being based at least in part on the stored indication of principal vs. broker authority, and preventing the prospective aggressor counterparty from acting on at least one of the passive trading orders based at least in part on a determination that the prospective aggressor is acting with the authority of a broker.
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Accused Products
Abstract
Electronic trading systems and methods which facilitate principal/broker trading are provided. In a first aspect of the invention, a database relating to trading participants in the trading system is designed to indicate which traders utilize a principal/broker relationship and what, if any, limitations are placed on the activity of the broker, trading commands submitted by the broker, and counterparties in a transaction with the broker. In another aspect of the invention, trading commands and executed trades involving principals/brokers may be presented to other traders using special designations. The ability to enter certain trading commands by, and in response to, brokers may be limited. In a further aspect of the invention, anonymous trading features may prevent traders from knowing whether another trader is a broker or principal, may restrict traders from being able to block trading with brokers, and may permit brokers to configure anonymous trading parameters.
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Citations
32 Claims
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1. A method comprising the steps of:
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receiving computer data signals conveying two passive trading orders for proposed transactions to be mediated with assistance of an electronic trading system, stored data for the orders indicating that a first of the two passive orders is entered with authority of a principal of the principal'"'"'s real party in interest, and the stored data indicating that a second of the two passive orders is entered with authority of a broker acting on behalf of the broker'"'"'s real party in interest from a broker workstation; electronically determining presentation of the first and second passive orders to a prospective aggressor counterparty, a difference between the determined presentation of the two passive orders to the prospective aggressor counterparty being based at least in part on the stored indication of principal vs. broker authority, and preventing the prospective aggressor counterparty from acting on at least one of the passive trading orders based at least in part on a determination that the prospective aggressor is acting with the authority of a broker. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16)
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17. An apparatus comprising:
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a processor; a nonvolatile memory, having stored therein computer data signals representing two passive trading orders for proposed transactions to be mediated with assistance of an electronic trading system, the stored data for the orders indicating that a first of the two passive orders is entered with authority of a principal of the principal'"'"'s real party in interest, and the stored data indicating that a second of the two passive orders is entered with authority of a broker acting on behalf of the broker'"'"'s real party in interest from a broker workstation; the memory further storing one or more computer programs designed to cause the processor to electronically determine presentation of the first and second passive orders to a prospective aggressor counterparty, a difference between the determined presentation of the two passive orders to the prospective aggressor counterparty to be based at least in part on the stored indication of principal vs. broker authority, and to prevent the prospective aggressor counterparty from acting on at least one of the passive trading orders based at least in part on a determination that the prospective aggressor is acting with the authority of a broker. - View Dependent Claims (18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32)
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Specification