0001
`
`IBG 1008
`CBM of U.S. Pat. No. 7,533,056
`
`

`
`tm_m.P&U
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`Dec. 20, 1994
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`Sheet 1 of 6
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`5,375,055
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`U.S. Pafent
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`Dec. 20, 1994
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`Sheet 2 of 6
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`5,375,055
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`0003
`0003
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`

`
`U.S. Patent
`
`Dec. 20, 1994
`
`Sheet 3 of 6
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`U.S. Pafent
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`Dec. 20, 1994
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`Sheet 5 of 6
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`5,375,055
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`

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`U.S. Pafent
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`Dec. 20, 1994
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`Sheet 6 of 6
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`5,375,055
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`Fig. 7
`
`SELECT ANOTHER
`TF/CP
`
`RESET COUNTER
`RESET PRICE REGISTER
`
`i=0
`P=0
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`RESET QUANTITY REGISTER Q=D
`SET SMALL FLAG
`S=‘l
`
`TRANSMIT
`TF/CP/P/S
`
` READ NEXQ QDUOTE
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`FROM ORD RE
`
`LIST
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`
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`0007
`0007
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`

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`1
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`5,375,055
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`2
`utilize the credit information. until a match has been
`found between a Buyer and a Seller.
`Consequently, unless he attempts to execute a trade at
`the best price currently displayed on his screen, a trader
`using the prior art anonymous matching system has no
`way of knowing whether he has credit with, and is
`willing to extend credit to, the anonymous counterparty
`offering (bidding) the best price currently displayed on
`his screen and thus whether any attempt to buy or sell
`at the displayed price will be subsequently invalidated
`by the system for lack of such credit.
`SUMMARY OF THE INVENTION
`
`It is an overall objective of the present invention to
`provide an anonymous trading system which can iden-
`tify the best bids and ofiers from those counterpar-ties
`with which each client site is currently eligible to deal,
`while maintaining the anonymity of the potential coun-
`terparty and the confidentiality of any specific credit
`limitations imposed by the anonymous potential coun-
`mrpm1y
`To that end, each client site preferably provides the
`system with only limited credit information for each
`potential counterparty (for example, a one bit flag indi-
`cating whether a predetermined limit has already been
`exceeded) and each bid or offer for a particular type of
`financial instrument is preferably prescred by the
`system for compatibility with that limited credit infor-
`mation before calculating an anonymous “DeaJable"
`price for presentation to any of the traders dealing with
`that particular financial instrument.
`In a presently preferred embodiment, the prescreen-
`ing is a simple check to determine whether any credit
`remains between the two possible countcrpar-ties to the
`potential transaction, and thus may be performed using
`a simple yes/no Preauthorization Matrix before any bid
`or offer is transntitted to a particular client site.
`In accordance with a preferred embodiment, such
`Preauthorizatiou Matrices are maintained at each of
`several regional nodes (“distributed nodes”) ofa distrib-
`uted processing communication network, with each
`such distribution node being connected by correspond-
`ing individual permanent links of the network to those
`client sites (“access nodes”) for which it is responsible
`for distributing market information including custom-
`ized "Dealable" bid and offer prices in addition to
`global “Besl" prices.
`More particularly, in the preferred embodiment, the
`sensitive credit limit data indicating how much credit a
`particular client site is willing to extend to each possible
`counterparty is maintained only at an access node asso-
`ciated only with that particular client. and only a simple
`ym/no indication of whether the entity (for example, a
`trader, a trading floor, or a bank) associated with that
`particular access node is w1l'lm'g to transact business
`with a particular counterparty is transmitted to the
`other nodes of the communication network.
`To further limit the data received and processed by
`each of the relevant distribution nodes computers, (i.e.,
`the regional nodes closest to the particular site and/or
`closest to the particular counterparty), only changes in
`the credit state between a particular access node and a
`particular counterparty (i.e., credit is no longer avail-
`able or credit is now available) are transmitted to the
`distribution nodes, and any credit state information only
`relevant to transactions between two client sites both
`associated with other distribution nodes, may be alto-
`gether ignored.
`
`CREDIT MANAGEMENT‘ son ELECI'RON'IC
`BROKERAGE SYSTEM
`
`TECHNICAL FIELD
`
`invention relates generally to a elec-
`The present
`tronic brokerage system having a communication net-
`work connecting traders dealing in financial
`instru-
`ments. and more particularly to a computerized system
`for distributing anonymous price quotes on a selective
`basis in accordance with previously established credit
`limits.
`
`BACKGROUND ART
`
`Reuters’ published European patent applications E11’
`399 850. EP 4-07 M6, and EP 411 748 disclose an auto-
`mated matching system for anonymous trading of for-
`eign currencies (or other financial instruments) in which
`a single host computer maintains a central data base
`of all the trading instruments available for
`trade, credit information, and the various bids and ofi'e1:'s
`that are present throughout the system. The host com-
`puter uses me information in its centra.l data base to
`match active bids and offers (as well as executing any
`transitory “hit bid" and “take ofier” transactions) based
`on matching criteria which include the gross counter-
`party credit limit between counterparlies to a potential
`matching transaction, price, and available quantity. To
`that end, ea.ch client site establishes and may subse-
`quently vary or reset a credit limit for each possible
`oounterparty, which is used by the host computer to
`establish the gross counterparty credit limit for each
`possible pair of partim and which is equal to the mini-
`mum of the remaining credit (initial credit limit less any
`applicable transactions that have already been exe-
`cuted) from the first party to the second party and from
`the second party to the first party. The host computer
`blocks completion of an otherwise eligible matching
`transaction between a given pair of potential counter-
`parties when the transaction has an associated value in
`excess of the applicable gross credit limit. In that sys-
`tem,
`the various client site computers (lteystations)
`merely maintain and display a restricted subset of the
`infonrration available at the central computer, such as a
`predetermined number of the bat bids and offers, and
`communicate credit and other transaction oriented in-
`formation to the host computer for execution. How-
`ever, in an attempt to preserve the anonymity of the
`parties, the client sites do not have access to any credit
`limits set by their possible counterparties, or even to the
`identifitattion of any other party to a particular transac-
`tion until after a transaction has been completed.
`Thus, in the known prior art system, confidential
`counterparty credit limit data is maintained’ in real time
`and utilized as part ofthe trade matching process by a
`central host computer. As a consequence, each client
`sitehasnowaytodetern:ine,p1-iortoconrmittingtobuy
`or sell at a displayed price from one or more anonymous
`counterparties, whether it is in fact eligible to respond
`to any of the bids or offers currently being displayed.
`The client site is connected to the central host computer
`by telecommunication lines; the host computer is not
`under the direct control of the party providing the
`confidential credit limit data and thus provides potential
`opportunities for unauthorized access to the credit in-
`formation, even though the host computer does not
`
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`5,375,055
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`3
`In a preferred embodiment of the system as currently
`contemplated. if either of the two applicable limits has
`not already been exceeded between a particular pair of
`counterparties, the system displays the entire bid or
`offer as a "Dealable” transaction, but permits each cli-
`ent site to block any above-limit portion of any resultant
`buy or sell transaction during a subsequent deal execu-
`tion/verification process. Alternatively, possibly at the
`option of the party by or for whom the low limit has
`been set, the entire transaction could be executed, or the
`entire transaction could be blocked. As a second alter-
`native, Prauthorizatiou Matrix could indicate whether
`sufficient credit remained to execute a predetermined
`“standard" deal amount in addition to, or instead of, a
`mere indication as to whether any credit from a particu-
`larpotentia1counterpartyhadaJreadybeenusedup.In
`such an alternate embodiment it might also be possible
`to display to each trader two “Dealable” prices: one at
`which at least the predetermined “standard" amount is
`available, and a second price at which only a "Small"
`amount may be available.
`As currently contemplated, each of the regional
`nodes transmits both a Best current price (for which a
`predetermined minimum quantity is available indepen-
`dent of any credit constraints) and a best Dealable price
`(for which at least limited credit is presumably available
`on a bilateral basis with at least one of the counterpar-
`ties making the bid or olfer), as well as a "Small" indica-
`tor that may indicate a thin potential market in which
`that predetermined minimum quantity is not available at
`any price from any counterparty with whom the trader
`is eligible to deal, but nevertheless a smaller quantity is
`available from one or more of such eligible counterpar-
`ties. In determining whether such a predetermined mini-
`mum quantity is available,
`the system may consider
`composite deals from more than one Maker or at more
`than one price, in which case the displayed price is
`preferably the last advantageous price included in the
`best such composite deal. In an alternative embodiment,
`the system does not take into account such composite
`deals when displaying a price, but still identifies the
`oldest quote at the best price as a potential match,
`thereby giving the traders the benefit of any price ad-
`vantages for smaller sizes.
`In accordance with another aspect of the preferred
`embodiment, at least the first Maker having an open
`quote that is displayable as the “Best Dealable" or
`“Regular Dealable” at any of the other trading floors is
`automatically alerted that his bid (offer) quotation is the
`Best price available to at least one potential counter-
`party with whom mutual credit exists, and thus could be
`hit (taken) at any time. Similarly, at least if the quoter’s
`bid (offer) quote is not currently the first Best quote at
`at least one trading floor and is thus subject to immedi-
`ately being hit (taken) by a trader at that trading floor.
`he is preferably also alerted if his quote is “joined” (i.e.,
`equal toinprice, butlaterintime)tosucha“B-est Deal-
`able" or “Regular Dealable" price from another trading
`floor.
`Preferably, in accordance with another aspect of the
`invention, the system also determines whether a Quote
`has been “bettered”; that is to say, no longer qualifim as
`a Dealable quote (or joined to such a quote) at at least
`one potential counterparty. In that case, at the trader's
`option,
`the system will automatically mncel such a
`bette-red quote.
`In accordance with yet another aspect of the inven-
`tion, the displayed Dealable price (unless accompanied
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`by the “Small" indicator) is valid for at least a predeter-
`mined minimum quantity (which, as noted previously,
`may be a composite of small sizes from more than one
`source. or which always reflects a regular size from
`only one source, depending on system design tradeoifs
`and/or the trader preferences) and only prices and not
`quantities are displayed. However, assuming that the
`Best Dealable price for a regular quantity is greater than
`the best Small price, each trader may optionally select
`which of the two such Dealable prices is displayed.
`When a “b1.Iy" or “sell” is made for a quantity in
`excess of the cumulative applicable credit limits associ-
`ated with the countetparties having open quotes equal
`to or better than the displayed price and thus the com-
`pleted transaction is for a cumulative quantity smaller
`than dmired by the trader, the trader preferably then
`has the option of “working the balance" (in which the
`system automatically generates a bid/offer for the dif-
`ference).
`In accordance with yet another aspect of the inven-
`tion, changes in the Dealable price and specifim of any
`subsequent transactions initiated by the trader are op-
`tionally vocalized electronically by the terminal and
`provided to the trader in audible form, together with
`succinct details of any subsequent transactions.
`For example: Whever there is a change in the Deal-
`able “Buy" price, the least significant digits of that price
`are electronically convened to text which in turn is
`converted to digital speech using conventional speech
`synthesis
`The above description refers to the processing and
`distribution of data as though they were instantaneous
`proce-mes; it will be appreciated by those skilled in the
`art that some delay is inherent in the type of system
`described, and that as a consequence, the information
`available at a particular processing node does not al-
`ways reflect the most current
`information available
`anywhere in the system. However, at least in a pre-
`ferred embodimcnt, any such delays in the display of
`Dealable price information may be kept within accept-
`able limits by transmitting only changes over the com-
`munication network, by using several processing nodes
`operating in parallel to compute the Dealable price
`information for different Trading Floors and/or differ-
`ent currencies, and by providing dedicated communica-
`tion links between each processing node and its associ-
`ated Trading Floors.
`
`BRIEF DESCRIPTION OF THE DRAVVINGS
`
`Other objects and features of the present invention
`will be apparent from the following description of a
`presently preferred embodiment taken in connection
`with the accompanying drawings, in which:
`FIG. 1 is an overview of the Communication Net-
`work and the various workstations and processing
`nodes associated therewith;
`FIG. 2 depicts the trader’s Buy/‘Sell display;
`FIG. 3 depicts the trader's Quote display;
`FIG. 4 depicts the Trader Profile Display;
`FIG. 5 shows the flow of messages in the communi-
`cation network which are used to generate and distric-
`ute Dealable price information to each individual
`trader;
`FIG. 6 depicts a Preauthorization Matrix; and
`FIG. 7 is a functional flowchart showing how the
`Dealable price is computed.
`
`0009
`0009
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`

`
`5
`
`DETAILED DESCRIPTION OF TI-[E
`PREFERRED EMIBODIMENT
`
`5,375,055
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`6
`of communication resources, to establish temporary
`communication links between the MAN‘s arid MD’s of
`one trading area and an ARB in a remote trading area.
`so that the remote ARB can function as an emergency
`backup for the local ARB. In any event, the system is
`preferably provided with a self-test and re—initiali.zation
`capability to detect discrepancies between the local data
`bases maintained at each of the local (MD) and regional
`(ARB) processing nodes, and to regenerate missing or
`questionable data from corresponding data stored at
`other nodes.
`Whether the communication links between nodes are
`permanent (maintained indefinitely between two net-
`work components) or temporary (established dynami-
`cally for a short period of time) they are preferably
`“logical links" which have the property that messages
`sent in a certain order over the same logical link are
`guaranteed to reach their destination in the same order.
`Moreover,
`the communication network is preferably
`provided with sufficient error detection, error correc-
`tion, and network self-repair capability to guarantee
`that messages sent via these logical links are error free.
`In summary, each MAN is connected to other MAN’s
`by a robust communication network which connects
`the various Trading Floors and which supplements the
`MAN'S with a number of processing nodes (preferably
`in the form of MD’s and ARB’s) to facilitate the distri-
`bution of price quotations and other market data and to
`execute transactions by matching eligible Market Mak-
`ers with eligible Buyers and Sellers and by monitoring
`the transactions until
`they have been completed or
`aborted, with the MAN'S being responsible for Trading
`Floor specific tasks such as logging the completed
`transaction and updating the credit limit that was previ-
`ously available to the counterparty Trading Floor.
`The structure and function of the trader WS’s,
`MAN'S, MD’s, and ARB's will now be described in
`detail, with particular emphasis on how they cooperate
`to distribute price quotes (bids and offers) from a Mar-
`ket Maker to potential Takers throughout the system. In
`the prior art, such quotes were made available to the
`individual traders merely in the form of one or more
`public best prices for each currency pair (or other finan-
`cial instrument type) then being offered by any Market
`Maker. without regard for any confidential credit re-
`strictions imposed by the Maker or by the potential
`Taker that may prevent any deal being consummated.
`However, in accordance with the present invention.
`each trader receives a private Dealable price, which the
`system has prescreened for the absence of any credit
`restrictions that would prevent the trader on whose WS
`the Dealable price is displayed from dealing with an
`anonymous Market Maker from whom the displayed
`price originates.
`As shown in FIGS. 2 through 4, each WS supports a
`singleh'adertradinginasinglecurrencypair.andits
`display thus provides one or two panels containing only
`information which a. typical trader would consider es-
`sentialtotradinginthatcnrrencypairby meansofan
`anonymous brokerage system. However, the blank por-
`tion of the WS display could obviously be used for
`other data related to another currency pair and/or an-
`other type of transaction. Furthermore, the displayed
`panel could be a window within a larger display that
`also displays data from other information distribution
`and transaction processing systems.
`FIG. 2 shows the trade-r’s Buy/Sell display panel 10
`which provides the primary interface between the elec-
`
`I0
`
`in the described embodiment, the trading system is an
`electronic brokerage system having a communication
`network for facilitating the buying and selling of large
`blocks of foreign currency by traders each associated
`with his own Workstation (“WS") located at a Trading
`Floor of a subscriber bank ("client site"). As shown in
`FIG. 1. each client site has its dedicated Bank Node
`computer ("Market Access Node”, or “MAN”) under
`the control of st Floor Administrator, which maintains
`transaction records, credit limits, and other confidential
`information originating with its associated Trading
`Floor. The WS’s and the MAN associated with each
`Trading Floor are connected via a conventional sell‘-
`repa.i.ring DEC VAX network to a nearby distribution
`node (“Market Distributor” or ‘'M]')”) computer,
`which typically analyzes and distributes current market
`data by means of dedicated permanent communication
`links to one or more associated M.AN’s in a particular
`city (or other local region). and which may also provide
`administrative functions for the communication net-
`work. Although not considered critical to the present
`invention, a group of MD’s is preferably supplemented
`by a common trading region processing node ("Arbitra-
`tor Node" or "ARB"), with the ARB performing those
`functions (such as identifying potential matches be-
`tween Buyers and Sellers, and other aspects of the
`“Deal Matching” process that require coordination
`with more than one client site) which make the most
`efficient use of the communication network if done
`centrally or regionally, while the MZD‘s perform those
`frmclions (such as generation of separate Dealable price
`information for each
`client site) which are
`readily implemented in parallel in a distributed process-
`ing network and which make most efficient use of the
`communication network if done locally or in close
`proximity to the individual client sites.
`In that regard. it is preferable to have more than one
`ARB, with each ARB having primary
`for
`trades
`by Market Makers in the ARB's own
`tradingregion.andbeingconnectedtoalltheMAN”s
`and MD's ofthat tradingregion aswell astotheother
`ARB's in other trading regions by permanent dedicated 45
`links of the communication network. In the majority of
`deals.
`it is anticipated that both the Maker and the
`Taker will be within the same Trading Region and thus
`willbedirectlylinkedtothesameARBwhichcan
`therefore identify a potential match and coordinate its
`final execution without any communication with the
`other ARB‘s; at the same time, the other ARB's can
`simultaneously be proceming deals related to other
`traders in other regions. Connecting the various ARB’s
`with one another by dedicated permanent communica-
`tion links not only facilitates deals with a Taker in a
`remote trading region who does not normally have any
`direct linktotheMaker'sAR.B.butaIsoprovidesan
`efficient communication network for broadcasting price
`quotestoallthetrackersinothertradingregions. Pref-
`erably, the various lvED’s, MAN's and ARB‘s are each
`provided with a local backup already connected to the
`communication network it: accordance with the teach-
`ings of the commonly assigned U.S. patent application
`entitled “ACTIVATION OF A DORMANT SIB-
`LING COMPUTER IN A COMMUNICATION
`NETWORK” and filed 9 Nov. 1990 under Ser. No.
`O7/6l2,0-45]; however, it is also possible, albeit wasteful
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`5,375,055
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`7
`Ironic brokerage system and the individual traders. At
`thetopofthedisplayappearsthecurrencypair12(as
`shown. the Base Currency is United States dollars,
`Local Currency is German marks), and at the top right,
`the “Value Date" 14 (the date on which any resultant
`trade is scheduled for payment). The next line com-
`prises (from left to right): the “Figure” (the most signifi-
`cant three or four digits} 16 of the “Sell” (“bid”) price,
`conventionally expressed in units of Local Currency
`(e.g. 1.72) per single unit of Base Currency (e.g. U.S.
`$1.00); two additional digits 18,20 (commonly referred
`to as “Pips”) which respectively reflect the remaining
`two or three least significant digits of the displayed
`“Best" bid and offer prices {i.e., the best price at which
`at least one anonymous Market Maker is willing to buy
`the Local Currency, and the best price at which at least
`one anonymous Market Maker is willing to sell the
`Local Currency); and the “Figure" 22 of the "Best”
`offer price.
`A Market Maker will always want to purchase a
`commodity at a lower price than the price at which he
`is willing to sell the same commodity and his bid price
`will thus be lm than his offer price. Moreover, the
`trading system is preferably able to “au.tomatch" a bid
`price from one Maker with an equal or lower offer price
`from another Maker, assuming that the two Makers
`have sufficient credit with each other. Accordingly, the
`displayed “Best price” 18.28 will normally reflect a
`price spread in which the offer price is equal to or
`higher than the bid price; however at times it may re-
`flect an "Arbitrage Opportunity” in which a third party
`having credit with the two Makers is able to Buy at a
`lower offer price from one Maker and sell at a higher
`bid price to the other Maker.
`Furthermore, there is no requirement that a Market
`Maker must always quote both a bid price and an offer
`price for the same quantity of the Local Currency. or
`that if a bid (or offer) price is accepted by a Seller (or
`Buyer), any corresponding ofier (or bid) price from that
`Maker will be (preferably at the tra.der’s option) auto-
`matically withdrawn. Thus it is also possible that an
`offer price but no bid price (or vice versa) will be dis-
`played as the Best price 18.20 at the top of the display.
`As presently contemplated, the displayed Best bid
`and offer prices 18,20 are each valid for at least a prede-
`termined quantity of currency (for example five million
`U.S. dollars) Erorn a single source. Since such a quantity
`may be available at the displayed price in a composite
`transaction involving more than one Maker and more
`than one price, it is possible that at least a portion of the
`transaction could be executed at a better price than the
`displayed Best price 18,20.
`In accordance with the invention, a “Dealable” bid
`and/or offer price is derived only from those bids or
`offers from other Trading Floors which have been pre-
`screened for at
`least some nominal
`level remaining
`credit from the potential Maker to the potential Taker
`and vice versa and at least the "Pips” 24,26 portion of
`the Dmlable price is prominently displayed or other-
`wise communicated to the potential Taker. In the illus-
`trated example,
`the associated Taker (and any other
`USD/DEM traders on his Trading F1001’) is thus eligi-
`ble to sell German marks (“DEM") at the bid rate of
`1.1210 marks per dollar ("USD"). or to Buy at the offer
`rate of 1.7217 rnarh per dollar, and the system has
`already verified that the displayed Dealable price 24,26
`is currently available from one or more anonymous
`Makers with whom the trader is currently still eligible
`
`IS
`
`20
`
`25
`
`3D
`
`45
`
`60
`
`65
`
`8
`to deal, and that those eligible Makers are willing (ei-
`ther collectively or individually. depending on the
`trader preferences and/or design tradeoffs mentioned
`previously) to sell. (or buy) at least the same predeter-
`mined minimum quantity of the particular Local Cur-
`rency involved as was used to determine the displayed
`Best price 18,20. Thus, a “regular” displayed Dealable
`price 24,26 will never be better than the displayed Best
`price 18.20; if worse than the Best price 18,20, this is an
`indication that the trader is barred by credit limitations
`from obtaining the best price that is then theoretically
`available. Indeed, because credit is mtablished bilater-
`ally. it is possible that the Maker (or Makers) behind the
`Best price have extended credit only to Trading Floors
`who currently have not extended any credit to those
`particular Makers, and thus that none of the traders at
`any of the client sites will see a Dealable price equal to
`the displayed Best price.
`The foregoing implicitly assumes that the Best price
`18, 20 and the Dealable price 24,26 are sufficiently close
`that the Figures 16, 22 are unaffected. If that is not the
`case, it is preferable that the displayed big Figures cor-
`respond to the corresponding most significant digits of
`the displayed Dealable prices; if the “Pips” of the Best
`price are worse than the corresponding least significant
`digits of a displayed Dealable price, it will be apparent
`price that the corresponding Figure of the Dealable
`price should be incremented or decrementeri by at least
`one to obtain the Best price.
`Moreover, as with the Bat price, it is possible that at
`least a small quantity is available from one or more
`Makers at a better price than that which is currently
`displayed as a regular Dealable price (or even that a
`better price becomes available after the price is dis-
`played but before the Takers Buy or Sell request is
`processed), in which case the trader may receive or pay
`an effective average price that is somewhat better than
`the currently displayed Dealable price. This will be the
`case whether the system has executed a single transac-
`tion only with a second Maker with whom the better
`price originated, or a composite transaction with that
`second Maker and the Maker with whom the displayed
`price originated.
`Instead of a regular Dealable price, a Small price may
`be displayed, preferably identified as such (for example,
`by the letter “S”) 28 and which differs from the regular
`Dealable price in that only a relatively small quantity is
`collectively available at any price from those Makers
`with whom the trader currently is eligible to deal For
`example, if deal size is expressed in units of one million
`dollars, the Best price and the regular Dealahle price
`may each represent available deals having a potential
`aggregate value (not necessarily all from the same
`trader) of at least 5 million dollars, while a Small price
`represents available deals having a maximum potential
`value of between 1 and 4 million dollars.
`Among the options available to nch trader through
`his ‘Trader Profile panel (see FIG. 4) is the ability to
`display either the regular Dealable price as described
`above, which is good for at least the previously men-
`tioned predetermined minimum quantity (e.g. at least 5
`million dollars), or a best Dealable price which is the
`best price available to that trader for even a quantity
`(e.g. only 1 million dollars).
`Preferably, the trader has also previously specified a
`default transaction quantity using his Trader Profile
`Screen and the displayed Dealable price functions as the
`default value for the trade-r’s requested transaction
`
`0011
`0011
`
`

`
`5,375,055
`
`10
`traders are barred from dealing with each other because
`of credit limit restrictions but are both free to deal with
`a third trader, it is still possible that the third trader will
`be presented with an arbitrage opportunity.
`When the Dealablc price 24,26 originates with the
`trader himself (or another trader on the same Floor), the
`trader is preferably alerted to that fact by displaying his
`price as the Daiable price, but in a visually distinctive
`manner and with the corresponding Buy or Sell func-
`tion 34, 36 optionally inhibited. Thus, his Trading Floor
`may be prevented from in effect dealing with or against
`itself.
`In accordance with another aspect of the invention,
`the displayed price data may optionally be "vocalized“:
`whenever there is a change in the displayed prices. the
`numerical data is electronically converted to text which
`in turn is converted to digital speech using conventional
`speech synthais circuitry. In that event. it is preferable
`that only the "Pips ” of the "Dealable" price quotes are
`announced (unless. due to a large spread. this would
`result in an ambiguous price). so that the trader will not
`be assaulted with nonessential information. Thus, the
`vocalized information will normally include only the
`least significant digits (Pips) of the displayed Dealable
`bid. and offer prices. as well as status changes for any
`recent quotes or hits initiated by the trader. An exem-
`plary trading scenario and the resultant vocalized com-
`munications is presented in Table 1.
`
`15
`
`25
`
`9
`the trader may quickly and accurately
`price. Thus,
`respond to a new Dealable Bid or ofl'er price by merely
`activating a Buy button 34 or :1 Sell button 36, respec-
`tively on the screen, assuming that the display is touch
`sensitive or is provided with a ‘‘mouse‘’ or other point-
`ing device; alternatively the Trader may use a small
`custom keypad having dedicated function keys for the
`various functions and dedicated size keys for various
`predetermined deal sizes as well as conventional numer-
`ical, tab and cursor keys. If the desired quantity 30, 32 is
`not available at the displayed Dealable price, as will be
`discussediumoredetail wit.hrespectt.oFlGS. 3and4-,
`any missed quantity may be the subject of a subsequent
`“working the balance” bid or offer.
`Inany event, thesystem givesthetraderaoceptinga
`Dealable price the benefit of any undisplayed Small
`price from an eligible counterparty that is "behind"
`(i.e., equal to or better than) the Dealahle price. In that
`case. the buy or sell request would be executed as two
`trades, one at the undkplayed Small price, and the other 20
`at the displayed Dealable price.
`As noted previously, the trading is performed elec-
`tronically, and when a bid price is equal to or greater
`than an offer price. the two will normally be automati-
`cally matched, with the system automatically allocating
`any price difference between