0451
`
`IBG 1002 (Part 2 of 3)
`CBM of U.S. Pat. No. 7,212,999
`
`

`
`wo 95/26005
`
`P‘-'“C‘.*95’°°‘23
`
`investment move.
`
`Hitherto,
`
`this
`
`has
`
`been
`
`done
`
`by
`
`a
`
`trader/operator
`
`keying
`
`in
`
`the
`
`necessary
`
`trades
`
`in each
`
`individual
`
`stock through a
`
`computer
`
`terminal.
`
`where
`
`the
`
`portfolio includes a
`
`list of 100 stocks,
`
`for example,
`
`this
`
`5
`
`is a
`
`lengthy process
`
`and in fact
`
`the problem arises that_
`
`the prices of many shares would change during the time it
`
`tahes
`
`to key
`
`in the various orders,
`
`and
`
`the original
`
`conditions necessary to satisfy the
`
`requirements
`
`of
`
`the
`
`particular trade may no longer be present.
`
`10
`
`SUMMARY OF THE INVENTION:
`
`It
`
`is
`
`therefore
`
`the
`
`purpose
`
`of
`
`the
`
`present
`
`invention to provide an automated, computerized trading system
`
`in which multiple
`
`share order
`
`entries
`
`can
`
`be
`
`executed
`
`automatically within
`
`seconds
`
`by
`
`the
`
`trader/operator
`
`in
`
`15
`
`activating a
`
`few entries on
`
`a keyboard.
`
`This method of
`
`SUBSTITUTE SHEET
`
`0452
`
`0452
`
`

`
`W0 95l26005
`
`PCI‘/CA595/00123
`
`trading is accomplished by means of
`
`the present
`
`invention
`
`in which a list of stocks is continually monitored and their
`
`prices
`
`recorded on
`
`a- "spreadsheet
`
`format"
`
`on
`
`a personal
`
`computer and displayed on a screen. when the composite price
`
`of
`
`the
`
`list
`
`of
`
`stocks
`
`conforms
`
`to certain predetermined
`
`parameters,
`
`the trader can execute the necessary instructions
`
`to transform the list into an order on the personal computer
`
`(which is connected to the computerized order entry system
`
`of
`
`the stock exchange, which may be a mainframe),
`
`and the
`
`10
`
`order will be immediately processed by the computer and sent
`
`to the exchange's order entry system.
`
`Thus,
`
`the purchase
`
`or
`
`sale ‘of
`
`a basket
`
`comprising various
`
`numbers
`
`(volumes)
`
`of a variety of shares can be executed in a matter of seconds
`
`before the price or other conditions have changed.
`
`15
`
`SUBSTITUTE SHEET
`
`0453
`
`0453
`
`

`
`W0 95/26005
`
`PCI‘/C495/00123
`
`By means of
`
`the system programmed in accordance
`
`with
`
`the present
`
`invention,
`
`a
`
`conventional
`
`terminal
`
`or
`
`personal
`
`computer
`
`capable
`
`of
`
`communication with a ‘stock
`
`exchange central computer can be adapted to read, process,
`
`and react
`
`to information from the stock exchange,
`
`and/or
`
`commands of the operator and automatically and quickly perform
`
`multiple trades in a manner described above.
`
`DESCRIPTION OF THE PREFERRED EMBODIMENT:
`
`The
`
`invention may
`
`be better
`
`understood
`
`by
`
`a
`
`description of one embodiment with reference to the attached
`
`drawings in which:
`
`Figure 1 is a schematic illustration of a mainframe
`
`stock exchange computer
`
`to which a series
`
`or
`
`terminals
`
`or
`
`personal
`
`computers
`
`are
`
`connected each comprising a display screen
`
`and keyboard;
`
`10
`
`15
`
`SUBSTITUTE SHEET
`
`0454
`
`0454
`
`

`
`W0 9SI2600S
`
`_
`
`PCT/CA‘95/00123
`
`Figure
`
`2
`
`is
`
`a graphic user
`
`interface suitable
`
`for use in executing single stock trans-
`
`actions;
`
`Figure 3
`
`is a graphic user
`
`interface
`
`used in
`
`5
`
`effecting multiple
`
`trades
`
`in
`
`a
`
`basket
`
`comprising various volumes of
`
`a
`
`list
`
`of
`
`shares;
`
`Figure 4
`
`is a
`
`schematic block
`
`diagram! which
`
`illustrates
`
`the
`
`sequence
`
`and
`
`flow of
`
`10
`
`data
`
`and
`
`commands
`
`by which
`
`the
`
`system
`
`is used.
`
`In the system illustrated in the attached drawings
`
`Figure '1
`
`shows
`
`a xnainframe computer
`
`2' used to process all
`
`the data relating to the stocks listed on a stock exchange,
`
`15
`
`such as the TSE,
`
`the VSE, or
`
`the NYSE, as the case may be.
`
`SUBSTITUTE SHEET
`
`0455
`
`0455
`
`

`
`95/26005
`
`PCI‘ICA?5l00l23
`
`Since
`
`the advent of
`
`computerized trading,
`
`these mainframe
`
`central computers are connected to a
`
`‘variety’ of
`
`terminals,
`
`such as Z,
`
`in various
`
`trading. offices of brokerage houses
`
`through the city and abroad.
`
`By means of
`
`the individual
`
`terminals,
`
`traders may
`
`review data on
`
`the display screen
`
`8
`
`and
`
`input
`
`the necessary information and instructions on
`
`the keyboard 6 whereby a given volume of a particular stock
`
`is bought or sold (or crossed or shorted)
`
`in a manner which
`
`is
`
`the
`
`automated equivalent of
`
`an
`
`individual
`
`transaction
`
`10
`
`on the trading floor.
`
`Such a network is
`
`referred to,
`
`in the case of
`
`the
`
`Toronto
`
`Stock - Exchange,
`
`as
`
`"CATS" which
`
`is
`
`an
`
`abbreviation for "Computer Aided Trading System", and similar
`
`systems are
`
`now commonly used and operated by many stock
`
`15
`
`exchanges.
`
`SUBSTITUTE SHEET _
`
`0456
`
`0456
`
`

`
`wo 95I26005
`
`PCUCA9
`
`5100123
`_
`
`Figure 2 illustrates an improvement which comprises
`
`a graphic user
`
`interface with a
`
`network such as CATS which
`
`allows
`
`a
`
`trader/operator
`
`to use
`
`the
`
`trading system more
`
`quickly and efficiently.
`
`Whereas
`
`previously
`
`the
`
`data
`
`necessary
`
`for
`
`a
`
`transaction (stock symbol, volume, price, buy or sell, etc.,
`
`etc.)
`
`had to be entered on the keyboard and showed up in
`
`the screen area 10 before the order could be
`
`launched to
`
`the central processing unit,
`
`the present
`
`invention allows
`
`the instructions to be put
`
`in much more quickly, more easily
`
`and with less error.
`
`In the embodiment
`
`illustrated in Figure 2,
`
`the
`
`trader/operator can enter
`
`the symbol
`
`representing the stock
`
`in the area 12 followed by the price at which the transaction
`
`is to be completed in space 14 (which may be,a selected price
`
`10
`
`15
`
`-10-
`
`SUBSTITUTE SHEET
`
`0457
`
`0457
`
`

`
`wo 95/26005
`
`PCVCA-95'
`
`00123
`
`or
`
`the bid offer or
`
`last price derived from the CATS data).
`
`Then the size of
`
`the order
`
`(or volume of
`
`the transaction)
`
`may be
`
`indicated in space 16
`
`by selecting the appropriate
`
`nominal
`
`figures
`
`1,000,
`
`5,000,
`
`l0,000,-
`
`50,000
`
`or
`
`by
`
`5
`
`inserting the precise volume
`
`in the box 18. Many of
`
`the
`
`instruction choices provided by this interface (such as bid,
`
`offer,
`
`last,
`
`ID, volume, exchange,
`
`transaction) may be entered
`
`without keying by using a mouse as illustrated at 10 in Figure
`
`l, which directs a cursor or indicator to the command.
`
`10
`
`_
`
`In the illustrated embodiment the other information
`
`may be selected,
`
`such as
`
`the appropriate exchange in area
`
`20,
`
`the type of
`
`transaction in area ‘zé,
`
`the buy and sell
`
`IDs
`
`in areas
`
`24
`
`and 26. Other areas
`
`28 provided by the
`
`interface include
`
`features
`
`to provide various
`
`information
`
`15
`
`from the data bank as an aid to the operator.
`
`_ 11 -
`
`SUBSTITUTE SHEET
`
`0458
`
`0458
`
`

`
`W0 95,260“
`
`PCI'IC:_\95/00123
`
`To
`
`effect
`
`individual
`
`transactions
`
`an
`
`operator
`
`may, by mouse or a combination of mouse and keyboard, enter
`
`the necessary. data and commands
`
`and quickly transmit
`
`the
`
`transaction to a stock exchange.
`
`5
`
`»
`
`Thus,
`
`by means of
`
`the interface illustrated in
`
`Figure 2,
`
`transactions of
`
`a single stock through a computer
`
`aided trading system may be more quickly and efficiently
`
`executed.
`
`10
`
`The
`
`second aspect of
`
`the present
`
`invention is
`
`illustrated in Figure 3 which is a reproduction of a display
`
`screen which is part of the multiple stock trading system.
`
`By means of
`
`the software of
`
`this invention,
`
`the
`
`terminal or personal
`
`computer
`
`illustrated in Figure 1 can
`
`15
`
`be used to connect
`
`the spreadsheet of
`
`the system to the data
`
`base
`
`of
`
`the
`
`stock
`
`exchange mainframe
`
`and
`
`display
`
`the
`
`-12-
`
`SUBSTITUTE SHEET
`
`0459
`
`0459
`
`

`
`wo 95/26005
`
`Pcnc“-95'"
`
`0123
`
`information (including symbol,
`
`volume of shares, bid, first
`
`and last price)
`
`in the area 30 of
`
`the display screen of
`
`the’
`
`terminal as
`
`shown
`
`in Figure 3.
`
`For purposes of
`
`trading
`
`an index or custom basket of shares,
`
`the display will contain
`
`the information with respect
`
`to the shares included in the
`
`index or basket as
`
`illustrated.
`
`The
`
`system then executes
`
`a dynamic data
`
`link to the spreadsheet which causes
`
`the
`
`spreadsheet to read
`
`the list of stocks to the multiple order
`
`trading system of
`
`the present
`
`invention.
`
`In the next step
`
`10
`
`the system captures the spreadsheet data and makes each stock
`
`price and volume a variable that
`
`is inserted in a list of
`
`preprogrammed commands.
`
`The list is then sent
`
`to the order
`
`entry system of the stock exchange with a single key stroke.
`
`Thus,
`
`each of
`
`the stocks and the pertinent data
`
`'15
`
`relating thereto is entered into the multiple order entry
`
`_ 13 -
`
`SUBSTITUTE SHEET
`
`0460
`
`0460
`
`

`
`W0 95,26005
`
`PCI'IC1§95I00l23
`
`system, and at
`
`the appropriate time and with the appropriate
`
`command,
`
`the entire basket can be dealt with in a single
`
`transaction within a matter of seconds before prices or other
`
`criterion change.
`
`The present system therefore eliminates the need
`
`for
`
`a
`
`trader/operator
`
`to enter
`
`each individual
`
`stock and
`
`the transaction criterion, which in the case of 100 stocks
`
`or so, would be time-consuming, prone to error,
`
`and difficult
`
`to coordinate
`
`because
`
`of
`
`the
`
`changing prices
`
`and
`
`their
`
`10
`
`relationship to the transaction criterion.
`
`‘Also illustrated in Figure 3
`
`is a box 32 in which
`
`the necessary commands may be entered from a keyboard.
`
`Also
`
`illustrated,
`
`in area
`
`34,
`
`is
`
`a
`
`series of
`
`commands which may be quickly entered by means of
`
`a mouse
`
`15
`
`or
`
`similar device,
`
`including identification of
`
`the basket
`
`- 14 -
`
`SUBSTITUTE SHEET
`
`0461
`
`0461
`
`

`
`W0 9SI2600S
`
`PCTI.C:‘&95/00123
`
`of
`
`shares
`
`to be
`
`traded 36,
`
`the type of
`
`transaction (buy,
`
`sell, cross, or sell short) 38,
`
`the appropriate buy ID 40.
`
`or sell ID 42, and the price (bid, offer, or last) 44.
`
`when
`
`the appropriate commands have been entered the transaction
`
`may be executed by pressing the launch button 46
`
`and all
`
`of the shares of the basket are traded almost instantaneously.
`
`As
`
`in all cases a provision is made for the entry
`
`of
`
`2: pass word 48 ‘to provide security against unauthorized
`
`use and other
`
`functions which are commonly associated with
`
`10
`
`graphic user interface are provided.
`
`Therefore,
`
`by means
`
`of
`
`the present
`
`system,
`
`a
`
`terminal or personal
`
`computer may be used to capture from
`
`a spreadsheet all the data necessary to trade in a selected
`
`list or group of shares,
`
`and by inserting this data into
`
`15
`
`the preprogrammed commands of the system, all of the necessary
`
`commands
`
`to execute the trade in all of
`
`the shares may be
`
`sent
`
`to the stock exchange order entry systan in a single
`
`set of signals.
`
`_ 15 -
`SUBSTITUTE sH_Ef-T
`
`0462
`
`0462
`
`

`
`W0 95I26005
`
`1"—'1"C495’°°123
`
`It will be appreciated that this system will enable
`
`a
`
`trader
`
`to deal
`
`in baskets of
`
`shares, whether
`
`they are
`
`related to a standard index,
`
`such as the TSE 35 or
`
`the TSE
`
`100, or
`
`a customized basket “of
`
`shares designed for or by
`
`each customer and will be able to effect
`
`transactions quickly
`
`and without
`
`the complications that arise from the time delay
`
`in entering each stock transaction separately.
`
`Figure 4
`
`is a block diagram and flow chart which
`
`illustrates
`
`schematically
`
`how
`
`the
`
`present
`
`invention
`
`facilitates a faster more efficient operation of the automated
`
`trading facilities.
`
`In the diagram the mainframe or central
`
`computer of
`
`the stock exchange is shown at 50 and includes
`
`a
`
`ticker
`
`feed systeni 52 which constantly generates updated
`
`data on the prices and volumes of various stocks being traded,
`
`and delivers the updated data to a server 54 where the data
`
`10
`
`15
`
`_ 15 _
`
`SUBSTITUTE SHEET
`
`0463
`
`0463
`
`

`
`W0 95l26005
`
`PCIVCA95/00123
`
`is stored and accessible to any terminals which are connected
`
`to the network.
`
`The
`
`information in the server
`
`is read by
`
`the spreadsheet S6 of a terminal,’ such as the one illustrated
`
`in Figure 1, which is designed to read and display a given
`
`basket of
`
`shares with the pertinent data with respect
`
`to"
`
`volumes, bid, offer,
`
`last, etc.
`
`Block
`
`58
`
`represents
`
`the
`
`multiple order trading system of
`
`the present
`
`invention which
`
`reads the data from the spreadsheet,
`
`including all
`
`the data
`
`on
`
`a given basket of shares, organizes
`
`the data into the
`
`proper format for automated trading, and issues the multiple
`
`orders to the order entry system 60 of
`
`the central computer
`
`50 at the stock exchange.
`
`By having the data formatted by the multiple order
`
`launcher,
`
`the transaction of
`
`a whole basket of
`
`shares can
`
`be effected quickly, easily, with fewer errors and within
`
`the time frame for which the criterion or
`
`instructions for
`
`the transaction are valid.
`
`10
`
`15
`
`-
`
`_
`
`SUBSTITUTE SHEET
`
`0464
`
`0464
`
`

`
`WO 95/26005
`
`PCI‘lCA.95/00123
`
`By providing a means,
`
`such as
`
`the multiple order
`
`launcher, which is capable of capturing all
`
`the data on a
`
`spreadsheet,
`
`selecting what
`
`is required,
`
`and ‘organizing it
`
`into the form of
`
`an order,
`
`the, present
`
`-invention creates
`
`a bridge between the spreadsheet, which contains the necessary
`
`data on a group of
`
`stocks,
`
`and the order entry system of
`
`the
`
`stock exchange which effects
`
`a
`
`transaction in those
`
`stocks.
`
`Furthermore,
`
`because
`
`it
`
`can use and format
`
`the
`
`10
`
`15
`
`data more quickly and
`
`correctly than an operator
`
`on
`
`a
`
`keyboard, ‘it
`
`is capable of effecting a
`
`transaction within
`
`the time and parameters which are rapidly changing,
`
`in a
`
`manner which an operator could not accomplished. Therefore,
`
`instead of merely processing data, it is capable of activating
`
`and controlling stock transactions.
`
`In this
`
`respect
`
`the
`
`_ 18 _
`
`SUBSTITUTE SHEET
`
`0465
`
`0465
`
`

`
`W0 95/26005
`
`PC!‘/CA‘95l00l23
`
`system may be adapted to initiate a transaction automatically
`
`when certain criterion are met, or may be designed to create
`
`a signal when the criterion are met so that a trader/operator
`
`may make
`
`the
`
`final decision or
`
`judgment
`
`to execute
`
`the
`
`transaction or not,
`
`and may
`
`then execute it substantially
`
`instantaneously once the decision has been made.
`
`Once
`
`the order entry has
`
`been received by
`
`the
`
`exchange
`
`system,
`
`the
`
`transaction
`
`is
`
`completed
`
`and
`
`the
`
`appropriate records
`
`and confirmation documents are produced
`
`10
`
`in the usual manner without
`
`any
`
`further activity by
`
`the
`
`trader.
`
`It will,
`
`of
`
`course,
`
`be
`
`realized that
`
`numerous
`
`modifications and variations from the illustrated embodiments
`
`may be employed without departing from the inventive concept
`
`15'
`
`herein.
`
`_ 19 -
`
`SUBSTITUTE SHEET
`
`0466
`
`0466
`
`

`
`wo 95/25005
`
`CLAIMS:
`
`CI‘/CA95l00123
`-
`_
`
`P
`
`The —embodiments
`
`of
`
`the
`
`invention in which
`
`an
`
`exclusive property or privilege is claimed are defined as
`
`follows:
`
`1.
`
`For
`
`use
`
`in a
`
`computer
`
`system having means
`
`to
`
`receive data from a central
`
`‘computer of
`
`a
`
`stock exchange
`
`on a spreadsheet;
`
`-
`
`display means and means to communicate
`
`orders
`
`to the order entry system of
`
`the
`
`stock exchange
`
`computer;
`
`a control
`
`system comprising. means
`
`to read selected
`
`groups of said data from said spreadsheet;
`
`means
`
`to formulate said data in a manner acceptable
`
`to the stock exchange computer or entry system;
`
`—
`
`means
`
`to launch said orders
`
`to the stock exchange
`
`computer order entry system.
`
`20
`
`SUBSTITUTE SI-IIEET
`
`0467
`
`0467
`
`

`
`W0 95,26o05
`
`PCT/CA_95/00123
`
`2.
`
`A control
`
`system as claimed in claim 1 wherein
`
`said means
`
`to launch is responsive to conditions in the data
`
`read from said spreadsheet.
`
`3.
`
`Apparatus as claimed in claim 2 wherein said means
`
`to launch said order
`
`is responsive to the commands of
`
`an
`
`operator.
`
`4.
`
`Apparatus as claimed in claims 1,
`
`2 and 3 wherein
`
`said means
`
`to read, means
`
`to formulate, and means
`
`to launch
`
`are operated by means of a graphic user interface with display
`
`means and a mouse adapted to communicate to selected controls
`
`on the graphic user interface display.
`
`5.
`
`A
`
`system as
`
`claimed in claim 4
`
`in which said
`
`graphic user
`
`interface displays commands which include share
`
`symbols, price selections, order size, and transaction type.
`
`21
`
`SUBSTITUTE SHEET
`
`0468
`
`0468
`
`

`
`W0 95/26005
`
`PCI‘lCA95/00123
`
`m
`
`DDDDUDDDDU
`
`QQDDDDHVDQQBHN
`
`QDQDHVUDUDQDNHD
`QUQQQDDQDDQNUNU
`
`SUBSTITUTE SHEET
`
`0469
`
`0469
`
`
`
`

`
`wo 95/25005
`
`PCI‘/CA95I0O123
`
`
`
`Exchange
`@ TSE Q NYSE Q MSE Q VSE QNASDAQ
`
`
`Transaction Type
`
`'
`
`Shell
`
`Cross ‘
`
`
`
`20
`
`22
`
`Change Options
`
`
`
`CXL#
`
`Re-can
`
`
`
`Market Quote .(via CATS)
`
`
`
`9 Common Ke 5
`
`
`
`
`A
`
`NEWS Quote Screen
`
`28
`
`
`
`T
`
`F|G.2 A.
`2/7
`
`SUBSTITUTE SHEET
`
`0470
`
`0470
`
`

`
`wo 95126005
`
`PCT/CA.95’°°123
`
`
`O3/14/94 Belzberg CATS Interface 2:44 PM
`
`
`
`14
`
`’
`
`-
`
`PriceT:]0°**e' oct
`
`OBid
`
`OLast
`
`Buy ID "‘
`
`24
`
`—
`
`.
`
`,
`
`ON/CL
`
`QAMEX QASE
`
`I
`
`
`°'d‘°"—S'Ze
`1_6
`0 1,000
`
`ON/CLX
`
`
`
`
`
`0 20,000
`
`0 5,000
`
`O 10,000
`
`
`
`
`ON/CL X
`
`ON/CL
`
`PF’D(
`
`Stk Watch
`
`Stk. Ord.
`
`Order Rep.
`
`
`
`Super Charts
`
`Trading Logs
`
`Basket Trades
`
`
`
`F I G . 2 B.
`3/7
`
`sussrnrufs SHEET
`
`0471
`
`0471
`
`

`
`W0 95l26005
`
`-
`
`PCT/CA_95/00123
`
`
` EH
`
`§ession window L-I_elp
`E.-_dit
`Eile
`
`
`
`
`mayor-an
`
`
`
` H
`
`
`
`FIG.2C.E
`
`. 4/7
`
`SUBSTITUTE SHEET
`
`0472
`
`0472
`
`

`
`wo 95/25005
`
`PCTlCA95l00l23
`
`52
`
`
`
`=
`Eile Edi
`
`Emulate For Windows
`§_ession
`_V1indow flelp
`
`
`"”%
`
`EH5
`
`;6_ OTSE35QTSE100 ocusiom .
`
`¥
`
`TradeType OBuy OSell
`
`OCross
`
`OSelIShort
`
`Buy ID
`
`0 CL 0 N/CX O N/C PPTX O N/C
`
`
`
`
`9 38
`40
`
`
`
`
`Sell ID
`
`OCL O N/CX 0 WC PPTX O N/C
`
`42
`
`4_4
`
`OBid
`
`OOffer
`
`OLast'
`
`
`
`
`
`F|G.3A.
`
`5/7
`
`SUBSTITUTE SHEET
`
`0473
`
`0473
`
`

`
`WO 95126005
`
`PCI‘ICA95l00l23
`
`.mm.o:
`
`..mm.............-.._.w_..
`
`
`
`
`
`
`...m,mfl.mn_.mm..m..H,,.H“......mmHm_wfi,.,_n.Hm,_.,.~...mH._..~..Hfi..H.M....HH_.,.m.Hm%MHHH..,,.._H.m.&_-.
`
`
`
`
`
`,.~._.........§-.m2.2i,-..1...-i.N.m.-.,.,.-.i.E.....§..,..§...,8.._z...........
`
`
`..__.mm..nm__,.mm.mmnw,-.....w._m.‘...,,..-...w.,H..m._..H..
`
`
`
`
`
`.um.n.a.m.-.-w.._..m~m.w.n....,.;.5..3..-...3....8....
`
`
`...._.mm...,--;.....,.....mm..m........mm.............................
`
`
`
`.m..a...mmwm...,-NW.:1-mmmmiMw.;.-.,.--:....,.....%amm
`
`
`
`
`......m.E._»m..-.mm,1.:m~,m...m.m.,,.mm..m........~.._.i..:-....-..-:.p.......i.::.:.m..25...:mmmmx...
`.
`
`;s2
`....-m..§
`
`...8.8..2.§~..m.£.1..--..om..._8.....ooo.
`
`
`
`
`
`
`
`
`.......m.....m......mmm.m..-.-.......m......m..:......-.-.-._mmmz...
`.-m..-:.m.mm.._m......-.m_.,m.,,..--m.%.~...,-.-..mmm.m~--.,.%m....-.
`
`
`
`
`
`
`
`
`
`..i,.£w.,:-.m$_@m..;..m.$.m..,-;..m...-.-..,-.82
`
`.m.m._mr,.m..:...,...-.,.1..rmm,w-%-
`
`.mm_.:._mr--1,_,mm.......553%v.2
`mm.....-....................-.
`
`
`
`
`;...-.....:....--mm_..,..m;.;..m.....w....w.,.mm..,.--.,.-.i...§.r
`
`
`‘
`:
`'
`2
`
`E
`§
`§
`
`.
`
`'
`
`'
`
`$03IO;
`:N;
`E
`i
`!
`¥
`
`§
`i
`5
`
`;
`1
`
`iI
`
`:
`
`3
`
`§
`
`.
`
`:
`
`:
`
`'
`
`1-..;EEE..§E-SEER._g_-
`
`6/7
`
`0474
`
`
`
`w4x.mxmmm._8xm=omo._o=2
`
`
`
`E EEEEENE
`
`
`
`EggEEIEEmmmmEHEH-Egg.
`
`0474
`
`
`
`
`
`

`
`WO 95/26005
`
`PCI‘ICA?5I00l23
`
`m..n__._..=.=>_
`
`oz_o<E.
`
`mmomo
`
`mm:oz:<._
`
`mmomo
`
`>Ezm
`
`_>_mh.a.>m
`
`
`
`ms_<EZ_<_>_
`
`.¢.m_n_
`
`om
`
`o<mmn_m
`
`Emzm
`
`mm>mm_m
`
`7/7
`
`SUBSTITUTE SHEET
`
`0475
`
`0475
`
`
`
`
`

`
`1
`
`1!
`
`INTERNATIONAL SEARCH REPORT
`
`
`Inter
`
`nal Application No
`
`PCT/CA 95/00123
`
`SSIFICATION OF SUBJECT MATTER
`6
`G06F17/60
`
`According to International Patent Classification (IPC) or to both national daasifiration and IPC
`
`Minimum documuitation searched (elasification system {allowed by clasification symbols)
`IPC 6
`G06F
`
`Documentation searched other than iriiminum documentation to the extent that such documents are included in the fields searched
`
`Electronic data base consulted during the international Search (name of data base and, where practical. search terms used)
`
`C. DOCUMENTS CONSIDERED TO BE RELEVANT
`Gtaoon of document. with indication. where appropriate. ofthe relevantpasages
`’EP,A,0 401 203 (MJT HOLDINGS INC) 5
`December 1990
`see the whole document
`
`EP,A,0 453 150 (COMMODITY EXCHANGE INC) 23
`October 1991
`
`
`
`see the whole document
`
`A
`
`w0,A,91 14231 (CHICAGO TRADE BOARD) 19
`September 1991
`see the whole document
`
`Relevantto claim No.
`1-5
`
`1-5
`
`1-5
`
`E Further documents are listed in the continuation of box C.
`' 5
`al
`I
`' d doc
`:
`“menu
`caugmm 0 me
`Pea
`‘A’ document defining the general state of the art which is not
`considered to be of particular relevance
`‘E’ earlier document but published on or after the international
`m"‘3 d‘‘''‘
`‘
`'1.’ document which may throw doubts on priority elaim(s) or
`"‘."“°h '5 °“‘‘‘ ‘° °“3'."‘5h 9"’ P‘-‘h“‘°"°." d3“ °{ ‘“‘°'h"
`°““°“ °’ °°‘" 59”“ "aw" (” ‘p°°‘r"d)
`'0' document referring to an oral disclosure, use. exhibition or
`other means
`‘P’ document published prior to the international filing date but
`‘ later than the priority date claimed
`
`.
`
`'
`
`E Patent family members are listed in annex.
`.
`_
`'1" later document published after the international filing date
`or priority date and not in conflict with the
`ieation but
`<
`-
`gtfgngzgndcfimnd me pmmple or uuory un myms me
`-x- documcm of pamcum, “lama; me claimed immmon
`cannot be oonsdered novel or cannot be considered to
`involve an inventive step when the document is taken alone
`‘Y’ document of particular relevance; the claimed invention
`cannot be oonddei-ed to involve an inventive step when the
`document is combined with one or more other such docu-
`ments. such combination being obvious to a person skilled
`"‘ m‘ m‘
`‘a’ document mqnher of the same patent family
`
`1
`
`.
`
`Date of the actual oornpletion or the international search
`
`Date of mailing of the international search report
`
`21 July 1995
`Name and mailing add:-as of the ISA
`European Patent Oflioe. P.B. S8I 8 Patentlaan 2
`.
`-9
`-
`340-
`.
`x.
`epo
`,
`~
`¥§1”§?$‘o§'“"£"i'25 T 3165:
`nl
`Suendermann, R
`[:u;(+3t.7o) 340.3015
`
`Farm PCTIISA/210 (nomad sheet) (July I992)
`
`'0 IL 03' 95
`Authorized officer
`
`0476
`
`0476
`
`

`
`IREINDIUF
`flV11flRBhAT1(HiA1. Sfihlklfli
`lnfonmnon on puzm family manna:
`
`lmn
`
`ma! Application No
`
`PCT/CA 95/00123
`
`EP-A-0401203
`
`05-12-90
`
`EP-A-0453150
`
`23-10-91
`
`W0-A-9114231
`
`19-09-91
`
`5101353
`2016715
`
`3068067
`
`643982
`7358491
`4227566
`
`5297031
`653147
`7493291
`0471063
`4507159
`
`31-03-92
`30-11-90
`
`25-03-91
`
`02-12-93
`24-10-91
`17-08-92
`
`22-03-94
`22-09-94
`10-10-91
`19-02-92
`10-12-92
`
`Faun PC|'ll5A'2l0 (palm! tunily Inna) (July I991)
`
`0477
`
`0477
`
`

`
`WORLD INTELLECTUAL PROPERTY ORGANIZATION
`International Bureau
`(INTERNATIONAL API’«I‘-4-IC_‘.ii&I'<ION PUBLISHED UNDER THE PATENT COOPERATION TREATY (PCT)
`
`(51) International Patent Classification 7 :
`(11) International Publication Number:
`W0 00/52619
`
`
`(43) International Publition Date:
`8 September 2000 (08.09.00)
`
`
`G06F 17/60, 17/00
`
`
`
`It
`
`
`
`
`
`
`
`
`
`
`
`
`(21) International Application Number:
`
`PCT/US00/05150
`
`
`(22) International Filing Date:
`29 February 2000 (29.02.00)
`
`
`
`
` (30) Priority Data:
`60/ l22,208
`1 March I999 (Oi .03.99)
`L US
`
`
`09/292,552
`15 April I999 (l5.04.99)
`US
`09/292,553
`15 April 1999 ( 15.04.99)
`US
`
`(81) Designated States: AE, AL, AM, AT, AU, AZ, BA, BB, BG,
`BR, BY, CA, CH, CN, CR, CU,
`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, MA,
`MD, MG, MK, MN, MW, MX, NO, NZ, PL, PT, RO, RU,
`so, se, so‘, s1, sx, SL, TJ, TM, TR, TI‘, TZ, UA, UG,
`A
`UZ, VN, YU, ZA,
`, RIPO patent (GH, GM, KE, LS,
`MW, SD. 51-. SZ.
`5. ZW). Eurasian Patent (AM. AZ.
`BY. KG. KZ. MD, RU. TJ. TM). EUWP33" Patent (AT. BE.
`CH, CY, DE, DK, ES, FI, FR, GB, GR, IE, IT, LU, MC,
`
`NL, PT, SE), OAPI patent (BF, BI, CF, CG, CI, CM, GA,
`(71) Applicant: WIT CAPITAL CORPORATION [US/US]; 826
`GN, GW, ML, MR, NE, SN, TD, TG).
`
`
`Broadway, New York, NY 10003 (US).
`
`Published
`
`With international search report.
`
`
`
`
`(72) Inventors: MAURO, Charles, L.; 130 East 75th Street, New
`York, NY 10021 (US). KLEIN, Andrew, D.; 70 East 10th
`Street, New York, NY 10003 (US). BUIST, Walter, D.; 405
`Springfield Avenue, Hasbrouck, NJ 07604 (US).
`
`
`
` (74) Agents: MORRIS, Francis, E. et a1.; Pennie & Edmonds LLP,
`
`1155 Avenue of the Americas, New York, NY 10036 (US).
`
`
`
` (54) Title: A SYSTEM AND METHOD FOR CONDUCTING SECURITIES TRANSACTIONS OVER A COMPUTER NETWORK
` The system and method of the preferred embodiment
`supports trading of securities over the lntemct both on national
`
`
`exchanges and outside the national exchanges.
`In a preferred
`
`embodiment, users are subscribers to a securities trading service
`offered over the Internet. Preferably, each subscriber to this
`service is simultaneously connected from his own computer to
`a first system which provides user—to—user trading capabilities
`and to a second system which is a broker/dealer (42) system of
`his/her choice. The system providing the user—to-user trading
`services preferably includes a root server (50) and a hierarchical
`network of replicated servers supporting replicated databases.
`
`
`The user—to—user system provides real—time continuously updated
`stock information and facilitates user-to—user trades that have
`
`been approved by the broker/dealer systems with which it
`interacts.
`
`
`41
`
`
`
`
`
`
`
`
`o I I I I I I I I I I I I 0 I I
`
`I
`
`
`
`(57) Abstract
`
`0478
`
`
`
`0478
`
`

`
`FOR THE PURPOSES OF IIVFORMATION ONLY
`
`Codes used to identify States party to_ the PCI‘ on the front pages of pamphlets publishing international applications under the PCI‘.
`Albania
`ES
`[.8
`Lesotho
`SI
`Slovenia
`Armenia
`FI
`LT
`Lithuania
`Slovakia
`SK
`Austria
`FR
`LU
`SN
`Luxembourg
`Senegal
`Australia
`GA
`LV
`Latvia
`SZ
`Swaziland
`GB
`TD
`MC
`Monaco
`Chad
`Azerbaijan
`GE
`MD
`TG
`Bosnia and Hazegovina
`Republic of Moldova
`Togo
`Barbados
`GH
`MG
`TJ
`Madagascar
`Tajikistan
`GN
`MK
`TM
`Ttndaneniatan
`Belgium
`The former Yugoslav
`Burkina Faso
`GR
`TR
`Republic of Macedonia
`Turkey
`HU
`Mall
`'1'!‘
`Bulgaria
`Trinidad and Tolngo
`Benin
`IE
`UA
`Ukraine
`Mongolia
`Brazil
`IL
`Mauritania
`UG
`Uganda
`Belarus
`IS
`US
`Malawi
`'
`United States of America
`Canada
`IT
`Mexico
`UZ
`Uzbekistan
`JP
`VN
`Viet Nam
`Central African Republic
`Niger
`KE
`Netherlands
`YU
`Congo
`Yugoslavia
`Switzerland
`KG
`ZW
`Zimbabwe
`Norway
`KP
`Cote d'lvoire
`New Zealand
`Cameroon
`Poland
`China
`Pmugal
`Cuba
`Romania
`Russian Federation
`Czech Republic
`Sudan
`Germany
`Denmark
`Sweden
`Estonia
`Singapore
`
`Spain
`Finland
`France
`Gabon
`United Kingdom
`Georgia
`Ghana
`Guinea
`Greece
`Hungary
`Ireland
`lsrael
`Iceland
`Italy
`Japan
`Kenya
`Kyrgyzstan
`Democratic People's
`Republic of Korea
`Republic of Korea
`Kazakstan
`Saint Lucia
`Liechtenstein
`Sri Lanka
`Liberia
`
`KR
`KZ
`LC
`Ll
`LK
`LR
`
`ML
`MN
`MR
`MW
`MX
`NE
`N1.
`NO
`NZ '
`PL
`PT
`RO
`RU
`SD
`SE
`SC
`
`0479
`
`0479
`
`

`
`W0 00/52619
`
`PCT/US00/05150
`
`A SYSTEM AND METHOD FOR CONDUCTING SECURITIES
`TRANSACTIONS OVER A COMPUTER NETWORK
`
`FIELD OF THE INVENTION
`
`This invention relates to computer-aided trading of financial instruments, and
`
`preferably to trading of securities over the Internet.
`
`BACKGROUND OF THE INVENTION
`
`10
`
`15
`
`In the United States, the trading of securities is closely regulated under the Securities
`
`Exchange Act of1934, I5 U.S.C. §§ 78a-78mm. The temi "security" is defined in 15 U.S.C.
`
`§ 78c(a)(l O) as “any note, stock, treasury stock, bond, debenture, certificate of interest or
`
`participation in any profit—sharing agreement or in any oil, gas, or other mineral royalty or
`
`lease, any collateral-trust certificate, preorganization certificate or subscription, transferable
`
`share, investment contract, voting-trust certificate, certificate of deposit, for a security, any
`
`put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index
`
`of securities (including any interest therein or based on the value thereof), or any put, call,
`
`straddle, option, or privilege entered into on a national securities exchange relating to foreign
`
`currency, or in general, any instrument commonly known as a ‘security’; or any certificate of
`
`20
`
`interest or participation in, temporary or interim certificate for, or warrant or right to
`
`subscribe to or purchase, any of the foregoing .
`
`.
`
`. but shall not include currency or any note
`
`draft, bill of exchange, or banker’s acceptance which has a maturity at the time of issuance of
`
`not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of
`
`which is likewise limited." Stocks are specific instances of securities. Although the
`
`preferred embodiment is primarily concerned with computerized stock trading, it is fully
`
`applicable to trading of any securities.
`
`0480
`
`0480
`
`

`
`W0 00/52619
`
`PCT/US00/05150
`
`Securities are con\'entionall_v traded on exchanges. As set forth in 15 U.S.C. §
`
`78c(a)( l ), "the term ‘exchange’ means any organization. association, or group of persons,
`
`whether incorporated or unincorporated. which constitutes, maintains, or provides a market
`
`place or facilities for bringing together purchasers and sellers of securities or for otherwise
`
`perfomring with respect to securities the functions commonlyiperformed by a stock exchange
`
`as that tem is generally understood, and includes the market place and the market facilities
`
`maintained by such exchange”. Well known exchanges include, for example, the New York
`
`Stock Exchange, the American Stock Exchange and NASDAQ. Such known exchanges are
`referred to herein as national exchanges.
`I
`
`10
`
`Usually securities are traded through brokers and dealers, which frequently use an on-
`
`line system to receive orders and facilitate trades. As set forth in 17 C.F.R. § 240. 1 7a-
`
`23(b)(2) a broker/dealer trading system is “any facility that provides a mechanism, automated
`
`in full or in part, for:
`
`(i)
`
`Collecting, receiving, disseminating, or displaying system orders [i.e., orders
`
`15
`
`to purchase or sell a security]; and
`
`(ii)
`
`Matching. crossing, or executing system orders, or otherwise facilitating
`
`agreement to the basic terms of a purchase or sale of a security between system participants
`
`[i.e., the users of the trading system], or between a system participant and the system sponsor,
`
`through use of the system or through the system sponsor [i.e., the entity controlling the
`
`broker/dealer system] .”
`
`In this patent application. the temis “security“. “exchange“ and “broker/dealer trading
`
`system", are used as defined above.
`
`Systems are known for trading securities over the lntemet on the national exchanges
`
`at the prices quoted on those exchanges. These systems support trading during normal
`
`Ix)
`
`0481
`
`0481
`
`

`
`' W0 00/52619
`
`PCT/US00/05150
`
`business hours of the national exchanges, which may not be convenient for many users, such
`
`as many individuals who would prefer to trade from home after the close of the exchanges.
`
`The existing systems, however, do not support active trading after the closing hours of the
`
`exchanges. Thus, there is a need for a system that pemiits the users to execute trades after
`
`nomial market hours (after-hours trades) without using an established exchange. And, there
`
`is a need for a system that pennits users to trade with each other (“user-to-user trading")
`
`without involving an exchange.
`
`The presently available systems are directed toward the presentation of numerically
`
`fomiatted in fomtation. Moreover, these systems do not provide a visualization of the status
`
`of securities as they are traded so as to enable users to gain an essentially immediate and
`
`accurate impression of a stock’s status, direction of movement, and rate of change, without
`
`‘having to resort to complex mental calculations and holding such calculations in short-terrn
`
`memory. But humans are unsuited to processing numeric infonnation quickly and accurately,
`
`and perfonning mental calculations under stressful conditions places very high cognitive
`
`workloads on humans.
`
`ln addition to being poor processors of numeric infonnation, humans
`
`also tend to have very weak short-temi memories. Requiring users to perfonn mental
`
`calculations and then hold the results of those calculations in short-term memory while
`
`performing even more calculations is unnecessarily difficult and demanding, especially when
`users are placed under the additional stress ofhaving to decide whether to buy, sell or hold a
`
`stock. Traditional on-line trading systems further compound the problem by requiring users
`
`to navigate from page to page within the site to gather news and infonnation on their
`
`positions. their profit and loss, their open orders, their current positions, and their financial
`
`account infomiation. Each time a user moves to a new screen he is forced to store values.
`
`which are critical to infonned trade-decision-making, in short-ten‘n memory.
`
`UI
`
`l0
`
`l5
`
`20
`
`0482
`
`0482
`
`

`
`W0 00/52619
`
`PCT/US00/05150
`
`Anotherdeficiency in current Internet trading systems is that users cannot obtain a
`
`real-time quotation on a particular stock (or a portfolio of stocks) without manually
`
`requesting a specific quotation from the trading system server, often b_v typing it every time
`
`they need a quote, or hitting “refresh." That is, users of current lntemet trading systems
`
`cannot simply access the trading system and receive a continuously updated display of real-
`
`time quotes for a particular stock or a portfolio of stocks. The need to type in a stock symbol
`
`every time a quote is desired further contributes to the inefficiency ofthe existing systems.
`
`Accordingly, there is a need for an efficient lntemet-based trading system which
`
`provides improved human interaction and after-hours trading.
`
`10
`
`SUMMARY OF THE INVENTION
`
`The system and method of the preferred embodiment supports trading of securities
`
`over the Internet both on national exchanges and outside the national exchanges. The 4
`
`preferred embodiment also supports an improved human interface and a continuous display of