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US 2014/0236803 A1Published application
Trading related to fund compositions
AssigneeCfph, LLC
InventorsHoward W. Lutnick, Dean P. Alderucci, Andrew Fishkind, Brian L. Gay, Kevin Foley, Mark Miller, Charles Plott
Life of this patent
Estimating the term…
Abstract
An electronic marketplace uses a fund composition to guide trading opportunities. Mutual funds typically have a target composition of financial instruments. When prices change for constituents of such a mutual fund, the fund typically needs to rebalance in order to maintain a desired composition. A marketplace that understands the target composition and the movement in prices targets trading opportunities to a fund in a more tailored manner than a traditional marketplace.
Claims20
A method comprising:
- receiving, by an electronic marketplace, an indication of a composition of an investment fund, in which the composition includes a plurality of financial instruments that the fund targets for ownership and respective percentages of the composition that the fund targets for ownership in each financial instrument;
- receiving, by the marketplace, an indication of an order, in which the order defines a side of a trade for a financial instrument;
- determining, by the marketplace, that the financial instrument is part of the composition of the fund based on the received indication of the composition;
- determining, by the marketplace, a change in price of the financial instrument that includes an increase or decrease in the price of the financial instrument;
- based on the determination of the change in price of the financial instrument and the determination that the financial instrument is part of the composition of the fund, transmitting, by the marketplace to an electronic device of the fund, a query asking if an offer to enter into a trade that fulfills at least a portion of the order is accepted;
- determining that the offer to enter into the trade is accepted based on a matching order to the order being in an order management system associated with the fund;
- and
- facilitating an execution of the trade without a negotiation about a price of the trade and a quantity of financial instruments in response to the determination that the offer is accepted.
5 more elements
An apparatus comprising:
- a computing device of an electronic marketplace;
- and a non-transitory medium having stored thereon a plurality of instructions that when executed by the computing device, cause the computing device to perform a method comprising:
- receive an indication of a composition of an investment fund, in which the composition includes a plurality of financial instruments that the fund targets for ownership and respective percentages of the composition that the fund targets for ownership in each financial instrument;
- receive an indication of an order, in which the order defines a side of a trade for a financial instrument;
- determine that the financial instrument is part of the composition of the fund based on the received indication of the composition;
- determine a change in price of the financial instrument that includes an increase or decrease in the price of the financial instrument;
- based on the determination of the change in price of the financial instrument and the determination that the financial instrument is part of the composition of the fund, transmit, to an electronic device of the fund, a query asking if an offer to enter into a trade that fulfills at least a portion of the order is accepted;
- determine that the offer to enter into the trade is accepted based on a matching order to the order being in an order management system associated with the fund;
- and
- facilitate an execution of the trade without a negotiation about a price of the trade and a quantity of financial instruments in response to the determination that the offer is accepted.
7 more elements
Dependencies are inferred from the claim text.