Electronic trading system having increased liquidity provision

Abstract

An anonymous trading system includes a prime broker facility that allows a third party to trade on behalf of an institution. A deal is executed between the third party and a counter-party and a further deal is then executed between the third party and the party on whose behalf it has traded. The second deal may be for the same amount as the first deal or may be altered to include the third party's fee for conducting the first deal. Clients of the third party have prices available to them for trades made via the third party which are displayed at their trader terminals. The client sees that a better price is available though the third party than by dealing direct and selects to conduct a deal through the third party.

What is claimed is: 
     
         1 . An anonymous trading system for trading fungible instruments, comprising:
 a matching engine for matching orders submitted to the system for execution of trades;   a plurality of trading floors each for submitting electronic trading messages to the matching engine;   a market distributor for distributing to each trading floor a market view unique to the trading floor and including the best price in the market with which the trading floor has bilateral credit, and for distributing to selected trading floors the best price available by trading via a third party trading floor; wherein   the selected trading floors include means for causing the third party trading floor to execute a first deal at the best price available to the third party trading floor, and to execute a second deal between the trading floor and the third party trading floor for the amount of the first deal.