System and method for providing price validation for market makers in over the counter markets
US7584145B2 · kind B2 · utility
Assignee
Inventors
Key dates
| Filing date | Oct 24, 2006 |
| Grant date | Sep 1, 2009 |
| Priority date | — |
| Expiry date | Aug 8, 2027 |
Classification
- Technology area (CPC G)Physics
- CPC primaryG06Q40/03
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
A system and method provide price validation for market makers in over the counter (OTC) markets. Specifically, the system compares a new or existing price provided by a market maker with a base rate. If the unilateral difference is less than or equal to a configurable tolerance, the price may be added to validated rates. The unilateral difference is an amount that the new bid source rate is greater than the bid base rate or an amount that the new offer source rate is less than the offer base rate. On the other hand, if the difference is more than the tolerance, the price may be ignored or removed by the system. As a result, the system provides protection against trading on invalid off-market rates or stale rates that is caused by system latency or other types of temporary anomalies.
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.