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US 8,275,687 B2Granted
Allocation of commissions
AssigneeBGC Partners, Inc.
InventorsHoward W. Lutnick, Michael Sweeting, Joseph Noviello
Life of this patent
Estimating the term…
Abstract
The invention relates to systems and methods that allocate different types of commissions to participants based on at least one factor contributing to the liquidity to the market in which an item trades. The commission may accordingly depend on the order in which trading commands are received from different participants and/or the sides the participants are on. The systems and methods receive trade commands from different participants on the item, match these trade commands, determine a commission or reward based on the added liquidity and allocate the commission or reward to certain participants.
Claims22
A method comprising the steps of:
- when an electronic trading system matches a first trade command from a first participant to a second trade command from a second participant to transact a financial instrument traded on the trading system, computing and storing in the memory of the electronic trading system a first transaction commission to charge to the first participant and a second transaction commission to charge to the second participant, the two commissions being different from each other, the commission rate charged for the earlier of the first and second trade commands being lower than the commission rate charged to the later of the first and second trade commands;
- and
- in the event that the first and second trade commands specify different quantities of the financial instrument, permitting a joiner participant in the electronic trading system to join the transaction to trade the excess of the larger of the two quantities remaining after satisfying the smaller of the first and second trade command, and recording in the memory of the electronic trading system a charge to the joiner participant a commission based on a rate for joiner parties that is different than the commission rates charged for the first and second trade commands.
A method comprising the steps of:
- when an electronic trading system matches a first trade command from a first participant to a second trade command from a second participant to transact a financial instrument traded on the trading system, computing and storing in the memory of the electronic trading system a first transaction commission to charge to the first participant and a second transaction commission to charge to the second participant, the two commissions being different from each other, the difference based at least in part on a commission schedule that is different for an active joiner participant or active joiner portion of a transaction than for, respectively, other participants to or portions of the transaction, an “active joiner” being a participant who bids or offers further size or who joins a trade on the same side as the first active buyer or first active seller to execute on the trade;
- and
- displaying the computed commission or price for the transaction net of the computed commission to at least one of the first, second, and active joiner participants before the respective participant indicates execution of the trade.
A computer-readable non-transitory memory, having stored therein one or more programs designed to cause one or more computers of an electronic trading system to:
- when the electronic trading system matches a first trade command from a first participant to a second trade command from a second participant to transact a financial instrument traded on the trading system, compute and store in the memory of the electronic trading system a first transaction commission to charge to the first participant and a second transaction commission to charge to the second participant, the two commissions being different from each other, the commission rate charged for the earlier of the first and second trade commands being lower than the commission rate charged to the later of the first and second trade commands;
- and
- in the event that the first and second trade commands specify different quantities of the financial instrument, permitting a joiner participant in the electronic trading system, the joiner participant being different than the first and second participants, to join the transaction to trade the excess of the larger of the two quantities remaining after satisfying the smaller of the first and second trade command, and charging the joiner participant a commission rate for joiner parties that is different than the commission rates charged for the first and second trade commands.
A method comprising the steps of:
- when an electronic trading system matches a first trade command from a first participant to a second trade command from a second participant to transact a financial instrument traded on the trading system:
- computing and storing in the memory of the electronic trading system a first transaction commission to charge to the first participant;
- computing and storing in the memory of the electronic trading system a second transaction commission to charge to the second participant;
- the two commissions being different from each other;
- the commission rate charged for the earlier of the first and second trade commands being lower than the commission rate charged to the later of the first and second trade commands;
- and
- in the event that the first and second trade commands specify different quantities of the financial instrument:
- permitting a joiner participant in the electronic trading system to join the transaction to trade the excess of the larger of the two quantities remaining after satisfying the smaller of the first and second trade command, and
- recording in the memory of the electronic trading system a charge to the joiner participant a commission;
- the commission charged to the joiner participant based on a rate for joiner parties that is different than the commission rates charged for the first and second trade commands.
7 more elements
Dependencies are inferred from the claim text.