U.S. patent application number 14/076516 was filed with the patent office on 2014-03-06 for price improvement in request for quotation trading.
The applicant listed for this patent is BGC Partners, Inc.. Invention is credited to Kevin Foley.
Application Number | 20140067648 14/076516 |
Document ID | / |
Family ID | 45353445 |
Filed Date | 2014-03-06 |
United States Patent
Application |
20140067648 |
Kind Code |
A1 |
Foley; Kevin |
March 6, 2014 |
PRICE IMPROVEMENT IN REQUEST FOR QUOTATION TRADING
Abstract
Systems and methods for providing valid responses to requests
for quotations are provided. In one embodiment of the invention, a
system according to the invention preferably includes a server. The
server includes a server storage device and a server processor
connected to the server storage device. The server storage device
preferably stores a server program for controlling the server
processor. The server processor is preferably operative to receive
a request from a requesting participant for a market-validated
offer to sell an item; receive an offer price from a responding
participant in response to the request; and provide a bid to an
electronic marketplace, the bid including a price that is lower
than the received offer price.
Inventors: |
Foley; Kevin; (New York,
NY) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
BGC Partners, Inc. |
New York |
NY |
US |
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|
Family ID: |
45353445 |
Appl. No.: |
14/076516 |
Filed: |
November 11, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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12826302 |
Jun 29, 2010 |
8583538 |
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14076516 |
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11436219 |
May 18, 2006 |
7774250 |
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12826302 |
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60739120 |
Nov 23, 2005 |
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Current U.S.
Class: |
705/37 |
Current CPC
Class: |
G06Q 50/188 20130101;
G06Q 30/08 20130101; G06Q 40/06 20130101; G06Q 40/00 20130101; G06Q
40/04 20130101 |
Class at
Publication: |
705/37 |
International
Class: |
G06Q 40/04 20120101
G06Q040/04 |
Claims
1. A method of electronic trading comprising the steps of: by a
computer of an electronic trading system, receiving a request from
an initiating trader a request for quote for a security, and
publishing the request for quote to other traders using the system;
by the computer, receiving a responsive quote from a responding
trader in response to the request for quote; by the computer, in
response to receiving the initiating trader's acceptance of the
responding trader's quote; publishing to traders using the system
an executable order synthesized from the responsive quote with the
price improved in favor of the responsive trader, in a form
permitting traders of the system to accept the synthesized order,
thereby to outbid the originating trader.
2. The method of claim 1 further comprising: if the offer is
accepted in the marketplace, providing a commission to the
responding participant.
3. The method of claim 1 wherein a price difference between the bid
and the offer provided to the electronic marketplace is
user-definable.
4. The method of claim 1 further comprising: pre-configuring a
price difference between the bid and the offer provided to the
electronic marketplace.
5. The method of claim 1 further comprising: maintaining the offer
that is provided to the electronic marketplace in an available
state in the electronic marketplace for a predetermined period of
time before the transaction between the requesting participant and
the responding participant is executed.
6. The method of claim 1 the selling the item at the higher price
of the offer comprising selling on behalf of the requesting
participant.
7. A method of electronic trading comprising: receiving a request
from a requesting participant for a market-validated offer to sell
an item; receiving an offer price from a responding participant in
response to the request; providing a bid to an electronic
marketplace, the bid comprising a price that is lower than the
received offer price; if the bid is accepted in the marketplace,
buying the item at the lower price of the bid on behalf of the
requesting participant; and if the bid is not accepted in the
marketplace, executing a transaction for the item between the
requesting participant and the responding participant at the offer
price received from the responding participant.
8. The method of claim 7 further comprising: if the bid is accepted
in the marketplace, providing a commission to the responding
participant.
9. The method of claim 7 wherein: a price difference between the
offer and the bid provided to the electronic marketplace is
user-definable.
10. The method of claim 7 further comprising: preconfiguring a
price difference between the offer and the bid provided to the
electronic marketplace.
11. The method of claim 7 further comprising: maintaining the bid
that is provided to the electronic marketplace in an available
state in the electronic marketplace for a predetermined period of
time before the transaction between the requesting participant and
the responding participant is executed.
12. The method of claim 7 the buying the item at the lower price of
the bid comprising buying on behalf of the requesting
participant.
13-24. (canceled)
25. A computer for trading an item in an electronic trading system,
comprising: a processor; a tangible, non-volatile memory; a network
connector supporting token ring and Ethernet protocols designed to
pass trading messages to processing nodes and traders' workstations
of the trading system, each message to be divided into message
packets, each packets having a header specifying addresses of
source and destination nodes of the computers sending and to
receiving the packet, the packet having no maximum time for
delivery
Description
CROSS-REFERENCE TO RELATED APPLICATION
[0001] This application claims the benefit of U.S. Provisional
Patent Application No. 60/739,120, filed Nov. 23, 2005.
BACKGROUND OF THE INVENTION
[0002] The present invention relates to electronic trading systems.
More specifically, the present invention relates to electronic
trading systems that are based on a Request for Quote (RFQ) trading
method.
[0003] An RFQ method typically is initiated by a first participant
transmitting a request to multiple participants for a quote (either
a request for a bid or a request for an offer) in a particular
market. For example, a first participant may request that a select
group of participants provide the first participant a bid for 50
million dollars in notional value (hereinafter referred to by "m",
i.e., 50 million=50 m) of 5-year United States Treasure Notes. Each
of the group of responding participants may respond with a quote
for which the respective participant would purchase the 50 m of
5-Year Notes. Then, the first participant may select to trade with
the best quote from the returned quotes.
[0004] The advent of RFQ-based electronic trading substantially
increased trading volume in certain sectors of the fixed-income
securities market. In addition, RFQ-based electronic trading, in
part due to the increased volume of the market which generated
greater transparency, also substantially reduced transaction
costs--e.g., margins--for the participants that were requesting
quotes.
[0005] The reduced margins have been substantially caused by
reduced dealer fees in RFQ-based electronic trading. Moreover,
RFQ-based electronic trading also has minimized the importance of
the bond dealer/bond client relationship because the most important
determining factor in the selection of one of the responding
participants in RFQ-based electronic trading in the retail Treasury
market has become price (in the U.S. Treasury Market, the clients
typically request quotes and the dealers typically respond to the
requests). This minimization of the importance of the bond
dealer/bond client relationship has increased price competition
among dealers, and thereby has negatively impacted the dealers'
profitability. The substantial negative impact on the dealers'
profitability has led to a general degradation of the retail bond
industry and may, in fact, eliminate all but a few of the
participants from the industry. This decreases competition and
subsequently harms the public interest in having a highly
competitive retail bond market.
[0006] It is therefore desirable for the preservation of the retail
bond industry to provide systems and methods that restore the bond
dealer/bond client relationship in RFQ-based electronic trading
while preserving the pricing advantages that have been achieved in
the recent past.
SUMMARY OF THE INVENTION
[0007] It is an object of the invention to provide systems and
methods that restore the bond dealer/bond client relationship in
RFQ-based electronic trading while preserving the pricing
advantages that have been achieved in the recent past.
[0008] This and other objects are accomplished in accordance with
the principles of the invention by providing systems and methods
for displaying market information for, and allowing for electronic
trading in, items through a user interface. More specifically, some
embodiments of the invention provide a dialog box for use with an
electronic trading system that processes market-validated bids
and/or offers. One or more requests for such a bid (or offer) on an
item may be received by the system from a requesting participant.
In response to the request, a bid (or offer) may be received from a
responding participant and an offer (or bid) comprising a higher
(or lower) price may be made by the responding participant, or
other suitable party, to an electronic marketplace. Such an
electronic marketplace may be the Two-Year U.S. Treasury Note
electronic marketplace of eSpeed, Inc. of New York, N.Y. or other
suitable electronic marketplace. (In certain embodiments of the
invention, "hot keys" may be employed which specify specific
marketplaces, such as an "eSpeed" button, for validation.) for If
the offer (or bid) is accepted in the marketplace, the item is sold
at the offer price (or bought at the bid price) on behalf of the
requesting participant. Moreover, the responding participant may be
provided with a commission for making the successful offer to the
market place. If, on the other hand, the offer (or bid) is not
accepted in the marketplace, a transaction for the item may be
executed between the requesting participant and the responding
participant at the bid (or offer) price received from the
responding participant. Accordingly, the requesting participant can
deal with one preferred party instead of many, while still insuring
that he or she is receiving a competitive bid.
[0009] Systems and methods for providing valid responses to
requests for quotations are provided. In one embodiment of the
invention, a system according to the invention preferably includes
a server. The server includes a server storage device and a server
processor connected to the server storage device. The server
storage device preferably stores a server program for controlling
the server processor. The server processor is preferably operative
to receive a request from a requesting participant for a
market-validated offer to sell an item; receive an offer price from
a responding participant in response to the request; and provide a
bid to an electronic marketplace, the bid including a price that is
lower than the received offer price. If the bid is accepted in the
marketplace, the server processor is operative to buy the item at
the lower price of the bid on behalf of the requesting participant.
If the bid is not accepted in the marketplace, the server processor
is operative to execute a transaction for the item between the
requesting participant and the responding participant at the offer
price received from the responding participant.
BRIEF DESCRIPTION OF THE DRAWINGS
[0010] The above and other objects and advantages of the invention
will be apparent upon consideration of the following detailed
description, taken in conjunction with the accompanying drawings,
in which like reference characters refer to like parts throughout,
and in which:
[0011] FIG. 1 is an illustration of a dialog box that may be
displayed to users in accordance with certain embodiments of the
present invention;
[0012] FIG. 2 is an illustration of a flow chart representing a
process that may be used to perform the functions of certain
embodiments of the present invention; and
[0013] FIG. 3 is an illustration of an exemplary system that may be
used to implement the processes and functions of certain
embodiments of the present invention.
DETAILED DESCRIPTION OF THE INVENTION
[0014] Systems and method according to the present invention
preferably provide a validated response to an RFQ that allows
participants to take advantage of the price competition among quote
providers while reintroducing elements of the bond dealer/bond
client relationship back into the bond retail business.
[0015] In some embodiments of the present invention, an order type
is provided that allows the participant to preferentially weigh the
returned quotes of one or more responding participants. For
example, when a participant requests a validated bid according to
the invention, for 50 m of 5-year Notes (the request may be made
from one or more participants), the responding participants may
respond with a bid at a price of 100.16+ (this terminology denotes
that the responding participants have shown an intent to buy 50 m
5-year Notes at a price of $1,005,156 per million dollar
denomination of the note). This bid, according to the invention,
may preferably be in the form of a stop order--i.e., the responding
participant guarantees that he will buy the 50 m for at least
100.16+, and, depending on market conditions as will be explained,
may buy the 50 m at a higher price. After the requesting
participant responds by hitting the bid--i.e., accepting to sell
the 50 m to the bidder--the responding participant (or the
electronic trading system on behalf of the requesting participant)
then posts an offer, which may be for the same volume or different
volume as the accepted bid, preferably in a suitably liquid,
preferably electronic marketplace. The posted offer may include a
price that is some predetermined user-defined, or system
pre-configured, increment higher than the accepted bid.
Alternatively, the responding participant (or the electronic
trading system) may post the offer before, or substantially
simultaneously to, his presenting the bid to the requesting
party.
[0016] If the posted offer (which, to reiterate, is preferably
higher than the accepted bid) is lifted--i.e., accepted--by a third
party in the marketplace, then the responding party, essentially
acting as an agent for the requesting party, sells the 50 m of
Treasury Notes of the requesting party at the higher price (than
the responding participant was willing to pay) of the posted offer
on behalf of the requesting party. The responding party may receive
a commission on such a transaction because the responding party had
committed to bid for the item and, as a result of his bid, a higher
price was obtained from the market. However, because, at the end of
the trade, the responding party's bid was replaced by a higher bid
obtained from the marketplace, the responding party is preferably
not a principle in the trade.
[0017] Alternatively, the responding party may in fact become a
principle in the trade, and, thereby actually sell the 50 m in the
marketplace preferably only to buy the 50 m back from the
requesting party.
[0018] If the posted offer is not lifted, then the responding party
buys the 50 m of Treasury Notes from the requesting party at the
price of the accepted bid. In this case, the responding party is a
principle in the trade. The system may require that the posted
offer be available to be traded in an appropriate electronic
trading system for a predetermined period of time. This period of
time may be preconfigured or user-definable.
[0019] One of the advantages of systems and methods according to
the present invention is that, in some embodiments, the requesting
party can deal with one preferred dealer instead of many, while
still insuring that he or she is receiving a competitive bid. As
such, the dealer/client relationship can be reestablished because
the price associated with the response is market tested. In one
embodiment of this aspect of the invention, the system may restrict
the requesting party to a predetermined number of dealers in a
month. Thus, by selecting a dealer, the requesting party has shown
a certain discernible preference for the dealer that has been
selected.
[0020] In another aspect of the invention, the data derived from
these trades may be controlled and disseminated either as encrypted
(or encoded) data, which can then be unencrypted (or unencoded) by
an authorized end user. This market data may be sold to interested
parties or otherwise distributed in a selective fashion.
[0021] The relative validity of the response may be modified to be
either more valid with respect to market conditions or less valid
with respect to market conditions by adjusting certain parameters.
For example (with respect to the embodiment set forth above) by
increasing the size of the increment between the responding bid and
the posted offer, the chance of a third party lifting the posted
offer is decreased. Therefore, a larger increment decreases the
relative validity of the responding bid because the posted offer
(which is being used to test the market) is far enough from the
proposed bid such that the bid is not validated by exposure to the
market. Rather, in most cases, the posted offer will not be
accepted and the bid will result in a trade.
[0022] Conversely, when the increment between the responding bid
and the posted offer is relatively small, the validity of the
responding bid is increased. When the posted offer is relatively
close to the responding bid, third party market participants are
more likely to accept the posted offer because the price is lower
and therefore third party market participants are more likely to
bid. In other words, the price of the responding bid is relatively
more valid because, in this instance, it can be said that the
proposed bid is closer to the true market price.
[0023] As described above, another parameter that can be adjusted
is the amount of time the posted offer is required to be maintained
in an available state--i.e., other participants are allowed to take
the posted offer--the electronic marketplace. The longer the posted
offer is required to be exposed in the marketplace, the more valid
the responding bid will be This principle follows the simple
reasoning that it is more likely that another participant will
exist that is willing to bid more than the responding party at some
point during the longer period of time. Thus, the requestor is more
likely to receive an incrementally higher price for the 50 m of
Treasury Notes.
[0024] Yet another modifiable parameter that may be adjusted is the
commission paid by the requesting participant to the responding
participant when a third party accepts the posted offer. Though
this parameter may be adjusted, it does not directly affect the
validity of the offer but, instead, directly addresses the
relationship between the dealer and the client.
[0025] By modifying parameters such as the responding bid/posted
offer increment, the exposure time and the commission for a third
party market transaction (or other suitable modifiable parameters),
the dealer and the client can effectively enter into a relationship
similar to the relationship provided before the onset of electronic
trading. Moreover, by taking advantage of the benefits of the
available electronic marketplaces, the client is protected from
being restricted to a single dealer because the dealer is forced to
expose a price that is better than the dealer's bid price to the
competition of the marketplace in order to validate the dealer's
bid.
[0026] In alternative embodiments of the present invention, any of
the parameters that affect the validity of a bid or offer may
preferably be combined by some appropriately weighted algorithm to
form a single validity quotient. By presenting a single modifiable
number to a client and dealer, the dealer may provide preferential
treatment to one dealer over another dealer by adjusting the
validity quotient lower for the preferred dealer. Although such a
lower validity quotient may reduce the validity of the bid provided
by the preferred dealer, the preferred dealer may provide the
client with other benefits that compensate for the preferential
treatment. In any event, systems and methods according to the
present invention preferably provide a platform for the client and
dealer to reestablish their relationship without denying any of the
advantages provided by the competition in electronic trading. In
fact, systems and methods according to the present invention use
the electronic marketplace to reap the benefits of competitive
pricing and high volume trading without subjecting the participants
to the competitive pressures of a highly liquid trading environment
where pricing pressures are enormous.
[0027] FIG. 1 illustrates an order entry dialogue box (hereinafter
"OEDB") 100 for submitting an RFQ according to some embodiments of
the present invention. OEDB 100 may provide the requesting
participant with various options and entry fields. Using one or
more of these options and entry fields, a participant may submit
non-RFQ trade commands (i.e., standard trading commands), such as,
a bid command, an offer command, a buy command, or a sell command
for any suitable instrument. When OEDB 100 is activated, the fields
in OEDB 100 are preferably populated with information pertaining to
the instrument selected. For example, the current market price for
the instrument may populate the price field.
[0028] Numeric keypad 102 may be located at the center of OEDB 100.
Numeric keypad 102 may provide buttons for numbers zero through
nine, and may contain buttons for numbers ten, twenty-five, fifty,
and one hundred or any other suitable or desirable values. The
numeric keypad may also contain a plus button ("+"), a minus button
("-"), a decimal point button ("."), a backspace button ("BKS"),
and a delete button ("DEL").
[0029] OEDB 100 may provide a participant with buy option 104, sell
option 106, cancel buys option 108, cancel sells option 110, bid
option 112, offer option 114, cancel bids option 116, cancel offers
option 118, cancel all bids option 120, cancel all offers option
122, cancel all option 124, cancel all for all instruments option
126, price entry field 128, and size entry field 130.
[0030] OEDB 100 may provide an RFQ preference field 144. RFQ
preferences field 144 may be made available when the requesting
participant selects RFQ option 145 from OEDB 100. Likewise, RFQ
preferences field 144 may be removed from OEDB 100 when RFQ option
145 is selected again. Field 144 may provide a participant with RFQ
buy option 146, RFQ sell option 148, RFVQ Buy option 150, and RFVQ
Sell 152. RFQ buy option 146 and RFQ sell option 148 provide the
requesting participant with the ability to submit an RFQ from a
buyer position and an RFQ from a seller position, respectively.
Options 150 and 152 provides the requesting participant with an
opportunity to submit an RFQ that requests a valid quote either
from a buyer position or from a seller position, respectively.
[0031] Minimum size field 154, time limit field 156, RFVQ Quotient
field 158, and minimum number of prices field 160 are fields that
may be incorporated in RFQ preference field 144. The requesting
participant may specify a minimum size for an instrument he or she
is willing to buy or sell in field 154. By populating field 156,
the requesting participant may specify a time limit as to how long
his or her RFQ is open for receiving a quote from a market
participant. If the requesting participant desires to specify an
RFVQ Quotient, as described above in more detail the requesting
participant can specify the value in field 158 and select option
150. Alternatively, another set of fields maybe provided that more
particularly enumerate the factors that contribute to the RFVQ
quotient. These factors may include, for example, the increment
between the responding quote and the contra quote that the
responding participant must place in the suitable electronic
marketplace, the amount of time the contra quote must be posted
for, and any other suitable factors.
[0032] Field 160, when populated, provides the requesting
participant with an opportunity to specify the minimum number of
quotes to receive from a market participant in response to his or
her request.
[0033] OEDB 100 may also provide a trade preference field 132.
Preference field 132 may be used to indicate the participant's
preferred trade type and may allow the requesting participant to
select any type of trade that a particular exchange or trading
system supports. Although FIG. 1 provides specific examples of
trade types (e.g., good-till-canceled (GTC), limit, all-or-none
(AON), stop, and market-if-touched (MIT)), the present invention
may be implemented with any type of suitable trade.
[0034] OEDB 100 may also provide an auto-execution feature for an
RFQ. The auto-execution feature, when selected, may be used to
automatically respond to a market participant's quote. For example,
if a quote satisfying the requesting participant's criteria for
accepting the quote is received, an accept confirmation may be
automatically transmitted from the requesting participant and the
trade may be executed. Other various features for managing quotes
received in response to an RFQ may be incorporated into OEDB
100.
[0035] Options and fields provided in OEDB 100 may be reconfigured
to suit any requesting participant's needs and preferences.
Configure keypad option 136 may provide the requesting participant
with the ability to reconfigure OEDB 100. Close-on-action box 134,
when selected, may cause OEDB 100 to be automatically closed after
specified actions are performed. Close option 138 allows the
requesting participant to close OEDB 100 on demand. In addition,
assignable issue buttons field 140 may be provided to allow the
requesting participant to have a specific set of instructions
executed by the push of a single button. Issue buttons in field 140
may be configured accordingly via assign buttons option 142.
[0036] FIG. 2 is a flow chart that illustrates a method according
to some embodiments of the present invention. Box 202 shows a
participant requesting a validated bid according to the present
invention for 50 m of 5-year Notes.
[0037] After the requesting participant responds by hitting the
bid, as shown in box 204, a responding participant then posts an
offer (preferably from some predetermined time) in a suitable
electronic marketplace, as shown in box 206. The offer may be for
the same volume or different volume as the accepted bid. The posted
offer may be some pre-determined increment higher than the accepted
bid. It should be noted that the requesting participant may not be
required to accept the responding participant's bid (or offer, as
the case may be). Rather, the requesting participant may reject the
bid and wait for the market response to the posted offer.
[0038] Box 208 queries whether the posted offer is accepted
(commonly referred to as the offer is "lifted") in the marketplace.
Box 210 shows that the responding participant sells the 50 m of
Treasury Notes of the requesting participant at the higher price of
the posted offer on behalf of the requesting participant and
receives a commission therefore.
[0039] Box 212 shows that the responding participant buys the 50 m
of Treasury Notes from the requesting participant at the price of
the bid.
[0040] In one embodiment of the invention the visibility of the
validation attempt with respect to a particular bid or offer may be
particularly indicated to the requesting participant. For example,
if participant x requests a validated bid for an item from
participant y, then y must make an attempt to offer the item on a
suitable marketplace. According to the invention, y can then offer
on a preselected marketplace. The invention further discloses that
y's offer may be indicated to x, assuming x, or a representative of
x is viewing the marketplace, by showing y's offer in a different
color, or with some other suitable visual indicator, on x's
computer display or in some other suitable fashion. This "for your
eyes only" feature allows selective display of the validated quote
to a preselected participant.
[0041] Referring to FIG. 3, exemplary system 300 for implementing
the invention is shown. As illustrated, system 300 may include one
or more workstations 310. Workstations 310 may be local or remote,
and are connected by one or more communications links 302 to
communications network 303 that is linked via communications link
305 to server 320. Server 320 may be linked to back office clearing
center 330 via communications link 307.
[0042] Server 320 may be any suitable server, processor, computer,
data processing device, or combination of the same. Server 320 may
be used to implement the governing logic that processes and
executes RFQ orders bids/offers and trades, and distributes trade
and market information, including price and size information, to
workstations 310. Communications network 303 preferably includes
the Internet but may consist of any suitable computer network such
as an intranet, a wide-area network (WAN), a local-area network
(LAN), a wireless network, a digital subscriber line (DSL) network,
a frame relay network, an asynchronous transfer mode (ATM) network,
a virtual private network (VPN), or any combination of the same.
Communications links 302 and 305 may be any communications links
suitable for communicating data between workstations 310 and server
320, such as network links, dial-up links, wireless links,
hard-wired links, etc.
[0043] Workstations 310 may be personal computers, laptop
computers, mainframe computers, dumb terminals, data displays,
Internet browsers, Personal Digital Assistants (PDAs), two-way
pagers, wireless terminals, portable telephones, etc., or any
combination of the same. Workstations 310 may be used by
participants to enter, modify or cancel RFQ and other orders and
other bid, ask, buy and sell orders for the items being traded and
view market activity corresponding to these items.
[0044] A typical workstation 310 may include processor that is
higher (or lower) than the received bid (or offer price 311,
display 312, input device 313, and memory 314, which may be
interconnected. In a preferred embodiment, memory 314 includes a
storage device for storing a workstation program for controlling
processor 311. The workstation program may include a trading
application for running the interface shown in FIG. 1 and displayed
on display 312. The trading application may also run the process
shown in FIG. 2. Input device 313 may be used in conjunction with
display 312 by users to enter RFQ orders and other bids/offers on
desired items, to provide bids/offers at different prices as
described above and execute and monitor trades based thereon.
Processor 311 may use the workstation program to receive trade
information relating to the items being traded by multiple users of
system 300, or other users, and display such information on display
312 or communicate such information to server 320.
[0045] Server 320 may include processor 321, display 322, input
device 323, and memory 324, which may be interconnected. In a
preferred embodiment, memory 324 includes a storage device for
storing a server program that provides the governing logic for
controlling processor 321. Processor 321 may use the server program
to process orders and execute trades communicated from various
workstations that are operated by multiple users of system 300, or
other users, and communicate trade information, as well as bid and
ask information, to workstations 310 and back office clearing
center 330. More specifically, processor 321 may use the server
program to process RFQ and other orders placed by users, as well as
posting other orders having higher offer prices or lower bid
prices, and execute trades based on the response to such orders.
Processor 321 may also perform at least some of the functions of
processor 311.
[0046] Back office clearing center 330 may be any suitable
equipment, such as a computer, a laptop computer, a mainframe
computer, etc., or any combination of the same, for causing trades
to be settled and/or verifying that trades are settled.
Communications link 307 may be any communications links suitable
for communicating data between server 320 and back office clearing
center 330, such as network links, dial-up links, wireless links,
hard-wired links, etc.
[0047] In view of the apparatus according to the invention
described in FIG. 3, the following comments apply as well. It will
be readily apparent to one of ordinary skill in the art that the
various processes described herein may be implemented by, e.g.,
appropriately programmed general purpose computers and computing
devices. Typically a processor (e.g., one or more microprocessors,
one or more microcontrollers, one or more digital signal
processors) will receive instructions (e.g., from a memory or like
device), and execute those instructions, thereby performing one or
more processes defined by those instructions.
[0048] A "processor" means one or more microprocessors, central
processing units (CPUs), computing devices, microcontrollers,
digital signal processors, or like devices or any combination
thereof.
[0049] Thus a description of a process is likewise a description of
an apparatus for performing the process. The apparatus can include,
e.g., a processor and those input devices and output devices that
are appropriate to perform the method.
[0050] Further, programs that implement such methods (as well as
other types of data) may be stored and transmitted using a variety
of media (e.g., computer readable media) in a number of manners. In
some embodiments, hard-wired circuitry or custom hardware may be
used in place of, or in combination with, some or all of the
software instructions that can implement the processes of various
embodiments. Thus, various combinations of hardware and software
may be used instead of software only.
[0051] The term "computer-readable medium" refers to any medium
that participates in providing data (e.g., instructions, data
structures) which may be read by a computer, a processor or a like
device. Such a medium may take many forms, including but not
limited to, non-volatile media, volatile media, and transmission
media. Non-volatile media include, for example, optical or magnetic
disks and other persistent memory. Volatile media include dynamic
random access memory (DRAM), which typically constitutes the main
memory. Transmission media include coaxial cables, copper wire and
fiber optics, including the wires that comprise a system bus
coupled to the processor. Transmission media may include or convey
acoustic waves, light waves and electromagnetic emissions, such as
those generated during radio frequency (RF) and infrared (IR) data
communications. Common forms of computer-readable media include,
for example, a floppy disk, a flexible disk, hard disk, magnetic
tape, any other magnetic medium, a CD-ROM, DVD, any other optical
medium, punch cards, paper tape, any other physical medium with
patterns of holes, RAM, a PROM, an EPROM, a FLASH-EEPROM, any other
memory chip or cartridge, a carrier wave as described hereinafter,
or any other medium from which a computer can read.
[0052] Various forms of computer readable media may be involved in
carrying data (e.g. sequences of instructions) to a processor. For
example, data may be (i) delivered from RAM to a processor; (ii)
carried over a wireless transmission medium; (iii) formatted and/or
transmitted according to numerous formats, standards or protocols,
such as Ethernet (or IEEE 802.3), SAP, ATP, Bluetooth, and TCP/IP,
TDMA, CDMA, and 3G; and/or (iv) encrypted to ensure privacy or
prevent fraud in any of a variety of ways well known in the
art.
[0053] Thus a description of a process is likewise a description of
a computer-readable medium storing a program for performing the
process. The computer-readable medium can store (in any appropriate
format) those program elements which are appropriate to perform the
method.
[0054] Just as the description of various steps in a Process does
not indicate that all the described steps are required, embodiments
of an apparatus include a computer/computing device operable to
perform some (but not necessarily all) of the described
process.
[0055] Likewise, just as the description of various steps in a
process does not indicate that all the described steps are
required, embodiments of a computer-readable medium storing a
program or data structure include a computer-readable medium
storing a program that, when executed, can cause a processor to
perform some (but not necessarily all) of the described
process.
[0056] Where databases are described, it will be understood by one
of ordinary skill in the art that (i) alternative database
structures to those described may be readily employed, and (ii)
other memory structures besides databases may be readily employed.
Any illustrations or descriptions of any sample databases presented
herein are illustrative arrangements for stored representations of
information. Any number of other arrangements may be employed
besides those suggested by, e.g., tables illustrated in drawings or
elsewhere. Similarly, any illustrated entries of the databases
represent exemplary information only; one of ordinary skill in the
art will understand that the number and content of the entries can
be different from those described herein. Further, despite any
depiction of the databases as tables, other formats (including
relational databases, object-based models and/or distributed
databases) could be used to store and manipulate the data types
described herein. Likewise, object methods or behaviors of a
database can be used to implement various processes, such as the
described herein. In addition, the databases may, in a known
manner, be stored locally or remotely from a device which accesses
data in such a database.
[0057] Various embodiments can be configured to work in a network
environment including a computer that is in communication (e.g.,
via a communications network) with one or more devices. The
computer may communicate with the devices directly or indirectly,
via any wired or wireless medium (e.g. the Internet, LAN, WAN or
Ethernet, Token Ring, a telephone line, a cable line, a radio
channel, an optical communications line, commercial on-line service
providers, bulletin board systems, a satellite communications link,
a combination of any of the above). Each of the devices may
themselves comprise computers or other computing devices, such as
those based on the Intel.RTM. Pentium.RTM. or Centrino.TM.
processor, that are adapted to communicate with the computer. Any
number and type of devices may be in communication with the
computer.
[0058] In an embodiment, a server computer or centralized authority
may not be necessary or desirable. For example, the present
invention may, in an embodiment, be practiced on one or more
devices without being implemented on a central authority, such as
if the system is practiced on a workstation associated with a
dealer participant such as Goldman Sachs. (Nevertheless, in one
embodiment, the prices for validation may be made available to
trade on a central system such as the Two-Year U.S. Treasury Market
for eSpeed, or alternatively, only within Goldman Sachs). In such
an embodiment, any functions described herein as performed by the
server computer or data described as stored on the server computer
may instead be performed by or stored on one or more such devices.
Alternatively, the present invention may be practiced by a
substantially centralized authority which is configured as an
external system, such as the eSpeed trading system described
above.
[0059] It will be understood that the foregoing is only
illustrative of the principles of the present invention, and that
the invention can be practiced by other than the described
embodiments, which are presented for purposes of illustration and
not of limitation.
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