Automated trading systems
In an electronic trading system, prime brokerage services may be provided by assigning one or more dependent or child deal codes to a deal code. Prime broker trades are conducted via the dependent deal codes but appear to the market as deals with the parent deal code using credit assigned to the parent deal code. The prime bank customer is a dependent deal code of the customer bank which also trades on the system, allowing credit to be allocated by the customer dependent code for prime broker trades. A deal code may have several dependent deal codes which can trade with one another. Dependent deal codes can be used to expand the size of trading floors beyond that which can be supported by a single deal code and to assist in migration between system versions.
1. An electronic trading system for trading products between counterparties, the electronic trading system comprising:
one or more computers configured to:
receive, from trading terminals of said counterparties, quotes to buy or sell products on the electronic trading system using a dependent trading floor code dependent on a parent trading floor code;
access, from a store of a trading floor administrator computer associated with a dependent counterparty, credit limits for trades by the dependent counterparty, the credit limits for trades by the dependent counterparty being assigned using the dependent trading floor code and using a parent counterparty's credit with at least one other counterparty; and
determine whether the quotes to buy or sell products on the electronic trading system, for trades by the dependent counterparty, would exceed the credit limits using the dependent trading floor code and using the parent counterparty's credit.
2. The electronic trading system according to claim 1 , wherein each dependent trading floor code is assigned to a prime bank offering prime brokerage to third party banks trading on the system.
3. The electronic trading system according to claim 1 or 2 , wherein each parent trading floor code has a plurality of dependent trading floor codes, and wherein each product trading on the system is assigned a dependent trading floor code.
4. The electronic trading system according to claim 3 , wherein the system comprises an automated trading interface trading on the system in accordance with a trading algorithm.
5. The electronic trading system according to claim 2 , wherein a plurality of parent trading floor codes have dependent trading floor codes assigned to prime banks, and at least one parent trading floor code has a plurality of dependent customer trading floor codes assigned to prime customer traders, each prime customer dependent trading floor code being assigned to trades with one of the prime bank dependent trading floor codes.
6. The electronic trading system according to claims 1 or 5 , wherein at least one of the trading floor codes comprises a virtual deal code having no physical traders trading via the deal code.
7. The electronic trading system according to claim 2 , wherein
at least one of the dependent trading floor codes is for a prime customer that can use the prime brokerage offered by a prime bank that is assigned the dependent trading floor code,
the prime customer is assigned a parent customer trading floor code for trades made using the prime customer's credit, and
the prime customer is assigned a dependent customer trading floor code for trades made using the prime bank's credit.
8. The electronic trading system according to claim 7 , wherein the prime customer's dependent customer trading floor code assigns credit to the prime bank's dependent trading floor code.
9. The electronic trading system according to claim 8 , wherein the store is configured to store credit limits for trades made using the prime customer dependent customer trading floor code, on behalf of the prime customer dependent trading floor code, by the prime bank dependent trading floor code.
10. The electronic trading system according to claim 7 , wherein a plurality of prime banks are each assigned a dependent trading floor code, and each prime customer is assigned several dependent trading floor codes, each dependent trading floor code uses the credit of a respective prime bank for trading.
11. The electronic trading system according to claim 10 , wherein each of the plurality of prime banks uses the credit of one parent counterparty, and each prime bank is assigned a dependent trading floor code related to the parent trading floor code of the parent counterparty.
12. The electronic trading system according to claim 10 , wherein each of the plurality of prime banks uses the credit of more than one parent counterparty, and each prime bank is assigned more than one dependent trading floor code, each dependent trading floor code being related to the parent trading floor code of the respective parent counterparty.