Systems and methods for facilitating electronic securities transactions
View Patent ↗A method for facilitating securities transactions is shown. In one embodiment, the method includes identifying, by a computer system from an OMS comprising a plurality of stored security orders, a subset of orders specifying at least a minimum available quantity; transmitting, by the computer system to an ETM, a non-binding indication corresponding to one order of the subset of orders, the non-binding indication comprising a security identifier and the order type; receiving, by the computer system, an indication that a match exists to the non-binding indication; determining, by the computer system, a total available quantity for the order corresponding to the non-binding indication; and transmitting, by the OMS, a binding order corresponding to the non-binding indication, the binding order comprising the determined total available quantity. Corresponding systems are also described.
1. A method for allowing prospective traders to selectively match indications of interest or binding orders with contra parties based on reliability ratings of potential contra-parties and the trading characteristics or market capitalization for the security desired to be traded, the method comprising:
(a) receiving, by a computer system, from a party, for each of a plurality of security characteristics, a minimum credit rating for desired contra parties for trades having the specified security characteristic;
(b) receiving, by the computer system, from the party, order information corresponding to a security, the order information consisting of a security identifier and the order type;
(c) determining, by the computer system, a security characteristic corresponding to the identified security;
(d) identifying, by the computer system, the minimum credit rating specified by the party for the determined security characteristic; and
(e) matching, by the computer system, the trading indication only to a contra party satisfying the identified minimum credit rating.
2. The method of claim 1 wherein the plurality of security characteristics comprises a plurality of ranges of one of:
average trading volumes, average daily trading volumes or market capitalizations.
3. The method of claim 1 wherein the plurality of security characteristics comprises a plurality of market capitalization ranges, a market capitalization comprising a total number of outstanding shares multiplied by a current share price.
4. The method of claim 1 wherein step (a) comprises receiving, from a party, for each of a high, medium, and low average daily trading volume range, a minimum credit rating for desired contra parties for trades involving securities specified for the respective volume ranges.
5. The method of claim 1 , further comprising executing a trade corresponding to the trading indication between the party and the identified contra party.
6. A system for allowing prospective traders to selectively match indications of interest or binding orders with contra parties based on reliability ratings of potential contra-parties and the trading characteristics or market capitalization for the security desired to be traded, the system comprising:
a receiver executing on a computer processor, which receives, from a party, for security order information corresponding to a security, the order information consisting of a security identifier and the order type;
a storage element maintaining, for each of a plurality of security characteristics, a minimum credit rating for desired contra parties for trades involving securities with the specified security characteristic; and
a processor in communication with the storage element and receiver which determines a security characteristic corresponding to the identified security;
identifies the minimum credit rating specified for the determined security characteristic;
and matches the indication order information only to a contra party satisfying the identified minimum credit rating.
7. The system of claim 6 wherein the plurality of security characteristics comprises a plurality for ranges of one of:
average trading volumes, average daily trading volumes or market capitalizations.
8. The system of claim 6 wherein the storage element maintains, for each of a high, medium, and low average daily trading volume range, a minimum credit rating for desired contra parties for trades involving securities specified for the respective volume ranges.
9. The system of claim 6 , further comprising means for executing a trade corresponding to the and order information with the identified contra party.