Network and Method for Trading Derivatives

A method for trading derivatives, the method comprising:

• receiving, via computer, a request for an indicative quote from a requestor for a product;
• transmitting, via computer, the request for the indicative quote to a responder station;
• receiving, via computer, an indicative quote from the responder in response to the request for the indicative quote for the product;
• transmitting, via computer, the indicative quote to the requestor;
• receiving, via computer, a request for a binding quote from the requestor for the product;
• transmitting, via computer, the request for the binding quote to the responder station;
• receiving, via computer, a binding quote from the responder in response to the request for the binding quote for the product;
• transmitting, via computer, the binding quote to the requestor;
• receiving, via computer, an order from the requestor for the product;
• matching, via computer, the order from the requestor with the binding quote from the responder, thereby forming a matched trade;
• and
• transmitting, via computer, the matched trade to an Exchange for clearing.

A system for electronically trading derivatives, comprising:

• one or a plurality of market maker stations;
• one or a plurality of subscriber stations;
• one or a plurality of Exchanges;
• and
• a network managing station in communication over a network with the one or the plurality of market maker stations, the one or the plurality of subscriber stations, and the one or the plurality of Exchanges;
• wherein the market maker stations are independently configured to receive a request for and/or to provide an indicative quote and/or a binding quote;
• wherein the subscriber stations are independently configured to request and/or to receive the indicative quote and/or the binding quote, and are independently further configured to submit an order;
• wherein the network managing station is configured to match the order with the binding quote to form a matched trade, and is further configured to transmit the matched trade to an Exchange for clearing;
• and
• wherein the Exchanges are independently configured to clear the matched trade.