US-12620029-B2 - Computer-implemented methods and computer systems for an electronic financial platform

US12620029B2US 12620029 B2US12620029 B2US 12620029B2US-12620029-B2

Abstract

In some embodiments, the instant invention provides for specifically programming a computer machine to perform at lease: receiving, from a trader, a passive indication of interest (IOI) for a financial instrument, where the passive IOI is a bid or an offer and a resting liquidity; classifying the trader as at least: a trading type that is subject to a decline ratio calculation for crossing the passive IOIs, where the decline ratio calculation identifies how many eligible aggressive IOIs have been previously declined by the trader out of a total number of all eligible aggressive IOIs that were offered to such trader; receiving, from another trader, another IOI that is an aggressive IOI, where the aggressive IOI is available to be immediately crossed at the price; and determining, in real-time, an allocation of the aggressive IOI to the trader submitted the passive IOI based on the decline ratio of the trader.

Inventors

Anthony Tassone
Matt Martorello
Justin Martorello

Assignees

VOXSMART LIMITED

Dates

Publication Date: 20260505
Application Date: 20240531

Claims (14)

1 . A non-transitory computer readable medium comprising instructions that, when executed by a processor in a computing device of a plurality of computing devices, direct the processor to: receive, from a first trader, a first indication of interest (IOI) for at least one first financial instrument at a first price; designate, in real-time, the first IOI as a first passive IOI; receive, from a second trader, a second IOI for the at least one first financial instrument at a second price; designate, in real-time, the second IOI as a second passive IOI; receive, from a third trader, a third IOI for the at least one first financial instrument at a third price; designate, in real-time, the third IOI as a third passive IOI; wherein each of the first passive IOI, the second passive IOI, and the third passive IOI is a bid or an offer associated with the at least one first financial instrument and a resting liquidity, wherein the resting liquidity is liquidity that does not cross upon submission; classify the first trader, the second trader, and the third trader as at least the following trading types: i) a first trading type, wherein traders of the first trading type are subject to a decline ratio calculation for crossing their passive IOIs, wherein the decline ratio calculation identifies how many eligible aggressive IOIs have been previously declined out of a total number of all eligible aggressive IOIs offered during a pre-determined time period, ii) a second trading type, wherein traders of the second trading type are subject to at least one pre-determined criterion for crossing their passive IOIs; calculate, for each trader of the first trading type, a decline ratio based on the decline ratio calculation, receive, from a fourth trader, a fourth IOI for the at least one first financial instrument; designate, in real-time, the fourth IOI as an aggressive IOI, wherein the aggressive IOI is available to be immediately crossed at the first price, the second price, and the third price; determine, in real-time, from the first passive IOI, the second passive IOI and the third passive IOI, an allocation of the aggressive IOI to: i) a plurality of traders of the first trading type based at least in part on the decline ratio of each trader from the traders of the first trading type, or ii) (a) the plurality of traders of the first trading type based at least in part on the decline ratio of each trader from the traders of the first trading type, and (b) at least one trader of the second trading type based at least in part on the at least one pre-determined criterion associated with the at least one trader of the second trading type; communicate notifications for at least a portion of the aggressive IOI based at least in part on the allocation; receive, in response to the notifications, from each trader of the plurality of traders of the first trading type: i) an acceptance response or ii) a decline response; calculate, in real-time, when the acceptance response is received, a financial compensation to each trader from the traders of the first trading type who has accepted the at least portion of the aggressive IOI that has been offered to cross; re-calculate, in real-time when the decline response is received, based at least in part on the decline response, the decline ratio of each trader of the traders of the first trading type who has declined the at least portion of the aggressive IOI that has been offered to cross; and cancel, in real-time, an uncrossed portion of the aggressive IOI.
2 . The non-transitory computer readable medium of claim 1 , wherein the first trading type is a professional trader and wherein the second trading type is a market maker.
3 . The non-transitory computer readable medium of claim 2 , wherein the at least one pre-determined criterion identifies a pre-determined portion of the aggressive IOI to be allocated to the market maker when a price of the market maker's passive IOI matches the aggressive IOI of the fourth trader.
4 . The non-transitory computer readable medium of claim 1 , wherein the trading types further comprise: iii) a third trading type, wherein passive IOIs from traders of the third trading type are subject to crossing based at least in part on a respective submission time for each passive IOI; and wherein the determining the allocation of the aggressive IOI further comprises: allocating, among the traders of the third trading type, based at least in part on the respective submission time of each respective passive IOIs.
5 . The non-transitory computer readable medium of claim 4 , wherein the determining the allocation of the aggressive IOI further comprises: excluding, from the allocation, a passive IOI of each trader of the third trading type when passive IOIs from at least one market maker and the plurality of professional traders have a combined liquidity to fully satisfy the aggressive IOI.
6 . The non-transitory computer readable medium of claim 1 , wherein the first, the second, and the third prices are the same.
7 . The non-transitory computer readable medium of claim 1 , wherein the determining the allocation of the aggressive IOI further comprises: ranking each trader of the first trading type in a priority allocation order based on the decline ratio of each trader from the traders of the first trading type; and allocating the aggressive IOI, in the priority allocation order, to fully satisfy a passive IOI of a higher ranked trader of the first trading type.
8 . The non-transitory computer readable medium of claim 1 , wherein the financial compensation is a rebate based on an accepted portion of the at least portion of the aggressive IOI that has been accepted to cross.
9 . The non-transitory computer readable medium of claim 1 , wherein the financial compensation is a price discount to a fourth price of the aggressive IOI.
10 . The non-transitory computer readable medium of claim 1 , wherein the determining the allocation of the aggressive IOI further comprises: excluding, from the allocation, each trader of the first trading type whose decline ratio exceeds a pre-determined decline ratio value.
11 . The non-transitory computer readable medium of claim 1 , wherein the determining the allocation of the aggressive IOI further comprises: calculating a premium above a fourth price of the aggressive IOI to be charged to each trader of the first trading type whose decline ratio exceeds a pre-determined decline ratio value, and allocating, at a fifth price, the aggressive IOI to each trader of the first trading type whose decline ratio exceeds the pre-determined decline ratio value, wherein the fifth price is a sum of the premium and the fourth price of the aggressive IOI.
12 . The non-transitory computer readable medium of claim 1 , wherein the notifications only reveal the best bid and the best offer out of all received IOIs.
13 . The non-transitory computer readable medium of claim 1 , wherein the decline response identifies that a particular trader of the first trading type has ignored a respective notification to cross.
14 . The non-transitory computer readable medium of claim 13 , wherein the decline response identifies that the particular trader of the first trading type has not acted upon the respective notification for over 10 seconds after the receipt.

Description

RELATED APPLICATIONS This application is a continuation of U.S. patent application Ser. No. 18/295,168, filed Apr. 3, 2023, which is a continuation of U.S. patent application Ser. No. 17/660,459, filed Apr. 25, 2022, now U.S. Pat. No. 11,645,715, which issued May 9, 2023, which is a continuation of U.S. patent application Ser. No. 17/070,552, filed Oct. 14, 2020, now U.S. Pat. No. 11,373,240, which issued Jun. 28, 2022, which is a continuation of U.S. patent application Ser. No. 16/163,383, filed Oct. 17, 2018, now U.S. Pat. No. 10,846,796, which issued Nov. 24, 2020, which is a continuation of U.S. patent application Ser. No. 15/621,509, filed Jun. 13, 2017, which is a continuation of U.S. patent application Ser. No. 14/880,676, filed Oct. 12, 2015, which is a continuation of U.S. patent application Ser. No. 14/478,081, filed Sep. 5, 2014, now U.S. Pat. No. 9,159,104, which issued Oct. 13, 2015, which is a continuation of U.S. patent application Ser. No. 14/057,770 filed Oct. 18, 2013, which is a continuation of U.S. patent application Ser. No. 13/942,423, filed Jul. 15, 2013, now U.S. Pat. No. 8,577,790, which issued Nov. 5, 2013, which claims the benefit of priority of U.S. Provisional Application No. 61/829,452, filed May 31, 2013, each of which is incorporated herein by reference in its entirety for all purposes. TECHNICAL FIELD In some embodiments, the instant inventions is related to computer-implemented methods and computer systems for an electronic financial platform for trading, such as, but is not limited to, trading of commodities, trading assets, trading financial instruments (stocks, bonds, swaps, ETFs, currencies, etc.), etc. BACKGROUND Typically, electronic trading venues, such as the New York Stock Exchange, regulate the order submission process for buying and selling securities. Typically, a trading venue can have its own set of rules, protocols, and processes that its participant/customer, such as a broker or a dealer, must follow to execute buy/sell orders via that trading venue. For instance, the exemplary trading venue may require to transform buy/sell orders to meet its specific rules, protocols, and processes of the trading venue prior to submitting those orders for execution. SUMMARY OF THE INVENTION In some embodiments, the instant invention provides for a computer-implemented method that includes at least the following steps of: specifically programming at least one computer machine to at least perform the following: receiving, from a first trader, a first indication of interest (IOI) for at least one first financial instrument at a first price; designating, in real-time, the first IOI as a first passive IOI; receiving, from a second trader, a second IOI for the at least one first financial instrument at a second price; designating, in real-time, the second IOI as a second passive IOI; receiving, from a third trader, a third IOI for the at least one first financial instrument at a third price; designating, in real-time, the third IOI as a third passive IOI: where each passive IOI is a bid or an offer associated with the at least one first financial instrument and a resting liquidity, where the resting liquidity is liquidity that does not cross upon submission, classifying the first trader, the second trader, and the third trader as at least the following trading types: i) a first trading type, where traders of the first trading type are subject to a decline ratio calculation for crossing their passive IOIs, where the decline ratio calculation identifies how many eligible aggressive IOIs have been previously declined by each trader of the first trading type out of a total number of all eligible aggressive IOIs that have been offered to such trader during a pre-determined time period, ii) a second trading type, where traders of the second trading type are subject to at least one pre-determined criterion for crossing their passive IOIs; calculating, for each trader of the first trading type, a decline ratio based on the decline ratio calculation, receiving, from a fourth trader, a fourth IOI for the at least one first financial instrument; designating, in real-time, the fourth IOI as an aggressive IOI, where the aggressive IOI is available to be immediately crossed at the first price, the second price, and the third price; determining, in real-time, from the group selected from the first passive IOI, the second passive IOI and the thin: passive IOI, an allocation of the aggressive IOI to: i) a plurality of traders of the first trading type based at least in part on the decline ratio of each trader from the plurality of traders of the first trading type, or ii) (a) the plurality of traders of the first trading type based at least in part on the decline ratio of each trader from the plurality of traders of the first trading type the at least one trader of the first trading type, and (b) at least one trader of the second trading type based at least in part on the at least one pre-determ