Systems and Methods for an Online Credit Derivative Trading System

Abstract

A credit derivative trading system comprises a credit derivative authority configured to receive defined positions for credit derivatives and update a plurality of trade clients in real-time whenever there is movement in the market for a particular credit derivative.

1 - 17 . (canceled) 
   
   
       18 . An auction method comprising:
 accepting a plurality of offer prices for a security from a plurality of participants;   accepting a new bid price for the security from a bid participant;   determining a best offer price from the plurality of offer prices; and   offering the new bid price for a predetermined period of time only to the participant with the best offer price.   
   
   
       19 . An auction method comprising:
 accepting a plurality of bid prices for a security from a plurality of participants;   accepting a new offer price for the security from a bid participant;   determining the best bid price from the plurality of bid prices; and   offering the new offer price for a predetermined period of time only to the participant with the best bid price.   
   
   
       20 . The auction method of  claim 18 , wherein the predetermined time period is approximately five seconds. 
   
   
       21 . The auction method of  claim 18 , further comprising determining the best offer price by comparing offer prices stored in a database. 
   
   
       22 . The auction method of  claim 18 , wherein the security comprises a credit derivative. 
   
   
       23 . The auction method of  claim 22 , further comprising validating each received offer to determine if each offer price specifies a valid credit derivative. 
   
   
       24 . The auction method of  claim 23 , further comprising displaying an error message on a trader client interface if the offer is invalid. 
   
   
       25 . The auction method of  claim 18 , further comprising evaluating each participant offer based on information provided by each participant regarding acceptable counterparties. 
   
   
       26 . The auction method of  claim 18 , further comprising notifying each participant of the auction based on a selected geographic preference of the participant. 
   
   
       27 . The auction method of  claim 18 , further comprising notifying all participants of the best offer price. 
   
   
       28 . The auction method of  claim 19 , wherein the predetermined time period is approximately five seconds. 
   
   
       29 . The auction method of  claim 19 , further comprising determining the best bid price by comparing bid prices stored in a database. 
   
   
       30 . The auction method of  claim 19 , wherein the security comprises a credit derivative. 
   
   
       31 . The auction method of  claim 30 , further comprising validating each received bid to determine if each bid specifies a valid credit derivative. 
   
   
       32 . The auction method of  claim 31 , further comprising displaying an error message on a trader client interface if the offer is invalid. 
   
   
       33 . The auction method of  claim 19 , further comprising evaluating participant bids based on information provided by each participant regarding acceptable counterparties. 
   
   
       34 . The auction method of  claim 19 , further comprising notifying each participant of the auction based on a selected geographic preference of the participant. 
   
   
       35 . The auction method of  claim 19 , further comprising notifying all participants of the best bid.