System and methods for optimizing the effectiveness of interaction between participants in an electronic trading environment

An online trading system that optimizes the effectiveness of interaction between multiple anonymous, geographically distributed traders participating in trades administered by the trading system, comprising:

• a memory;
• a processor in communication with the memory and configured to execute a plurality of instructions stored in the memory to:
• monitor multiple trading variables for the multiple traders in a trading system over a period of time;
• receive an invitation to trade from a counter party to a first trader, wherein the first trader and the counter party are included among the multiple traders;
• analyze, on a day of the trade:
• (i) the invitation from the counter party to the first trader, and
• (ii) the multiple trading variables for the first trader and the counter party monitored in the online trading system,
• wherein the multiple trading variables include:
• a firm-up speed variable for the first trader or the counter party indicating a speed of the first trader or the counter party in firming up to an invitation to trade,
• a firm-up type variable associated with a trade that represents whether the trade is subjected to manual firm-up or automatic firm-up, and
• a symbol-specific behavior variable indicating a size of an order placed by the first trader or the counter party relative to an average daily volume (ADV) of the symbol associated with the order included in orders for trading financial instruments among the multiple traders in the trading system;
• based on the analysis, extract a short-term behavior pattern of the first trader or the counter party;
• calculate a first score for the first trader and a second score for the counter party based on:
• (i) at least a portion of the multiple trading variables monitored for the first trader and the counter party and
• (ii) the short-term behavior pattern of the first trader or the counter party;
• determine a timing of sending the invitation from the counter party to the first trader based on the first score and the second score;
• send the invitation to the first trader according to the determined timing;
• and
• in response to sending the invitation to the first trader, determine, on the day of the trade, a timing of execution of the trade between the first trader and the counter party based on the first score and the second score,
• wherein the timing of the execution of the trade between the first trader and the counter party is updated in real-time as the first score and the second score change with real-time changes in the multiple trading variables,
• wherein the first score and the second score are indicative of a likelihood that the trade will occur.

A non-transitory machine-readable medium having machine executable instructions stored thereon that, when executed by one or more processors, direct the one or more processors to perform a method comprising:

• monitoring multiple trading variables for the multiple traders in a trading system;
• receiving, by a processor, an invitation to trade from a counter party to a first trader,
• wherein the first trader and the counter party are included among the multiple traders;
• analyzing, on a day of a trade:
• (i) the invitation from the counter party to the first trader, and
• (ii) the multiple trading variables for the first trader and the counter party monitored in the online trading system,
• wherein the multiple trading variables include:
• a firm-up speed variable for the first trader or the counter party indicating a speed of the first trader or the counter party in firming up to an invitation to trade,
• a firm-up type variable associated with a trade that represents whether the trade is subjected to manual firm-up or automatic firm-up, and
• a symbol-specific behavior variable indicating a size of an order placed by the first trader or the counter party relative to an average daily volume (ADV) of the symbol associated with the order included in orders for trading financial instruments among the multiple traders in the trading system;
• based on the analysis, extracting a short-term behavior pattern of the first trader or the counter party;
• calculating, by the processor, a first score for the first trader and a second score for the counter party based on:
• (i) at least a portion of the multiple trading variables monitored for the first trader and the counter party and
• (ii) the short-term behavior pattern of the first trader or the counter party;
• determining, by the processor, a timing of sending the invitation from the counter party to the first trader based on the first score and the second score;
• sending, by the processor, the invitation to the first trader according to the determined timing;
• and in response to sending the invitation to the first trader, determining, on the day of the trade, a timing of execution of the trade between the first trader and the counter party based on the first score and the second score,
• wherein the timing of the execution of the trade between the first trader and the counter party is updated in real-time as the first score and the second score change with real-time changes in the multiple trading variables,
• wherein the first score and the second score are indicative of a likelihood that the trade will occur.