Icap Services North America LLC

Richard Raymond May

Daniel Abbatemarco

Hal Hinkle

Robert T Nagle

Christopher Ferreri

An electronic trading system and method are described in which credit risk associated with a transaction is captured as a price adjustment on a trade-by-trade basis. In one preferred embodiment, a 'request for quote' (RFQ) trading model is presented in which each dealer receiving an RFQ determines a base price as well as an additional credit risk adjustment amount by which the base price should be modified to account for credit risk. In other preferred embodiments, an exchange trading model is presented in which traders submit buy and sell orders whose prices are appropriately adjusted for presentation to each potential counterparty to account for credit risk associated with potential transactions. System designs are also presented to address the technical challenge of permitting each trading participant to apply its own credit risk algorithms and methodologies while avoiding their disclosure to other trading participants.

Electronic trading system and method for pricing transactions to account for risk

A data processing system for implementing transaction management of auction-based trading is disclosed. The disclosed data processing system provides a structured trading protocol implemented through a sequence of trading paradigms. The system employs a distributed computer processing network linking together a matching engine and a plurality of workstations. The protocol and its programmed controlling logic enhances trading efficiency, rewards market makers, and fairly distributes market opportunity to system users. In some preferred embodiments, the structured trading protocol permits traders to enter hidden bids or offers during a clearing period that may be converted to transactable bids and offers when the clearing period terminates. In addition, in some preferred embodiments, the structured protocol permits traders to enter orders that specify an initial price and a better, hidden price. The system is programmed to improve the price of a trader's order within the cap established by the hidden price in particular circumstances in order to permit the trader to maintain priority in the order book when a better-priced order enters the market.

System and method for processing trading orders

A plurality of user interfaces for facilitating efficient order management and post-trade processing in an electronic trading system are disclosed. A first user interface comprises a plurality of client buttons and a broker button. Selection of a client button shifts the user interface to a client-perspective mode in which all actions and views are from the selected client's point of view. Selection of the broker button shifts the user interface to a client-neutral mode in which the broker may enter orders in the market without specifying any particular client. An analogous user interface for use by a trader is also described. A second user interface, referred to as a blotter, is also provided that comprises four distinct views for displaying 'pending,' 'completed,' &#x201c;all,&#x201d; and &#x201c;annulled&#x201d; trades. Preferred embodiments for utilizing the disclosed user interfaces to process different classes of pending trades are also described.

User interfaces for efficient trade entry and management

An electronic trading system and associated methods that provide for anonymous pricing data while ensuring the integrity of the system by preventing it from being used for price discovery information only. Methods are included to police the dealers requesting price information and clear rules are implemented to reward the dealer offering the best price. Dealers request price information by submitting an open (not anonymous) request to a broker for a price on an amount of a security or financial instrument, referred to herein as a 'Price-For-Call,' which results in an anonymous RFQ being sent to a group of other dealers. If more than one dealer in the group responds with a price, only the best price (bid or offer or both) is returned to the requesting dealer and only the dealer offering the best price is rewarded with knowledge of the price information by virtue of the fact that his price traded.

Call for quote/price system and methods for use in a wholesale financial market

A data processing system that records detailed market information for one or more financial markets to facilitate the audit of executed trades for time, quantity, and price as being reasonable. The system receives and records data from financial markets, including the date and time trades are executed and the prices at which the financial instruments traded. The system provides users the ability to compare a particular transaction for a financial instrument to transaction data for the same and/or related financial instruments at around the same time, to determine whether the price paid for the financial instrument is reasonable for the time the trade was executed. A trade confirmation service is also provided to permit traders to verify the parameters of executed transactions.

Growing community of inventors

Matthews, NC, United States of America

Richard Raymond May