Network and method for trading derivatives

US7818248B2 · kind B2 · utility

Assignee

• Chicago Mercantile Exchange Inc. · US

Inventors

• Neal Brady · Evanston, US
• Noah Carey · Evanston, US
• William Erwin · Oakwood, US
• John Gilmore · Cary, US
• Michael Quattrocki · Chicago, US
• Frank Stone · Chicago, US
• Mark Thornburgh · West Chicago, US

Key dates

• Filing date: Oct 1, 2007
• Grant date: Oct 19, 2010
• Expiry date: Feb 12, 2028

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/12
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A computer network and method for electronically trading derivatives. The system includes networks and methods where a control or network managing station in the network acts as a facilitator for the market makers and subscribers to make a trade at an Exchange. In another embodiment the network managing station consummates the trade between a market maker and a subscriber by matching binding quotes and orders and clears the trade at an Exchange. The computer network for electronically trading derivative comprises: (a) network managing station; (b) one or more market maker stations; (c) one or more subscriber stations; (d) one or more Exchanges. The network managing station connects market makers and subscribers for making real time indicative quotes, issuing requests for quotes, obtaining binding quotes and wherein the market maker and subscriber are in communication with an Exchange for sending binding quotes and orders to the Exchange for clearing and confirming transactions.