Pass through liquidity in a multi-tiered trading system and method
The present invention generally relates to brokerage systems and methods, and more particularly, to a multi-tiered trading system and corresponding methods which allow multiple customers and multiple dealers to transact on a single platform while maintaining the distinction of an inter-dealer system and a dealer-customer relationship.
1. A method for enabling a dealer to selectively grant a customer operating a computer anonymous access through a network to a central computer system forming an inter-dealer exchange, including a plurality of dealers trading one or more financial instruments of said customer via networked computers the method comprising:
the central computer system receiving a customer order for a financial instrument;
comparing said customer order to a current market for said financial instrument within said inter-dealer exchange to generate a comparison result; and
the central computer system choosing to fill said customer order directly or to send said customer order to said inter-dealer exchange in said dealer's name based on said comparison result.
2. The method of claim 1 , further comprising the step of creating an auto trading profile for said customer, and wherein said step of choosing is further based on said auto trading profile.
3. The method of claim 2 , wherein said auto trading profile includes one or more of a minimum customer order size, a maximum customer order size, or one or more customer order price parameters for said financial instrument.
4. The method of claim 2 , wherein said step of choosing is automatically decided on said dealer's behalf by a computer in communication with said dealer.
5. The method of claim 2 , wherein said step of choosing further includes the steps of:
the central computer system notifying said dealer of said customer order that meets one or more predetermined parameters associated with said comparison result and said auto trading profile;
manually choosing within a predetermined period to fill all or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange; and
the central computer system automatically choosing to send all or part of said customer order to said inter dealer exchange when said dealer is not notified of said customer order or when said dealer does not manually choose within said predetermined period.
6. The method of claim 5 , wherein said predetermined period is based on said auto trading profile.
7. The method of claim 1 , further comprising the step of creating a customer profile for said customer, and wherein said step of choosing is further based on said customer profile.
8. The method of claim 7 , wherein said customer profile includes one or more of a customer name, a customer location, a customer trader, and one or more financial instruments authorized for said customer order.
9. The method of claim 8 , wherein said customer profile further includes an auto trading profile for said customer, said auto trading profile including one or more of a minimum customer order size, a maximum customer order size, or one or more customer order price parameters for said financial instrument.
10. The method of claim 9 , wherein said step of choosing is automatically decided on said dealer's behalf by a computer in communication with said dealer.
11. The method of claim 9 , wherein said step of choosing further includes the steps of:
the central computer system notifying said dealer of said customer order hat meets one or more predetermined parameters associated with said comparison result and said customer profile;
manually choosing within a predetermined period to fill all or part of said customer order directly or to send all or part of said customer order to said inter-dealer exchange; and
the central computer system automatically choosing to send all or part of said customer order to said inter-dealer exchange when said dealer is not notified or said customer order or when said dealer does not manually choose within said predetermined period.
12. The method of claim 11 , wherein said predetermined period is based on said customer profile.
13. The method of claim 11 , wherein when said predetermined parameters include a price and a size for said customer order that matches said current market, then said step of manually choosing includes filling all of said customer order by said dealer.
14. The method of claim 11 , wherein when said predetermined parameters include a price for said customer order that matches said current market and size for said customer order that exceeds said current market, then said step of manually choosing includes filling part of said customer order and sending part of said customer order to said inter-dealer exchange.
15. The method of claim 11 , wherein when said predetermined parameters include a price for said customer order that is worse than said current market price, then said step of manually choosing includes sending all of said customer order to said inter-dealer exchange.
16. The method of claim 1 , further comprising the steps of:
registering said customer with said inter-dealer exchange by plurality of dealers, and
maintaining a priority among said plurality of dealers so as to give a highest priority dealer a first opportunity to receive said customer order.
17. The method of claim 1 , further comprising the step of creating a rule set for said customer, and wherein said step of choosing is further based on said rule set.
18. The method of claim 17 , wherein said step of creating said rule set further includes modifying said rule set in real time.