Interprogram communication using messages related to groups of orders

• US 8,977,565 B2
• Filed: 01/23/2009
• Issued: 03/10/2015
• Est. Priority Date: 01/23/2009
• Status: Active Grant

• Current Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Original Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Inventors: Alderucci, Dean P., Plott, Charles, Miller, Mark, Lutnick, Howard W., Fishkind, Andrew, Gay, Brian, Foley, Kevin
• Primary Examiner(s): FELTEN, DANIEL S
• Application Number:
  US12/358,753
• Publication Number:
  US 20100191637A1
• Time in Patent Office: 2,237 Days
• Field of Search: 705/36.R, 705/37, 705/80
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A trading platform and trading method that allows access to additional pools of liquidity is described. Other embodiments are also described.

Claims

1. An apparatus comprising:

a computing device of an electronic marketplace configured to;

receive an indication of a first order from a remote system, in which the first order defines a first side of a first trade for a first financial instrument;

receive an indication of a second order from the remote system, in which the second order defines a second side of a second trade for a second financial instrument;

determine that an order management system of a buy-side participant includes a third order that defines an opposite side to the second side of the second trade for the second financial instrument, in which the order management system securely stores trading interests of thebuy-side participant, in which the order management system along with a plurality of other order management systems store a dark pool of liquidity that is accessible by the electronic marketplace;

transmit a request for an acceptance to enter into the first trade and the second trade to the buy-side participant;

receive an indication of the acceptance, in which the request for acceptance acknowledges that the third order is stored in the order management system as part of the dark pool of liquidity; and

in response to receiving the indication of the acceptance, facilitate execution of the first trade and the second trade.

2. The apparatus of claim 1, in which the second order is part of a plurality of possible second orders that are received by the computing device, in which each of the plurality of second orders defines a respective second side of a respective second trade for a respective second financial instrument, and in which a determination is made regarding whether the order management system includes matching orders for each of the plurality of second orders.

3. The apparatus of claim 1, in which the computing device is configured to receive the indication of the first order and the indication of the second order as a single electronic message.

4. The apparatus of claim 1, in which determining includes transmitting respective queries to a participant system of the buy-side participant and a plurality of other participant systems of other buy-side participants each associated with a respective one of the plurality of other order management systems asking if the respective order management system includes the third order.

5. The apparatus of claim 4, in which each query and the request are transmitted in a single electronic message.

6. The apparatus of claim 4, in which determining includes receiving the indication of the acceptance.

7. The apparatus of claim 1, in which the first trade and the second trade are for a quantity of the respective financial instruments valued at a substantially similar amount.

8. The apparatus of claim 1, in which the indication of the second order includes an indication of at least one criteria.

9. The apparatus of claim 8, in which the computing device is further configured to select the second financial instrument based on the at least one criteria.

10. The apparatus of claim 9, in which the at least one criteria includes at least one of:

an industry, an instrument type, and a market capitalization.

11. The apparatus of claim 9, in which the indication of the second order includes an indication of a dollar amount, and in which the computing device is further configured to determine a quantity for the second order based on the dollar amount.

12. The apparatus of claim 11, in which the indication of the dollar amount includes an indication of a dollar amount associated with the first order.

13. The apparatus of claim 12, in which the indication of the dollar amount associated with the first order includes an indication of a quantity of the first financial instrument.

14. The apparatus of claim 1, in which the computing device is further configured to constrain cancellation of the first order and the second order for a period of time, and to determine the period of time.

15. The apparatus of claim 4, comprising:

a participant system of the buy-side participant configured to;

receive a respective query;

analyze the order management system to determine that the third order is stored in the order management system;

in response to receiving the respective query and analyzing, provide a request for acceptance to a trader of the buy-side participant;

receive an indication of a positive response from the trade; and

in response to receiving the positive response, transmit the indication of the acceptance.

16. The apparatus of claim 15, in which determining includes transmitting the request and receiving the indication.

27. The apparatus of claim 1, in which the marketplace is an exchange.

17. An apparatus comprising:

a computing device of an electronic marketplace configured to;

receive an indication of a first order from a remote system, in which the first order defines a first side of a first trade for a first financial instrument;

receive an indication of a second order from the remote system, in which the second order defines a second side of a second trade for a second financial instrument;

receive an indication of a firm order from a participant, in which the firm order defines an opposite side to the second side of the second trade for the second financial instrument;

determine that the second order and the firm order match;

in response to the determination, transmit a request for an acceptance of the first order to the participant;

receive an indication of the acceptance from the participant; and

in response to receiving the indication of the acceptance, facilitate execution of the first trade and the second trade.

18. The apparatus of claim 17, in which the second order is part of a plurality of second orders, in which each of the plurality of second orders defines a respective second side of a respective second trade for a respective second financial instrument, and in which for each of the second orders for which one of a plurality of participants submits a matching order, a request identifying the first order is sent to the respective participant.

19. The apparatus of claim 17, in which the processor is configured to receive the indication of the first order and the indication of the second order as a single electronic message.

20. The apparatus of claim 17, in which the first trade and the second trade are for a quantity of the respective financial instruments valued at a substantially similar amount.

21. The apparatus of claim 17, in which the indication of the second order includes an indication of at least one criteria.

22. The apparatus of claim 21, in which the processor is further configured to select the second financial instrument based on the at least one criteria.

23. The apparatus of claim 21, in which the at least one criteria includes at least one of:

an industry, an instrument type, and a market capitalization.

24. The apparatus of claim 23, in which the indication of the second order includes an indication of a dollar amount, and in which the processor is further configured to determine a quantity for the second order based on the dollar amount.

25. The apparatus of claim 24, in which the indication of the dollar amount includes an indication of a dollar amount associated with the first order.

26. The apparatus of claim 25, in which the indication of the dollar amount associated with the first order includes an indication of a quantity of the first financial instrument.

28. The apparatus of claim 17, in which the marketplace is an exchange.