Matching computer of a negotiated matching system

Abstract

A matching computer is provided for a negotiated matching system that includes a plurality of remote terminals associated with respective potential counterparties, a communications network for permitting communication between the remote terminals, and the matching computer. Each user enters first parameters for a trading instrument into his or her remote terminal. The matching computer uses the trading parameters from each user to identify potential transactions between counterparties that are mutually acceptable based on the first parameters, thereby matching potential counterparties to a potential transaction. Once a match occurs, the potential counterparties can transmit negotiating messages to negotiate some or all terms of the transaction. Thus, the matching computer first matches potential counterparties who are acceptable to each other based on first trading parameters, and then enables the counterparties to negotiate and finalize the terms of a transaction.

1 . A matching computer of a negotiated matching system, the matching computer in communication with trading terminals via a communications network, the matching computer comprising: 
 a processor; and    a computer-readable medium in communication with the processor, the computer-readable medium having computer-readable instructions stored thereon instructing the processor to perform steps comprising: 
 receiving first trading parameters for a trading instrument from a first trader via a first trading terminal, the first trading parameters comprising at least a first price for the trading instrument;  
 receiving first trading parameters for the trading instrument from a second trader via a second trading terminal, the first trading parameters from the second trader comprising at least a second price for the trading instrument;  
 matching the first trading parameters from the first and second traders to identify the first trader and the second trader as potential counterparties for a tentative trading transaction, the matching occurring anonymously with respect to the potential counterparties;  
 after the step of matching, notifying the potential counterparties of the tentative trading transaction via the communications network, the step of notifying including automatically revealing to the potential counterparties the identity of the potential counterparties so that they may negotiate second trading parameters for the trading instrument, the second trading parameters comprising outstanding terms of the tentative trading transaction;  
 receiving information indicating agreement between the potential counterparties of all trading parameters of the tentative trading transaction; and  
 after the step of receiving information, completing the transaction between the counterparties to permit settlement of the completed transaction.  
   
   
   
       2 . The matching computer of  claim 1 , wherein the trading instrument is a financial instrument.  
   
   
       3 . The matching computer of  claim 2 , wherein the financial instrument is a foreign exchange instrument.  
   
   
       4 . The matching computer of  claim 1 , wherein the second trading parameters comprise some of the first trading parameters from the first and second traders.  
   
   
       5 . The matching computer of  claim 4 , wherein the second trading parameters comprise trading parameters in addition to the some of the first trading parameters from the first and second traders.  
   
   
       6 . The matching computer of  claim 1 , wherein the outstanding terms include second trading parameters from the first and second traders.  
   
   
       7 . The matching computer of  claim 6 , wherein the outstanding terms further comprise all of the first trading parameters from the first and second traders.  
   
   
       8 . The matching computer of  claim 6 , wherein the outstanding terms do not include the first trading parameters from the first and second traders.  
   
   
       9 . The matching computer of  claim 1 , wherein the step of/matching comprises matching the first price exactly with the second price.  
   
   
       10 . The matching computer of  claim 1 , wherein, for the step of receiving first trading parameters from the first trader, the first trading parameters from the first trader further include buy parameters for the trading instrument.  
   
   
       11 . The matching computer of  claim 10 , wherein, for the step of receiving first trading parameters from the second trader, the first trading parameters from the second trader include an acceptance of the first buy parameters from the first trader.  
   
   
       12 . The matching computer of  claim 11 , wherein, for the steps of receiving first trading parameters from the first and second traders, the buy parameters include a bid and the acceptance of the first buy parameters includes a hit.  
   
   
       13 . The matching computer of  claim 1 , wherein, for the step of receiving first trading parameters from the first trader, the first trading parameters from the first trader further include sell parameters for the trading instrument.  
   
   
       14 . The matching computer of  claim 13 , wherein, for the step of receiving first trading parameters from the second trader, the first trading parameters from the second trader include an acceptance of the first sell parameters from the first trader.  
   
   
       15 . The matching computer of  claim 14 , wherein, for the steps of receiving first trading parameters from the first and second traders, the sell parameters include an ask and the acceptance of the first sell parameters includes a take.  
   
   
       16 . The matching computer of  claim 1 , wherein, for the step of receiving first trading parameters from the first trader, the first trading parameters further comprise a first quantity for the trading instrument.  
   
   
       17 . The matching computer of  claim 16 , wherein, for the step of receiving first trading parameters from the second trader, the first trading parameters further comprise a second quantity for the trading instrument.  
   
   
       18 . The matching computer of  claim 16 , wherein, for the step of notifying the potential counterparties, the outstanding terms include a third quantity for the trading instrument and, for the step of receiving information indicating agreement, the information indicates agreement between the potential counterparties of the third quantity.  
   
   
       19 . The matching computer of  claim 18 , wherein the third quantity is the same as at least one of the first and second quantity.