Session-Based Electronic Trading

Abstract

An electronic trading method, system, apparatus and platform that facilitate dealer to client trading of financial instruments in a session-based format. In one embodiment, the electronic trading system establishes a trading session for a given financial instrument at a predetermined date and time. The electronic trading system presents a two-sided market and provides a guarantee of a minimum liquidity for the trading session. The electronic trading system then executes client orders based on time of order entry and allocation of available liquidity.

We claim: 
     
         1 . An electronic trading system, comprising:
 a memory;   a processor in communication with the memory, and configured to execute a plurality of processing instructions to:
 configure a session of a predetermined length for trading in a financial instrument; 
 receive a bid and an ask for the financial instrument; 
 aggregate orders at the bid or the ask during an order entry phase of the session; and 
 execute one or more of the orders. 
   
     
     
         2 . The electronic trading system of  claim 1 , wherein the session is run by a dealer of the financial instrument and the orders are received from customers participating in the session. 
     
     
         3 . The electronic trading system of  claim 2 , wherein the customers include Qualified Institutional Buyers. 
     
     
         4 . The electronic trading system of  claim 2 , wherein the session guarantees execution of one or more of the orders up to at least a notional amount. 
     
     
         5 . The electronic trading system of  claim 4 , wherein the bid and the ask for the financial instrument are received from a trader managing the session. 
     
     
         6 . The electronic trading system of  claim 4 , further comprising instructions to:
 release the bid and the ask for the financial instrument at the beginning of the order entry phase of the session.   
     
     
         7 . The electronic trading system of  claim 4 , wherein the one or more of the orders are executed against a dealer of the financial instrument. 
     
     
         8 . The electronic trading system of  claim 4 , wherein the one or more of the orders are crossed against each other. 
     
     
         9 . The electronic trading system of  claim 5 , further comprising instructions to:
 anonymize the one or more orders based on order handling rules for the trader; and   provide the anonymized one or more orders to a user interface accessible by the trader.   
     
     
         10 . The electronic trading system of  claim 4 , further comprising instructions to:
 filter each of the one or more orders based on order handling rules for sales coverage; and   provide each of the filtered one or more orders to a user interface accessible by a sales person associated with the corresponding order.   
     
     
         11 . The electronic trading system of  claim 4 , further comprising instructions to:
 receive session parameters including a selection of the financial instrument and the notional amount guaranteed by the session.   
     
     
         12 . The electronic trading system of  claim 2 , wherein the financial instrument is a debt instrument. 
     
     
         13 . The electronic trading system of  claim 2 , wherein the financial instrument is an over the counter derivative product. 
     
     
         14 . The electronic trading system of  claim 2 , wherein the financial instrument is an equity instrument. 
     
     
         15 . The electronic trading system of  claim 4 , further comprising instructions to:
 determine from the aggregated orders total order interests on each trade side; and   trigger price improvement when the total order interests on each trade side is at least the notional amount guaranteed by the session.   
     
     
         16 . The electronic trading system of  claim 15 , wherein each of the one or more of the orders are executed at a new bid or a new ask that generates a saving for a customer associated with the corresponding order. 
     
     
         17 . The electronic trading system of  claim 4 , further comprising instructions to:
 generate session data from the orders and execution of the one or more of the orders;   obtain an information transparency setting; and   select, based on the information transparency setting, a portion of the session data for transmission.   
     
     
         18 . The electronic trading system of  claim 17 , further comprising instructions to:
 identify a session participant qualified to receive the session data; and   transmit the selected portion of the session data to the qualified session participant.   
     
     
         19 . A processor-implemented electronic trading method, comprising:
 configuring a session of a predetermined length for trading in a financial instrument;   receiving a bid and an ask for the financial instrument;   aggregating orders at the bid or the ask during an order entry phase of the session; and   executing one or more of the orders.   
     
     
         20 . The method of  claim 19 , wherein the session is run by a dealer of the financial instrument and the orders are received from customers participating in the session. 
     
     
         21 . The method of  claim 20 , wherein the customers include Qualified Institutional Buyers. 
     
     
         22 . The method of  claim 20 , wherein the session guarantees execution of one or more of the orders up to at least a notional amount. 
     
     
         23 . The method of  claim 22 , wherein the bid and the ask for the financial instrument are received from a trader managing the session. 
     
     
         24 . The method of  claim 22 , further comprising:
 releasing the bid and the ask for the financial instrument at the beginning of the order entry phase of the session.   
     
     
         25 . The method of  claim 22 , wherein the one or more of the orders are executed against the dealer of the financial instrument. 
     
     
         26 . The method of  claim 22 , wherein the one or more of the orders are crossed against each other. 
     
     
         27 . The method of  claim 23 , further comprising:
 anonymizing the one or more orders based on order handling rules for the trader; and   providing the anonymized one or more orders to a user interface accessible by the trader.   
     
     
         28 . The method of  claim 22 , further comprising:
 filtering each of the one or more orders based on order handling rules for sales coverage; and   providing each of the filtered one or more orders to a user interface accessible by a sales person associated with the corresponding order.   
     
     
         29 . The method of  claim 22 , further comprising:
 receiving session parameters including a selection of the financial instrument and the notional amount guaranteed by the session.   
     
     
         30 . The method of  claim 20 , wherein the financial instrument is a debt instrument. 
     
     
         31 . The method of  claim 20 , wherein the financial instrument is an over the counter derivative product. 
     
     
         32 . The method of  claim 20 , wherein the financial instrument is an equity instrument. 
     
     
         33 . The method of  claim 22 , further comprising:
 determining from the aggregated orders total order interests on each trade side; and   triggering price improvement when the total order interests on each trade side is at least the notional amount guaranteed by the session.   
     
     
         34 . The method of  claim 33 , wherein each of the one or more of the orders are executed at a new bid or a new ask that generates a saving for a customer associated with the corresponding order. 
     
     
         35 . The method of  claim 22 , further comprising:
 generating session data from the orders and execution of the one or more of the orders;   obtaining an information transparency setting; and   selecting, based on the information transparency setting, a portion of the session data for transmission.   
     
     
         36 . The method of  claim 35 , further comprising:
 identifying a session participant qualified to receive the session data; and   transmitting the selected portion of the session data to the qualified session participant.   
     
     
         37 . A processor-readable non-transient medium storing instructions to:
 configure a session of a predetermined length for trading in a financial instrument;   receive a bid and an ask for the financial instrument;   aggregate orders at the bid or the ask during an order entry phase of the session; and   execute one or more of the orders.   
     
     
         38 . The medium of  claim 37 , wherein the session is run by a dealer of the financial instrument and the orders are received from customers participating in the session. 
     
     
         39 . The medium of  claim 38 , wherein the customers include Qualified Institutional Buyers. 
     
     
         40 . The medium of  claim 37 , wherein the session guarantees execution of one or more of the orders up to at least a notional amount. 
     
     
         41 . The medium of  claim 40 , wherein the bid and the ask for the financial instrument are received from a trader managing the session. 
     
     
         42 . The medium of  claim 40 , further comprising instructions to:
 release the bid and the ask for the financial instrument at the beginning of the order entry phase of the session.   
     
     
         43 . The medium of  claim 40 , wherein the one or more of the orders are executed against the dealer of the financial instrument. 
     
     
         44 . The medium of  claim 40 , wherein the one or more of the orders are crossed against each other. 
     
     
         45 . The medium of  claim 41 , further comprising instructions to:
 anonymize the one or more orders based on order handling rules for the trader; and   provide the anonymized one or more orders to a user interface accessible by the trader.   
     
     
         46 . The medium of  claim 40 , further comprising instructions to:
 filter each of the one or more orders based on order handling rules for sales coverage; and   provide each of the filtered one or more orders to a user interface accessible by a sales person associated with the corresponding order.   
     
     
         47 . The medium of  claim 40 , further comprising instructions to:
 receive session parameters including a selection of the financial instrument and the notional amount guaranteed by the session.   
     
     
         48 . The medium of  claim 38 , wherein the financial instrument is a debt instrument. 
     
     
         49 . The medium of  claim 38 , wherein the financial instrument is an over the counter derivative. 
     
     
         50 . The medium of  claim 38 , wherein the financial instrument is an equity instrument. 
     
     
         51 . The medium of  claim 40 , further comprising instructions to:
 determine from the aggregated orders total order interests on each trade side; and   trigger price improvement when the total order interests on each trade side is at least the notional amount guaranteed for the session.   
     
     
         52 . The medium of  claim 51 , wherein each of the one or more of the orders are executed at a new bid or a new ask that generates a saving for a customer associated with the corresponding order. 
     
     
         53 . The medium of  claim 40 , further comprising instructions to:
 generate session data from the orders and execution of the one or more of the orders;   obtain an information transparency setting; and   select, based on the information transparency setting, a portion of the session data for transmission.   
     
     
         54 . The medium of  claim 53 , further comprising instructions to:
 identify a session participant qualified to receive the session data; and   transmit the selected portion of the session data to the qualified session participant.