Systems and methods for facilitating electronic securities transactions
A method for facilitating securities transactions is shown. In one embodiment, the method provides for pricing shares of stock traded between anonymous parties without requiring pricing negotiations between parties. The method can include matching, via an electronic trading system, a first party and a second party in response to receiving contra binding orders for a security from the parties, transmitting, to each of the parties, an indication of the matching, receiving, via an electronic trading system, a first trade confirmation from the first party, determining, for the security, a midpoint of a price spread at the time the first trade confirmation was entered, receiving, via the electronic trading system, a second trade confirmation for the security from the second party, and executing, via the electronic trading system, a transaction for the security between the first and second parties, wherein the security price is determined in response to the determined midpoint.
1. A method of pricing shares of stock traded between anonymous parties without requiring pricing negotiations between the parties, the method comprising:
(a) matching, via an electronic trading system, a first party and a second party in response to receiving contra binding orders for a security from the parties;
(b) transmitting, to each of the parties, an indication of the matching;
(c) receiving, via an electronic trading system, a first trade confirmation from the first party;
(d) determining, for the security, a midpoint of a price spread at the time the first trade confirmation was entered;
(e) receiving, via the electronic trading system, a second trade confirmation for the security from the second party; and
(f) executing, via the electronic trading system, a transaction for the security between the first and second parties, wherein the security price is determined in response to the determined midpoint.
2. The method of claim 1 , wherein step (f) comprises setting the security price as the determined midpoint.
3. The method of claim 1 , wherein step (f) comprises determining, for the security, a second midpoint of a price spread at the time the second trade confirmation was entered; and executing, via the electronic trading system, a transaction for the security between the first and second parties, where the security price is set as the one of the first or second midpoints more advantageous to the first party.
4. The method of claim 1 , wherein step (f) comprises determining, for the security, the first midpoint is outside the range of a second price spread at the time the second trade confirmation was entered; and executing, via the electronic trading system, a transaction for the security between the first and second parties, where the security price is set as the one of the high or low of the second price spread more advantageous to the first party.
5. The method of claim 1 further comprising the step of displaying to a user of the electronic trading system, a confirmation dialog in response to the indication of the matching.
6. The method of claim 5 wherein step (d) comprises determining, for the security, a midpoint of a price spread at the time the first trade confirmation was entered into the confirmation dialog.