System and method for financial matching

Abstract

A trading platform for trading financial instruments, and in particular for clearing odd lots, that provides the ability to receive, manage, match, and supervise orders. In an exemplary embodiment, the trading platform includes computer software modules and provides graphical user interfaces to handle the process of entering orders for desired positions, monitor the status of open positions, and obtain data in connection order requests. The trading platform is also capable of matching orders and sending orders to be executed.

1 . A system for matching one or more first trading positions of a first dealer with one or more second trading positions of a second dealer, the system in communication with one or more first dealer computer systems and one or more second dealer computer systems having software operable thereon that enables communication with the system, the system comprising:
 an order entry system including one or more computer systems operative to accept the one or more first trading positions and the one or more second trading positions;   a matching system including one or more back-end computer systems operative to match one of the first trading positions with one of the second trading positions based on a predetermined criteria;   a graphical user interface that permits the first dealer and second dealer to submit and monitor the one or more first trading positions and the one or more second trading positions;   wherein the system is configured with programming to:
 accept the one or more first trading positions and the one or more second trading positions; 
 determine whether any first trading position is a match to any second trading position; and 
 execute a trade when a match is formed. 
   
     
     
         2 . The system of  claim 1  wherein:
 the matching system is further operative to determine whether any first trading position is opposed to any second trading position; and 
 the system is further configured with programming to form matches when one of the first trading positions is opposed to one of the second trading positions. 
 
     
     
         3 . The system of  claim 1  wherein:
 the system further comprises a prioritizing module operative to assign a rank to the first dealer and second dealer; and 
 the system is further configured with programming to form matches based on the ranks of the first dealer and the second dealer. 
 
     
     
         4 . The system of  claim 1  wherein:
 the system further comprises a prioritizing module operative to assign a percentile to the first dealer and second dealer; and 
 the system is further configured with programming to form matches based on the percentiles of the first dealer and the second dealer. 
 
     
     
         5 . The system of  claim 1  wherein:
 the first trading positions each include a unique identifying code for a financial instrument and a quantity of such financial instrument to be traded; and 
 the second trading positions each include a unique identifying code for a financial instrument and a quantity of such financial instrument to be traded. 
 
     
     
         6 . The system of  claim 1  further comprising a fills system including one or more computer systems operative to indicate whether any of the first orders or second orders have been filled. 
     
     
         7 . The system of  claim 1  further comprising an orders and fills system including one or more computer systems operative to display data concerning the one or more first trading positions and the one or more second trading positions. 
     
     
         8 . The system of  claim 1  wherein the graphical user interface includes a timer capable of tracking the amount of time remaining for the first dealer and second dealer to submit trading positions. 
     
     
         9 . A method for matching one or more first trading positions of a first dealer with one or more second trading positions of a second dealer on a system in communication with one or more first dealer computer systems and one or more second dealer computer systems having software operable thereon that enables communication with the system, the method comprising:
 accepting the one or more first trading positions from the first dealer;   accepting the one or more second trading positions from the second dealer;   forming matches between one of the first trading positions and one of the second trading positions based on a predetermined matching criteria when any first trading position is opposed to any second trading position; and   forwarding trades for execution based on the matches.   
     
     
         10 . The method of  claim 9  wherein the matches facilitate elimination of odd lots for at least one of the first dealer and second dealer. 
     
     
         11 . The method of  claim 9  further comprising:
 assigning dealer priorities to the first dealer and the second dealer based on a predetermined dealer criteria; and 
 wherein the predetermined matching criteria is based on the dealer priorities. 
 
     
     
         12 . The method of  claim 11  wherein the predetermined dealer criteria includes at least one of: a dealer percentile; a dealer rank; a dealer volume; and a dealer time entry. 
     
     
         13 . The method of  claim 9  further comprising:
 assigning position priorities to the first trading positions and the second trading positions based on a predetermined positions criteria; and 
 wherein the predetermined matching criteria is based on the position priorities. 
 
     
     
         14 . The method of  claim 9  further comprising:
 receiving trade limits from one of the first dealer and the second dealer; 
 determining whether any matches violate the trade limits; and 
 cancelling the trade if any match violates a trade limit.