PCT
`
`WORLD INTELLECTUAL PROPERTY ORGANIZATION
`International Bureau
`
`
`
`(22) International Filing Date:
`
`20 August 1999 (20.08.99)
`
`(30) Priority Data:
`60/097,414
`
`21 August 1998 (21.08.98)
`
`US
`
`(71) Applicant: MARKETXT, INC. [US/US]; 38th Floor, 30 Broad
`Street, New York, NY 10004 (US).
`
`(72) Inventors: SATOW, Michael; Apartment 8C, 27 North Moore
`Street, New York, NY 10013 (US). LEONG, Stanley;
`5055 Cloverdale Boulevard, Bayside, NY 11364 (US).
`HERMUS, Michael, W.; Apartment 10H, 30 West 63rd
`Street, New York, NY 10023 (US). CHOE, Eugene; #2620,
`300 Winston Drive, Cliffside Park, NJ 07010 (US).
`
`(74) Agents: GARRETT, Arthur, S. et a1.; Finnegan, Henderson,
`Farabow, Garrett & Dunner, L.L.P., 1300 I Street, N.W.,
`Washington, DC 20005—3315 (US).
`
`
`
`Published
`With international search report.
`
`
`
`
`
`
`INTERNATIONAL APPLICATION PUBLISHED UNDER THE PATENT COOPERATION TREATY (PCT)
`
`
`
`(51) International Patent Classification 7 :
`(11) International Publication Number:
`W0 (IO/11587
`G06F 17/60
`
`(43) International Publication Date:
`2 March 2000 (02.03.00)
`
`(21) International Application Number:
`PCT/US99/ 18767
`(81) Designated States: AE, AL, AM, AT, AU, AZ, BA, BB, BG,
`BR, BY, CA, CH, CN, CR, CU, CZ, DE, DK, DM, EE,
`ES, FI, GB, GD, GE, GH, GM, HR, HU, ID, IL, IN, IS, JP,
`KE, KG, KP, KR, KZ, LC, LK, LR, LS, LT, LU, LV, MD,
`MG, MK, MN, MW, MX, NO, NZ, PL, PT, RO, RU, SD,
`SE, SG, SI, SK, SL, TJ, TM, TR, T'I‘, UA, UG, UZ, VN,
`YU, ZA, ZW, ARIPO patent (GH, GM, KE, LS, MW, SD,
`SL, SZ, UG, ZW), Eurasian patent (AM, AZ, BY, KG, KZ,
`MD, RU, TJ, TM), European patent (AT, BE, CH, CY, DE,
`DK, ES, FI, FR, GB, GR, IE, IT, LU, MC, NL, PT, SE),
`OAPI patent (BF, BJ, CF, CG, CI, CM, GA, GN, GW, ML,
`MR, NE, SN, TD, TG).
`
`(54) Title: A REAL—TIME COMPUTERIZED STOCK TRADING SYSTEM
`
`
`
`
`
`ORDER
`INFORMATION
`
`MARKET
`INFORMATION
`
`WEB SERVER
`
`
`
`
`ORDER PROCESSING
`WEB SERVER
`BROKER
`
`
`
`
`
`TRADING SYSTEM 24 DEALER
`26
`INTERFACE
`
`READ ONLY APP
`SERVER
`
`
` ORDER INFORMATION
`PRIVATE
`ORDER
`NETWORK
`
`INFORMATION
`TRADING SYSTEM
`MATCHING
`DATABASE
`
`
`
`
`ENGINE
`INTERFACE
`
`
`
`
`
`
`ORDER PROCESSING BROKER
`BD
`30 2%??3
`
`
`
`
`WEB SERVER
`2° DEALER
`INTERFACE
`
`
`16
` ORDER
`
`INFORMATION
`IO
`
`10
`
`
`
`(57) Abstract
`
`A method and system provide real—time, after—hours stock trading to both retail and institutional investors. The system acts as a
`hub connecting investors from numerous brokerage firms and delivers real—time, after—hours trading services to both retail and institutional
`investors.
`It matches buy and sell trade orders placed by different investors on the system, thereby allowing both retail and institutional
`investors to execute trades with each other either before, during or after—hours. Consistent with the present invention, when the trading
`system’s matching engine determines that a buy order and a sell order from different investors match, it executes and processes the trade. In
`one implementation, the system’s market information is published in real—time on the Internet and is viewable by investors and the general
`public.
`
`I—___—_—.————-—-—
`
`
`
`____I
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`BLOOMBERG ET AL - EXHIBIT 1004
`BLOOMBERG ET AL - EXHIBIT 1004
`
`
`
`
`
`
`
`

`

` AL
`
`AM
`AT
`AU
`AZ
`BA
`BB
`BE
`BF
`BC
`3.]
`BR
`BY
`CA
`CF
`CG
`CH
`CI
`CM
`CN
`CU
`CZ
`DE
`DK
`EE
`
`FOR THE PURPOSES OF INFORMATION ONLY
`
`Codes used to identify States party to the PCT on the front pages of pamphlets publishing international applications under the PCT.
`Lesotho
`SI
`Slovenia
`LS
`ES
`LT
`SK
`FI
`Lithuania
`Slovakia
`SN
`LU
`FR
`Senegal
`Luxembourg
`SZ
`Swaziland
`LV
`Latvia
`GA
`TD
`Chad
`MC
`Monaco
`GB
`MD
`TG
`GE
`Togo
`Republic of Moldova
`MG
`GH
`TJ
`Madagascar
`Tajikistan
`TM
`MK
`Turkmenistan
`GN
`The former Yugoslav
`TR
`GR
`Republic of Macedonia
`Turkey
`TT
`Mali
`HU
`Trinidad and Tobago
`UA
`Ukraine
`IE
`Mongolia
`Mauritania
`UG
`IL
`Uganda
`Malawi
`United States of America
`US
`IS
`Mexico
`UZ
`IT
`Uzbekistan
`VN
`Viet Nam
`JP
`Niger
`Netherlands
`YU
`KE
`Yugoslavia
`ZW
`Zimbabwe
`KG
`Norway
`New Zealand
`KP
`Poland
`Portugal
`Romania
`Russian Federation
`Sudan
`Sweden
`Singapore
`
`Albania
`Armenia
`Austria
`Australia
`Azerbaijan
`Bosnia and Herzegovina
`Barbados
`Belgium
`Burkina Faso
`Bulgaria
`Benin
`Brazil
`Belarus
`Canada
`Central African Republic
`Congo
`Switzerland
`Céte d‘lvoire
`Cameroon
`China
`Cuba
`Czech Republic
`Germany
`Denmark
`Estonia
`
`Spain
`Finland
`France
`Gabon
`United Kingdom
`Georgia
`Ghana
`Guinea
`Greece
`Hungary
`Ireland
`Israel
`Iceland
`Italy
`Japan
`Kenya
`Kyrgyzstan
`Democratic People’s
`Republic of Korea
`Republic of Korea
`Kazakstan
`Saint Lucia
`Liechtenstein
`Sri Lanka
`Liberia
`
`KR
`KZ
`LC
`LI
`LK
`LR
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`ML
`MN
`MR
`MW
`MX
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`

`

`WO 00/11587
`
`PCT/US99/18767
`
`l
`
`A REAL-TIME COMPUTERIZED STOCK TRADING SYSTEM
`
`RELATED APPLICATIONS
`
`This patent application claims priority to Provisional US. Patent Application
`
`No. 60/097,414, entitled “Online Trading System” and filed on August 2 1 , 1998, which is herein
`
`incorporated by reference.
`
`The following identified US. patent applications are relied upon and are incorporated
`
`in their entirety by reference in this application.
`
`US. Patent Application No.
`
`, entitled “Anti-Manipulation Method and System
`
`for a Real—Time Computerized Stock Trading System" bearing attorney docket no. 074440012,
`
`10
`
`and filed on the same date herewith.
`
`U. S. Patent Application No.
`
`, entitled "Volume Limitation Method and system
`
`for a Real-Time Computerized Stock Trading System" bearing attorney docket no. 074440013,
`
`and filed on the same date herewith.
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`15
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`BACKGROUND
`
`The present invention relates generally to stock trading and, more particularly, to a real-
`
`time, computerized stock trading system.
`
`Financial markets are growing technologically and also becoming increasingly global.
`
`As a result, many new investment opportunities are emerging in the marketplace, especially after
`
`the stock markets close. Although professional, institutional investors have long traded
`
`securities after-hours, non-professional retail
`
`investors,
`
`typically individuals, have been
`
`effectively excluded from the after-hours trading market. Consequently, many of these retail
`
`investors desire equal access and opportunity.
`
`Traditional brokerage firms, whose control over vital information made them the
`
`market’s gatekeepers, are changing their approach, and their fees. Meanwhile, more investors
`
`everyday continue to open accounts with ”on-line" brokerage firms, which allow individuals to
`
`enter orders and view account information over the Internet. Today, there are many brokerage
`
`firms which offer online trading. Retail investors conventionally use the brokerage firms to
`
`place trade orders that are executed during the day when the financial markets are open.
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`Frequently however, investors place orders online after the markets close, but these trades are
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`not executed until the daytime stock exchanges are open.
`
`The existing day—time market infrastructure is not fully automated, which makes it
`
`difficult to provide individuals with direct access to market information or extend the hours of
`
`operation. While several companies operate electronic automated trading systems that operate
`
`during and after market hours, these firms limit participation on their systems to institutions,
`
`excluding the retail investor from taking advantage of investment opportunities after markets
`
`close. One such system is Reuters” Instinct, the leading computerized institutional trading
`
`system, and although Instinct operates both during and after market hours, it is designed for use
`
`10
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`by institutions.
`
`Some other conventional electronic trading systems, such as ITG’ s POSIT, do not operate
`
`in real-time and use static matching engines that periodically match investors' orders as a batch
`
`process. The lack of real-time processing prohibits immediate interactive trading and prevents
`
`investors from reacting to immediate price changes and instantaneously seeing other orders
`
`15
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`placed.
`
`Additionally, conventional systems do not make information on real—time, after-hours
`
`trading activity publicly available to individuals. This lack of real-time publishing prevents
`
`after-hours retail investors and the general public from seeing immediate changes in trading
`
`opportunities as they occur.
`
`SUMMARY OF THE INVENTION
`
`In accordance with the present invention, an automated method for trading stocks
`
`receives a first trade order from a first non-institutional user outside of exchange trading hours
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`and receives a second trade order from a second non-institutional user outside of exchanae
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`trading hours. It matches the first trade order with the second trade order and executes a trade
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`in real—time between the first and second users when a match is determined between the first
`
`trade order and the second trade order.
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`In accordance with another aspect of the present invention, an automated method for
`
`publishing real-time stock trading information from a computerized stock trading system is
`
`provided. The stock trading information includes open trade order information regarding open
`
`trade orders that have not been matched in the trading system. The method comprises the steps
`
`of accessing a trading system database to retrieve the open trade order information of trades
`
`placed by non-institutional users to be executed in real-time outside of exchange trading hours,
`
`and retrieving the open trade order information from the trading system database. Furthermore,
`
`it sends the open order information over the Internet to a user.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`The accompanying drawings, which are incorporated in and constitute a part of this
`
`specification, illustrate an implementation of the invention and, together with the description,
`
`serve to explain the advantages and principles of the invention. In the drawings,
`
`Figure 1
`
`illustrates a block diagram of a real—time computerized trading system in
`
`accordance with the present invention;
`
`Figure 2 displays a flowchart illustrating the steps of a method for placing a trade order
`
`in the trading system in accordance with the present invention;
`
`Figures 3A, 3B and 3C depict exemplary broker-dealer order entry screens in accordance
`
`with the present invention;
`
`Figure 4 illustrates the steps of a method for matching a trade order in the trading system
`
`in accordance with the present invention;
`
`Figure 5 depicts the steps of the method for publishing the trading system market
`
`information over a network, such as the Internet, in accordance with the present invention; and
`
`Figure 6 shows a market information mechanism in accordance with the present
`
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`invention.
`
`DETAILED DESCRIPTION
`
`Methods and systems consistent with the present invention provide real—time, after-hours
`
`computerized stock trading to both retail and institutional investors. One system consistent with
`
`30
`
`the present invention acts as a hub connecting investors from numerous brokerage firms and
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`WO 00/11587
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`4
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`effectively delivers real-time, after-hours trading services to both retail and institutional
`
`investors.
`
`It matches buy and sell trade orders placed by different investors on the system,
`
`thereby allowing both retail and institutional investors to execute trades with each other either
`
`during or after-hours. Another system consistent with the present invention publishes the trading
`
`information in real—time, for example, over the Internet. The increased access provides
`
`opportunities for retail investors to execute stock trade orders after the close ofthe conventional
`
`day-time financial markets, and the real-time aspect allows investors to continuously react to
`
`immediate changes in stock prices. It should be noted that after-hours refers to any time outside
`
`ofexchange trading hours, i. e., any time the primary securities exchanges such as the New York
`
`Stock Exchange and the American Stock Exchange do not accept for immediate execution
`
`purchase or sale orders for securities, including before the exchanges open.
`
`An on—line, real—time, computerized trading system consistent with the present invention
`
`is connected to brokerage firms for the benefit of both their institutional and retail clients.
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`Investors place trade orders through their retail brokerage firms, which then relay the orders on
`
`a' private network to the system’s matching engine for immediate execution either during or
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`after-hours. Retail investors primarily access the system through their brokerage firm’s existing
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`online trading systems by entering trade orders on their personal computers. Offline investors
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`can place trade orders with their registered representatives who will then submit the orders on
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`their behalf to the trading system for execution. Professional traders can access the system
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`through professional trading software specifically intended for use by these types of investors.
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`By filtering trades through the brokerage firms, the brokerage firms’ computer systems ensure
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`that the accounts contain the necessary buying or selling power for the transactions, and the
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`trading system utilizes the existing security measures already implemented by the brokerage
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`firms. As such, theninvestors need not have separate accounts because they-may use their
`
`existing brokerage accounts. However, the user does not necessarily have to connect to the
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`system through a brokerage firm, and the connection may be directly to the trading system or
`
`by other means.
`
`When the trading system’s matching engine determines that a buy order and a sell order
`
`from different investors match, it executes and processes the trade.
`
`Information about open
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`orders can be sent via web server to the Internet and can be viewed by investors and the general
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`public in real-time.
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`The system may also have anti-manipulation mechanisms so that investors may not
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`manipulate the trading system’ s market with schemes such as self-trading or round—robin trading
`
`as described in co-pending US. Patent Application Serial Number
`
`. Furthermore,
`
`it may contain other protective mechanisms such as volume limitations to limit institutional
`
`influence within the market as described in co-pending US. Patent Application Serial Number
`
`
`. The trading system may have other mechanisms, both protective and otherwise, not
`
`specifically mentioned here.
`
`Figure 1 illustrates a block diagram ofan exemplary proprietary, real-time, computerized
`
`trading system consistent with the present invention. Retail or institutional investors, referred
`
`to as users 10, may access the trading system 28 directly through their personal computers using
`
`the existing online trading networks of their brokerage firms, referred to as broker—dealers 18
`
`(“BD”). Online investors’ trades may be filtered through their broker-dealers’ computer systems,
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`as they currently are, to ensure that the investor’ 5 accounts contain necessary buying power and
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`meet requirements imposed by the broker-dealers 18 for the transactions they wish to conduct
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`on the system. Additionally, users 10 may also be broker-dealers 18.
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`The computer systems used by users 10, broker-dealers 18, and the trading system 28
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`may be general-purpose computers that run the necessary software and contain the necessary
`
`hardware components for implementing methods consistent with the present invention. These
`
`computer systems may also have additional components not shown on Figure 1. Furthermore,
`
`although two broker-dealers 18 and six users 10 are shown on the figure, any number of broker-
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`dealers 18 and users 10 may use the trading system 28 in accordance with the present invention.
`
`The various software components of a system consistent with the present invention may
`be programmed in alprogramming language such as the JavaTM programming language, which
`
`is further described in “The Java Programming Language,” 2’“ Ed., Ken Arnold, James Gosling,
`
`Addison-Wesley, 1998, which is incorporated herein by reference. For further description ofthe
`
`Java Language, refer to “The Java Language Specification,” James Gosling, Bill Joy, Guy Steele,
`
`Addison-Wesley, 1996 which is also incorporated herein by reference. When programmed in
`
`the Java programming language, the source code for the software is portable across multiple
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`operating systems (i.e., Unix, NT, etc.) and easily deployed over the Internet, but other
`
`programming languages may also be used.
`
`Figure 2 illustrates a flowchart of the steps of a method for placing a trade order in the
`
`trading system in accordance with the present invention. Generally, a user 10 enters a trade order
`
`through the order entry mechanism 12 that is, in one implementation, supplied by the broker-
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`dealer 18 (step 202). The order entry mechanism 12 may be an applet containing screens used
`
`to interface with the broker-dealer 18. The user 10 may make decisions on various trades based
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`on information from the market information mechanism 14, which will be described below.
`
`Figure 3A illustrates an exemplary broker-dealer’s initial order entry screen in the order
`
`entry mechanism 12. Shown on the screen is a user identification and a password log on. The
`
`screens supplied to the user 10 in the order entry mechanism 12 may be the standard screens
`
`currently given to the user by a broker-dealer 18 with online capabilities, and they may vary
`
`greatly from the ones shown in the drawings.
`
`Figure 3B shows the next exemplary screen contained in the order entry mechanism 12
`
`. given to the user 10. On this screen, the user 10 may decide whether to buy or sell an amount
`
`of a certain type of stock at a specific price. For example, the screen in Figure 3B shows a
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`user 10 placing an order to buy 100 shares of IBM stock at one hundred dollars per share.
`
`Figure 3C depicts the following exemplary screen contained in the order entry
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`mechanism 12. This screen displays pending open orders for the exemplary user 10. As shown
`
`on the figure, the screen shows a user 10 placing an exemplary buy order for 100 shares of IBM
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`stock at 100 shares, and it shows that the buy order has not yet been filled.
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`Referring back to Figure 1 and Figure 2, information entered by the user 10 to the order
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`entry mechanism 12 travels to the broker-dealer 18 via a network 16 such as the Internet (step
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`204). This network 16 facilitates the transferring of order entry information to and from the user
`10 by the broker—dealer 18. As discussed below, it also facilitates the publication ofthe real-time
`
`market information to the user 10 from the trading system 28.
`
`In one system consistent with the present invention, when the user 10 communicates
`
`across the network 16 with the broker-dealer 18, it does so via the broker-dealer web server 20.
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`The broker-dealer web server 20 is the broker web site which, in one implementation, hosts the
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`order entry mechanism 12, which user 10 utilizes to enter trade orders. Once a trade order is
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`entered, it is then relayed from the broker-dealer web server 20 to order processing 22 on the
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`broker—dealer 18.
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`Order processing 22 is a "black box" representation ofa broker dealer’ 5 back-end system
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`and performs order verification, updates account positions (z'.e., cash and securities), updates
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`buying power, etc. Before the trade order is routed for execution (to the principal market
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`exchanges or to the trading system 28 described below), order processing 22 verifies the order
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`to make sure the user’s account has the cash, securities or buying power to make the transaction
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`(step 206). If approved (step 208), order processing 22 routes the trade order to the trading
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`system interface 24, which is a software component that forwards the order information to the
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`trading system 28 across a private network 26 (step 210). If the trade order is not approved by
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`the BD 18, the BD notifies the user 10 (step 212).
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`In one implementation consistent with the present invention, the private network 26 is
`
`a private leased line network for security and performance advantages. Private leased lines are
`
`essentially telephone lines that are leased from a phone company for exclusive use. They are
`
`- secure because only one system uses the lines, and they offer better performance because the
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`system does not share bandwidth with other systems or businesses. Although the private
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`network 26 realizes some advantages, a public network may also be used.
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`The trading system interface 24 represents the order approving mechanism by which
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`orders are translated and transmitted from the broker—dealer l8 to the trading system’s broker-
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`dealer interface 30. The trading system interface 24 receives order confirmation and execution
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`information from the broker-dealer interface 30 after the order has been processed by the trading
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`system 28. After execution on the trading system 28 (described below), the order execution
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`information is relayed back to the trading system interface 24 and then to order processing 22.
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`The order execution information received from the trading system 28 is used to, update the
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`account position and buying power in the account by the broker-dealer 18.
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`When a broker—dealer 18 routes orders and communicates with the trading system 28, it
`
`preferably communicates using the Financial Information Exchange protocol ("FIX"), a protocol
`
`developed by the securities industry to standardize communications between brokerage firms.
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`Alternatively, the broker-dealers l8 and the trading system 28 may use other communication
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`The configuration and implementation of order processing 22 may vary widely among
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`broker-dealers 18. Most notably, numerous broker-dealer 18 firms outsource order
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`processing 22 to third party broker-dealers called "clearing firms" which perform order
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`processing 22 and other back-office functions for multiple client broker-dealers firms. In this
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`case, as indicated in Figure 1, the link between the trading system 28 and the broker-dealer 18
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`(which, as shown on Figure 1, is comprised of the trading system interface 24, private
`
`network 26, and BD Interface 30) is through the clearing firm.
`
`Figure 4 illustrates the steps of a method for matching a trade order in the trading system
`
`in accordance with the present invention. The BD interface 30 on the trading system 28 is the
`
`component which receives orders from the BD 18 and sends confirmation/execution information
`
`back to the BD (step 402).
`
`It translates communications to the trading system 28 application
`
`programming interface (API), a formal set of specifications for one program to communicate
`
`with another program, which it uses to communicate with the matching engine 32 (step 404).
`
`The matching engine 32 is the software component of the trading system 28 which
`
`actually performs order matches and executions.
`
`In one implementation consistent with the
`
`present invention, all of the matching logic (including anti—manipulation and other defensive
`
`schemes) is contained in the matching engine 32. When the matching engine 32 receives trade
`
`orders, it checks the database 34 for open orders to be matched (step 406), determines if a match
`
`is made (step 408) and updates the database 34 accordingly. For example, if one user 10 has
`
`placed an order to sell a certain number of shares of a specific stock, and another user 10 has
`
`placed an order to buy a certain number of shares of the same stock, and their prices match, the
`
`matching logic in the matching engine 32 registers a match (step 410). The matching engine 32
`
`determines how many shares of that stock will change possession from the seller to the buyer.
`
`Generally, orders that cross the market will result in execution at the best counterpart
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`price currently offered on the trading system 28. If a user does not wish to buy as many shares
`
`as a seller is offering, partial order matches may be executed and the remaining quantity of the
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`larger order may remain open and post back to the trading system 28 to be matched. If a match
`
`is determined between two trade orders, the matching engine 32 executes the order immediately
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`and relays the order execution information to the database 34 for persistent storage (step 412).
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`If the matching engine 32 does not find a matching open order for the received trade order, the
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`trade order is stored in the database 34 as an open order to be matched with future trade orders
`
`(step 414).
`
`The database 34 is the central repository for information in the trading system 28,
`
`including open orders, execution information, and audit trails. In one implementation consistent
`
`with the present invention, the database server 34 is an obj cot-oriented database, although other
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`types of databases may also be used. The database 34 on the trading system 28 stores the order
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`information used by the matching engine 32 to determine a match. In doing so, it stores data
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`relating to open orders and executed orders, in addition to other relevant data for the trading
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`system 28.
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`Figure 5 depicts the steps of the method for publishing the trading system market
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`information over a network, such as the Internet, in accordance with the present invention.
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`While receiving and executing trade orders, the trading system 28 may also publish its market
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`information in real-time over a network such as the Intemet 16. The Read-Only Applet
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`Server 36 on the trading system 28 reads market information to be displayed over the
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`Internet 16. It receives the market information from the database 34 (step 502) and relays it to
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`the user 10 via the trading system web server 38, which is the trading system web site that sends
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`the market information over the Internet 16 (step 504). The trading system web server 38 hosts
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`the market information mechanism 14, utilizing data from the Read-Only Applet Server 36. This
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`market information mechanism 14 may contain an applet, referred to as an "order book,"
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`showing open orders in the trading system 28 to the user 10 (step 506).
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`Figure 6 illustrates an exemplary order book in accordance with the present invention.
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`The order book provides real-time quotations of all open trade orders on the trading system 28,
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`grouped by security and listed by price and time ofentry, for example. Besides enabling users 10
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`ofthe trading systemi28 to identify and follow. their own orders on the trading system, the order
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`10
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`15
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`20
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`25
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`book may also display additional information such as a stock’s closing price for the day on the
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`principal market including price, volume, high and low prices, and the price change for the day.
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`It may also display the last price at which a stock was executed on the trading system 28 and the
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`quantity and time ofthe trade. Additionally, the order book may give other information such as
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`the price change from the closing price for the day on the principal markets, the chart of prices
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`30
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`and times of all executions in that stock during the session, and session high, low and volume
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`information for the stock.
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`10
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`Some implementations consistent with the present invention may further display
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`additional information to keep the users 10 informed. This information may include a list of the
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`most active stocks during a particular session, indications of price swings of more than a
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`particular percentage (eg, 10 percent), from the stocks closing price during a session.
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`Furthermore, the order book may publish information regarding the types of orders that can be
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`entered, in addition to real-time, after-hours news for use by all participating users 10 on the
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`trading system 28 and the general public.
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`The foregoing description of an implementation of the present invention has been
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`10
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`presented for purposes of illustration and description. It is not exhaustive and does not limit the
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`present invention to the precise form disclosed. Modifications and variations are possible in
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`light of the above teaching or may be acquired from practicing of the present invention. The
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`scope of the present invention is defined by the claims and their equivalents.
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`11
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`W 1
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`.
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`An automated method for trading stocks, the method comprising:
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`receiving a first trade order from a first non-institutional user outside ofexchange trading
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`hours;
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`receiving a second trade order from a second non-institutional user outside of exchange
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`trading hours;
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`comparing the first trade order with the second trade order; and
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`executing a trade in real-time between the first and second users when a match is
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`determined between the first trade order and the second trade order.
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`10
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`2.
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`The method of claim 1, wherein comparing includes
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`determining that the first trade order is a buy order for a number of shares of a specific
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`stock at a specific price, and wherein the second trade order is a sell order for a number of shares
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`of the same stock at the same price.
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`3.
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`The method of claim 1, wherein receiving a first trade order from a first user
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`15
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`includes:
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`receiving the first trade order from the first user via a broker-dealer.
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`4.
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`The method of claim 1, wherein matching the first trade order further includes:
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`storing the first trade order in a database as an open order to be matched later if a match
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`is not immediately determined.
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`5.
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`The method of Claim 1, wherein receiving a first trade order includes:
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`receiving the first trade order via the Internet, and
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`wherein receiving a second trade order includes receiving the second trade order via the
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`Internet.
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`6.
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`The method of claim 1, wherein executing a trade further includes:
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`updating a database if a trade between the first and second users is executed.
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`7.
`
`The method of claim 1, wherein executing a trade further includes:
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`notifying the first and second users of the executed trade.
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`8.
`
`The method of claim 7, wherein notifying the first and second users includes:
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`notifying the first and second users of the executed trade Via the Internet.
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`20
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`25
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`12
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`9.
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`An automated method for publishing real-time stock trading information from
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`a computerized stock trading system, the stock trading information including open trade order
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`information regarding open trade orders that have not been matched in the trading system, the
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`method comprising:
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`accessing a trading system database to retrieve the open trade order information oftrades
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`placed by non—institutional users to be executed in real—time outside of exchange trading hours;
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`retrieving the open trade order information from the trading system database; and
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`sending the open order information over the Internet to a user.
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`10.
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`The method of claim 9, wherein sending the open order information includes:
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`sending the open order information over the Internet to multiple users.
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`11.
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`The method of claim 9, wherein sending the open order information includes:
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`sending the open order information to an Internet web site.
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`12.
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`The method of claim 9, wherein sending the open order information further
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`includes:
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`receiving the open order information by the user.
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`13.
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`The method of claim 9, wherein retrieving the open trade order information
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`includes retrieving executed trade order information, and
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`wherein sending the open trade order information includes sending the executed trade
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`order information.
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`14.
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`The method of claim 9, wherein retrieving the open trade order information
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`includes retrieving additional stock trading information, and
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`wherein sending the open trade order information includes sending the additional stock
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`trading information.
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`15.
`An automated method for trading stocks comprising:
`receiving a first trade order from a first broker-dealer outside ofexchange trading hours,
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`the broker-dealer having received the first trade order from a first non-institutional user
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`connected to the broker-dealer;
`
`receiving a second trade order from a second broker-dealer outside of exchange trading
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`hours, the broker-dealer having received the second trade order from a second non-institutional
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`10
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`15
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`20
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`25
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`30
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`user connected to the broker-dealer;
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`comparing the first trade order with the second trade order; and
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`executing a trade in real—time between the first and second users when a match is
`
`determined between the first trade order and the second trade order.
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`16.
`
`The method of claim 15, further including the step of sending the trade order to
`
`the first broker-dealer via the Internet.
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`17.
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`An automated method for trading stocks comprising:
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`sending a first trade ord