Conversational dealing in an anonymous trading system
An anonymous trading system for financial instruments comprises a network of broking nodes each performing a bid and offer matching function and a market view distribution function. Trader terminals are connected to the network via trading agent nodes. During deal execution a credit check is performed and once the deal is complete the identity of the counterparty becomes known to the other counterparty to the deal. The originating counterparty may send a More quantity message to the other party proposing a further deal at the same price. The other party may decline, partially accept, accept or accept and propose a still further amount. Credit for the further deal is drawn from an external source and the internal credit limits are temporarily increased or disabled to prevent the deal from being rejected.
1. A method for trading in an anonymous trading network, the method comprising:
executing an anonymous trade over the anonymous trading network between a first and second party;
identifying the first and second party to each other after the anonymous trade has been executed; and thereafter
permitting the first and second party to execute a conversational trade using the anonymous trading network.
2. A method of trading using an electronic anonymous trading system, the method comprising the anonymous trading system:
executing a first trade between a first and a second trader party based on bilateral credit limits related to the respective parties; and thereafter
permitting the first and second parties to execute a second trade, without regard to credit limits, based upon the fact that the first trade has been executed.
3. The method of claim 1 , wherein the anonymous trade is made as a function if stored credit limits and the conversational trade is not.
4. The method of claim 3 , wherein the stored credit limits are stored within the anonymous trading system and indicate how much credit the first party extends to the second party and how much credit the second party extends to the first party.