Distributed matching system

• US 5,077,665 A
• Filed: 05/25/1989
• Issued: 12/31/1991
• Est. Priority Date: 05/25/1989
• Status: Expired due to Term

• Current Assignee: Reuters Transaction Services Limited (The Woodbridge Co. Ltd.)
• Original Assignee: Reuters Limited (The Woodbridge Co. Ltd.)
• Inventors: Scholldorf, Alfred H., Silverman, David L., Keller, Norman
• Primary Examiner(s): Smith, Jerry
• Assistant Examiner(s): CASS, RUSSELL
• Application Number:
  US07/357,036
• Time in Patent Office: 950 Days
• Field of Search: 364/408, 364/401, 364/514
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A matching system for trading instruments is provided in which bids are automatically matched against offers for given trading instruments for automatically providing matching transactions in order to complete trades for the given trading instruments in which controllable subsets (110, 112) of a distributable system trading book (118) may be selectively provided to trading keystations (24) in the matching system from the host computer (20) or central system for dynamically controllably masking the available trading market. The system comprises the host computer (20) for maintaining a host book data base (118) comprising all of the active bids and offers in the system by trading instrument, a transaction originating keystation (24a) at a client site (26) for providing a bid on a given trading instrument to the system for providing a potential matching transaction, a counterparty keystation (24b) for providing an offer on the given trading instrument involved in the potential matching transaction, and a network (22) for interconnecting the host computer (20), the transaction originating keystation (24a) and the counterparty keystation (24b) in the system for enabling data communication therebetween. Both the transaction originating keystation (24a) and the counterparty keystation (24b) each have an associated local data base keystation book (110, 112) comprising a subset of the host book (118). The content of each of the keystation books (110, 112) has an associated display depth range which is dynamically controllable by the host computer (20) and is dynamically updatable by transaction update broadcast messages (132) received from the host computer (20) through the network (22) which is preferably transparent to the transactions communicated.

Claims

1. A matching system for trading instruments in which bids are automatically matched against offers for given trading instruments for automatically providing matching transactions in order to complete trades for said given trading instruments, said system comprising a host computer means for maintaining a host book database comprising all of the active bids and offers in the system by trading instrument;

a transaction originating keystation means for providing a bid on a given trading instrument to said system for providing a potential matching transaction; and

network means for interconnecting said host computer means, said transaction originating keystation means and said counterparty keystation means in said system for enabling data communications there between, both said transaction originating keystation meand and said counterparty keystation means for said potential matching transaction each having an associated local database keystation book having an associated data storage structure and comprising a subset of said host book, said host computer means dynamically determining said local data base data storage structure, the content of each of said keystation books having an associated display depth range dynamically controllable by said host computer means and being dynamically updatable by transaction update broadcast messages received from said host computer means through said network means, said transaction originating keystation means and said counterparty keystation means comprising means responsive to said received transaction dynamic update broadcast messages for updating said associated keystation books and further comprising means for providing directed messages to said host computer means corresponding to said bid and said offer, respectively, said directed messages updating said host book, said host computer means comprising means for conditionally providing said transaction broadcast update messages to said keystation means in response to the presence of an update condition, said update condition comprising updating of said host book and said received bid or offer having a relative value compared with other bids or offers within said host book which is within said keystation book dynamically controllable display depth range of relative values;

whereby controllable subsets of a distributable system trading book may be selectively provided to trading keystations in said matching system from the host for dynamically controllably masking the available trading market.

2. A matching system in accordance with claim 1 wherein said host computer means comprises means for processing said matching transactions for a given trading instrument in time order entry to said matching system.

3. A matching system in accordance with claim 1 wherein said subset keystation books comprise accumulated summaries of corresponding bids and offers in said host book.

4. A matching system in accordance with claim 3 wherein said keystation means responsive to said received transaction update broadcast messages comprises means for updating said accumulated summaries in response thereto.

5. A matching system in accordance with claim 4 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

6. A matching system in accordance with claim 3 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

7. A matching system in accordance with claim 1 wherein said bids and offers comprise logical data.

8. A matching system in accordance with claim 7 wherein said host computer means comprises means for processing said matching transactions for a given trading instrument in time order entry to said matching system.

9. A matching system in accordance with claim 7 wherein said subset keystation books comprise accumulated summaries of corresponding bids and offers in said host book.

10. A matching system in accordance with claim 9 wherein said keystation means responsive to said received transaction update broadcast messages comprises means for updating said accumulated summaries in response thereto.

11. A matching system in accordance with claim 10 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

12. A matching system in accordance with claim 9 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

13. A matching system in accordance with claim 1 wherein said network means comprises means transparent to the transactional data associated with said matching system.

14. A matching system in accordance with claim 13 wherein said host computer means comprises means for processing said matching transactions for a given trading instrument in time order entry to said matching system.

15. A matching system in accordance with claim 13 wherein said subset keystation books comprise accumulated summaries of corresponding bids and offers in said host book.

16. A matching system in accordance with claim 15 wherein said keystation means responsive to said received transaction update broadcast messages comprises means for updating said accumulated summaries in response thereto.

17. A matching system in accordance with claim 16 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

18. A matching system in accordance with claim 15 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

19. A matching system in accordance with claim 13 wherein said bids and offers comprise logical data.

20. A matching system in accordance with claim 1 wherein said keystation means comprises display means for displaying said associated keystation book.

21. A matching system in accordance with claim 20 wherein said keystation book comprises displayable data having said keystation book display depth range, whereby bids and offer outside said display depth range are not displayed.

22. A matching system in accordance with claim 20 wherein said host computer means comprises means for processing said matching transactions for a given trading instrument in time order entry to said matching system.

23. A matching system in accordance with claim 22 wherein said keystation book comprises displayable data having said keystation book display depth range, whereby bids and offer outside said display depth range are not displayed.

24. A matching system in accordance with claim 20 wherein said subset keystation books comprise accumulated summaries of corresponding bids and offers in said host book.

25. A matching system in accordance with claim 24 wherein said keystation book comprises displayable data having said keystation book display depth range, whereby bids and offer outside said display depth range are not displayed.

26. A matching system in accordance with claim 20 wherein said keystation means responsive to said received transaction update broadcast messages comprises means for updating said accumulated summaries in response thereto.

27. A matching system in accordance with claim 26 wherein said keystation book comprises displayable data having said keystation book display depth range, whereby bids and offer outside said display depth range are not displayed.

28. A matching system in accordance with claim 20 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

29. A matching system in accordance with claim 28 wherein said keystation book comprises displayable data having said keystation book display depth range, whereby bids and offer outside said display depth range are not displayed.

30. A matching system in accordance with claim 20 wherein said bids and offers comprise logical data.

31. A matching system in accordance with claim 30 wherein said keystation book comprises displayable data having said keystation book display depth range, whereby bids and offer outside said display depth range are not displayed.

32. A matching system in accordance with claim 1 wherein said keystation books each comprise a restricted subset of the total depth of said host book with respect to the best bids and offers present in said host book database.

33. A matching system in accordance with claim 32 wherein said host computer means comprises means for processing said matching transactions for a given trading instrument in time order entry to said matching system.

34. A matching system in accordance with claim 32 wherein said subset keystation books comprise accumulated summaries of corresponding bids and offers in said host book.

35. A matching system in accordance with claim 34 wherein said keystation means responsive to said received transaction update broadcast messages comprises means for updating said accumulated summaries in response thereto.

36. A matching system in accordance with claim 35 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

37. A matching system in accordance with claim 34 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

38. A matching system in accordance with claim 32 wherein said display depth of one for said keystation books prevents looking into said host book at said keystations.

39. A matching system in accordance with claim 1 wherein said keystation books bids and offers are anonymous prior to completing said matching transaction.

40. A matching system in accordance with claim 1 wherein said data communication is via user tokens in said system.

41. A matching system in accordance with claim 1 wherein said display depth of one for said keystation books prevents looking into said host book at said keystations.

42. A matching system in accordance with claim 1 wherein each of said associated keystations means further comprises an order book, said order book comprising the orders being maintained by said associated keystation means in said system, said order book being updatable in response to directed messages form said host computer means.

43. A matching system in accordance with claim 1 wherein said given trading investments comprise foreign exchange currencies.

44. A matching system in accordance with claim 43 wherein said host computer means comprises means for processing said matching transactions for a given trading instrument in time order entry to said matching system.

45. A matching system in accordance with claim 43 wherein said subset keystation books comprise accumulated summaries of corresponding bids and offers in said host book.

46. A matching system in accordance with claim 45 wherein said keystation means responsive to said received transaction update broadcast messages comprises means for updating said accumulated summaries in response thereto.

47. A matching system in accordance with claim 46 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

48. A matching system in accordance with claim 45 wherein said accumulated summaries comprise an accumulation of common price bids and an accumulation of common price offers.

49. A matching system in accordance with claim 43 wherein said bids and offers comprise logical data.

50. A matching system in accordance with claim 43 wherein said network means comprises means transparent to transactional data associated with said matching system.

51. A matching system in accordance with claim 43 wherein said keystation means comprising display means for displaying said associated keystation book.

52. A matching system in accordance with claim 51 wherein said keystation book comprises displayable data having said keystation book display depth range, whereby bids and offer outside said display depth range are not displayed.

53. A matching system in accordance with claim 43 wherein said keystation books each comprise a restricted subset of the total depth of said host book with respect to the best bids and offers present in said host book database.

54. A matching system in accordance with claim 43 wherein said keystation book bids and offers are anonymous prior to completing said matching transaction.

55. A matching system in accordance with claim 43 wherein said data communication is via user tokens in said system.

56. A matching system in accordance with claim 43 wherein said display depth of one for said keystation books prevents looking into said host book at said keystations.

57. A matching system in accordance with claim 43 wherein each of said associated keystations means further comprises an order book, said order book comprising the orders being maintained by said associated keystation means in said system, said order books being updatable in response to directed messages from said host computer means.