Conversational Dealing in an Anonymous Trading System

Abstract

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.

What is claimed is: 
     
         1 . A computerized trading system, comprising:
 one or more computers connected to a plurality of trader terminals, each trading terminal being associated with a respective trading party, the one or more computers receiving quotes and orders from the trader terminals and, in response thereto;
 executing an anonymous trade between first and second trading parties based upon the received quotes and orders; 
 sending information to the trader terminals associated with the first and second trading parties identifying the trading parties to each other after the anonymous trade has been executed; and thereafter 
 permitting the first and second trading parties to execute a conversational trade between each other using the one or more computers. 
   
     
     
         2 . The computerized trading system of  claim 1 , wherein the anonymous trade is made as a function if stored credit limits and the conversational trade is not. 
     
     
         3 . A computerized trading system, comprising:
 one or more computers connected to a plurality of trader terminals, each trading terminal being associated with a respective trading party, the one or more computers receiving quotes and orders from the trader terminals and, in response thereto;
 executing a first anonymous trade between first and second trading parties based on bilateral credit limits related to the first and second trading parties; and thereafter 
 permitting the first and second trading parties to execute a second trade, without regard to credit limits, based upon the fact that the first trade has been executed. 
   
     
     
         4 . The computerized trading system of  claim 3 , wherein the stored credit limits are stored within the anonymous trading system and indicate how much credit the first trading party extends to the second trading party and how much credit the second trading party extends to the first trading party.