EP0411748A2
Expired / Lapsed
EP
⏱️ 0.0 years remaining
System for matching of buyers and sellers with risk minimization
Assignee: Refinitiv Ltd
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Filing: 1990-05-25
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Granted: —
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Expires: 2010-05-25
Abstract
Abstract A risk control matching system for trading instrument, such as foreign exchange currencies, is provided in which bids are automaticall matched against offer for given trading instruments for automatically providing matching transactoins in order to complete trades for the given trading instruments, and broken trades are readily identified with a minimization of risk to the parties to a potential matching transaction. The system comprises a host computer (20) for maintaining a book database (118) comprising all of the active bids and offers in the system by trading instrument, a transaction originating keystation (24a) for providing a bid on a given trading insrument, a counterparty keystation (24b) for providing an offer on the given trading instrument a network (22) for interconnecting the host (20) and the kestation (24, 25b), and a plurality of transacton deks (70a, 70b, 70c), connected to the host (20) for detecting the occurrence of the potential matching transaction and "voting" on whether to commit to the match. Positive match acknowledgment signals are provided to the host (20) by the keystations (24) involved in the trade in response to receipt of match notification signals form the host (20). IKf one of these signals is not received back, the host (20) detects a broken trade to have occured. Each of the keystations (24) provides an application based heartbeat signal to the host (20) which enables rapid detection of keystation (24) failure. In the event of detection of such keystation (24) failure, the host (20) cancels all bids and offers associated with the failed keystation (24).
Inventors
- 👤 Alfred H. Scholldorf
Bibliographic Details
Application Number
—
Jurisdiction
EP
Data Source
google_patents
Last Synchronized
2026-10-28 06:34
CPC Classifications
G; G06; G06Q; G06Q40/00; G06Q40/04
Claims Analysis
Total Claims: 11
Claim 1
Independent Claim
346 words
A risk control matching system for trading instruments in which bids are automatically matched against offers for given trading instruments for automatically providing matching transactions in order to complete trades for said given trading instruments, said system comprising a host book database comprising all of the active bids and offers in the system by trading instrument; a transaction originating keystation means for providing a bid on a given trading instrument to said system for providing a potential matching transaction, a counterparty keystation means for providing an offer on said given trading instrument involved in said potential matching transaction; network means for interconnecting said host computer means, said transaction originating keystation means and said counterparty keystation means in said system for enabling data communications therebetween; and a plurality of matching transaction by said host computer means for detecting the occurrence of said potential matching transaction by said host computer means, each of said transaction detection means having an associated database for storing data with respect to said potential matching transaction, said host computer means further comprising means for processing said potential matching transactions for a given trading instrument for providing a match indication signal to said plurality of transaction detecting means, said transaction detecting means comprising means responsive to said match indication signal for detecting the occurrence of said potential matching transaction at said host computer means, said transaction detecting means further comprising means for providing an acknowledgement signal to said host computer means in response to receipt of said match indication signal and for recording said potential matching transaction in said transaction detecting means associated data base, said host computer means further comprising means responsive to receipt of a predetermined plurality of said acknowledgement signals from said transaction detecting means for updating said host book data base based on said matching transaction and for providing a directed message to said transaction originating keystation means and said counterparty keystation means acknowledging the occurrence of said matching transaction; whereby broken trades may be readily identified with a minimization of risk to the parties to said potential matching transaction.
Claim 2
Dependent Claim
346 words
A risk control matching system for trading instruments in which bids are automatically matched against offers for given trading instruments for automatically providing matching transactions in order to complete trades for said given trading instruments, said system comprising a host book database comprising all of the active bids and offers in the system by trading instrument; a transaction originating keystation means for providing a bid on a given trading instrument to said system for providing a potential matching transaction, a counterparty keystation means for providing an offer on said given trading instrument involved in said potential matching transaction; network means for interconnecting said host computer means, said transaction originating keystation means and said counterparty keystation means in said system for enabling data communications therebetween; and a plurality of matching transaction by said host computer means for detecting the occurrence of said potential matching transaction by said host computer means, each of said transaction detection means having an associated database for storing data with respect to said potential matching transaction, said host computer means further comprising means for processing said potential matching transactions for a given trading instrument for providing a match indication signal to said plurality of transaction detecting means, said transaction detecting means comprising means responsive to said match indication signal for detecting the occurrence of said potential matching transaction at said host computer means, said transaction detecting means further comprising means for providing an acknowledgement signal to said host computer means in response to receipt of said match indication signal and for recording said potential matching transaction in said transaction detecting means associated data base, said host computer means further comprising means responsive to receipt of a predetermined plurality of said acknowledgement signals from said transaction detecting means for updating said host book data base based on said matching transaction and for providing a directed message to said transaction originating keystation means and said counterparty keystation means acknowledging the occurrence of said matching transaction; whereby broken trades may be readily identified with a minimization of risk to the parties to said potential matching transaction.
Claim 3
Dependent Claim
110 words
A risk control matching system in accordance with Claim 1 wherein said transaction originating keystation means and said counterparty keystation means comprise means for providing directed messages to said host computer means, corresponding to said bid and said offer, respectively, said directed messages updating said host book, said transaction originating keystation means and said counterparty keystation means comprising means for providing a positive match acknowledgement signal to said host computer means in response to receipt of a match notification signal from said host computer means, lack of said receipt of said match acknowledgement signal from either of said keystation means causing said host computer means to detect a broken trade.
Claim 4
Dependent Claim
71 words
A risk control matching system in accordance with Claim 1 or Claim 2 wherein each of said keystation means comprises means for providing an application based heartbeat signal to said host computer means for enabling rapid detection of keystation failure, said host computer means further comprising means for cancelling all bids and offers associated with any keystation means from which said heartbeat signal is not detected in a predetermined detection interval.
Claim 5
Dependent Claim
37 words
A risk control matching system in accordance with Claim 3 wherein said application based heartbeat signal comprises a data message or a no data heartbeat message provided in a predetermined heartbeat interval less than said detection interval.
Claim 6
Dependent Claim
39 words
A risk control matching system as claimed in any one of Claims 1 to 4 wherein said predetermined detection interval is at value high enough to make transients but still low enough to minimize system vulnerability to broken trades.
Claim 7
Dependent Claim
27 words
A risk control matching system as claimed in any one of Claims 1 to 5 wherein said predetermined detection interval comprises about an 8 second detection time.
Claim 8
Dependent Claim
45 words
A risk control matching system as claimed in any one of Claims 1 to 6 wherein at least two of said plurality of matching transaction detection means are substantially collocated and at least one other of said plurality is remotely located from said other two.
Claim 9
Dependent Claim
115 words
A risk control matching system as claimed in any one of Claims 1 to 7 wherein said transaction originating keystation means and said counterparty keystation means comprise means for providing directed messages to said host computer means, corresponding to said bid and said offer, respectively, said directed messages updating said host book, said transaction originating keystation means and said counterparty keystation means comprising means for providing a positive match acknowledgment signal to said host computer means in response to receipt of a match notification signal from said host computer means, lack of said receipt of said match acknowledgment signal from either of said keystations means causing said host computer means to detect a broken trade.
Claim 10
Dependent Claim
58 words
A risk control matching system as claimed in any one of Claims 1 to 8 wherein each of said associated keystations means further comprises an order book, said order book comprising the orders being maintained by said associated keystation means in said system, said order books being updatable in response to directed messages from said host computer means.
Claim 11
Dependent Claim
24 words
A risk control matching system as claimed in any one of Claims 1 to 9 wherein said given trading instruments comprise foreign exchange currencies.
References Cited (Backward Citations)
No citation records indexed.
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