System, method and computer program product for providing an efficient trading market
A system, method and computer program product for providing a trading exchange are disclosed. A request for conducting trade of a security is received from a user. The security associated with requested trade is evaluated to generate a derivative security. A trade is then executed for the user using the derivative security. Information relating to the executed trade is captured utilizing a network so that the captured information can be utilized to adjust an account of the user in accordance with the executed trade.
1. A method for providing a trading exchange comprising computer-implemented steps of:
receiving a request to execute a trade of a security from a user at a current price of the security;
generating a derivative security for the security, wherein the derivative security has a price equal to a price of the security at a time the request was issued;
executing the trade requested by the user using the derivative security instead of the security, the trade of the derivative security being executed without finding a counterparty for the trade of the security; capturing information, from the user and a financial market quotes provider, relating to the executed trade and the security utilizing a network, the captured information including the financial market price of the security at the time of the request; and utilizing the captured information to adjust an account of the user in accordance with the executed trade.
2. The method of claim 1 , wherein the derivative security is dynamically generated.
3. The method of claim 1 , wherein the trade comprises a purchase.
4. The method of claim 3 , wherein the derivative security has a limited lifetime, and the derivative security is automatically sold if the derivative is held by the user at the end of the limited lifetime.
5. The method of claim 1 , wherein the user is limited by the trading exchange to hold an amount of the derivate security having a value equal to less than a predetermined percentage of an aggregate value of the security.
6. The method of claim 1 , wherein trades involving a total value of the user's portfolio are restricted.
7. The method of claim 1 , wherein the request from the user includes a user identifier identifying the user, a security identifier identifying the security and a timestamp identifying a time that the request was made.
8. The method of claim 7 , wherein at least a portion of the timestamp is cryptographically signed, and wherein the timestamp is compared to a recorded data feed of market quotes to determine a price of the security.
9. The method of claim 1 , wherein the user is permitted to add or remove funds from the account.
10. The method of claim 1 , wherein the request is received utilizing the network.
11. A system for providing a trading exchange, comprising:
a capture component for receiving a request to execute a trade of a security at a current price of the security from a user in communication with a network, the request including a user identifier identifying the user, a security identifier identifying the security and a timestamp identifying a time that the request was made;
a derivative component for generating a derivative security for the security, the derivative security having the same price as the security at a time the request was issued;
a transaction component for executing the trade requested by the user using the derivative security instead of the security, the trade of the derivative being executed without finding a counterparty for the trade of the security;
the capture component capturing information from a financial market quotes provider relating to the security utilizing the network; and
a component for asynchronously comparing the timestamp of the request with the captured information from the financial market quotes provider to determine the price of the security at the time of the request and adjusting an account of the user in accordance with the executed trade and the determined price.
12. The system of claim 11 , wherein the derivative security is dynamically generated.
13. The system of claim 11 , wherein the trade comprises a purchase.
14. The system of claim 13 , wherein the derivative security has a limited lifetime, and the derivative security is automatically sold if the derivative is held by the user at the end of the limited lifetime.
15. The system of claim 11 , wherein the user is limited by the trading exchange to hold an amount of the derivate security having a value equal to less than a predetermined percentage of an aggregate value of the security.
16. The system of claim 11 , wherein trades involving a total value of the user's portfolio are restricted.
17. The system of claim 11 , wherein the request from the user includes a user identifier identifying the user, a security identifier identifying the security and a timestamp identifying a time that the request was made, and wherein the timestamp is compared to a recorded data feed of market quotes to determine a price of the security.
18. A computer-readable medium having computer-executable instructions which when executed by a computing device performs a method for providing a trading exchange, comprising: receiving a request to execute a trade of a security from a user at a current price of the security; generating a derivative security for the security, wherein the derivative security has a price equal to a price of the security at a time the request was issued; executing the trade requested by the user using the derivative security instead of the security, the trade of the derivative security being executed without finding a counterparty for the trade of the security; capturing information, from the user and a financial market quotes provider, relating to the executed trade and the security utilizing a network, the captured information including the financial market price of the security at the time of the request; and utilizing the captured information to adjust an account of the user in accordance with the executed trade.