`Will& Emery
`
`Boston Brussels Chicago Dallas Dusseldorf Frankfurt Houston London Los Angeles Miami
`Milan Munich New York Orange County Paris SanFrancisco Seoul Silicon Valley Washington, DC
`
`Strategic alliance with MWE China Law Offices (Shanghai)
`
`Ahsan Shaikh
`Attorney at Law
`ashaikh@mwe.com
`+1 312 984 7750
`
`October 25, 2018
`
`VIA FEDERAL EXPRESS
`
`Gain Capital
`Attn: Glenn H. Stevens
`135 US Highway 202/206, Suite 11
`Bedminster, NJ 07921
`
`Re:
`
`Notice of OANDACorporation Patent Rights
`Client Matter No. 096803.0017
`
`Dear Mr. Stevens:
`
`We represent OANDA Corporation (“OANDA”) in connection with certain intellectual property
`matters, including patent matters. As you know, OANDAis highly respected in the financial
`sector, providing leading and innovative solutions in the areas of currency data, trading, and
`exchangerate services for a wide range of organizations and investors.
`
`At considerable expense, OANDAhaspursued and obtainedcertain intellectual property
`protection for its innovative products, including numerouspatents, trademarks, trade dress,
`copyrights, and other intellectual property related to its business. For years, OANDA has owned
`various patents related to its unique solutions to providing currency trading services, including
`the following:
`
`
`Patent Reference No.
`Title
`
`
`
`
`U.S. Patent No. 7,146,336
`Currencytrading systems, methods, and software
`
`U.S. Patent No. 7,496,534
`Methodsfor trade decikfon making
`USS. Patent No. 8,392,311
`Currency trading systems, methods, and software
`
`
`
`Wehaveattached copies of the above-listed patents for your convenience.
`
`Aswe understand it, Gain Capital currently sells, offers for sale, uses, or imports currency
`trading products or services in the United States that may infringe OANDA’s patents, including
`one or moreofthose listed above.
`
`US practice conducted through McDermott Will & Emery LLP.
`
`444 West Lake Street, Suite 4000 | Chicago, IL 60606-0029 | Tel: +1 312 372 2000 | Fax: +1 312 984 7700 | www.mwe.co
`GAIN CAPITAL - EXHIBIT 1007
`0001
`
`GAIN CAPITAL - EXHIBIT 1007
`
`0001
`
`
`
`Glenn H. Stevens
`October 25, 2018
`Page 2
`
`By way of example only, claim 1 of U.S. Patent No. 8,392,311 recites:
`
`1. A method oftrading currencies over a computer network connecting a trading system
`server andat least one trading client system, comprising the steps of
`(i) at the trading system server, determining and dynamically maintaining a
`plurality of current exchangerates, each current exchangerate relating to a pair of
`currencies and includinga first price to buy a first currency of the pair with respect to a
`second currencyofthe pair and a secondprice tosell the first currency of the pair with
`respect to the second currencyofthe pair;
`(ii) transmitting data from the trading system serverto a trading client system, the
`transmitted data representing at least one current exchangerate at the time of the
`transmission;
`(iii) at the trading client system, displayingthefirst and second prices for each
`received current exchangerate to a user,
`(iv) at the trading client system, accepting input from the user identifying a pair of
`currencies the user desires to trade, an amountofat least one currencyofthe pair desired
`to be traded and a requested trade price at which it is desired to effect the trade;
`(v)transmitting the accepted input fromthe trading client system to the trading
`system server;
`(vi) at the trading system server, comparing the requested trade price to the
`respective first price or second price of the corresponding current exchangerate at that
`time and,if the respective first price or second price of the corresponding current
`exchangerate at that time is equal to or better than the requested trade price, effecting the
`trade at the corresponding respective current exchangerate first price or second price and
`if the corresponding current exchangerate is worse than the requested tradeprice,
`refusing the trade; and
`(vii) transmitting from the trading system serverto the trading client system an
`indication of whether the trade was refused or transacted and,if transacted, an indication
`of the price the trade wastransactedat.
`
`To the extent Gain Capital sells or offers to sell products or services that are covered by
`OANDA’s patents, Gain Captial maybeliable for patent infringement, directly or indirectly,
`underone or more subsections of 35 U.S.C. § 271. Thoughit is likely that you were already
`aware of OANDAandits patent portfolio, to the extent you had not been, we hereby put you on
`notice of the potential for infringement and Gain Capital’s liability thereunder.
`
`To the extent the sale or use of Gain Capital’s products or services infringe one or more of
`OANDA’s patents, those acts would allow OANDAto seek numerousequitable and legal
`remedies against Gain Capital, including, without limitation, an injunction, statutory damages,
`enhanced damagesfor willful infringement, attorney’s fees, and any other remedies available
`under applicable law.
`
`0002
`
`0002
`
`
`
`Glenn H. Stevens
`October 25, 2018
`Page 3
`
`To avoid a potential dispute, we recommendthat Gain Capital review OANDA’s patents and
`discuss with us a potential license. To the extent Gain Capital wishes to discuss suchalicense,
`please contact me directly by November9, 2018.
`
`Sincerely
`/
`
`
`i,
`\
`Ahsan Shaikh
`
`
`
`Enclosures:
`e USS. Patent No. 7,146,336
`e USS. Patent No. 7,496,534
`e US. Patent No. 8,392,311
`
`0003
`
`0003
`
`
`
`a2) United States Patent
`US 7,146,336 B2
`(10) Patent No:
`Dec. 5, 2006
`(45) Date of Patent:
`Olsen et al.
`
`
`US007146336B2
`
`(54) CURRENCY TRADING SYSTEM, METHODS,
`AND SOFTWARE
`
`(75)
`
`Inventors: Richard B. Olsen, Zurich (CH);
`Michael Stumm, Toronto (CA)
`
`(73) Assignee: Oanda Corporation, Toronto (CA)
`(*) Notice:
`Subject to anydisclaimer, the term ofthis
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 673 days.
`
`(21) Appl. No.: 09/858,610
`
`(22)
`
`Filed:
`
`May16, 2001
`
`6/1999 Piskiel etal. wu, 709/314
`5,916,307 A *
`
`3/2001 Heinale et al. vcsssusnee 705/1
`6,199,046 BI*
`. 705/37
`2001/0044771 A1* 11/2001 Usher etal. .
`2001/0049651 AL* 12/2001 Selleck ..ccsssssssessseesen 705/37
`2001/0056398 AL*
`12/2001 Scheirer cscsscsssesevsess 705/38
`2/2002 Sz0c et al. sssssssseesseeen 705/39
`2002/0023053 A1*
`
`7/2002 Tsagarakis et al.
`........... 705/37
`2002/0087455 Al*
`2003/0115128 Al*
`6/2003 Lange et al. sss 705/31
`2003/0159109 Al*
`8/2003 Rossmannet al.
`.......... 715/513
`
`* cited by examiner
`
`Primary Examiner—Alain L. Bashore
`(74) Attorney, Agent, or Firm—Morgan, Lewis & Bockius
`LLP
`
`Prior Publication Data
`(65)
`US 2002/0156718 Al=Oct. 24, 2002
`(57)
`ABSTRACT
`
`Related U.S. Application Data
`
`(60) Provisional application No. 60/274,174,filed on Mar.
`8, 2001.
`
`(51)
`
`Int. Cl.
`(2006.01)
`G06Q 40/00
`(52) US. CMe ceeseecsessessessssssereevseseeseneens 705/37, 705/35
`(58) Field of Classification Search .............. 705/35,
`705/37, 1
`See application file for complete search history.
`
`(56)
`
`References Cited
`U.S. PATENT DOCUMENTS
`
`In one aspect, the present invention comprises a system for
`trading currencies over a computer network. A preferred
`embodiment comprises: (a) a server front-end, (b) at least
`one. datahase:_(c).a_transaction server; (d).a_rate server: (e)
`a pricing engine; (f) an interest rate manager; (g) a trade
`manager; (h) a value at risk server; (i) a margin control
`manager; (j) a trading system monitor; and (k) a hedging
`engine. In another aspect, the present invention comprises
`methods for trading currency over a computer network.In
`anotheraspect, the present invention comprises software for
`currency trading over a computer network.
`
`5,787,402 A *
`
`7/1998 Potter et al. sees 705/37
`
`11 Claims, 14 Drawing Sheets
`
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`Dec.5, 2006
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`Trader opens Trading Station
`display
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`
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`US 7,146,336 B2
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`1
`CURRENCY TRADING SYSTEM, METHODS,
`AND SOFTWARE
`
`CROSS-REFERENCE TO RELATED
`APPLICATION
`
`This applicationclaimspriority to U.S. provisional appli-
`cation No. 60/274,174, filed Mar. 8, 2001, and incorporates
`the entire contents thereof herein by reference.
`
`1
`
`PIELD OF THE INVENTION
`
`The present invention is related to currency trading, more
`particularly, the inventionis related 10 trading currency over
`a computer network.
`
`BACKGROUND
`
`In a traditional on-line currency market, a trade occurs
`through three steps: (1) the trader specifies (o a dealer the
`currency pair and the amount that he would to trade (but
`does not specify whether he would like to buyorsell); (2)
`the dealer specifies to the trader both a bid and anask price
`and gives the trader several seconds to respond(the dealer
`not knowing whether the trader will buy, sell, or reject the
`offer); and (3) the trader either rejects the offer or specifies
`whether he is buying or selling (his response must occur
`within-a time frame-of-a-few’seconds):
`But perlorming such a three-way handshake over the
`Internet is somewhat impractical because of Internet delays:
`the trader might not actually have a few seconds to respond
`before the dealer withdrawsthe offer. Thus, there is a need
`for a system and methodofon-line currency trading thatis
`based on a trading model that is superior to the three-way
`handshake described above.
`Another problemis that many corporationshavefirewalls
`that restrict access to the corporate network, and that typi-
`cally restrict access to the Intemet
`(and to well-known
`services such as email, the World Wide Web, etc.) [rom
`within the corporation. This inhibits the ability of on-line
`trading systems to access information from and transfer
`information to users behind corporate firewalls.
`
`SUMMARY
`
`45
`
`Thepresent invention overcomesthe above-described and
`other disadvantages of previous currency trading systems
`and methods. In one aspect, the present invention comprises
`vr
`a-systen-for-trading currencies over a.comiputer network. As
`preferred embodiment comprises:(a) a server front-end; (b)
`at least one database; (c) a transaction server; (d) a rate
`server; (e) a pricing engine; (f) an interest rate manager; (g)
`a trade manager; (h) a value at risk server; (i) a margin
`control] manager; (j) a trading system monitor, and (k) a
`hedging engine. Each of these components is described in
`detail below in the Detailed Description section.
`In another aspect, the present invention comprises meth-
`ods for trading currency over a computer network. In one
`embodiment, a preferred method comprises: (a) transmitting
`currency market information over a computer network to an
`end user; (b) receiving a currency trade order from the end
`user, wherein the currency trade order comprises limits
`within whichthe currencytrade will be acceptable to the end
`user; (c) calculating a market exchange rate for the currency
`trade order; and (d) executing the order if the market
`exchange rate is within the specified limits.
`
`2
`In another embodiment, a preferred method comprises:
`(a) transmitting currency market information over a com-
`puter network to an end user; (b) receiving a currency trade
`order from the end user, wherein the currency trade order
`comprises a threshold exchangerate; (c) calculating a mar-
`ket exchangerate for the received currency trade order, and
`(d) executing the order (1) if the market exchange rate is or
`goes abovethe threshold exchangerate and the orderis a sell
`order, and (2) if the market exchange rate is or goes below
`the threshold exchange rate and the order is a buy order.
`In a further embodiment, a preferred method comprises:
`(a) receiving currency market information over a computer
`network from a trading system server; (b) transmitting a
`currencytrade order to the trading system server, wherein
`the currency trade order comprises limits within which the
`currency trade will be acceptable; and (c) if a market
`exchangerate is within the specified limits, receiving infor-
`mation from the trading system server indicating that the
`currency trade order was executed.
`In another embodiment, a preferred method comprises:
`(a) receiving currency market information over a computer
`network from a trading syslem server; (b) transmitting a
`currencytrade order to the trading system server, wherein
`the currency trade order comprises a threshold exchange
`rate; and (c) if (1) the applicable market exchangerate is or
`goes abovethe threshold exchangerate and the orderis a sell
`order, or (2)
`the applicable markel exchange rate is or
`becomes below the threshold exchangerate and the order is
`a buy order, receiving information from the trading system
`server indicating that the currency trade order was executed.
`In another aspect, the present invention comprises soft-
`ware for currency trading over a computer network. In one
`embodiment, preferred software comprises: (a) software for
`receiving data over a computer network from a trading
`system server; (b) software for displaying a first graphical
`user interface displaythat: (1) displays continuously updated
`currency exchangerates in real-time based on data received
`from the trading system server; and (ii) displays action
`buttons. including a buy/sell button; (c) software for dis-
`playing, in response 1o a user clicking the buy/sell action
`button, a buy/sell windowdisplay that: (i) comprises trade
`order parameter fields; and (ii) accepts trade order data
`entered into the trade order parameterfields by a user, and
`(d) software for transmitting said trade order data to said
`trading system server over said computer network.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`FIG. 1 depicts parties involved in a preferred embodi-
`ment.
`
`FIG. 2 depicts a graphical user interface of a preferred
`embodiment.
`FIG. 3 depicts modules of a preferred trading system
`server.
`
`FIG. 4 depicts hardware components of a preferred
`embodiment.
`FIG. 5 depicts a graphical user interface of a preferred
`embodiment.
`FIG. 6 depicts an account summary table display.
`FIG. 7 depicts an opentradestable display.
`FIG, 8 depicts an open positions table display.
`FIG. 9 depicts an open orders table display.
`FIG. 10 depicts a transactions table display.
`FIG, 11 depicts a currency rates table display.
`FIG. 12 depicts a currency exchange rate graphdisplay.
`FIG. 13 depicts a buy/sell pop-up window display.
`FIG. 14 depicts an acknowledgment window display.
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`FIG. 15 depicts an entry order display.
`FIG.16 depicts steps of a method ofa preferred embodi-
`ment.
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`DETAILED DESCRIPTION OF PREFERRED
`EMBODIMENTS
`
`The Currency Trading Systemofa preferred embodiment
`(hereinafter “‘Irading System”) of the present
`invention
`allowstraders to trade currencies over a computer network.
`Preferably, this computer network is the Intemet, and the
`subsequent description herein is primarily in terms of the
`Internet. However, those skilled in the art will recognize that
`the following description also applies to other computer
`networks. Traders interface to the system using ordinary
`Web browsers running feature-rich Java applets; they obtain
`real-time data feeds of current exchange rates,
`they can
`analyze past exchangerates using graphical tools, they can
`review their current portfolio and past trades, and they can
`place buy and sell orders in the real-time market. Businesses
`interface to the systemusing an API. Innovative features that
`set the Trading System apart from the competition are: (1)
`extremely lowspreads onthe order ofa fewbasis points, (ii)
`the ability to trade very small amounts as low as $1, and(iii)
`24 hour a day, 7 days a weekavailability. This system has
`the potential to revolutionize the way currency trading is
`done and to openup currencytrading to a new,large market
`segment ofinvestors and speculators for whom currency
`trading is not feasible today. Moreover, il allows businesses
`to address their currency exchange requirements in the most
`cost-effective and efficient way.
`A description ofthe preferred server infrastructure used in
`the Trading System follows. Wefirst give a brief introduc-
`tion of the system as a whole.
`The Trading System involves three components(sce FIG.
`1):
`(1) traders that are distributed around the world; (2)
`Trading System servers, and (3) “Partners” consisting ofthe
`financial
`institution(s)
`through which real
`currency
`exchangetrades are executed, and from whichreal-time data
`feeds are oblained.
`Traders communicate with Trading System servers over a
`secure, encrypted Internet connection to review their
`accounts, to monitor currency exchange market conditions,
`orto initiate currency exchangetrades. The Trading System
`servers ure preferably connected lo the partners’ back-ollice
`systems, using direct. private lines.
`Atradertrades with the Trading System similar to the way
`she currently trades with a broker, exceptthat the trading is
`over the Web, occurs 24 hours a day, 7 days a week, and
`allows-very_small.trades with very lowspreads. Moreover,
`an initial deposit, which may be as low as $20, can be
`charged to a credit card to get started. Alternatively, the
`trader cantransfer initial funds directly to the Partner bank
`to be credited to her Trading System account.
`The end user interface to the Trading System is a Web
`page that can be displayed on anystandard Java-cnabled
`browser. The Web page (one version is shown in FIG. 2; a
`second, preferred version is shown in FIG. 5) depicts a
`summary of the trader’s current position, recent trading
`activities, profit/loss performance of the portfolio, and a
`graphical display of recent past performanceof the curren-
`ciesthe trader has positionsin, as well as real-lime exchange
`rates.
`
`in a traditional on-line currency
`As discussed above,
`market a trade occurs through three steps:
`(1) a trader
`specifies a currency pair and an amount he would like to
`trade (and does not specify whether he would like to buy or
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`sell); (2) a dealer provides both a bid and anaskprice to the
`trader and gives the trader several seconds to respond (the
`dealer does not know whether the trader will buy, sell, or
`reject the offer); and (3) the tradereither rejects the offer or
`accepts the offer and specifies whether he is buying or
`selling, within the response period set by the dealer.
`In the Internet domain,this type of three-way handshake
`is problematic. The timing constraints are difficult to imple-
`ment because of frequent delays in transmission over the
`Internet. To overcome this problem, the present invention
`uses a “two-way handshake,” in which:(1) a trader specifies
`in her trade order: (a) a currency pair; (b) a desired amount
`to trade; (c) whether she wishes to buy orsell; and (option-
`ally) (d) upper and lowerlimits on an acceptable exchange
`rate; and (2) a dealer (in this case, a preferred Trading
`System) executes the trade using the most current “market
`rates” (as calculated by the system). However, the system
`only executes the order if the calculated market rate lies
`above any specified lower limit and belowany specified
`upperlimit. Note that this method does not require the use
`of timing constraints, and thus avoids the Internct-imple-
`mentation disadvantage of previous methods.
`In the present invention, trades can be initiated by the
`trader at the push of a button. A trading request form pops
`up with fields properly initialized so as to minimize the
`numberof keystrokes required. A trader mayelect to execute
`a trade right away, in which case the buyer ofa currency will
`buy at the current exchange rate market offer price. Con-
`versely. a trader can sell a currency at the current bid price.
`A rangeofautomatic trading optionsis available, including
`setting bid/offer prices with a certain duration and “all-or-
`nothing”rules. Furthermore,the trader can limit herrisks by
`placing stop-loss orders that are executed automatically.
`Similarly, she can lock in profits, by issuing take-profit
`orders.
`All communication betweenthe trader’s browser and the
`Trading System server occurs through the Internet, prefer-
`ably using the strongest available encryption (e.g., 128 bit
`keys). Moreover, the trader must authenticate herself using
`private passwordsorcertification keys obtained from certi-
`fication authorities, such as Verisign or Entrust.
`A request
`for a market
`trade preferably proceeds as
`follows: the trader, at a push of a button, obtains a trade
`order ticket in a popup window on the browser with key
`fields pre-initialized (see FIG. 13). Whenthetrade orderis
`issued, again by the push of a button, a messageis sent to a
`Trading System server, where the marketpriceis calculated
`based onsuchfactors as market data, size ofthe transaction,
`time of day, the Trading System’s current exposure, and
`predictions on market direction, The trade orderis executed
`using this market price. (The trader can specify limits, so
`that the trade occurs only if the price falls within these
`limits.) As such, the Trading System operates as a market
`maker. A messageis then sent backto the trader with specific
`trade details, which is displayed in a popup window (see
`FIG. 14) on the trader’s browser together with a transaction
`id (for future reference). Moreover, an open orders table (see
`FIG. 9) and current portfolio summary table (not shown)is
`updatedto reflect the change.
`Altematively, the trader can issue in a similar manner an
`entry order(see FIG. 15) that requests a trade be made when
`the currency exchange rate reaches a specified threshold.
`The trader may specify howlong the entry order will be
`valid.
`Referring to the attached figures, a preferred embodiment
`comprises a method of trading that in tum comprises the
`followingsteps (see FIG. 16): At step 1605,a trader desiring
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`to trade opens a Trading Station display, and at step 1610
`clicks a “Buy/Sell” button 510 on the Trading Station
`display (see FIG. 5). At step 1615 an order window is
`displayed (see FIG. 13). At step 1620 the trader decides
`whetherto place a market order or anentryorder, If'a market
`order, then the trader proceeds to step 1635 and enters
`desired order parameters (as shownin FIG. 13). If an entry
`order, then the trader proceeds lo slep 1625 und clicks an
`“Entry” tab 1320 (see FIG. 13). At step 1630 entry order
`fields are displayed (see FIG. 15). Then the trader proceeds
`to step 1635 and enters desired order parameters (ss shown
`in FIG. 15).
`Onceorder parameters are entered at step 1635, the trader
`submits the order by clicking a “Submit” button 1310 (see
`FIG. 13)
`if the order is a market order, or clicking a
`“Submit” button 1510 (see FIG. 15)ifthe order is an entry
`order, At step 1645 data describing the order is sent by the
`Trading Station application to a Trading System server,
`wherethe data is stored. At step 1650 a current market price
`for the currency the trader desires to purchase is calculated.
`At step 1655 the trader’s orderis executed if(a) the trader’s
`order is a market order and the calculated market price is
`within the limits set by the trader in the market order form
`at step 1635; or (b) orderis an entry order and the calculated
`market price meets the threshold(s) specified in the Entry
`order format step 1635.
`Atstep 1660 the Trading Systemserversendstradestatus
`data to the trader's Trading Station application. This data
`includes an indication that the order has been executed, if
`that is the case, and at any rate includes anindicationthat the
`order has beenreceived. At step 1665, the Trading Station
`application displays an order acknowledgment window(see
`FIG. 14) that displays order status information.
`Overtime, the Trading System will accumulate an imbal-
`ance inits currency portfolio and, at times, it will need to
`neutralizeits risk exposure to adverse currencyfluctuations.
`The Trading System Pricing Engine can influence its expo-
`sure by setting its price quotes accordingly. Moreover,it can
`close outils posilions periodically or take hedging positions
`by executing larger trades through its Partners. Preferably
`the Trading System’s positions are managed based onstate-
`of-the-art
`trading models. Preferred trading models are
`described in U.S. patent application Ser. No. 09/855,633,
`filed May 14, 2001, the contents of which are incorporated
`herein by reference, as well as U.S. provisional application
`No. 60/274.174, filed Mar. 8, 2001.
`The Trading System servers preferably operate 24 hours
`a day, 7 days a week. Theseserversinterface with the traders
`e
`over the Internet onthe one hand:and-or-the other-hand-with—>
`the Partner’s back-office operations. Using standard, state-
`of-the-art database technology, it maintains the accounts of
`all traders and executes trades issued by the traders. The
`‘Trading Systemthusplaysthe role of'a market makerin that
`it
`internally aggregates all
`trades and only occasionally
`balances its internal positions bytrading larger sums through
`the Partner. These larger trades are issued to the Partner in
`an automated way. The Trading System also takes hedging
`positionsso as to minimizerisks on the unbalanced portions
`of the traders’ account aggregates.
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`ot
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`Partner’s Role
`The Partner maintains all actual funds. It is the source and
`target ofall fundtransfers to and [rom customers; it main-
`tains the aggregate accounts; andit executesall trades issued
`automatically by the Trading Systemservers. From a legal
`point ofview,all funds must be maintained in money market
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`instruments. Hence, the Partner will maintain a Long and a
`Short money market fund for each currency supported.
`Overview of Currency Trading System Server Internal
`Design
`The Trading Systemserver architecture is designedto be:
`(1) modular, in order to: (a) simplify development(time-
`to-market); (b) easily allow extensions and modifications;
`(c) ensure correctness and robustness, and (d) keep it main-
`tainable:
`(2) efficient, in order to provide fast response times to
`online users and minimize the computational and network-
`ing resources required to support the service;
`(3) scalable, in order to support (with suitable computing
`infrastructure) a large number of online users and high
`transaction volumes; and
`(4) fault resilient, so that any individual failure of a
`computing node or network connection does not interrupt
`service.
`The Trading System server software preferably runs
`exclusively on Unix platforms, and is composed of the
`following modules, each with a distinct set of responsibili-
`ties (see FIG, 3):
`(1) Database (DBMS)310.Thisis the heart of the server.
`It keeps track ofcustomerprofile information,all customer
`accounts and all transactions, and ensures that atomicity,
`consistency, independence, and durability (“ACID”) prop-
`erties are maintained. The databaseis the reference point for
`all information kept by the system.
`The database is preferably a standard commercially-
`available SQL database, configured for full replication for
`reliability, availability, and improved performance. The pre-
`ferred embodiment is based on IBM’s DB-2 productline,
`but Oracle, for example, could also easily be used.
`(2) Server Front-end 315. The server front-end 315 is
`responsible for all communication with the Web-basedcli-
`ents. It supports both persistent and non-persistent connec-
`tions to the traders. The persistent connects are used prima-
`rily for periodic(i.¢., every few seconds) transmission ofthe
`latest currency rates so that
`the traders can update the
`currency graphs and tables in real-time. Using persistent
`connections significantly reduces protocol processing over-
`head and reduces network bandwidth requirements. Non-
`persistent connections are used forall transaction-oriented
`requests, such as orders,transaction history requests, logins,
`etc. All
`transaction-oriented communication between the
`trader browsers and the Server Front-end occurs fully
`encrypted, while rate information is transmitted in unen-
`crypted form for efficiency reasons.
`‘Traders preferably communicate with the server using a
`request-response type ofprotocol, The Server Front-end 315
`interprets ea