Trading system with individualized order books

Abstract

Systems and methods for electronic trading are disclosed. A trading system may store information indicative of limits on trading of items between trading entities, including an entity that is a non-credit extending entity. The computer system may then determine respective order books for at least two trading entities, where the order books include dealable bids and offers that have been individualized using stored trading limits. The stored trading limits may in some cases include different limits for different items (which may be different foreign currency pairs, in one embodiment). In other instances, trading limits may be indicative of a net position that a trading entity is permitted to take in an item. Bids and offers may be individualized based on different costs associated with different trading entities.

What is claimed is: 
     
         1 . A method, comprising:
 storing, by a computer trading system, trading information indicative of limits on trading foreign currency pairs between trading entities, including at least one non-credit-extending entity;   determining, by the computer trading system, respective electronic order books for at least two trading entities, wherein the respective order books include dealable bids and offers that have been individualized using a current set of stored trading limits; and   conveying the respective electronic order books to the at least two trading entities.   
     
     
         2 . The method of  claim 1 , wherein the respective order books include a first order book conveyed to a first trading entity and a second order book conveyed to a second trading entity substantially concurrently, wherein the first and second order books have been individualized such that they include different current prices for a quantity of a foreign currency pair. 
     
     
         3 . The method of  claim 1 , wherein the respective order books are individualized such that a bid or offer for a foreign currency pair posted to the computer trading system is conveyed to only a subset of trading entities of the computer trading system. 
     
     
         4 . The method of  claim 1 , wherein the at least two trading entities includes a non-credit-extending trading entity. 
     
     
         5 . The method of  claim 1 , wherein the trading information includes first and second trading limits for trades between a credit-extending entity and a non-credit-extending entity, wherein the first trading limit is set by the credit-extending entity, and wherein the second trading limit is set by the non-credit-extending entity. 
     
     
         6 . The method of  claim 1 , wherein the trading limits include different limits for a first trading entity for different foreign currency pairs. 
     
     
         7 . The method of  claim 1 , wherein the trading limits include a trading limit indicative of a net position that a first trading entity is permitted to take in the foreign currency pair. 
     
     
         8 . The method of  claim 1 , wherein the respective order books are individualized based on preference information. 
     
     
         9 . The method of  claim 1 , wherein the respective order books include a first order book conveyed to a first trading entity and a second order book conveyed to a second trading entity, wherein prices in the first and second order books have been individualized based on different markups associated with the first and second trading entities. 
     
     
         10 . The method of  claim 1 , wherein the respective order books include prices that are individualized based on a desired arbitrage profit. 
     
     
         11 . The method of  claim 1 , wherein the computer trading system includes an application programming interface to facilitate automatic trading of foreign currency pairs. 
     
     
         12 . A method, comprising:
 a trading entity receiving an individualized order book from a computer trading system that facilitates trading between a plurality of trading entities, wherein the received order book includes dealable bids and offers for a foreign currency pair, wherein the received order book has been individualized using a set of trading limits stored by the computer trading system that are specific to the trading entity, and wherein the trading entity is a non-credit-extending entity with respect to the computer trading system.   
     
     
         13 . The method of  claim 12 , wherein the received order book includes a bid having a price at a specified quantity of the foreign currency pair, and wherein the computer trading system is configured to generate, substantially concurrently, a different individualized order book for another trading entity, wherein the different order book includes a bid having different price at the specified quantity of the foreign currency pair. 
     
     
         14 . The method of  claim 12 , wherein the order book is individualized based on a settlement cost. 
     
     
         15 . The method of  claim 12 , wherein the order book includes a bid or offer originating from another trading entity via an indirect line of credit. 
     
     
         16 . The method of  claim 12 , wherein the individualized order book includes limit orders for spot trades of the foreign currency pair. 
     
     
         17 . A trading system, comprising:
 one or more computer systems storing program instructions executable to generate a customized limit order book for a non-credit-extending trading entity, wherein the customized limit order book includes bids and/or offers for a currency pair with dealable prices that are customized based in part on an associated trading cost.   
     
     
         18 . The trading system of  claim 17 , wherein the associated trading cost is a settlement cost. 
     
     
         19 . The trading system of  claim 17 , wherein the associated trading cost is a markup associated with the non-credit-extending entity. 
     
     
         20 . The trading system of  claim 17 , wherein the associated trading cost is associated with a trading preference.