System and method for automated trade replication trade bundling and detachment
A system and method for automated securities trading is provided. The system includes a lead trader account database, a follower account database, and a trade determination system. Trade information is received from a lead trader and a listing of followers for the lead trader is retrieved from the lead account database. For each follower, their account at the follower account database is accessed to confirm that they desire to participate in the lead trader's trade and that they have enough funds to do so. The lead trader and follower's traders are then grouped together and traded as a single trade. The traded shares are then provided to the lead trader and followers at the average price of the trade.
1. A system for automated securities trading, said system including:
a lead trader account database including a plurality of data structures each having a lead trader identification data electronically associated with data representing a plurality of trade follower identities;
a follower account database including at least one data structure electronically associated with a trade follower identity and including trade follower account data associated with said trade follower identity; and
an automated computerized trade determination system, wherein said automated computerized trade determination system electronically receives an electronic trade initiation command including data representing a lead trader desired trade including lead trader identification data, a lead trader share identification data, a lead trader share number data, and a share price data,
wherein, in response to the receipt of said electronic trade initiation command, said automated computerized trade determination system automatically uses said lead trader identification data to retrieve, from said lead trader account database, a plurality of electronic trade follower identities previously associated with said lead trader identification data,
wherein said automated computerized trade determination system uses said plurality of electronic follower identities to retrieve, from said follower account database, trade follower account data including an available follower account balance associated with each of said plurality of electronic follower identities,
wherein said trade determination system sets a follower share number data equal to said lead trader share number data and multiplies said follower share number data with said share price data to determine a follower trade total price,
wherein said trade determination system sets an initial total trade share number equal to said lead trader share number data,
wherein, for each of said plurality of electronic follower identities, when said available follower account balance is electronically determined to be at least equal to said follower trade total price, said trade determination system increments said initial total trade share number by said follower share number, and
wherein, for each of said plurality of electronic follower identities, when said available follower account balance is electronically determined to be less than said follower trade total price said trade determination system divides said available follower account balance by said share price data to determine a reduced follower share number data for said follower identity and then increments said initial total trade share number by said reduced follower share number data,
wherein a final incremented value of said initial total trade share number is set as a total trade share number in real time,
wherein said trade determination system automatically electronically submits said lead trader share identification data and said total trade share number to an exchange for execution as a single trade in real time, and
wherein the shares obtained though said single trade are automatically electronically allocated to both a lead trader account in said lead trader database according to said lead trader share number and into a follower account in said follower account database associated with each of said plurality of electronic follower identities according to said follower share number.
2. The system of claim 1 further including a dashboard generation system providing a graphical user interface to at least one of a follower computer and a lead trader computer.
3. The system of claim 1 wherein, in response to receiving said total trade share number, said exchange performs a first trade of a first number of shares at a first price and a second trade of a second number of shares at a second price, wherein said first number of shares plus said second number of shares equals said total trade share number.
4. The system of claim 3 wherein said trade determination system receives said first number of shares, said first price, said second number of shares, and said second price, and uses them to determine an average share price for the total trade share number.
5. The system of claim 4 wherein said average share price is recorded as the share price for the trade for both said lead trader account database and said follower account database.