Automated trading system

• US 20060100954A1
• Filed: 08/12/2005
• Published: 05/11/2006
• Est. Priority Date: 08/13/2004
• Status: Active Grant

• Current Assignee: EBS Group Ltd. (CME Group Incorporated)
• Original Assignee: EBS Group Ltd. (CME Group Incorporated)
• Inventors: Schoen, John Edward
• Granted Patent: US 7,865,421 B2
• Time in Patent Office: Days
• 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 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

An anonymous trading system is configured to receive a price stream from a bank or other institution. The price stream is converted into a quote stream and input into the trading system via an automated trading interface. The quote stream has its own deal code. The deal code credit limits are set so that the only parties that have credit with the deal code are other deal codes of the same institution. At least one of these deal codes represents a prime broker bank and prime broker customers therefore have access to the institution'"'"'s price stream to the exclusion of other parties trading on the system. A distributor distributes the quotes from the trading system to the prime broker customers'"'"' traders, to prime broker customer automated trading interfaces, and to prime broker customer deal feed systems for logging of deal tickets and communication of those deal tickets to back office systems.

Claims

1. A system for trading products between parties, comprising:

a matching system for matching quotes submitted by counterparties for execution of trades in a product between the parties, wherein parties trading on the system each have a unique deal code to identify them to other parties on the system;

a quote stream provided by a party trading on the system, the quote stream being provided to the matching system and having a unique deal code on the matching system;

wherein the matching system further comprises a credit system for storing credit limits for trades between each party trading the system and each possible counter party, and wherein the quote stream deal code assigns credit only to selected other deal codes, whereby access to the quote stream is restricted.

2. A system according to claim 1, wherein the quote stream deal code assigns credit only to other deal codes of the same institution.

3. A system according to claim 2 wherein the other deal codes of the same institution includes at least one deal code through which third parties can trade using the institution as a prime broker.

4. A system according to claim 3, comprising a distributor receiving quotes from the trading system specific to the other deal codes of the institution and distributing those quotes to customers of the prime broker.

5. A system according to claim 4 wherein the quotes are distributed to customer trader terminals.

6. A system according to claim 4, wherein the quotes are distributed to at least one customer automated trading interface.

7. A system according to claim 1, comprising a plurality of streaming quotes each from a different institution.

8. A system according to claim 1, further comprising a stream of quotes input into the trading system from a remote trading system, the quote stream from the remote system having a unique deal code on the trading system.

9. A system according to claim 1, comprising a market distributor for distributing quotes to counterparties, the market distributor distributing to a given counterparty only quotes fro mother counterparties with whom the given counterparty has credit.

10. An automated trading system for trading products between parties, comprising:

a matching engine for matching quotes submitted by counterparties for execution of trades, each counterparty having a deal code identifying the counterparty;

a credit module for storing credit limits for trades between each deal code and each other possible deal code of the system;

a market distributor for distributing to counterparties quotes submitted to the matching engine, the market distributor distributing to a given counterparty only quotes from counterparties with whom the given counterparty has credit;

a quote stream from a third party, the quote stream being provided to the matching engine and having a unique deal code;

wherein the quote stream deal code assigns credit only to selected other deal codes thereby limiting access to the quote stream.

11. An automated trading system, comprising:

a matching engine for matching quotes submitted by counterparties for executed of trades;

a credit module for storing credit limits for trades between counterparties;

a market distributor for distributing to counterparties only quotes submitted by other counterparties with whom they have credit;

a quote stream from a remote source, the quote stream being provided to the matching engine; and

wherein the credit store includes an assignment of credit from the quote stream to selected counterparties, whereby access to the quote stream by counterparties is limited.