Systems and methods for conducting derivative trades electronically

Abstract

The present invention facilitates efficient negotiations of trade terms and the generation of an electronic trade ticket in the trading of financial instruments. The negotiation process is preferably conducted through a secure online chat program using point-to-point messaging, though the negotiations can take place using the tradition exchanges of phone calls and faxes outside of the confines of an electronic trading system. Once the trade terms have been agreed upon by both parties, then the parties enter an electronic trading system in accordance with the present invention to select the traded financial instrument and generate an electronic trade ticket with can be stored by the trading system and/or the each of the trading parties.

That which is claimed:  
     
         1 . A method for generating an electronic trade ticket in an electronic trading system, comprising: 
 initiating an electronic chat session between at least two traders to negotiate terms of a transaction of financial instrument;    receiving trader input into the system indicating a selected financial instrument agreed upon by the traders to transact;    receiving trader input into the system indicating contract terms defining the transaction of the financial instrument agreed upon by the traders;    generating an electronic trade ticket for the transaction; and    transmitting the electronic trade ticket to the traders.    
     
     
         2 . The method of  claim 1 , wherein the step of generating the electronic trade ticket comprises generating an electronic trade ticket in the format of a fax document.  
     
     
         3 . The method of  claim 1 , wherein the step of generating the electronic trade ticket comprises generating an electronic trade ticket in the format of an XML file.  
     
     
         4 . The method of  claim 1 , further comprising exploding the selected financial instrument to reveal to a trader definitional components of the financial instrument.  
     
     
         5 . The method of  claim 1 , wherein the step of receiving trader input into the system indicating a selected financial instrument comprises receiving indication of one or more of a class, currency and symbol of the financial instrument.  
     
     
         6 . A system for generating a trade ticket in an electronic trading system, comprising: 
 an electronic trading system for financial instruments that conducts electronic trades using, at least in part, a trade mechanism; and    an electronic ticketing application that generates electronic trade tickets for transactions negotiated outside of the trade mechanism of the electronic trading system by at least two traders.    
     
     
         7 . The system of  claim 6 , wherein the electronic ticketing application receives trader input indicating a selected financial instrument agreed upon by the traders to transact and contract terms defining the transaction of the financial instrument agreed upon by the traders.  
     
     
         8 . The system of  claim 6 , wherein said electronic trading system supports symbology for financial instrument identification.  
     
     
         9 . The system of  claim 6 , wherein the electronic ticketing application generates the electronic trade ticket formatted as one of a facsimile document and an XML file.  
     
     
         10 . The system of  claim 6 , wherein the electronic ticketing application enables the traders to explode a financial instrument to reveal to the trader definitional components of the financial instrument.