Large block trading

[0002] The accompanying drawings are not intended to be drawn to scale. In the drawings, each identical or similar component that is illustrated in various figures is represented by a like numeral. For purposes of clarity, not every component may be labeled or act identified in every drawing, hi the drawings:

[0003] Figure 1 shows a computer system architecture that may be used to perform one or more acts in accordance with some embodiments;

[0004] Figure 2 shows a network of servers that may be used to perform one or more acts in accordance with tire embodiments; .

[0005] Figure 3 shows an example process that may be performed by some embodiments;

[0006] Figure 4 shows another example process that may be performed by some embodiments; and [0007] Figure 5 shows another example process that may be performed by some embodiments.

DETAILED DESCRIPTION

I, Embodiments [0008] Traders of financial instruments sometimes dislike revealing information to the market about instruments they are interested in purchasing or selling. This is particularly so for large transactions, where a release of information that some entity is interested in arranging a large volume transaction for an instrument can affect the market for that instrument even before any transaction occurs- If traders are hesitant to post large orders, liquidity in the market is hindered.

[0009] Systems and methods are described herein for administering trade orders and arranging for traders to find partners to trade with. One advantage of some embodiments of systems and methods described herein is that they can keep more information confidential, and keep it confidential for longer, than conventional systems.

[0010] Various embodiments disclosed herein relate to systems and methods for facilitating trades of securities between entities by winch an entity wishing to make a trade offer can do so without necessarily revealing its identity or even revealing the total amount of securities it wishes to trade. In some embodiments, for example, a first saver operated on behalf of a first trader nay send a trade order to a second server, the trade order including an offer to trade a specified instrument, perhaps at a specified price and specified quantity. The second server may then query one or more third servers asking whether any trader associated with the third servers is interested in the trade represented in the trade order. The query need not include all of the information in the trade order. If one of the third servers responds positively to the query, a trade is facilitated between the first trader and a second trader associated with foe third server. In embodiments, the facilitated trade occurs at thé parameters specified in the trade order and/or in the query, without any opportunity for further negotiation between the first trader and foe second trader. Such embodiments provide foe advantage of concealing certain informi about the offer to trade at least until Û ide is completed, helping to avoid effects on the market for foe specified instruments of the placement of large orders, even before those offers are filled. This in turn encourages traders to place orders, particularly large orders, and therefore enhanci juidity in the marketplace.

[0011] Figure 2 illustrates an example configuration 200 of servers in which methods of some embodiments can bo performed. Servers 202 communicate with central server 206 via network 204. Central sender 206 is in communication with servers212 via network 210. fit embodiments, networks 204 and 210 may be a single network or fonu part of a single network. In other embodiments, networks 204 and 210

2017-11-21

CA 02705940 2013-12-11 may be two separate networks unconnected except through their common connection to central server 206. In still other embodiments, networks 204 and 210 may be connected via a larger network such as the Internet[0012] Servers 202 may be, but are not limited to, sell-side servers. Servers 212 may be, but are not limited to, buy-side servers. A server 202 or 212 may be operated by or on behalf of one or more traders 218 or 216 (respectively). In embodiments, one or more of servers 202 and servers 212 is an order management system. Generally, servers 202 and 212 can be any server programmed to communicate with central server 206 as described below. Any of servers 202 and 212 may include or be communication with a database 220 or 214 (respectively). Database 214 may include information relating to one or more trades that a trader 216 associated with the server (for example, on whose behalf the server is operating) is interested in making. Such information may include a specified instrument that a trader is interested in buying or selling, The information may also include a specified quantity of the instrument that the trader wishes to trade. The information may also inducts a specified price at which the trader wishes to trade the specified instrument.

[0013] While server 206 is referred to in this discussion as a “central” server, in embodiments the functions performed by central server 206 can be performed by any suitably programmed server, including a buy-sidé server or a sell-side server. Central server 206 may, in embodiments, include or be in communication with database 208 of registered servers and/or registered traders that central server 206 communicates with to receive trade orders and send queries. Central·server 206 may also include orbe in communication with a database of trade orders that have been submitted to the central server, for example, by one of servers 202 or 212. The database of trade orders may include trade orders that have been submitted but not yet filled. The database of trade orders maybe hosted together with or separately from the database of registered servers and/or registered traders.

[0014] In embodiments, a server 202 submits a trade order to the central server 206. The trade order includes an offer to trade that may be a binding offer or a conditional offer. The central server 206 may respond to receipt of the trade order by sending a query out to one or more of servers 212 as described in detail below. (Again, it should be noted that in various embodiments there may be servers that can both submit a trade order and receive a query, the order-submitting servers 202 and queryreceiving servers 212 are separated here only foi dlsrity of discussion.) A feature of some embodiments is that server202 (or trader 2118 on whose behalf server 202 operates) need not submit the trade order to any open market platform, so the trade order does not need to become publicly known, In embodiments, it is not necessary for any server other than the central server 206 to receive the identity of server202 (or trader 218) before the offer to trade is accepted arid a trade is completed.

[0015] As discussed in further detail below, the servers 212 receiving the query sent by central server 206 evaluate the query and determine whether to accept the offered trade. In embodiments, the trade may be presented to a user, who may be trader

216 or a representative of trader 216, who decides whether to accept the offered trade and inputs his decision to a terminal in communication with server 212. In other embodiments, server 212 may query the database!214 to determine whether it contains an entry for a desired trade matching the offered trade. If a positive response is indicated (either with or without human input), server 212 returns a positive response to central server 206. Central server 206 may then facilitate execution of the trade at the trade parameters (such as specified instrument specified quantity, and/or specified price) set forth in the trade order submitted by server 202. A feature of some embodiments is that server 212 (or trader 216 on whose behalf server 212 operates) need not submit to any open market platform trades it is interested in making, so its desire to trade for specified instruments need notlbecome publicly known. No server other than the central server 206 needs to receive! the identity of server 212 (or trader

216) before the offer to trade is accepted and a trade is completed.

[0016] Figure 3 illustrates an example process 300 that may be performed by some embodiments. In block 302 a trade order islieceived. As noted above, the trade order may be submitted by a server 202 and be received by central server 206. {Once again, it should be noted that while the term “central server” is used in this discussion 30 for clarity, the functions ascribed to the central server 206 in this discussion may be

CA 2705940 2017-11-21

CA 02705940 2013-12-11 executed by any suitably programmed server.) The trade order may be received as part of a communication including other information apart from the trade order. Although a completed trade typically is a purchase or sale of a specified quantity of a specified instrument at a specified price, as discussed further below, in embodiments the trade order initially received may not include all of tbatjinformation.

[0017] In embodiments, in response to receiving the trade order, the central server 206 searches database 208 for a matching tirade order that can fill or partially fill the received trade order (block 304). As noted above, database 208 may include as-yetunfilled trade orders previously submitted by any server or trader. If a matching trade order is found that can fill or partially fin the received trade order, central server 206 facilitates execution of a trade between the entities represented in the received trade order and the matching trade order (block 314). Facilitating execution of the trade may include, for example, passing the parameters of the trade to a clearinghouse to execute the trade.

[0018] If no matching trade order is found in database 208 (step 304), or if matching trade orders that arc found only partially fill the received trade order, central sever 206 sends a query out to one or more servers 212. (In some embodiments central server 206 does not search a database 208 prior to sending out a query and instead skips to block 306.) The query may include some or all of the terms of die received order, such as specified instrument, specified quantity, çnd/or specified price. In embodiments, the query does not include any information from which the server or trader submitting the trade order can be identified, hi further embodiments, the query does not include the specified quantity. An advantage of such embodiments is that when a trade order seeks a particularly large quantity of an instrument, neither uploading the trade order nor sending the query reveals to the market at large the information that any one entity is seeking such a large quantity of the instrument [0019] To send the query, central server 206 identifies recipients of the query (block 206). In embodiments foe query is sent to recipients a set of all recipients of which the central server 206 is aware or to a subset of that set For example, database 208 may include a database of servers 212 registered to received queries from central

CA 02705940 2013-12-11 server 206. The database may include traders 216 who are registered to receive queries along with IP addresses and/or other identifying information which central server 206 can use to send a query to servers 212 associated with or operated by or on behalf of traders 216. (Note teat more than one trader 216 may be associated with a single server 212.) In embodiments, the central server 206 identifies a subset of recipients according to selection criteria (block 306) as discussed farther below. Once the set or subset of recipients has been identified, the query is sent (block 308).

[0020] Upon receiving a query from the central server 206, a server 212 determines whether a positive response to the query is appropriate and/or required. Embodiments of processes by which the server 212 may determine whether to send a positive response to the query are discussed below.

[0021] If one or more of the servers 212 sends a positive response to the query, central server 206 receives the positive response (block 310). In response to receiving a positive response, the central server 210 may facilitate execution of a trade (block 312).

[0022] A positive response may, in embodiments, be any response from server 212 indicating a willingness to trade at at least one of foe parameters set forth in the query. A positive response may indicate an intent (e.g., of foe entity on whose behalf server 212 is operated) to be bound to a trade having the terms set forth in the trade order. In embodiments in which foe trade order itself does not include sufficient information to specify a complete trade, foe positive response may supply foe missing information such that a trade may be executed. For example, where a trade order does not include a specified quantity, or includes a partially specified quantity such as “up to 50,000 shares in 5,000 share increments,’’ foe positive response may include a more specific quantity such as “25,000 shares.” [0023] In embodiments, the trade order and the positive response, taken together, provide parameters of foe transaction with sufficient specificity that a transaction may be completed without any further negotiation between the entity represented by the trade order and the entity represented by the positive response. For example, suppose the specified instrument in the trade order is any stock of a large

CA 02705940 2013-12-11 cap energy company,” the specified price is “less than $50 per share ” and the specified quantity is “at least 50,000 shares.” In embodiments in which the positive response must provide enough information that a trade may be completed, without any further negotiation, an acceptable positive response must provide further specificity in the instrument, the price, and the quantity. An example of a suitable positive response is a positive response specifying 70,000 Exxon-Mobfi shares at $48 per share. Upon receiving such a positive response (and determining whether the selection criteria, if any, are met), the central server 206 will facilitate the transaction specified in die trade order (e.g. purchase or sale) for 70,000 Exxon-Mobil shares at $48 per share between the entity represented in the trade order and the entity represented in the positive response.

[0024] hr embodiments, the query and positive response, taken together, provide all parameters of the transaction except the price with sufficient specificity that a trade may be completed without further negotiation. Io some such embodiments the system may provide a default price, such as a market price.

[0025] In further embodiments, the trade order may provide no more information than a specified instrument, In still further embodiments, the query sent to servers 212 may include less information than the trade ordeT submitted to server 206 on which the query is based. So, for example, die trade order may include an offer to sell 50,000 shares of Microsoft stock, while the corresponding query may ask only whether any trader washes to purchase Microsoft stock without specifying a quantity, h any event, in embodiments where the query does not include a specified quantity, a positive response may indioate at least the particular instrument to be traded (if required) and a quantity for which the entity represented in the positive response wishes to be bound.

[0026] A positive response may also supply a price for the trade where one is not specified in the query. If the positive response does not include a price, the central server 206 (or a clearinghouse to which the server directs the trade for execution) may supply a default price, such as a market price for the instrument being traded. In general, there is no limitation on what information must be in the query and what must

CA 02705940 2013-12-11 be in the positive response, provided that the query, positive response, and any system defaults, taken together, supply enough specificity that a trade may be completed. In embodiments, the query, positive response, and any system defaults, taken together, supply enough specificity that a trade may be completed without farther negotiation. What follows are several further examples of combinations of query and positive responses sufficient to complete a trade:

[0027] Example 1. Trade order (and query) offers to sell 50,000 shares of Microsoft stock at $50 per share. Positive response accepts the offer. A trade is facilitated for 50,000 shares of Microsoft stock at S50 per share.

[0028] Example 2. Trade order (and query) offers to sell 50,000 shares of Microsoft stock at $50 per share. Positive response indicates offer to buy 30,000 shares. In some embodiments, the positive response will be rejected for not satisfying the trade order. In other embodiments, the positive response will be accepted and a trade for 30,000 shares facilitated as long as there is another positive responder willing to buy the outstanding 20,000 shares. In still farther embodiments, the positive response will be accepted and a trade facilitated for 30,000 shares regardless of whether other positive responses have been received.

[0029] Example 3- Trade order (and query) offers to sell 50,000 shares of Microsoft stock and specifies no price. Positive response accepts the offer without farther specificity. In some embodiments, a trade will be facilitated at a default price supplied by the central server 206 or by the clearinghouse executing the trade.

[0030] Example 4. Trade order (and query) offers to sell shares of Microsoft stock at at least $50 per share. Positive response offers to buy 20,000 shares of Microsoft stock at $50 per share. Trade can be facilitated for 20,000 shares of Microsoft stock at $50 per share, since positive response has supplied the needed specific quantity and specific price.

[0031] Example 5. Trade order offers to sell 100,000 shares of Microsoft: stock at at least $50 per share. The central server sends a query offering to sell shares of Microsoft stock at at least $50 per share without ispecifying the total quantity of shares offered for sale. Positive response offers to buy 20,000 shares of Microsoft stock at

CA 02705940 2013-12-11 $50 per share. Trade can be facilitated for 20,000 shares of Microsoft stock at $50 per share, since positive response has supplied the needed specific quantity and specific price.

[0032] L· the embodiment of example 5, fhe central server 206 is configured for additional secrecy by querying a minimum amount of information. In example 5, a trade can be completed for a definite number of shares without revealing the total quantity of shares offered. Thus in embodiments the trade order may include a maximum number of shares offered, for trade (for example, so that the central server can evaluate whether the trade order has been filled completely), while the queiy sent to servers 212 conceals that information.

[0033] When a response sufficient to complete a trade is received, the central server 206 facilitates execution of the trade (block 312) by, for example, passing the trade parameters to a clearinghouse which executes the trade or arranges for execution of the trade. In embodiments, a positive response sufficient to complete the trade is binding to foe entity represented by foe positive response, Jh embodiments that entity may be a trader operating fhe server 212, or an organization on whose behalf the trader operates server 212. Server 212 may be operated on behalf of a single entity or on behalf of multiple entities having access to the server or authorizing the server to place orders and/or receive queries and submit binding or nonbinding positive responses.

[0034] Where the central server 206 has sènt a queiy to multiple servers 212, it is possible to receive multiple positive responses. In some embodiments, central server 206 addresses these positive responses in the order received. For example, if the first positive response received is sufficient to complete a trade is sufficient to facilitate a trade, foe central server 206 will facilitate execution of the trade. If that trade fills the trade order completely, further positive responses may be disregarded. If the trade order remains at least partially unfilled after a trade with the first positive responder is complete, foe central server 206 may then proceed to foe second positive response received. The central server 206 may process the positive responses in order received until the trade order is completely filled. Alternatively foe central server 206 may prioritize the received positive responses in any order other than order received. For

CA 02705940 2013-12-11 example, in some embodiments, if no one of the positive responses indicates a large enough quantity to fill the trade order, the received positive responses may be prioritized according to the quantity specified in the positive response, such that die responder offering the largest number of quantity will trade first In still other embodiments, the received positive responses may be prioritized according to criteria supplied by the server 202 that submitted the trade order, ht still other embodiments, the received positive responses may be prioritized according to criteria supplied by an entity on whose behalf server 202 submitted the trade order. In cither of the latter two cases, the prioritizing criteria may be supplied with the trade order. Alternatively the prioritizing criteria may be stored in an entry in database 208 containing trading preferences of the server 202 and/or any entities on whose behalf server 202 is operated.

[00351 hi some embodiments, if there are positive responses outstanding after the trade order has been filled, the central server 206 may send a notification to any servers 212 that provided positive responses that did not lead to a completed trade. In some embodiments, the central server 206 may send a notification to any servers 212 thaï provided positive responses that did lead to a completed trade. In still other embodiments the central server 206 may send a suitable message to any server 212 that provided a positive response.

[0036] In embodiments, if a trade older remains at least partially unfilled after all positive responses have been processed - either because there was no positive response, because there was no positive responses sufficient to complete a trade, or because the order remains at least partially unfilled even after one or more trades have been facilitated in response to receipt of positive responses - the centra! server 206 may store the unfilled trade order in database 208. In such embodiments, once stored in database 208, the trade order may be available to match against other incoming trade orders.

[0037] In other embodiments, central server 206 may send additional queries based upon an unfilled or partially unfilled trade order. The additional queries may include adjustments to trade parameters that may facilitate a positive response. For

CA 02705940 2013-12-11 example, consider if the first query included! an offer to trade shares of an instrument in 10,000 share increments, and processing responses to the first query leaves the trade order upon which the query was based at least partially unfilled, a second query may be sent offering to trade shares of Are instrument in 5,000 share increments. In other embodiments, the central server206 may be configured to repeat queries or send additional queries corresponding to at least partially unfilled trade orders at or after a specified time (such as at 4:45 PM, or at six hours after the initial query), at a specified time prior to the close of business of that day, at a specified time after the opening of a different market, or at any other time.

[0038] In embodiments, what to do with an unfilled orpartially unfilled trade order may be configurable by a communication from the server 202. Instructions for handling unfilled or partially unfilled trade orders may be specified for a particular trade order, fbi example, in a communication submitted with the trade order or as part of the process for submitting trade orders. Central server 206 may store default instructions for handling unfilled or partially unfilled trade orders on for each server 202 or each entity on behalf of whom each server 202 operates. Such default instructions may, in embodiments, be ovenidable by instructions sent for a particular trade order.

[0039] As noted previously, in some embodiments, potential trade partners for the trade order submitted to the central server (block 302) can be filtered based, upon selection criteria- In some embodiments, the central server 206 may filter recipients of the query based upon selection criteria (block 306). For example, the central server 206 may evaluate possible recipients of the query to determine whether they meet specified requirements before sending a query to that recipient.

[0040] ia other embodiments, the central server 206 sends a query to a set of recipients and filters positive responses based upon the selection criteria. For example, when a positive response is received from a server 212, the central saver 206 may evaluate whether the server 212 satisfies the selection criteria, and facilitate: a trade based upon the server 2I2’s positive response only if the selection criteria are satisfied. An example of an embodiment of a process in which positive responses are filtered on

CA 02705940 2013-12-11 search criteria is shown in Figure 4. As in the process of Figure 3, a trade order is received (block 402). Also as in the process of Figure 3, the central server 206 may optionally search for a matching trade order in database 208 (block 404) and facilitate a trade if a matching trade order is fcund (block 414). If no matching trade order is found, or if ths trade order remains at least partially unfilled after any trades have been facilitated, the central server 206 sends a query to a set of recipients (block 406), such as servers 212. Upon receiving a positive response from a server 212 (block 408), the central server determines whether the server212 satisfies the selection criteria (block 410). If the selection criteria are satisfied, a trade is facilitated between the entity represented in die trade order and the entity represented in the positive response (block 412).

[0041] Whether applied before the query is sent, or applied to positive responses received, the selection criteria may be received by the server in a variety of suitable ways (block 302, block 402). In block 302 and block 402, the selection criteria may be received from server 202, read from database 208, or obtained or supplied by central server 206 in any other manner.

[0042] hi embodiments, selection criteria may be provided by the server 202 for a particular trade order. In such embodiments the selection criteria may be sent to the central server 206 by server 202 with the trade order, for example, as part of a communication including the trade order. For example, the server 202 may send a trade order to central server 206 along with information that effective tells central server 206 how to select the servers 212 that will receive a query based upon the trade order. (Forms that the selection criteria may take are discussed further below.) In other embodiments, the central server 206 is in communication with a database 208 that stores preferred selection criteria for the server 202. For example, in embodiments in which servers 202 registers with central server 206 prior to submitting trade orders to server206, the registration process may store a record in database 208 containing information about server 202 including trading preferences. These trading preferences can include selection criteria to be applied for all trade orders submitted by server 202. Alternatively, the database 208 can store default selection criteria to be applied to

CA 02705940 2013-12-11 server202 only where server 202 does not submit particular selection criteria for a particular trade order. Selection criteria may be stored for each server 202 and/or for entity on whose behalf server 202 submits trade orders.

[0043] lh embodiments, selection criteria relate to aspects of die trading history of server 212 or of the trader 216 or other entity on whose behalf a positive response is submitted. In such embodiments, the central server 206 may have access to a database (for example, database 208) in which is stored information about the trading histories of potential recipients savers 212 or of traders or entities associated with servers 212. A query may be sent only to those servers (or traders or entities) having a trading history that satisfies certain specified requirements. For example, it may desirable to limit query recipients only to those most likely to respond, in order to control access to information in the trade order. For that reason selection criteria may include servers (ar entities) having a positive response rate that exceeds a certain specified rate. In embodiments selection criteria be based upon the positive response rate for queries relating to particular types of instruments. Examples of possible selection criteria include:

[0044] Example I; servers or entities having a minimum overall positive response rate; servers or entities whose overall positive response rate exceeds 50%.

[0045] Example 2: servers or entities having a minimum positive response rate for a specified instrument, including the specified instrument of the trade order or a different specified instrument; servers or entities whose positive response rate for Microsoft stock exceeds 60%; servers or entities whose positive response rate for Exxon-Mobil derivatives exceeds 75%.

[0046] Example 3: servers or entities having a minimum positive response rate for instruments relating to a particular entity; servers or entities whose positive response rate for any instrument relating to IBM exceeds 50%.

[0047] Example 4: servers or entities having a minimum positive response rate for instruments relating to a particular industry, servers or entities whose positive response rate for any instrument relating to energy trading exceeds 50%; servers or entities whose positive response rate for oil futures exceeds 75%.

CA 02705940 2013-12-11 [0048] Example 51 servers or entities having a minimum positive response rate for instruments having a particular market capitalization; servers or entities whose positive response rate for large-cap stocks exceeds 60%.

[0049] Example 6: servers or entities haring a minimum positive response rate for instruments relating to any enumerated set of instruments; servers or entities whose positive response rate for Coca-Cola stock and Pepsi put options exceeds 50%; servers or entities whose positive response rate for stocks and options exceeds 60%; servers or entities whose positive response rate for Dell, Gateway, and IBM exceeds 40%.

[0050] Example 7: servers or entities having a minimum positive response rate for instruments characterized by a specified parameter; servers or entities whose positive response rate for stock relating to any company having a price-to-eamings ratio of 20 or better exceeds 50%; servers or entities whose positive response rate for instruments listed on NASDAQ exceeds 70%.

[0051] Example 8: servers or entities having a minimum positive response rate for a specified instrument or any substitutable instrument.

[0052] Example 9: servers or entities having a minimum positive response rate for orders exceeding a specified value; servers or entities whose positive response rate for orders worth more than S10M exceeds 50%; servers or entities whose positive response rate for orders of 1,000,000 shares or more exceeds 30%.

[0053] Selection criteria based upon the trading history of a server or entity may be any criteria or combination of criteria for which trading history records are stored. Selection criteria need not be based upon a minimum positive response rate, but may instead be based upon other aspects of the trading history, such as trading volume, trading frequency, or history of making trades at or exceeding a particular volume or total value. For example:

[0054] Example 10: servers or entities who have participated in at least one trade exceeding S10M in total value within the past month; servers or entities who have participated in at least three trades exceeding S IM in total value within the past week.

[0055] Example 11 ; servers or entities who have purchased at least 30 million shares, aggregate, within the past month; servers) or entities who have purchased at least

CA 02705940 2013-12-11 million shares in the energy industry within the past month; servers or entities who have sold at least S30M in total value within the past week.

[0056] Example 12: servers or entities who participate in at least ten trades per day, servers or entities who have participated in at least ten trades per day within the past month; servers or entities who have participated in at least ten trades in the energy sector within the past week; servers or entities who have not purchased any Microsoft stock within the past year.

[0057] In general, the selection criteria may be any criteria at all by which query recipients may be selected (for example, in the embodiments of Figure 3), or by which positive responders may be filtered (for example, in the embodiments of Figure 4).

[0058] Figure 5 is an example of a process that maybe performed by a server 212 receiving a query sent by a central server 206 in response to receiving a query sent by a central server 206. In embodiments, the central server 206 sends the query in response to receiving a trade order from a server202, as described above. Also as described above, the central server 206 may send the query to ah registered recipients 212 or select the recipient 212 based upon selection criteria. Server 212 receives the query (block 502).

[0059] In some embodiments, central server 212 sends a query to a set of recipients that include recipients that foil to meet selection criteria; in some such embodiments only positive responses from certain recipient servers (or on behalf of certain entities) will lead to the central server 206 facilitating a trade. As noted above, in some such embodiments the central server 206 filters positive responses by determining whether the server sending the positive response (or the entity represented by the positive response) meets the selection criteria. In other embodiments, the query may include a key that recipient server 212 can interpret to determine whether server 212 is an intended recipient of the query, i.e., a recipient from which a positive response win lead to the central server 206 facilitating a trade. The key can be any string of data interpretable by the recipient server 212. The key may be sent with the query or before or after the query is sent.

CA 02705940 2013-12-11 [0060] Once the recipient server 212 has received the key (block 504) it interprets the key (block 506) to determine whether it is an intended recipient, i.e,, whether its positive response would be honored by the central server 206 and lead to the central server 206 facilitating a trade. If the key indicates that server 212 is not an intended recipient, no further action of server 212 is required.

[0061] If the key indicates that server 212 is an intended recipient, server 212 may determine whether a positive response to the query is required, i.e., whether a trader or other entity associated with server 212 would like to accept the offer represented™ the query received from central server206. In embodiments, server212 may search a database 214 of trades that traders or other entities associated with server 212 are interested in making (block 508). If database 214 contains a matching trade, server 212 may send a positive response (block 514). In some embodiments, before sending a positive response, server 212 requests approval of the trade from a human operator (block 512). For example, server 212 may display a request for approval to a terminal operated by the human operator and receive an input from the human operator indicating approval or non-approval of the trade. If additional parameters (such as, for example, a quantity of the specified instrument to be traded) are required to complete a trade, the server 212 may request those additional parameters from the human operator and receive them as input from the human operator. Upon receiving approval from the human operator (along with any parameters that the human operator supplies to fully specify the trade), server 212 may send a positive response to the query (block 514). Central server 206 may receive the positive response and process it in any of the ways described above, including facilitating a trade between the entity submitting the original trade order and the entity represented by the positive response. In embodiments, sending file positive response binds file entity represented by the positive response to a trade without the opportunity for further negotiation.

[0062] In some embodiments, the steps of receiving and interpreting the key (blocks 504 and 506) may be skipped. In embodiments in which a key is used, server 212 may search for a matching trade in database 214 (block 508) and/or request approval of the trade (block 512) before interpreting the key. Server 212 may, in some

CA 02705940 2013-12-11 embodiments, request approval from a human operator prior to searching for a matching trade in database 214. In still further embodiments, server 212 may request approval from a human operator and not search far a matching trade at all.

Π. More Embodiments [0063] The following should be interpreted as embodiments, not as claims.

[0064] Embodiment 1. A method comprising: receiving, from a first server operated on behalf of a first trader, a communication including a first trade order and one or mote selection criteria, the first trade order including at least one of a specified instrument, a specified quantity, and a specified price; determining that a database of trade orders does not contain a second trade order matching the first trade order, identifying a plurality of second traders satisfying foe selection criteria; sending, to a plurality of second servers, each second server operated on behalf of one or more of foe plurality of second traders, a query including at least one of the specified instalment, foe specified quantity, and the specified price; receiving, from a one of the plurality of second servers operated on behalf of a one of the plurality of second traders, a positive response to the query; and facilitating execution of a trade between the first trader and foe one of foe plurality of second traders for the specified instrument at the specified price.

[0065] Embodiment 2. The method of embodiment 1, wherein identifying a plurality of second traders includes determining that a trading history of each of the plurality of second traders satisfies one or more of foe selection criteria.

[0066] Embodiment 3, The method of embodiment 2, wherein the trading history of each of the plurality of second traders includes a positive response rate and the selection criteria include a minimum positive response rate, and wherein determining that foe trading history of each of foe plurality of second traders satisfies one or more of foe selection criteria includes: determining that the positive response rate of each of foe plurality of second traders equals or exceeds the minimum positive response rate.

CA 02705940 2013-12-11 [0067] Embodiment 4. The method of embodiment 2, wherein the trading history of each of the plurality of second traders includes a positive response rate for the specified instrument and the selection criteria include a minimum positive response rate for the specified instrument, and wherein determining that the trading history of each of the plurality of second traders satisfies one or more of the selection criteria includes: determining that the positive response rate for the specified instrument of each of the plurality of second traders equals or exceeds the minimum positive response rate for the specified instrument.

[0068] Embodiment 5. The method of embodiment 2, wherein the trading history of each of the plurality of second traders includes a positive response rate for a set of instruments and the selection criteria include a minimum positive response rate for the set of instruments, and wherein determining that the trading history of each of the plurality of second traders satisfies one or more of the selection criteria includes: determining that the positive response rate for the set of instruments of each of the plurality of second traders equals or exceeds the minimum positive response rate for the set of instruments.

[0069] Embodiment 6. The method of embodiment 5, wherein the set of instruments includes instruments relating to a particular entity.

[0070] Embodiment 7. The method of embodiment 5, wherein the set of instruments includes instruments relating to a particular industry.

[0071] Embodiment 8. The method of embodiment 5, wherein the set of instruments includes instruments associated with entities having a particular market capitalization.

[0072] Embodiment 9. The method of embodiment 5, wherein the set of instruments includes an enumerated set of instruments.

[0073] Embodiment 10. The method of embodiment 5, wherein die set of instruments includes any instrument characterized by a specified parameter.

[0074] Embodiment 11. The method of embodiment 5, wherein the set of instruments includes the specified instrument and an instrument substitutable for the specified instrument.

CA 02705940 2013-12-11 [0075] Embodiment 12. The method of embodiment 1, wherein the first server includes an order management system.

[0076] Embodiment 12a. The method of embodiment 1, wherein the first server is in communication with an order management system.

[0077] Embodiment 13. The method of embodiment 1, wherein at least one of the plurality of second servers includes an order management system.

[0078] Embodiment 13a. The method of embodiment 1, wherein at least one of fee plurality of second servers is in communication with an order management system.

[0079] Embodiment 14. The method of embodiment 1, wherein sending a query further comprises; formatting foe query in a format readable by an order management system.

[0080] Embodiment 15. A method comprising: receiving, from a first server, a communication including a trade order and one or more selection criteria, the trade order indicating an intent of a first trader to trade a specified instrument at at least one of a specified quantity and a specified price; identifying a plurality of second traders satisfying the selection criteria; sending to at least one second server, each of the at least one second servers being operable to enter trades on behalf of one or more of the plurality of second traders, a query including at least one of the specified instrument, the specified quantity, and the specified price; receiving, from a one of the at least one second servers, a positive response to foe query, foe positive response indicating an intent of a one of foe plurality of second traders to trade the specified instrument at the specified price; and facilitating execution of a trade between the first trader and the one of the plurality of second traders for the specified instrument at the specified price.

[0081] Embodiment 15a. The method of embodiment 15. wherein at least one of foe second servers is operable to enter trades on behalf of one or more of the plurality of second traders in response to an input from a user.

[0082] Embodiment 15b. The method of embodiment 15, wherein at least one of the second servers is operable to enter trades on behalf of one or more of the plurality of second traders without input from a user.

CA 02705940 2013-12-11 (00831 Embodiment 16. The method of embodiment 15, wherein identifying a plurality of second traders includes determining that a trading history of each of foe plurality of second traders satisfies one oi more of the selection criteria.

[0084] Embodiment 17. The method of embodiment 16, wherein the trading history of each of the plurality of second traders includes a positive response rate, and the selection criteria include a minimum positive response rate and wherein determining that foe trading histoTy of each of the plurality of second traders satisfies one or more of the selection criteria includes: determining that the positive response rate of each of the plurality of second traders equals or exceeds the minimum positive 10 response rate.

[0085] Embodiment 18. The method of embodiment 17, wherein the trading history of each of the plurality of second traders includes a positive response rate for the specified instrument and the selection criteria include a minimum positive response rate for the specified instrument and wherein determining that the trading history of 15 each of the plurality of second traders satisfies one or more of the selection criteria includes: determining that foe positive response rate for the specified instrument of each of foe plurality of second traders equals or exceeds foe minimum positive response rate for foe specified instrument.

[0086] Embodiment 19. A method comprising: receiving, from a first server, a 20 communication including a trade order and one or more selection criteria, the txade order including at least one of a specified instrument, a specified quantity, and a specified price; identifying at least one second server satisfying the selection criteria; sending to the at least one second server a query including at least one of the specified instrument, the specified quantity, and the specified price; receiving, from a one of the 25 at least one second servers, a positive response to foe query, and facilitating execution of a trade against the trade order for foe specified instrument at the specified price.

[0087] Embodiment 20. The method of embodiment 19, wherein identifying at least one second server includes determining that a trading history of foe at least one second server satisfies one or more of foe selection criteria.

CA 02705940 2013-12-11 [0088] Embodiment 21. The method of embodiment 20, wherein the trading history of the at least one second server includes a positive response rate and the selection criteria include a minimum positive response rate, and wherein determining that the trading history of the at least one second server satisfies one or more of the selection criteria includes: determining that the positive response rate of foe at least one second server equals or exceeds the minimum positive response rate.

[0089] Embodiment 22. The method of embodiment 20, wherein the trading history of the at least one second server includes a positive response rate for the specified instrument and the selection criteria include a minimum positive response rate for the specified instrument, and wherein determining that the trading history of the at least one second server satisfies one or more of the selection criteria includes: determining that the positive response rate for the specified instrument of the at least one second server equals or exceeds the minimum positive response rate for the specified instrument.

[0090] Embodiment 23. A method comprising: Receiving, from a first server operated on behalf of a first trader, a communication including a first trade order and one or more selection criteria, the first trade order including at least one of a specified instrument, a specified quantity, and a specified price; deteimining that a database of trade orders does not contain a second trade order matching the first trade order; sending, to a plurality of second servers, each second server operated on behalf of a one of a plurality of second traders, a query including at least one of the specified instrument, die specified quantity, and the specified price; receiving, from a one of the plurality of second servers operated on behalf of a one of the plurality of second traders, a positive response to the query; determining that the one of the plurality of second traders satisfies the selection criteria; and facilitating execution of a trade between the first trader and the one of the plurality of second traders for the specified instrument at the specified price.

[0091] Embodiment 24. The method of embodiment 23, wherein determining that the one of the plurality of second traders satisfies the selection criteria includes

CA 02705940 2013-12-11 determining that a trading history of the one of the plurality of second traders satisfies the selection criteria.

[0092] Embodiment 25. The method of embodiment 24, wherein the trading history of the one of the plurality of second traders includes a positive response rate and the selection criteria include a minimum positive response rate, and wherein determining that the trading history of the one of the plurality of second traders satisfies one or more of the selection criteria includes: determining feat die positive response rate of the one of the plurality of second traders equals or exceeds the minimum positive response rate.

[0093] Embodiment 26. The method of embodiment 24, wherein the trading history of the one of the plurality of second traders includes a positive response rate for the specified instrument and the selection criteria include a minimum positive response rate for the specified instrument, and wherein determining that the trading history of the one of the plurality of second traders satisfies one or more of the selection criteria includes; determining that the positive response rate for the specified instrument of the one of the plurality of second traders equals or exceeds the minimum positive response rate for the specified instrument.

[0094] Embodiment 27. A method comprising; receiving, firn a firsr server, a communication including a trade order and one or more selection criteria, the trade order indicating an intent of a first trader to trade a specified instrument at at least one of a specified quantity and a specified price; sending, to a plurality of second servers, each second server being operable to enter trades on behalf of one or more second traders, a query including at least one of the specified instrument, the specified quantity, and the specified price; receiving, from a one of the plurality of second servers, a positive response to the query, the positive response indicating an intent of a one of the one or more second traders to trade the specified instrument at the specified price; determining that the one of the one or more second traders satisfies the selection criteria; and facilitating execution of a trade between the first trader and the one of the one or more second traders for the specified instrument at the specified price.

CA 02705940 2013-12-11 [0095] Embodiment 27a.. The method of embodiment 27, wherein at least one of the second servers is operable to enter trades on behalf of one or more of the plurality of second traders in response to an input from a user.

[0096] Embodiment 27b. The method of embodiment 27, wherein at least one of the second servers is operable to enter trades on behalf of one or more of the plurality of second traders without input from a user.

[0097] Embodiment 28. The method of embodiment 27, wherein determining that foe one of the one or more second traders satisfies the selection criteria includes determining that a trading history of the one of the one or more second traders satisfies the selection criteria.

[0098] Embodiment 29. The method of embodiment 28, wherein the trading history of the one of the one or more second traders includes a positive response rate and the selection criteria include a minimum positive response rate, and wherein determining that the trading history of the one of the one or more second traders satisfies one or more of foe selection criteria includes: determining that the positive response rate of the one of foe one or more second traders equals or exceeds the minimum positive response rate.

[0099] Embodiment 30. The method of embodiment 28, wherein the trading history of the one of the one or more second traders includes a positive response rate for the specified instrument and the selection criteria include a minimum positive response rate for the specified instrument, and wherein determining that foe trading history of the one of the one or more second traders satisfies one or more of foe selection criteria includes: determining that foe positive response rate for the specified instrument of the one of foe one or more second traders equals or exceeds foe minimum positive response rate for the specified instrument.

[0100] Embodiment 31. A method comprising: receiving, from a first server, a communication including a trade order and one or more selection criteria, the trade order including at least one of a specified instrument, a specified quantity, and a specified price; sending, to at least one second server, a query including at least one of the specified instrument, foe specified quantity, and the specified price; receiving, from

CA 02705940 2013-12-11 a one of the at least one second servers, a positive response to the query, determining that the one of the at least one second servers satisfies the selection criteria; and facilitating execution of a trade against the trade order for the specified instrument at the specified price.

[0101] Embodiment 32. The method of embodiment 31, wherein determining that the one of the one or more second traders satisfies the selection criteria includes determining that a trading history of die one of the one or more second traders satisfies the selection criteria.

[0102] Embodiment 33. The method of embodiment 32, wherein the trading history of die one of the one or more second traders includes a positive response rate and die selection criteria include a minimum positive response rate, and wherein determining that the trading history of the one of the one or more second traders satisfies one or more of the selection criteria includes: determining that the positive response rate of the one of the one or more second traders equals or exceeds the minimum positive response rate.

[0103] Embodiment 34. The method of embodiment 32, wherein the trading history of the one of the one or more second traders includes a positive response rate for the specified instrument and the selection criteria include a minimum positive response rate for die specified instrument, and wherein determining that the trading history of the one of the one or more second traders satisfies one oi more of the selection criteria includes: determining that the positive response rate for die specified instrument of the one of the one or more second traders equals or exceeds the minimum positive response rate for die specified instrument [0104] Embodiment 35. A method comprising: receiving, from a first server, a communication including a trade order, die trade order indicating an intent of a first trader to trade a specified instrument at at least one of a specified quantity and a specified price; identifying a plurality of second traders satisfying one or more selection criteria; sending to at least one second server, each of the at least one second servers being operable to enter trades on behalf of one or more of the plurality of second traders, a query including at least one of the specified instrument, the specified

CA 02705940 2013-12-11 quantity, and the specified price; receiving, from a one of the at least one second servers, a positive response to file query, the positive response indicating an intent of a one of the plurality of second traders to trade the specified instrument at the specified price; and facilitating execution of a nade between the first trader and the one of the plurality of second traders for the specified instrument at the specified price.

[0105] Embodiment 35a. The method of embodiment 35, wherein at least one of the second servers is operable to enter trades on behalf of one or more of the plurality of second traders in response to an input from a user.

[0106] Embodiment 35b. The method of embodiment 35, wherein at least one of foe second servers is operable to enter trades on behalf of one or more of the plurality of second traders without input from a user, [0107] Embodiment 36. The method of embodiment 35, further comprising: receiving at least one of the one Or more selection criteria from the first server.

[0108] Embodiment 37. The method of embodiment 36, wherein the communication further includes at least one of foe one or more selection criteria.

[0109] Embodiment 38. The method of embodiment 35, further comprising: retrieving at least one of the one or more selection criteria from a database.

[0110] Embodiment 39. A method comprising: receiving, from a first server, a communication including a trade order, the trade order indicating an intent of a first trader to trade a specified instrument at at least one of a specified quantity and a specified price; sending, to a plurality of second servers, each second server being operable to enter trades on behalf of one or more second traders, a query including at least one of the specified instrument, the specified quantity, and the specified price; receiving, from a one of the plurality of second servers, a positive response to the query, the positive response indicating an intent of a one of the one or more second traders to trade the specified instrument at the specified price; determining that the one of the one or more second traders satisfies one or more selection criteria; and facilitating execution of a trade between the first trader and the one of foe one or more second traders for the specified instrument at the iSpecified price.

CA 02705940 2013-12-11 [0111] Embodiment 39a. The method of embodiment 39, wherein at least one of the second servers is operable to enter trades on behalf of one or more of the plurality of second traders in response to an input from a user.

[0112] Embodiment 39b. The method of embodiment 39, wherein at least one of the second servers is operable to enter trades oft behalf of one or more of the plurality of second traders without input from a user.

[0113] Embodiment 40. The method of embodiment 39, further comprising: receiving at least one of the one or more selection criteria from die first server.

[0114] Embodiment 41. The method of embodiment 40, wherein the communication further includes at least one of the one or more selection criteria.

[0115] Embodiment 42. The method of embodiment 39, further comprising: retrieving at least one of the one or more selection criteria from a database.

[0116] Embodiment 43. A method comprising: recriving, from a first server, a communication including a trade order, the trade order indicating an intent of a first trader to trade a specified instrument at at least one of a specified quantity and a specified price; sending, to a second server operable to enter trades on behalf of a second trader, a query including at least one of the specified instrument, the specified quantity, and the specified price; receiving, from the second server, a positive response to the query, and facilitating execution of a trade between the first trader and the second trader for the specified instrument at the specified price.

[0117] Embodiment 43a. The method ofembodiment 43, wherein at least one of the second servers is operable to enter trades on behalf of one or more of the plurality of second traders in response to an input from a user.

[0118] Embodiment 43b. The method of embodiment 43, wherein at least one of the second servers is operable to enter trades an behalf of one or more of the plurality of second traders without input from a user.

[0119] Embodiment 44. The method of embodiment 43, further comprising: sending, to the second server, a key indicating that a response from the second server is 30 desired.

CA 02705940 2013-12-11 [0120] Embodiment 45. The method of embodiment 44, wherein the query includes the key.

[0121] Embodiment 46. A method comprising: receiving, from a first server, a communication including a trade order, the trade order indicating an intent of a first trader to trade a specified instrument; sending, to a second server operable to enter trades on behalf of a second trader, a query indicating the specified instrument; receiving, from the second server, a positive response to the query; and facilitating execution of a trade between the first trader and the second trader for a specified quantity of the specified instrument.

[0122] Embodiment 46a. The method of embodiment 46, wherein the trade order includes the specified quantity.

[0123] Embodiment 46b. The method of embodiment 46, wherein the positive response to die query includes the specified quantity.

[0124] Embodiment 47. The method of embodiment 46, wherein the trade order further includes information sufficient to determine a price for the trade, and wherein facilitating execution further comprises facilitating execution of the trade between die first trader and die second trader for a specified quantity of the specified instrument at die determined price.

[0125] Embodiment 48. The method of embodiment 47, wherein the determined price is a specified price.

[0126] Embodiment 49. The method of embodiment 46, wherein the trade order includes a specified price, and wherein facilitating execution further comprises facilitating execution of the trade between the first trader and the second trader for a specified quantity of the specified instrument at the specified price.

[0127] Embodiment 50. The method of embodiment 46, wherein facilitating execution further comprises facilitating execution of the trade between the first trader and the second trader for a specified quantity of the specified instrument at a market price.

[0128] Embodiment 50aa. The method of embodiment 46, wherein facilitating execution further comprises facilitating execution of the trade between the first trader

CA 02705940 2013-12-11 and foe second trader for a specified quantity of the specified instrument at a market midpoint price.

[0129] Embodiment 50a. A method comprising: receiving, from a first server, a communication including a trade order, foe trade order indicating an intent of a first trader to trade a specified instrument; sending, to a plurality of second servers, each second server being operable to enter trades on behalf of one or more second traders, a query indicating the specified instrument; receiving, from a one of the plurality of second servers, a positive response to foe query, the positive response indicating an intent of a one of the one or more second traders to trade the specified instrument;

determining that the one of foe one or more second traders satisfies one or more selection criteria; and facilitating execution of a trade between the first trader and the one of the one or more second traders for a specified quantity of foe specified instrument.

[0130] Embodiment 50b. The method of embodiment 50a, wherein the trade order includes the specified quantity.

[0131] Embodiment 50c. The method of embodiment 50a, wherein foe positive response to foe query includes foe specified quantity.

[0132] Embodiment 50d. The method of embodiment 50a, wherein the trade order further includes information sufficient to determine a price for the trade, and wherein facilitating execution further comprises facilitating execution of the trade between foe first trader and foe second trader for a specified quantity of the specified instalment at foe determined price.

[0133] Embodiment 50e. The method of embodiment 50a, wherein the determined price is a specified price.

[0134] Embodiment 50f. The method of embodiment 50a, wherein foe trade order includes a specified price, and wherein facilitating execution further comprises facilitating execution of the trade between the first trader and the second trader for a specified quantity of foe specified instrument at the specified price.

[0135] Embodiment 50g. The method of embodiment 50a, wherein facilitating 30 execution further comprises facilitating execution of the trade between the first trader

I

CA 02705940 2013-12-11 and the second trader for a specified quantity of the specified instrument at a market price.

[0136] Embodiment 50ga. The method of embodiment 50a, wherein facilitating execution further comprises facilitating execution of the trade between the first trader and the second trader for a specified quantity of the specified instrument at a market midpoint price.

[0137] Embodiment 50h. The method of embodiment 50a, wherein determining that die one of the one or more second traders satisfies the selection criteria includes determining that a trading history of the one of the one or more second traders satisfies the selection criteria.

[0138] Embodiment 50i. The method of embodiment 50h, wherein the trading history of the one of the one or more second traders includes a positive response rate and the selection criteria include a minimum positive response rate, and wherein determining that the trading history of the one of the one or more second traders satisfies one or more of the selection criteria includes: determining that the positive response rate of the one of the one or more second traders equals or exceeds the minimum positive response rate.

[0139] Embodiment 50j. The method of embodiment 50h, wherein the trading history of the one of the one or more second traders includes a positive response rate for tiie specified instrument and the selection criteria include a minimum positive response rate for tire specified instrument, and wherein determining that the trading history of the one of the one or more second traders satisfies one or more of the selection criteria includes: determining that the positive response rate for the specified instrument of the one of the one or more second traders equals or exceeds the minimum positive response rate foe the specified instrument [0140] Embodiment 50k A method comprising: receiving, from a first server, a communication including a trade order, the trade order indicating an intent of a first trader to trade a specified instrument; identifying a plurality of second traders satisfying one ore more selection criteria; sending to at least one second server, each of the at least one second servers being operable to enter trades on behalf of one or more of the

CA 02705940 2013-12-11 plurality of second traders, a query indicating the specified instrument; receiving, from a one of fixe plurality of second servers, a positive response to the query, the positive response indicating an intent of a one of the one or more second traders to trade the specified instrument,· and facilitating execution of a trade between the first trader and the one of the one or more second traders for a specified quantity of the specified instrument, [0141] Embodiment 501. The method of embodiment 50k, wherein the trade order includes the specified quantity.

[0142] Embodiment 50m. The method of embodiment 50k, wherein the positive response to the query includes the specified quantity.

[01431 Embodiment 50n. The method ofembodiment 50k, wherein the trade order further includes information sufficient to determine a price for the trade, and wherein facilitating execution further comprises facilitating execution of the trade between the first trader and the second trader for a specified quantity of the specified instrument at the determined price.

[0144] Embodiment 50o. The method ofembodiment 50k, wherein the determined price is a specified price.

[0145] Embodiment 50p. The method of embodiment 50k, wherein the trade order includes a specified price, and wherein facilitating execution farther comprises facilitating execution of tile trade between the first trader and the second trader for a specified quantity of the specified instrument at the specified price.

[0146] Embodiment 50q. The method of embodiment 50k, wherein facilitating execution farther comprises facilitating execution of the trade between the first trader and the second trader for a specified quantity of the specified instrument at a market price.

[0147] Embodiment 50qa. The method of embodiment 50k, wherein facilitating execution farther comprises facilitating execution of the trade between the first trader and the second trader for a specified quantity of the specified instrument at a market midpoint price.

CA 02705940 2013-12-11 [0148] Embodiment 50r. The method of embodiment 50k, wherein determining that the one of the one or more second traders satisfies the selection criteria includes determining that a trading history of the one of the one or more second traders satisfies the selection criteria.

[0149] Embodiment 50s. The method of embodiment 50r, wherein the trading history of the one of the one or more second traders includes a positive response rate and the selection criteria include a minimum positive response rate, and wherein determining that file trading history of the one of the one or more second traders satisfies one or more of the selection criteria includes: determining that the positive response rate of the one of the one or more second traders equals or exceeds the minimum positive response rate.

[0150] Embodiment 50t. The method of embodiment 50r, wherein the trading history of the one of the one or more second traders includes a positive response rate for file specified instrument and the selection criteria include a minimum positive response rate for the specified instrument, and wherein determining that the trading history of the one of the one or more second traders satisfies one or more of the selection criteria includes: determining that the positive response rate for file specified instrument of the one of the one or more second traders equals or exceeds the minimum positive response rate for the specified instrument.

[0151] Embodiment 51. A method comprising: receiving, from a first server, a communication including a key and a query, the query including at least one of a specified instrumenk a specified quantity, and a specified price; determining, based upon the key, that a response to the query is desired; retrieving, from a database, a matching trade order including at least one of the specified instrument, specified quantity, and specified price; providing a request for approval to an interface operated by a user; receiving a response to the request for approval from the interface operated by the user, and sending a positive response to tire query to the first server, the positive response indicating an intent to be bound to trade for the specified instrument at the specified price.

CA 02705940 2013-12-11 [0152] Embodiment 52. The method of embodiment 51, wherein the database of trade orders resides on an order management system.

[01 S3] Embodiment 52a. The method of embodiment 51, wherein the database of trade orders is in communication with an order management system, [0154] Embodiment 52b. The method of embodiment 51, wherein the database of trade orders is a portion of an order management system.

[0155] Embodiment 53. A method comprising: receiving, from a first server, a query including at least one of a specified instrument, a specified quantity, and a specified price; retrieving, from a database, a matching trade order including at least 10 one of the specified instrument, specified quantity, and specified price; providing a request for approval to an interface operated by a user, receiving a response to the request for approval from file interface operated by the user; and sending a positive response to die query to the first server, the positive response indicating an intent to be bound to trade for frie specified instrument at the specified price.

[0156] Embodiment 54. The method of embodiment 53, wherein the database of trade orders resides on an order management system.

[0157] Embodiment 54a. The method of embodiment 53, wherein the database of trade orders is in communication with an order management system.

[0158] Embodiment 54b. The method of embodiment 53, wherein the database 20 of trade orders is a portion of an order management system.

[0159] Embodiment 55. A method comprising: receiving, from a first server, a query including at least one of a specified instrument, a specified quantity, and a specified price; retrieving, from a database, a matching trade order including at least one of the specified instrument, specified quantity, and specified price; and sending a 25 positive response to the query to the first server, the positive response indicating an intent to be bound to trade for the specified instrument at the specified price.

[0160] Embodiment 56. The method of embodiment 55, wherein the database of trade orders resides on an order management system.

[0161] Embodiment 56a. The method of embodiment 55, wherein the database 30 of trade orders is in communication with an order management system.

CA 02705940 2013-12-11 [0162] Embodiment 56b. The method of embodiment 55, wherein the database of trade orders is a portion of an order management system.

[0163] Embodiment 57. A method comprising: receiving, from a first server, a query including a specified instrument retrieving, from a database, a matching trade order including at least the specified instrument and a specified quantity, and sending a positive response to the query to the first server, the positive response indicating an intent to be bound to trade for the specified quantity of the specified instrument.

[0164] Embodiment 58. The method of embodiment 57, wherein the query furflier includes information sufficient to determine a price for the trade, and wherein the positive response further indicates an intent to be hound to trade at the determined price.

[0165] Embodiment 59. The method of esnbodtment 5S, wherein the determined price is a specified price.

[0166] Embodiment 60. The method of embodiment 57, wherein the query further includes a specified price, and wherein foe positive response further indicates an intent to be bound to trade at the specified price.

[0167] Embodiment 61. The method of embodiment 57, wherein the positive response further indicates an intent to be bound to trade at a market price.

[0168] Embodiment 61a. The method of embodiment 57, wherein the positive response further indicates an intent to be bound to trade at a market midpoint price.

[0169] Embodiment 62. The method of embodiment 57, wherein the database of trade orders resides on an order management system.

[0170] Embodiment 62a. The method of embodiment 57, wherein the database of trade orders is in communication with an order management system.

[0171] Embodiment 62b. The method of embodiment 57, wherein the database of trade orders is a portion of an order management system.

Eft. Conclusion [0172] The phrase “facilitates execution of a trade” means “performs whatever function is necessary for a trade to be completed,” For example, “facilitating execution

CA 02705940 2013-12-11 of a trade” may include sending data to an appropriate clearinghouse so that a trade may be executed between two entities for a specified instrument at a specified price (e.g. without further opportunity for negotiation).

[0173] The phrase “in communication with” means “able to transmit data to and/or receive data from.” For example, a first server “in communication with” a second server may be connected to the second server via a network such as the internet A server can “communicate” with another server if it is “in communication with” the other server.

[0174] The term “instrument” means any financial instrument traded in any market. For example, an “instrument” may include a security, a stock certificate, a bond, a future, an option, a forward, a call, a put a swap, a collar, a currency contact, and/or others.

[0175] The term “key” means “any segment of data, such as packers, strings, etc., that can be interpreted by a receiving server to indicate whether a response from that server is desired or would be discarded.” [0176] The phrase “market price” means “a price in the market for a particular instrument at which the instrument can be bought or sold.” The phrase “market price” may refer to a market price at the time an offer is made, at the time an offer is accepted, at the time die trade is cleared, at market close or market open on the day an offer is made or accepted, or a market price at any other time. The meaning of the phrase market price” may also include a market midpoint price at the time an offer is made, at the time an offer is accepted, at the time the trade is cleared, at market close or market open on the day an offer is made or accepted, or at any other time. A market midpoint price is a price that is exactly between the best current buy price and best current sell price on the market [0177] The phrase “matching trade order” means “a second trade order that shares enough parameters with a first trade order that a trade can be formed trading one against the other.” A matching trade order may only partially fill the trade order against which the trade is formed. For example, if foe first trade order offers to buy 10,000 shares of Microsoft stock at $50 per share, a second trade order offering to sell

CA 02705940 2013-12-11

5,000 shares of Microsoft stock at the same price may be a matching trade order even though it only partially fills the first trade order. Where the specified instrument, specified quantity, or specified price in the first trade order are ranges or otherwise variable (see the definitions of specified instrument, specified quantity, and specified price) a second trade order can be a matching trade order by falling within file ranges or enumerations set forth in the first trade order. For example, if the first trade order offers to buy 10,000 shares of Microsoft stock at $50 per share or less, a second trade order offering to sell 10,000 shares of Microsoft stock at $49 per share can be a matching trade order.

[0178] The phrase “order management system” means “any computer configured to execute orders for trading financial instruments, whether buy-side or sellside; whether institutional trader or broker; a computer associated with associated with anyone participating in the market.” [0179] The phrase “open trade older” means “a trade order stored on a server, such that if the server receives information about the existence of another trade order matching the stored trade order, the server will indicate (e.g., by sending a communication) an intent to trade the stored trade order against the matching trade order.” [0180] A computer that is “operable” to present offers or enter trades on behalf of a trader may, in some embodiments, present offers or enter trades on behalf of the trader in response to receiving an input from a user. In other embodiments, a computer that is “operable” to present offers or enter trades on behalf of a trader may present offers or enter trades on behalf of the trader without receiving an input from a user.

[0181] The phrase “positive response” means “a response to a query indicating an interest to trade at the parameters (specified instrument, specified quantity, and/or specified price) provided in the query.” A positive response may be a binding acceptance, e.g., when the query includes a firm offer. Where a query (or the

<img file="CA2705940C_D0001.tif" />

ranges for some parameters, the positive response may include some or all of the parameters necessary to define a trade. For example, if the query includes an offer to

CA 02705940 2013-12-11 sell up to 30,000 shares of a security, the positive response may specify an intent to buy 10,000 shares of the security.

[0182] The phrase “positive response rate” means “the percentage of queries previously received by a server to which the server gave a positive response.” [0183] The term “query” means “any data transmitted from one computer to another, e.g., a data transmission including a trade order or a portion of a trade order.” [01S4] The term “selection criteria” means “any criteria by which an entity providing a trade order can specify the parameters, behaviors, preferences, or other aspects of other entities to whom the first trader is interested in transmitting an offer to trade.” Selection criteria may apply to servers that may receive a query relating to a trade order, to traders with whom trades on a trade order may be made, or to any combination thereof [018 5] The term “server” means “any computer that can be programmed to execute specified functions, such as sending, receiving, or processing data; writing information to or retrieving information from a database; determining whether data satisfy specified criteria, or similar functions.” [0186] The phrase specified instrument” includes a specific instrument (e.g., Coca-Cola stock), or a selection of instruments however specified; such as a group of instruments (e.g.. Fortune 100 stocks); an enumerated set of instruments (e.g., CocaCola stock or Pepsi stock; Coca-Cola stock or Microsoft derivatives); any group of instruments sharing any specified property or set of properties (e.g., airline stocks, oil futures; stocks of companies reporting earnings of SIB or more); a set of instruments whose price is correlated to the price of another specified instrument (e.g., Coea-Cola stock or any stock whose value has a correlation greater than 0.5 to the value of CocaCola stock); and/or any combination of tire previous.

[0187] The phrase “specified price” means “any information sufficient to determine an acceptable price or range of prices at which a trader is interested in trading.” A specified price may be a specific unit price (e,g., $50 per share), a minimum unit price (e.g., $50 per share or more), a maximum unit price (e.g., up to $50 per share), a range of unit prices (e.g., S49-S51 per share), and/or any combination of

CA 02705940 2013-12-11 tiie previous. A specified price may be a specific bulk price (e.g., £50,000), a minimum bulk price (e.g., £50,000 or more), a maximum bulk price (e.g., up to £50,000), a range of bulk prices (e.g., $49,000-551,000), and/or any combination of foe previous. A specified price may be given in terms of a market price; e.g., a market price at the time an offer is made, at the time an offer is accepted, at the time the trade is cleared, at market close or market open on the day an offer is made or accepted, or a market price at any other time. A specified price may be a price or a range of prices defined, with reference to a market price (e.g., market price plus or minus /1 point; market price or greater). A specified price may be a market midpoint price or a price specified with reference to a market midpoint price, If no specified price is provided, a trading system may default to a market price at the time the offer is made or accepted, the time the trade is cleared, or any other time. Alternatively, if no specified price is provided, a trading system may default to a market midpoint price at the time the offer is made or accepted, the time the trade is cleared, or any other time.

[0188] The phrase “specified quantity” means “any way of specifying an acceptable amount or range of amounts of an instrument for which a trader is interested in trading.” A specified quantity may include a specific quantity (e.g., 10,000 shares), a minimum quantity (e.g., 5,000 shares or more), a maximum quantity (e.g., up to 10,000 shares), a range of quantities (e.g., 5,000-10,000 shares), and/or any combination of the previous. A specified quantity may also include an increment (e.g., 5,000-10,000 shares in increments of 500 shares; up to 5,000 shares in increments of 1,000 shares).

[0189] The phrase “trade order” means “any offer to buy or sell an instrument, c.g., an offer to buy or sell a specified quantity of a specified instrument at a specified price.” A trade order may be a firm offer or a conditional offer.

[0190] The term “trader” means “any person or entity capable of entering transactions for the purchase or sale of securities, or any person or entity on whose behalf such transactions can be entered.” A trader may be a buy-side person or entity or a sell-side person or entity. A trader may present an offer to enter a transaction which reflects the trader’s intent to complete the transaction, A trader may present such an offer via a computer, including but not limited to a computer that comprises or

CA 02705940 2013-12-11 is part of an order management system. A tradermay be represented by a computer that is operable to present offers and'or enter transactions on the trader’s behalf. For example, such a computer may be operable to accept binding offers and/or make offers which, if accepted, would bind the trader to the transaction. Such a computer may be operable to accept offers with or without human input.

[0191] The term “trading history” means “information (e.g. a database record) about a trader’s prior trades and/or responses to queries.” A trading history may include (without limitation): instruments, prices, and quantities that the trader has traded, queries (and/or associated trading parameters) to which the trader has responded positively, queries (and/or associated trading parameters) to which the trader lias responded negatively, etc. A trading history may also include information selectable by categories of trades, including (without limitation) positive response rates for particular instruments, for particular types of instruments (e.g., for stocks, for shares of mutual funds), for instruments relating to a particular entity, for instruments relating to a particular industry, for instruments associated with entities having certain market capitalization (e.g., small cap, mid cap, large cap), for substitutable instruments, or any other way of defining a category of trades. A trading history may also be such information associated with a particular server rather than a particular trader; e.g„ queries and associated trading parameters to which the server has provided a positive response.

[0192] Where two or more tenus or phrases are synonymous (e.g., because of an explicit statement that the terms or phrases are synonymous), instances of one such term / phrase does not mean instances of another such term / phrase must have a different meaning. For example, where a statement renders the meaning of “including” to be synonymous with “including but not limited to”, the mere usage of the phrase “including but not limited to” does not mean that the term “including” means something other than “including but not limited to”.

[0193] When a single device, article or other product is described herein, more than one device / article (whether or not they cooperate) may alternatively be used in place of the single device / article that is described. Accordingly, the functionality that

CA 02705940 2013-12-11 is described as being possessed by a device may alternatively be possessed by more than one device / article (whether or not they cooperate).

[0194] Similarly, where more than one device, article or other product is described herein (whether or not they cooperate)^ a single device ! article may alternatively be used in place of the more than one device or article that is described. For example, a plurality of computer-based devices may be substituted with a single computer-based device. Accordingly, the various functionality that is described as being possessed by more titan one device or article may alternatively be possessed by a single device ! article.

[0195] The functionality and / or the features of a single device that is described may be alternatively embodied by one or more other devices which are described but are not explicitly described as having such functionality / features. Thus, other embodiments need not include the described device itself, but rather can. include the one or more other devices which would, in those other embodiments, have such functionality ! features.

[0196] The title of the present application, and headings of sections provided in the present application are for convenience only, and are not to be taken as limiting the disclosure in any way.

[0197] Numerous embodiments are described in the present application, and are presented for illustrative purposes only. The described embodiments are not, and are not intended to be, limiting in any sense. The presently disclosed inventions) are widely applicable to numerous embodiments, as is readily apparent from the disclosure. One of ordinary skill in the art will recognize that the disclosed inventions) may be practiced with various modifications and alterations, such as structural, logical, software, and electrical modifications. Although particular features of the disclosed irrvention(s) may be described with reference to one or more particular embodiments and ! or drawings, it should be understood that such features are not limited to usage in the one or more particular embodiments or drawings with reference to which they arc described, unless expressly specified otherwise.

CA 02705940 2013-12-11 [0198] Devices that are described as in communication with each other need not be in continuons communication with each other, unless expressly specified otherwise. On the contrary, such devices need only transmit to each other as necessary or desirable, and may actually refrain from exchanging data most of the time. For example, a machine in communication with another machine via the Internet may not transmit data to the other machine for long period of time (e.g. weeks at a time), In addition, devices that are in communication with, each other may communicate directly or indirectly through one or more intermediaries.

[0199] A description of an embodiment with several components or features does not imply that all or even any of such components I features are required. On the contrary, a variety of optional components are described to illustrate the wide variety of possible embodiments of the present invention(s). Unless otherwise specified explicitly, no component ! feature is essential or required.

[0200] Although process steps, algorithms or the like may be described or claimed in a particular sequential order, such processes may be configured to work in different orders. In other words, any sequence or order of steps that may be explicitly described or claimed does not necessarily indicate a requirement that the steps be performed in that order. The steps of processes described herein may be performed in any order possible. Further, some steps may be performed simultaneously despite being described or implied as occurring non-simultaneousty (e.g., because one step is described after the other step). Moreover, the illustration of a process by its depiction in a drawing does not imply that the illustrated process is exclusive of other variations and modifications thereto, does not imply that the illustrated process or any of its steps are necessary to the inventions), and does not imply that the illustrated process is preferred.

[0201] Although a process may be described as including a plurality of steps, that does not imply that all or any of the steps are preferred, essential or required. Various other embodiments within the scope of the described invention(s) include other processes that omit some or all of the described steps. Unless otherwise specified explicitly, no step is essential or required.

CA 02705940 2013-12-11 [0202] Although a process may be described singly or without reference to other products or methods, in an embodiment the process my interact with other products or methods. For example, such interaction may include linking one business model to another business model Such interaction may be provided to enhance the flexibility or desirability of the process.

[0203] Although a product may be deserved as including a plurality of components, aspects, qualities, characteristics and / or features, that does not indicate that any or all of the plurality are preferred, essential or required. Various other embodiments witbin the scope of the described invention(s) include other products that omit some or all of the described plurality.

[0204] An enumerated list of items (which may or may not be numbered) does not imply that any or all of die items are mutually exclusive, unless expressly specified otherwise. Likewise, an enumerated list of items (which may or may not be numbered) does not imply that any or all of the items are comprehensive of any category, unless expressly specified otherwise. For example, the enumerated list “a computer, a laptop, a PDA” docs not imply that any or all of the three items of that list are mutually exclusive and does not imply that any or all of the three items of that list are comprehensive of any category.

[0205] An enumerated list of items (which may or may not be numbered) does not imply that any or all of the items are equivalent to each other or readily substituted for each other.

[0206] All embodiments are illustrative, and do not imply that the invention or any embodiments were made or performed, as the case may be.

[0207] Vit will be readily apparent to one of ordinary skill in the art that the various processes described herein may be implemented by, e.g., appropriately programmed general purpose computers, special purpose computers and computing devices. Typically a processor (e.g., one or more microprocessors, one or more microcontrollers, one or more digital signal processors) will receive instructions (e.g., from a memory or like device), and execute those instructions, thereby performing one

CA 02705940 2013-12-11 or more processes defined by those instructions. Instructions may be embodied in, e.g., one or more computer programs, one or more scripts.

[0208] A “processor” means one or more microprocessors, central processing units (CPUs), computing devices, microcontrollers, digital signal processors, or like devices or any combination thereof regardless of the architecture (e.g., chip-level multiprocessing / multi-core, RISC, CISC, Microprocessor without Interlocked Pipeline Stages, pipelining configuration, simultaneous multithreading).

[0209] Thus a description of a process is likewise a description of an apparatus for performing the process. The apparatus that performs the process can include, e.g., a processor and those input devices and output devices that are appropriate to perform the process.

[0210] Further, programs that implement such methods (as well as other types of data) may be stored and transmitted using a variety of media (e.g., computer readable media) in a number of manners. In some embodiments, hard-wired circuitry or custom hardware may be used in place of, or in combination with, some or all of the software instructions that can implement the processes of various embodiments. Thus, various combinations of hardware and software maybe used instead of software only.

[0211] The term “computernreadable medium” refers to any medium, a plurality of the same, or a combination of different media, that participate in providing data (e.g., instructions, data structures) which may be read by a computer, a processor or a like device. Such a medium may take many forms, including but not limited to, nonvolatile media, volatile media, and transmission media. Non-volatile media include, for example, optical or magnetic disks and other persistent memory. Volatile media include dynamic random access memory (DRAM), which typically constitutes the main memory. Transmission media include coaxial cables, copper wire and fiber optics, including the wires that comprise a system bus coupled to the processor. Transmission media may include or convey acoustic waves, light waves and electromagnetic emissions, such as those generated during radio frequency (RF) and infrared (IR) data communications. Common forms of computer-readable media include, for example, a floppy disk, a flexible disk, hard disk, magnetic tape, any other magnetic medium, a

CA 02705940 2013-12-11

CD-ROM, DVD, any other optical medium, punch cards, paper tape, any other physical medium with patterns of holes, a RAM, a PROM, an EPROM, a FLASH-EEPROM, any other memory chip or cartridge, a carrier wave as described hereinafter, or any other medium from which a computer can read.

[0212] Various forms of computer readable media may be involved in carrying data (e.g. sequences of instructions) to a processor. For example, data may be (i) delivered from RAM to a processor; (ii) carried over a wireless transmission medium; (iii) formatted and / or transmitted according to numerous formats, standards or protocols, such as Ethernet (or IEEE 802.3), SAP, ATP, BluetooihC, and TCPZEP, TDMA, CDMA, and 3G; and / or (iv) encrypted to ensure privacy or prevent fraud in any of a variety of ways well known in the art.

[0213] Thus a description of a process is likewise a description of a computerreadable medium storing a program for performing the process. The computer-readable medium can store (in any appropriate format) those program elements which are appropriate to perform the method.

[0214] Just as the description of various steps in a process does not indicate that all the described steps are required, embodiments of an apparatus include a computer / computing device operable to perform some (but not necessarily all) of the described process.

[0215] Likewise, just as the description of various steps in a process does not indicate that all the described steps are required, embodiments of a computer-readable medium storing a program or data structure include a computer-readable medium storing a program that, when executed, can cause a processor to perform some (but not necessarily all) of the described process.

[0216] Where databases are described, it will be understood by one of ordinary skill in the art that (i) alternative database structures to those described may be readily employed, and (ii) other memory structures besides databases may be readily employed. Any illustrations or descriptions of any sample databases presented herein are illustrative arrangements for stored representations of information. Any number of other arrangements may be employed besides those suggested by, e.g,, tables illustrated

CA 02705940 2013-12-11 in drawings or elsewhere. Similarly, any illustrated entries of the databases represent exemplary information only; one of ordinary skill in the art will understand that the number and content of die entries can be different from those described herein. Further, despite any depiction of the databases as tables, other formats (including relational databases, object-based models and / or distributed databases) could be used to store and manipulate the data types described herein. Likewise, object methods or behaviors of a database can be used to implement various processes, such as the described herein. In addition, the databases may, in a known manner, be stored locally or remotely from a device which accesses data in such a database.

[0217] Various embodiments can be configured to work in a network environment including a computer that is in communication (e.g.. via a communications network) with one or more devices. The computer may communicate with the devices directly or indirectly, via any wired, or wireless medium (e.g, the Internet, LAN, WAN or Ethernet, Token Ring, a telephone line, a cable line, a radio channel, an optical communications line, commercial on-line service providers, bulletin board systems, a satellite communications link, a combination of any of the above). Each of the devices may themselves comprise computers or other computing devices, such as those based on the Intel® Pentium® or Ctotrino™ processor, that are adapted to communicate with the computer. Any number and type of devices may be in communication with the computer.

[0218] In an embodiment, a server computer or centralized authority may not be necessary or desirable. For example, the present invention may, in an embodiment, be practiced on one or more devices without a central authority. In such an embodiment, any functions described herein as performed by the server computer or data described as stored on the server computer may instead be performed by or stored on one or more such devices.

[0219] Where a process is described, in an embodiment the process may operate without any user intervention. In another embodiment, the process includes some human intervention (e.g., a step is performed by or with the assistance of a human).

CA 02705940 2013-12-11 [0220] Computers, processors, computing devices and like products are structures that can perform a wide variety of functions. Such products can be operable to perform a specified function by executing one or more programs, such as a program stored in a memory device of that product or in a memory device which that product accesses. Unless expressly specified otherwise, such a program need not be based on any particular algorithm, such as any particular algorithm that might be disclosed in the present application. It is well known to one of ordinary skill in the art that a specified fonction may be implemented via different algorithms, and any of a number of different algorithms would be a mere design choice for carrying out the specified fonction.

[0221] Where there is recited a means for performing a function that is a method, one structure for performing this method includes a computing device (e.g., a general purpose computer) that is programmed aBd ! or configured with appropriate hardware to perform that function.

[0222] Also included is a computing device (e.g., a general purpose computer) that is programmed and I or configured with appropriate hardware to perform that fonction via other algorithms as would be understood by one of ordinary skill in the art.

[0223] Numerous references to a particular embodiment do not indicate a disclaimer or disavowal of additional, different embodiments, and similarly references to the description of embodiments which all include a particular feature do not indicate a disclaimer or disavowal of embodiments which do not include that particular feature. A clear disclaimer or disavowal in the present application shall be prefaced by the phrase does not include” or by the phrase cannot perform”.