System and methods for electronic trading that permit principal/broker trading

• US 10,438,286 B2
• Filed: 11/10/2014
• Issued: 10/08/2019
• Est. Priority Date: 06/01/2001
• 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): Ebersman, Bruce I
• Assistant Examiner(s): Gaw, Mark H
• Application Number:
  US14/537,116
• Publication Number:
  US 20150066736A1
• Time in Patent Office: 1,793 Days
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

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.

Claims

1. A method to orchestrate trading in a distributed system, the method comprising:

displaying, by at least one computer processor, at a computing device a configuration interface screen that allows a user of the computing device to specify at least one configuration setting for a principal, the at least one configuration setting comprising an indication of whether or not the principal is willing to trade with a second party, wherein the principal has a broker acting on behalf of the principal,

wherein the broker is unable to modify the at least one configuration setting, wherein the at least one configuration setting further comprises an indication of whether or not the principal is willing to trade with a third party, the method further comprising;

receiving, by the at least one computer processor, from the third party an order comprising a bid to buy a financial instrument or an offer to sell a financial instrument;

determining, by the at least one computer processor, whether or not the principal is willing to trade with the third party based at least in part on the at least one configuration setting, wherein determining whether or not the principal is willing to trade with the third party comprises determining that the principal is willing to trade with the third party; and

in response to the determination that the principal is willing to trade with the third party, presenting, by the at least one computer processor, the order received from the third party at the workstation to the broker in a manner that indicates to the broker that the order received from the third party is available for trading by the broker on behalf of the principal,

wherein the at least one configuration setting further comprises a warning limit, the warning limit comprising at least one of a buy side limit and a sell side limit, further comprising determining, by the at least one computer processor, whether or not the warning limit is exceeded by the order received from the third party, and

wherein the at least one configuration setting further comprises a trade execution setting, the trade execution setting specifying an action to be taken after a determination that the warning limit is exceeded, the trade execution setting comprising a setting selected from the group consisting of automatic rejection of the whole trade, automatic acceptance of the full trade, automatic acceptance of only part of the trade, manual acceptance of the full trade, and manual acceptance of only part of the trade;

receiving, by the at least one computer processor, from the second party an order comprising a bid to buy a financial instrument or an offer to sell a financial instrument;

determining, by the at least one computer processor, whether or not the principal is willing to trade with the second party based at least in part on the at least one configuration setting received from the user, wherein determining whether or not the principal is willing to trade with the second party comprises determining that the principal is not willing to trade with the second party;

in response to the determination that the principal is not willing to trade with the second party, the at least one computer processor (i) generating electronic commands for causing commands for withholding presentation of the order at a graphical user interface of a mobile device in use by the broker, or (ii) generating electronic commands for causing commands for displaying the order at the graphical user interface of the mobile device to the broker in a manner that indicates to the broker that the order is not available for trading by the broker on behalf of the principal, wherein to display the order at the workstation to the broker in a manner that indicates to the broker that the order is not available for trading by the broker on behalf of the principal comprises at least one of;

to display the order in a particular color, to display the order in a particular font, to flash the order, and not to flash the order; and

in response to a determination that a party to a trade specifies to maintain anonymity of an identity of the party to the trade, generating electronic commands for causing commands for blocking the identity of the party from being displayed on a graphical user interface of a mobile device of another party to the trade.

2. The method of claim 1, wherein determining whether or not the warning limit is exceeded comprises determining that the warning limit is exceeded, the method further comprising:

determining, by the at least one computer processor, that the trade execution setting is automatic acceptance of the full trade; and

executing, by the at least one computer processor, a trade between the principal and the third party for the order received from the third party based at least in part on the determination that the trade execution setting is automatic acceptance of the full trade.

3. The method of claim 1, wherein determining whether or not the warning limit is exceeded comprises determining that the warning limit is exceeded, the method further comprising:

determining, by the at least one computer processor, that the trade execution setting is automatic acceptance of only part of the trade; and

executing, by the at least one computer processor, a trade between the principal and the third party for only part of the order received from the third party based at least in part on the determination that the trade execution setting is automatic acceptance of only part of the trade.

4. The method of claim 1, wherein determining whether or not the warning limit is exceeded comprises determining that the warning limit is exceeded, the method further comprising:

determining, by the at least one computer processor, that the trade execution setting is one of manual acceptance of the full trade or manual acceptance of only part of the trade;

requesting, by the at least one computer processor, via the workstation from the broker acceptance of a full trade or partial trade based at least in part on the determination that the setting is one of manual acceptance of the full trade or manual acceptance of only part of the trade;

receiving, by the at least one computer processor, from the broker via the workstation acceptance of the full trade or partial trade; and

executing, by the at least one computer processor, a trade between the principal and the third party for the full order or only part of the order received from the third party based at least in part on the determination that the trade execution setting is one of manual acceptance of the full trade or manual acceptance of only part of the trade and the received acceptance of the full trade or partial trade from the broker.

5. The method of claim 1, wherein displaying the order at the workstation to the broker in a manner that indicates to the broker that the order is not available for trading by the broker on behalf of the principal comprises at least one of:

displaying the order in a particular color, displaying the order in a particular font, flashing the order, and not flashing the order.

6. An apparatus comprising:

at least one processor to orchestrate trading in a distributed system; and

memory including instructions that, when executed by the at least one processor, configure the at least one processor to;

display at a computing device a configuration interface screen that allows a user of the computing device to specify at least one configuration setting for a principal, the at least one configuration setting comprising an indication of whether or not the principal is willing to trade with a second party, wherein the apparatus is configured to have a broker act on behalf of the principal,

wherein the broker is unable to modify the at least one configuration setting, wherein the at least one configuration setting further comprises an indication of whether or not the principal is willing to trade with a third party, and wherein the instructions when executed by the at least one processor further configure the at least one processor to;

receive from the third party an order comprising a bid to buy a financial instrument or an offer to sell a financial instrument;

determine whether or not the principal is willing to trade with the third party based at least in part on the at least one configuration setting, wherein to determine whether or not the principal is willing to trade with the third party comprises to determine that the principal is willing to trade with the third party; and

in response to the determination that the principal is willing to trade with the third party, present the order received from the third party at the workstation to the broker in a manner that indicates to the broker that the order received from the third party is available for trading by the broker on behalf of the principal,

wherein the at least one configuration setting further comprises a warning limit, the warning limit comprising at least one of a buy side limit and a sell side limit, and wherein the instructions when executed by the at least one processor further configure the at least one processor to determine whether or not the warning limit is exceeded by the order received from the third party, and

wherein the at least one configuration setting further comprises a trade execution setting, the trade execution setting specifying an action to be taken after a determination that the warning limit is exceeded, the trade execution setting comprising a setting selected from the group consisting of automatic rejection of the whole trade, automatic acceptance of the full trade, automatic acceptance of only part of the trade, manual acceptance of the full trade, and manual acceptance of only part of the trade;

receive from the second party an order comprising a bid to buy a financial instrument or an offer to sell a financial instrument;

determine whether or not the principal is willing to trade with the second party based at least in part on the at least one configuration setting, wherein to determine whether or not the principal is willing to trade with the second party comprises to determine that the principal is not willing to trade with the second party;

in response to the determination that the principal is not willing to trade with the second party, (i) generate electronic commands to cause commands to withhold presentation of the order at a graphical user interface of a mobile device in use by the broker, or (ii) generate electronic commands to cause commands to display the order at the graphical user interface of the mobile device to the broker in a manner that indicates to the broker that the order is not available for trading by the broker on behalf of the principal, wherein to display the order at the workstation to the broker in a manner that indicates to the broker that the order is not available for trading by the broker on behalf of the principal comprises at least one of;

to display the order in a particular color, to display the order in a particular font, to flash the order, and not to flash the order; and

in response to a determination that a party to a trade specifies to maintain anonymity of an identity of the party to the trade, generate electronic commands to cause commands to block the identity of the party from being displayed on a graphical user interface of a mobile device of another party to the trade.

7. The apparatus of claim 6, wherein to determine whether or not the warning limit is exceeded comprises to determine that the warning limit is exceeded, and wherein the instructions when executed by the at least one processor further configure the at least one processor to:

determine that the trade execution setting is automatic acceptance of the full trade; and

execute a trade between the principal and the third party for the order received from the third party based at least in part on the determination that the trade execution setting is automatic acceptance of the full trade.

8. The apparatus of claim 6, wherein to determine whether or not the warning limit is exceeded comprises to determine that the warning limit is exceeded, and wherein the instructions when executed by the at least one processor further configure the at least one processor to:

determine that the trade execution setting is automatic acceptance of only part of the trade; and

execute a trade between the principal and the third party for only part of the order received from the third party based at least in part on the determination that the trade execution setting is automatic acceptance of only part of the trade.

9. The apparatus of claim 6, wherein to determine whether or not the warning limit is exceeded comprises to determine that the warning limit is exceeded, and wherein the instructions when executed by the at least one processor further configure the at least one processor to:

determine that the trade execution setting is one of manual acceptance of the full trade or manual acceptance of only part of the trade;

request via the workstation from the broker acceptance of a full trade or partial trade based at least in part on the determination that the setting is one of manual acceptance of the full trade or manual acceptance of only part of the trade;

receive from the broker via the workstation acceptance of the full trade or partial trade; and

execute a trade between the principal and the third party for the full order or only part of the order received from the third party based at least in part on the determination that the trade execution setting is one of manual acceptance of the full trade or manual acceptance of only part of the trade and the received acceptance of the full trade or partial trade from the broker.

10. The apparatus of claim 6, wherein to display the order at the workstation to the broker in a manner that indicates to the broker that the order is not available for trading by the broker on behalf of the principal comprises at least one of:

to display the order in a particular color, to display the order in a particular font, to flash the order, and not to flash the order.

11. A non-transitory computer readable medium including instructions that, when executed by at least one processor to orchestrate trading in a distributed system, configure the at least one processor to:

display at a computing device a configuration interface screen that allows a user of the computing device to specify at least one configuration setting for a principal, the at least one configuration setting comprising an indication of whether or not the principal is willing to trade with a second party, wherein the apparatus is configured to have a broker act on behalf of the principal,

wherein the broker is unable to modify the at least one configuration setting,

wherein the at least one configuration setting further comprises an indication of whether or not the first party is willing to trade with a third party, and wherein the instructions when executed by the at least one processor further configure the at least one processor to;

receive from the third party an order comprising a bid to buy a financial instrument or an offer to sell a financial instrument;

determine whether or not the principal is willing to trade with the third party based at least in part on the at least one configuration setting, wherein to determine whether or not the principal is willing to trade with the third party comprises to determine that the principal is willing to trade with the third party; and

in response to the determination that the principal is willing to trade with the third party, present the order received from the third party at the workstation to the broker in a manner that indicates to the broker that the order received from the third party is available for trading by the broker on behalf of the principal,

wherein the at least one configuration setting further comprises a warning limit, the warning limit comprising at least one of a buy side limit and a sell side limit, and wherein the instructions when executed by the at least one processor further configure the at least one processor to determine whether or not the warning limit is exceeded by the order received from the third party, and

wherein the at least one configuration setting further comprises a trade execution setting, the trade execution setting specifying an action to be taken after a determination that the warning limit is exceeded, the trade execution setting comprising a setting selected from the group consisting of automatic rejection of the whole trade, automatic acceptance of the full trade, automatic acceptance of only part of the trade, manual acceptance of the full trade, and manual acceptance of only part of the trade;

receive from the second party an order comprising a bid to buy a financial instrument or an offer to sell a financial instrument;

determine whether or not the principal is willing to trade with the second party based at least in part on the at least one configuration setting, wherein to determine whether or not the principal is willing to trade with the second party comprises to determine that the principal is not willing to trade with the second party;

in response to the determination that the principal is not willing to trade with the second party, (i) generate electronic commands to cause commands to withhold presentation of the order at a graphical user interface of a mobile device in use by the broker, or (ii) generate electronic commands to cause commands to display the order at the a graphical user interface of a mobile device to the broker in a manner that indicates to the broker that the order is not available for trading by the broker on behalf of the principal, wherein to display the order at the workstation to the broker in a manner that indicates to the broker that the order is not available for trading by the broker on behalf of the principal comprises at least one of;

to display the order in a particular color, to display the order in a particular font, to flash the order, and not to flash the order; and

in response to a determination that a party to a trade specifies to maintain anonymity of an identity of the party to the trade, generate electronic commands to cause commands to block the identity of the party from being displayed on a graphical user interface of a mobile device of another party to the trade.

12. The non-transitory computer readable medium of claim 11, wherein to determine whether or not the warning limit is exceeded comprises to determine that the warning limit is exceeded, and wherein the instructions when executed by the at least one processor further configure the at least one processor to:

determine that the trade execution setting is automatic acceptance of the full trade; and

execute a trade between the principal and the third party for the order received from the third party based at least in part on the determination that the trade execution setting is automatic acceptance of the full trade.

13. The non-transitory computer readable medium of claim 11, wherein to determine whether or not the warning limit is exceeded comprises to determine that the warning limit is exceeded, and wherein the instructions when executed by the at least one processor further configure the at least one processor to:

determine that the trade execution setting is automatic acceptance of only part of the trade; and

execute a trade between the principal and the third party for only part of the order received from the third party based at least in part on the determination that the trade execution setting is automatic acceptance of only part of the trade.

14. The non-transitory computer readable medium of claim 11, wherein to determine whether or not the warning limit is exceeded comprises to determine that the warning limit is exceeded, and wherein the instructions when executed by the at least one processor further configure the at least one processor to:

determine that the trade execution setting is one of manual acceptance of the full trade or manual acceptance of only part of the trade;

request via the workstation from the broker acceptance of a full trade or partial trade based at least in part on the determination that the setting is one of manual acceptance of the full trade or manual acceptance of only part of the trade;

receive from the broker via the workstation acceptance of the full trade or partial trade; and

execute a trade between the principal and the third party for the full order or only part of the order received from the third party based at least in part on the determination that the trade execution setting is one of manual acceptance of the full trade or manual acceptance of only part of the trade and the received acceptance of the full trade or partial trade from the broker.