Systems, methods and computer program products for electronic trading of financial instruments

Abstract

An internet-protocol based anonymous trading system which enables traders to identify bids and offers which they are eligible to trade based upon a color coded methodology which gives the trader credit preference information about the potential counterparty while still maintaining the anonymity of the potential counterparty. To that end, each bid or offer is prescreened against all possible counterparties' credit information in the system and each counterparty sees a unique color coded trading interface based upon their particular credit preference combinations and the others in the system. The system then shows all prices in the system, and the color-coding tells the trader which prices he is able to trade, and also shows him the full depth of the market, including those the trader is unable to trade.

1 - 44 . (canceled) 
     
     
         45 . A central processing center for facilitating electronic trading of derivatives of a first trader and a second trader between a first trader workstation of the first trader and a second trader workstation of the second trader, each trader workstation configured to be operationally interconnected via a communications network to the central processing center, the central processing center comprising:
 a market module configured to apply credit preferences of the first trader for the second trader to determine trade eligibility of potential trades of derivatives between the first trader and the second trader identified from order information of the first trader regarding more than one class of derivative for the second trader to buy a derivative or to sell a derivative, wherein the credit preferences are defined using a multi-rule measurement of credit risk, wherein at least one of the credit preferences is based at least in part on a derivative to be traded and at least another of the credit preferences is based at least in part on a credit rating of the second trader, the market module comprising:
 a market inventory module configured to transmit, via the communications network to the second trader workstation, substantially in real-time information identifying potential trades determined to be eligible for trading between the first trader and the second trader based upon the credit preferences of the first trader; and 
 an execution module configured to process a trade determined to be eligible for trading between the first trader and the second trader and initiated by the second trader, by a transmission from the second trader workstation via the communications network to the central processing center. 
   
     
     
         46 . The central processing center of  claim 45 , wherein the market module further comprises a group server configured to receive the credit preferences of the first trader from the first trader workstation. 
     
     
         47 . The central processing center of  claim 45 , wherein the market module is further configured to apply credit preferences of the second trader for the first trader to determine trade eligibility of potential trades of derivatives between the first trader and the second trader identified from order information of the second trader regarding more than one class of derivative for the first trader to buy a derivative or to sell a derivative, wherein the credit preferences are defined using a multi-rule measurement of credit risk, wherein at least one of the credit preferences is based at least in part on a derivative to be traded and at least another of the credit preferences is based at least in part on a credit rating of the first trader,
 wherein the market inventory module is further configured to transmit information substantially in real-time to the first trader workstation identifying potential trades determined to be eligible for trading between the first trader and the second trader based upon the credit preferences of the second trader, and   wherein the execution module is further configured to process a trade determined to be eligible for trading between the first trader and the second trader and initiated by the first trader.   
     
     
         48 . The central processing center of  claim 45 , wherein the multi-rule measurement of credit risk comprises at least one of a risk equivalent rule and a maturity rule. 
     
     
         49 . The central processing center of  claim 45 , wherein the market module further comprises a switch module configured to receive derivative positions from the first and second traders and determine relative position information for the first and second traders. 
     
     
         50 . The central processing center of  claim 49 , wherein the switch module is configured to apply credit preferences of each of the first and second traders when determining the position information, whereby the position information includes potentially offsetting positions. 
     
     
         51 . The central processing center of  claim 45 , wherein the market inventory module transmits the order information utilizing instrument symbology. 
     
     
         52 . The central processing center of  claim 45 , wherein the market inventory module is configured to transmit the order information with availability for a limited period of time set by the first trader. 
     
     
         53 . The central processing center of  claim 45 , wherein the execution module is configured to provides the second trader an option to request a larger quantity order. 
     
     
         54 . A trader workstation of a first trader for facilitating electronic trading of derivatives of the first trader and a second trader between the trader workstation of the first trader and a second trader workstation of the second trader, the trader workstation of the first trader comprising:
 a trader module configured to receive order information inputted by the first trader and to present the order information to the first trader according to one or more customized profiles defined for the first trader, wherein the trader module comprises a credit preference module configured to receive credit preferences inputted by the first trader and to apply the credit preferences to determine trade eligibility of trades proposed in the order information with the second trader, wherein the credit preferences are defined using a multi-rule measurement of credit risk, wherein at least one of the credit preferences is based at least in part on a derivative to be traded and at least another of the credit preferences applied by the credit preference means is based at least in part on a credit rating of the second trader; and   an interface means for connecting the trader workstation to the communications network for interconnecting the trader workstation and the second trader workstation via the central processing center.   
     
     
         55 . The trader workstation of  claim 54 , wherein the credit preference module is configured to apply the credit preferences based at least in part on a maturity of the derivative to be traded. 
     
     
         56 . The trader workstation of  claim 54 , wherein the trader module is configured to present the order information to the first trader according to a customized profile comprising one or more of a plurality of selectable trader-definable presentation formats. 
     
     
         57 . The trader workstation of  claim 56 , wherein the trader module is configured to present the order information to the first trader according to the customized profile comprising one or more of the selectable trader-definable presentation formats selected from the group of a market entry presentation format configured to present trading information on a trader-defined list of derivatives and a blotter presentation format configured to present order information of the first trader. 
     
     
         58 . The trader workstation of  claim 56 , wherein the trader module is configured to present the order information to the first trader according to the customized profile comprising at least the selectable trader-definable presentation format of a market detail presentation format configured to present system-wide orders on a specified derivative. 
     
     
         59 . The trader workstation of  claim 54 , wherein the trader module is configured to present the order information utilizing instrument symbology. 
     
     
         60 . The trader workstation of  claim 54 , further including a switch module configured to receive interest rate swap positions from the first trader and the second trader and to determine relative position information for the first trader and the second trader. 
     
     
         61 . The trader workstation of  claim 54 , further comprising a browser interface, wherein the trader module is configured to communicate with the central processing center via the communications network by the browser interface. 
     
     
         62 . The trader workstation of  claim 61 , wherein the browser interface is configured to implement filter options to screen orders presented to the first trader based on an underlying derivative. 
     
     
         63 . The trader workstation of  claim 54 , wherein the browser interface is configured to automatically receive updated order information from the central processing center for presentation to the first trader. 
     
     
         64 . A method for facilitating electronic trading of derivatives between a first trader and a plurality of potential traders including a second trader, all of which are interconnected by a central processing center via a communication network, the method comprising:
 receiving, at the central processing center from the first trader, an order requesting a trade of a derivative;   sending the order from the first trader to the potential traders anonymously requesting the trade of the derivative;   applying credit preferences of at least the first trader with respect to the plurality of potential traders to determine trade eligibility of potential trades for the order between the first trader and the plurality of potential traders, wherein the credit preferences are defined using a multi-rule measurement of credit risk, wherein at least one of the credit preferences is based at least in part on the derivative to be traded and at least another of the credit preferences is based at least in part on a credit rating of the second trader;   presenting the order to the plurality of potential traders substantially simultaneously, wherein the presented order includes trade eligibility of each respective receiving potential trader and the first trader; and   receiving an acknowledgment from the second trader initiating a trade with the first trader on the order.