Fix-enabled order management method and apparatus
A computer-implemented method and apparatus for managing market orders which, upon receiving a set of customer requirements, will automatically identify and select a winning provider from a multiplicity of provider candidates and, at the appropriate time, execute trades to fill the set of requirements. The identification, selection and execution steps are initiated automatically in response to receiving the requirements without further participation from the customer. Moreover, the invention is designed to operate according to a variety of non-proprietary messaging and communication standards, including, for example, the Financial Information eXchange (FIX) and Society for the Worldwide Interbank Financial Telecommunication (SWIFT) communications standards.
1 . A computer-implemented method for executing trades, comprising:
providing a first data communications link for communication with a customer and a second data communications link for communication with a multiplicity of providers;
receiving a requirement from said customer via said first data communications link; and
in response to receiving said requirement, automatically
identifying a set of provider candidates in said multiplicity of providers who will be considered to fill said requirement,
receiving a set of price quotes from said set of provider candidates,
selecting a winning provider from said set of provider candidates,
sending, via said second data communications link, a firm order to said winning provider to fill said requirement, and
recording said requirement as filled.
2 . The method of claim 1 , further comprising:
receiving from said winning provider, via said second data communications link, an execution detail, and
transmitting said execution detail to said customer via said first data communications link.
3 . The method of claim 1 , wherein said step of receiving said requirement comprises deciphering an electronic message formatted according to the financial information exchange (FIX) communications standard.
4 . The method of claim 2 , wherein said step of transmitting said execution detail comprises formatting a second electronic message according to the financial information exchange (FIX) communications standard.
5 . The method of claim 1 , wherein said step of receiving said requirement comprises deciphering an electronic message formatted according to the Society for the Worldwide Interbank Financial Telecommunication (SWIFT) communications standard.
6 . The method of claim 2 , wherein said step of transmitting said execution detail comprises formatting a second electronic message according to the Society for the Worldwide Interbank Financial Telecommunication (SWIFT) communications standard.
7 . The method of claim 1 , wherein said step of identifying a set of provider candidates comprises considering a customer preference.
8 . The method of claim 7 , further comprising:
providing a customer preferences database; and
retrieving said customer preference from said customer preferences database.
9 . The method of claim 7 , wherein said customer preference comprises at least one of:
a preferred provider candidate,
a maximum price,
a minimum order size,
a settlement date restriction,
a currency designation associated with said requirement,
a provider candidate's location,
a funding amount associated with said requirement,
a provider candidate's transaction history,
a service level agreement with a provider candidate,
a business volume target associated with a provider candidate, and
a performance record for a provider candidate.
10 . The method of claim 1 , further comprising sending a request for said set of price quotes to said set of provider candidates via said second data communications link.
11 . The method of claim 1 , wherein said set of price quotes comprises a substantially continuous stream of data.
12 . The method of claim 1 , wherein said step of selecting said winning provider comprises selecting a winning price quote received from said winning provider.
13 . The method of claim 12 , wherein said step of selecting said winning price quote comprises considering price selection criteria.
14 . The method of claim 13 , further comprising:
providing a price selection criteria database; and
retrieving said price selection criteria from said price selection criteria database.
15 . The method of claim 13 , wherein said price selection criteria comprises at least one of:
a relative value of said winning price quote,
an average price quote received from all provider candidates,
a currency designation associated with said requirement,
said customer's location,
a location for said winning provider,
a market risk associated with said requirement,
a funding amount associated with said requirement,
a response time for said winning price quote,
a total number of price quotes in said set of price quotes,
a preference of said winning provider to provide a type of requirement,
a provider candidate's transaction history,
a service level agreement with said winning provider,
a business volume target associated with said winning provider, and
a performance record for said winning provider.
16 . The method of claim 15 , wherein said performance record comprises at least one of:
an average response time,
an average price differential,
an average price stability rating,
an average bid-offer spread, and
a number of orders previously executed.
17 . The method of claim 1 , wherein said step of selecting said winning provider comprises determining whether said winning provider has submitted a price quote comprising a sufficient size to satisfy said requirement.
18 . The method of claim 17 , further comprising requesting a new price quote from said set of provider candidates.
19 . The method of claim 1 , further comprising receiving from said customer a time constraint for filling said requirement.
20 . The method of claim 1 , further comprising transmitting to said customer an acknowledgement that said requirement was received.
21 . The method of claim 1 , wherein said requirement comprises an agreement to buy a currency, sell a currency, or both.
22 . An order management system for executing trades, comprising:
a first data communications link for receiving a requirement from a customer;
a second data communications link for communication with a multiplicity of providers;
an order generator, coupled to said first data communications link, that
identifies within said multiplicity of providers a set of provider candidates who will be considered for filling said requirement,
selects a winning provider from said set of provider candidates based on a set of price quotes, and
generates a firm order for said winning provider to fill said requirement;
an order executor that receives said set of price quotes from said set of provider candidates via said second data communications link, and sends said firm order to said winning provider for execution; and
an order completer that records said requirement as being filled.
23 . The order management system of claim 22 , wherein said order completer is further configured:
to receive, via said second data communications link, an execution detail for said execution; and
transmit said execution detail to said customer via said first data communications link.
24 . The order management system of claim 22 , wherein said first data communications link comprises a session manager configured to decipher an electronic message formatted according to the financial information exchange (FIX) communications standard.
25 . The order management system of claim 23 , wherein said session manager is further configured to format and transmit a second electronic message according to the financial information exchange (FIX) communications standard.
26 . The order management system of claim 22 , wherein said session manager is further configured to decipher an electronic message formatted according to the Society for the Worldwide Interbank Financial Telecommunication (SWIFT) communications standard.
27 . The order management system of claim 23 , wherein said session manager is further configured to format a second electronic message according to the Society for the Worldwide Interbank Financial Telecommunication (SWIFT) communications standard.
28 . The order management system of claim 22 , wherein said order generator identifies said set of provider candidates based at least in part on a customer preference.
29 . The order management system of claim 28 , further comprising:
a customer preferences database; and
wherein said order generator retrieves said customer preference from said customer preferences database.
30 . The order management system of claim 28 , wherein said customer preference comprises at least one of:
a preferred provider candidate,
a maximum price,
a minimum order size,
a settlement date restriction,
a currency designation associated with said requirement,
a provider candidate's location,
a funding amount associated with said requirement,
a provider candidate's transaction history,
a service level agreement with a provider candidate,
a business volume target associated with a provider candidate, and
a performance record for a provider candidate.
31 . The order management system of claim 22 , wherein said second data communications link comprises an asset trading execution system.
32 . The order management system of claim 31 , wherein said order executor sends a request for said set of price quotes to said set of provider candidates via said second data communications link.
33 . The order management system of claim 22 , wherein said order executor receives said set of price quotes within a substantially continuous stream of data produced by said provider candidates.
34 . The order management system of claim 22 , wherein said order executer selects said wining provider by selecting a winning price quote received from said winning provider.
35 . The order management system of claim 34 , wherein said order generator selects said winning price quote based on price selection criteria.
36 . The order management system of claim 35 , further comprising:
a price selection criteria database; and
wherein said order executor retrieves said price selection criteria from said price selection criteria database.
37 . The order management system of claim 35 , wherein said price selection criteria comprises at least one of:
a relative value of said winning price quote,
a price quote received from a non-winning provider,
a currency designation associated with said requirement,
said customer's location,
a location for said winning provider,
a market risk associated with said requirement,
a funding amount associated with said requirement,
a response time for said winning price quote,
a total number of price quotes in said set of price quotes,
a preference of said winning provider to provide a type of requirement,
a provider candidate's transaction history,
a service level agreement with said winning provider,
a business volume target associated with said winning provider, and
a performance record for said winning provider.
38 . The order management system of claim 37 , wherein said performance record comprises at least one of:
an average response time,
an average price differential,
an average price stability rating,
an average bid-offer spread, and
a number of orders previously executed.
39 . The order management system of claim 22 , wherein said order generator determines whether said winning provider has submitted a price quote comprising a sufficient size to satisfy said requirement.
40 . The order management system of claim 22 , wherein said order executor is configured to request a new price quote from said set of provider candidates.
41 . The order management system of claim 22 , wherein said order executor is configured to request a stream of price quotes from said set of provider candidates.
42 . The order management system of claim 22 , wherein said order generator receives from said customer a time constraint for filling said requirement.
43 . The order management system of claim 22 , wherein said order generator is further configured to transmit to said customer an acknowledgement that said requirement was received.
44 . The order management system of claim 22 , wherein said requirement comprises an agreement to buy a currency, sell a currency, or both.
45 . The order management system of claim 22 , wherein said first data communications link is coupled to a customer trading system.
46 . A computer-implemented method for executing trades, comprising:
receiving a set of requirements from a customer; and
in response to receiving said set of requirements, automatically
identifying a set of provider candidates in a multiplicity of providers from which a set of price quotes will be accepted to fill said requirement,
selecting a winning provider from said set of provider candidates to fill said requirement, and
sending said requirement to said winning provider to be filled.
47 . An order management system for executing trades, comprising:
customer interface means for exchanging trade-related electronic messages with a customer;
provider interface means for exchanging trade-related electronic messages with a multiplicity of providers;
requirement receiving means, coupled to said customer interface means, for receiving a requirement from said customer;
candidate identification means for identifying within said multiplicity of providers a set of provider candidates who will be considered for filling said requirement;
price selection means for selecting on behalf of said customer a winning provider to fill said requirement;
order generating means for generating a firm order for said winning provider to fill said requirement;
order execution means, coupled to said provider interface means, for receiving a set of price quotes from said set of provider candidates and for transmitting said firm order to said winning provider for execution, and for receiving from said winning provider an execution detail; and
order completion means for recording said requirement as being filled and for transmitting said execution detail to said customer via said customer interface means;
wherein said candidate identification means, said price selection means, said order generating means, said order execution means and said order completion means are configured to operate automatically responsive to said requirements receiving means.
48 . The order management system of claim 47 , further comprising session management means, coupled to said customer interface means, for deciphering an electronic message formatted according to the financial information exchange (FIX) communications standard.
49 . The order management system of claim 48 , wherein said session management means is configured to format said execution detail according to the financial information exchange (FIX) communications standard.
50 . The order management system of claim 48 , wherein said session management means is configured to format said execution detail according to the Society for the Worldwide Interbank Financial Telecommunication (SWIFT) communications standard.
51 . The order management system of claim 47 , wherein said candidate identification means comprises a customer preference.
52 . The order management system of claim 51 , wherein said candidate identification means further comprises:
a customer preferences database; and
means for retrieving said customer preference from said customer preferences database.
53 . The order management system of claim 51 , wherein said customer preference comprises at least one of:
a preferred provider candidate,
a maximum price,
a minimum order size,
a settlement date restriction,
a currency designation associated with said requirement,
a provider candidate's location,
a funding amount associated with said requirement,
a provider candidate's transaction history,
a service level agreement with a provider candidate,
a business volume target associated with a provider candidate, and
a performance record for a provider candidate.
54 . The order management system of claim 47 , wherein said order execution means comprises means for sending a request for said set of price quotes to said set of provider candidates via said provider interface means.
55 . The order management system of claim 47 , wherein said order execution means comprises means for receiving from said set of provider candidates via said provider interface a substantially continuous stream of data comprising said set of price quotes.
56 . The order management system of claim 47 , wherein said requirement comprises an agreement to buy a currency, sell a currency, or both.
57 . The order management system of claim 47 , wherein said provider interface means comprises an asset trading execution system.
58 . The order management system of claim 47 , wherein said requirement receiving means is further configured to receive a time constraint.
59 . The order management system of claim 47 , wherein said price selection means comprises a database configured to store price selection criteria.