US5905974A
Expired / Lapsed
US
⏱️ 0.0 years remaining
Automated auction protocol processor
Assignee: CFPH LLC
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Filing: 1996-12-13
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Granted: 1999-05-18
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Expires: 2016-12-13
Abstract
Abstract A data processing system for implementing transaction management of auction-based trading for specialized items such as fixed income instruments. The data processing system provides a highly structured trading protocol implemented through a sequence of trading paradigms. The system employs a distributed computer processing network linking together a plurality of commonly programmed controlled workstations. The protocol and its programmed controlling logic enhances trading efficiency, rewards market makers and fairly distributes market opportunity to system users.
Inventors
- 👤 Stuart A. Fraser
- 👤 Howard Lutnick
- 👤 Bijoy Paul
Bibliographic Details
Application Number
—
Jurisdiction
US
Data Source
google_patents
Last Synchronized
2026-11-05 12:40
CPC Classifications
G; G06; G06Q; G06Q30/00; G06Q30/06; G06Q40/00; G06Q40/04; G06Q40/06
Claims Analysis
Total Claims: 33
Claim 1
Independent Claim
189 words
In combination in a data processing system for implementing a structured trading environment for transacting the purchase and sale of select items having a predetermined set of characteristics wherein said data processing system is operated by a plurality of trading participants through a specific communication platform to permit exchanging positions regarding offers and bids and for receiving select participant trade commands relating to said items, comprising: a plurality of workstations comprising a display means for presenting to a participant information about pending market conditions as they relate to said items being traded and the select positions taken by other participants in regard to said items; a central server in communication with said workstations, linked to said workstations and programmed to support a predetermined trading control logic wherein said trading control logic comprises a protocol of trade sequences initiated from a bid/offer state by a participant hit or lift trade command wherein said protocol is directed to implement trade commands from said participants in a predefined way corresponding to the development of a plurality of trade specific states defining the ability of various participants to participate in said trading activity.
Claim 2
Dependent Claim
189 words
In combination in a data processing system for implementing a structured trading environment for transacting the purchase and sale of select items having a predetermined set of characteristics wherein said data processing system is operated by a plurality of trading participants through a specific communication platform to permit exchanging positions regarding offers and bids and for receiving select participant trade commands relating to said items, comprising: a plurality of workstations comprising a display means for presenting to a participant information about pending market conditions as they relate to said items being traded and the select positions taken by other participants in regard to said items; a central server in communication with said workstations, linked to said workstations and programmed to support a predetermined trading control logic wherein said trading control logic comprises a protocol of trade sequences initiated from a bid/offer state by a participant hit or lift trade command wherein said protocol is directed to implement trade commands from said participants in a predefined way corresponding to the development of a plurality of trade specific states defining the ability of various participants to participate in said trading activity.
Claim 3
Dependent Claim
38 words
The trading system of claim 1 wherein said protocol is defined by a stored program comprising a logic structure that defines conditions where a participant becomes a trader and conditions where other participants may participate in a trade.
Claim 4
Dependent Claim
16 words
The trading system of claim 1 wherein said participant commands comprise bids, offers, hits and lifts.
Claim 5
Dependent Claim
20 words
The trading system of claim 1 wherein said trading states is comprised of a Bid/Offer State and a Workup State.
Claim 6
Dependent Claim
15 words
The trading system of claim 4 wherein aid trading states further comprise a When State.
Claim 7
Dependent Claim
16 words
The trading system of claim 5 wherein said trading states further comprises a Second Look State.
Claim 8
Dependent Claim
15 words
The trading system of claim 6 wherein said trading state further comprise a Workdown State.
Claim 9
Dependent Claim
23 words
The trading system of claim 1 wherein said display provides a presentation of a bid side and an offer side of a market.
Claim 10
Dependent Claim
21 words
The trading system of claim 8 wherein said display further provides information as to the size of uncleared bids and/or offers.
Claim 11
Dependent Claim
32 words
The trading system of claim 8 wherein said display further provides a queue of participants organized in groups corresponding to their respective participation on the bid or offer side of the market.
Claim 12
Dependent Claim
18 words
The trading system of claim 10 wherein said participant's queue is ordered by time and size of entry.
Claim 13
Dependent Claim
21 words
The trading system of claim 11 wherein said queue order is further based on quality of entry in terms of price.
Claim 14
Dependent Claim
22 words
The trading system of claim 12 wherein said display provides information regarding the entry of a hit or lift by a participant.
Claim 15
Dependent Claim
21 words
The system of claim 1, wherein said item is selected from the group consisting of commodities, securities, indices, and futures contracts.
Claim 16
Dependent Claim
12 words
The system of claim 1, wherein said item is a futures contract.
Claim 17
Dependent Claim
118 words
A computer trading system for use by multiple participants wherein each participant operates a custom designed keypad for data entry and receives information about market conditions from a display comprising: a data processor with associated data storage for providing a trading protocol that establishes trading hierarchy among participants; a trade command input means including said custom designed keypad wherein said keypad includes a plurality of trade execute keys, individually assigned to a particular security available for trading, said keypad further comprises a plurality of participant entry keys assigning trade commands to a particular participant; a display means for presenting a trading information profile wherein said trading profile includes pending offers and bids at select price points and size.
Claim 18
Dependent Claim
118 words
A computer trading system for use by multiple participants wherein each participant operates a custom designed keypad for data entry and receives information about market conditions from a display comprising: a data processor with associated data storage for providing a trading protocol that establishes trading hierarchy among participants; a trade command input means including said custom designed keypad wherein said keypad includes a plurality of trade execute keys, individually assigned to a particular security available for trading, said keypad further comprises a plurality of participant entry keys assigning trade commands to a particular participant; a display means for presenting a trading information profile wherein said trading profile includes pending offers and bids at select price points and size.
Claim 19
Dependent Claim
18 words
The trading system of claim 16 wherein said input means provides single keystroke entry for trade cancel command.
Claim 20
Dependent Claim
26 words
The trading system of claim 16 wherein said data processor provides for a Bid/Offer State wherein customers' price and size are displayed on said display means.
Claim 21
Dependent Claim
22 words
The trading system of claim 18 wherein said Bid/Offer State is terminated by a participant entry of a hit or lift command.
Claim 22
Dependent Claim
26 words
The trading system of claim 18 wherein said Bid/Offer State is moved to a "When" State by a non-priority participant's entry of a hit or lift.
Claim 23
Dependent Claim
25 words
The trading system of claim 14 wherein said display means presents information on trade transactions and participant access is contingent on a system trading state.
Claim 24
Dependent Claim
27 words
The system of claim 16, wherein said bids and offers are indicative of an item selected from the group consisting of commodities, securities, indices, and futures contracts.
Claim 25
Dependent Claim
16 words
The system of claim 16, wherein said bids and offers are indicative of a futures contract.
Claim 26
Independent Claim
125 words
A method of financial instrument trading implemented on a distributed workstation computer system, wherein said system provides for a predetermined trading protocol delineating participant access comprising the steps of: a. providing a Bid/Offer System State wherein participants participate by actively monitoring trading wherein some of said participants enter bids, offers, price and volume information; b. distributing said information to said plural workstations in essentially real time; c. receiving trade hits and/or lifts from said participants responding to pending bids/offers as displayed on said workstations; d. entering a Trading State wherein transactions are completed at one or more system defined prices; e. returning to the Bid/Offer State after a pre-established termination event in said Trading State; f. tracking and outputting consummated trades from said Trading State.
Claim 27
Independent Claim
125 words
A method of financial instrument trading implemented on a distributed workstation computer system, wherein said system provides for a predetermined trading protocol delineating participant access comprising the steps of: a. providing a Bid/Offer System State wherein participants participate by actively monitoring trading wherein some of said participants enter bids, offers, price and volume information; b. distributing said information to said plural workstations in essentially real time; c. receiving trade hits and/or lifts from said participants responding to pending bids/offers as displayed on said workstations; d. entering a Trading State wherein transactions are completed at one or more system defined prices; e. returning to the Bid/Offer State after a pre-established termination event in said Trading State; f. tracking and outputting consummated trades from said Trading State.
Claim 28
Dependent Claim
19 words
The method of claim 24 wherein said Trading State is further delineated into a Workdown and a Workup State.
Claim 29
Dependent Claim
21 words
The method of claim 25 wherein said Workup State is created by a single participant hitting or lifting all pending size.
Claim 30
Dependent Claim
24 words
The method of claim 26 wherein said Workdown State is created by a participant hitting or lifting less than all of said pending size.
Claim 31
Dependent Claim
18 words
The method of claim 24 wherein said trading protocol is encoded in programming logic controlling said computer system.
Claim 32
Dependent Claim
27 words
The method of claim 24, wherein said bids and offers are indicative of an item selected from the group consisting of commodities, securities, indices, and futures contracts.
Claim 33
Dependent Claim
16 words
The method of claim 24, wherein said bids and offers are indicative of a futures contract.
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USPTO Annuity & Maintenance Windows
| Annuity Stage | Window Opens | Payment Deadline | Surcharge Period Until | Estimated Fee | Status |
|---|---|---|---|---|---|
| 3.5 Years (Year 4) | 2002-05-17 | 2002-11-16 | 2003-05-18 | $2000.00 | Window Closed / Lapsed |
| 7.5 Years (Year 8) | 2006-05-17 | 2006-11-16 | 2007-05-18 | $3760.00 | Window Closed / Lapsed |
| 11.5 Years (Year 12) | 2010-05-17 | 2010-11-16 | 2011-05-18 | $7700.00 | Window Closed / Lapsed |