Credit management for electronic brokerage system
AssigneeForeign Exchange Transaction Services, Inc.
InventorsMichael Togher, Michael F. Dunne, Richard Hartheimer
Life of this patent
Estimating the term…
Abstract
An anonymous trading system identifies the best bids and offers from those counterparties with which each party is currently eligible to deal, while maintaining the anonymity of the potential counterparty and the confidentiality of any specific credit limitations imposed by the anonymous potential counterparty. To that end, each bid or offer for a particular type of financial instrument is prescreened by the system for compatibility with limited credit information (for example, a one bit flag indicating whether a predetermined limit has already been exceeded) and an anonymous "Dealable" price is calculated for each of the traders dealing with that particular financial instrument.
Claims17
A comprized trading system for trading of financial instruments between traders trading at a plurality of trading floors, said system comprising a communication network for transmitting electronic messages,
- a plurality of trader terminals each associated with a respective one of said trading floors and connected to the communication network, for
- generating electronic price quotation messages including bid and/or offer prices, and
- communicating selected bid and offer price information based on price quotation messages originating from other said trading floors and received over the communication network,
- credit limit administration processing means connected to the communication network, for automatically determining whether a predetermined level of credit is currently available from each trading floor to each of the other trading floors, and
- dealable price distribution processing means connected to said communication network and responsive to said price quotation messages as well as to said credit limit administration means for automatically transmitting dealable price messages to the terminals of at least one particular trading floor, said dealable price messages being derived only from price quotation messages from those trading floors for which said credit administration means has determined said predetermined level of credit is currently available on a bilateral basis both from and to said particular trading floor.
Dependencies are inferred from the claim text.