# US 2006/0069633 A1 · System and method for basket trades and trade allocation

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- Number: US 2006/0069633 A1
- Document ID: US20060069633A1
- Status: Published application
- Kind: A1
- Application number: 11/242,422
- Filed: 2005-09-30
- Published: 2006-03-30
- Earliest claimed: 2004-09-30
- Assignees: Lehman Brothers Inc.
- Inventors: Stuart Breslow; John Price; Ravindra Jasti; Robert Laible; Leigh Peterson; David Conner; Andrew Freeman
- Web page: https://patentgrep.com/patent/US20060069633A1

## CPC

- G06Q 40/04: Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
- G06Q 40/00: Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q 40/06: Asset management; Financial planning or analysis
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR

## Abstract

A system and method where a client creates a basket of intended stock orders, slices the basket into one or more waves of orders, sends trade orders to a broker/dealer for execution, and allocates stocks to one or more client accounts. A backend server receives basket or wave orders, breaks each basket or wave order into individual stock orders, and queues the individual stock orders for submission to an order management system for execution of the order. A market data feed to the client continuously updates the information displayed to the client. The client may strike a basket or wave or individual stock by entering strike information into a client database residing on a client computer. The system also provides for allocation of executed trades to client-specified accounts.

## Claims

### Claim 1

A system comprising:
a client computer; and
a backend server in communication with the client computer, the backend server processing a wave order received from the client computer and directing the processed wave order to an order management system, the wave order comprising a plurality of stock orders and representing a portion of a basket of stocks stored in the client computer.

### Claim 2 (depends on 1)

The system of claim 1 further comprising means for allocating the wave order to at least two accounts stored in the client computer.

### Claim 3

A system comprising:
a client computer;
a client database residing on the client computer;
one or more computer processors operable to creating a basket of stocks and storing information characterizing the basket in the client database;
one or more computer processors operable to slicing the basket into one or more wave orders and storing information characterizing the one or more wave orders in the client database;
a backend server configured to receive, process, and forward a wave order from the client computer to an order management system and send status information to the client computer.

### Claim 4 (depends on 3)

The system of claim 3 further comprising one or more computer processors operable to allocating the basket among at least two accounts.

### Claim 5 (depends on 4)

The system of claim 4 further comprising storing information characterizing the allocation in the client database.

### Claim 6

A computer-implemented method of client-directed program trade and allocation, the method comprising the steps of: providing a client computer having:
a basket blotter manager for displaying information to, and receiving information from, a client;
a basket store manager for managing the storage and retrieval of basket data from a client database;
and a market data cache containing market data for a stock represented in the client database;
creating a basket by adding a stock and a quantity to the basket, the basket blotter manager displaying market data for the stock retrieved from the market data cache;
slicing the basket into a plurality of wave orders, each wave order identifying a stock in the basket and a wave quantity, wherein a sum of wave quantities over the plurality of wave orders equals the quantity of the stock in the basket; and
sending the wave order to a brokerage for execution of the order.

### Claim 7 (depends on 6)

The computer-implemented method of claim 6, further comprising allocating the stock in the basket to at least two accounts.

### Claim 8 (depends on 7)

The computer-implemented method of claim 7, further comprising storing allocation information in the client database.