Method and system for rebrokering orders in a trading system

Abstract

Systems and methods are described herein for supporting the trading of bonds in a computerized system using broker dealers as intermediaries. Broker dealers receive orders relating to particular transactions and have the option to accept the order by submitting a matching counter order, or to rebroker the order with the same or modified terms to a number of other investors or additional broker dealers. The additional broker dealers have similar options, thus providing a system wherein orders can be quickly proliferated to a large number of parties. This order proliferation can be fully or partially automated through the use of predefined rules stored in a database which dictate for each broker dealer whether, to whom and under what terms to rebroker orders. When an order is received, the system processes all such rules to output a set of orders which are then communicated to the corresponding parties.

1 . In a computerized system, a method for facilitating execution of a derivative financial transaction between a first party and a second party through a plurality of intermediaries, the method comprising, for each intermediary involved in the derivative financial transaction:
 presenting to the intermediary an order received by the intermediary relating to the derivative financial transaction;   storing information for identifying a list of other parties in a memory accessible to the intermediary;   displaying the list to the intermediary;   allowing the intermediary to select one or more parties from the list to which the intermediary can communicate an order relating to the derivative financial transaction; and   communicating the order from the intermediary to the one or more selected parties.   
     
     
         2 . The method of  claim 1 , comprising allowing the intermediary to generate the list of other parties from among a group of parties using the system. 
     
     
         3 . The method of  claim 1 , comprising storing status data representing whether each party in the list is an intermediary party which is allowed to communicate an order relating to the derivative financial transaction to other parties or a counterparty which is not allowed to communicate an order relating to the derivative financial transaction to other parties, and displaying the status data with the list to the intermediary. 
     
     
         4 . The method of  claim 1 , wherein the order presented to the intermediary identifies parties with which the intermediary party may communicate orders, and comprising selecting the identified parties from the information for identifying the list and displaying the identified parties as the list to the intermediary. 
     
     
         5 . The method of  claim 1 , wherein the order presented to the intermediary contains a first set of terms, the method comprising allowing the intermediary to generate a second set of terms for the order to be communicated to each party. 
     
     
         6 . The method of  claim 5 , wherein the step of allowing the intermediary to generate a second set of terms comprises allowing the intermediary to generate a different set of terms for each party to whom an order is communicated. 
     
     
         7 . In a computerized system for trading of fixed income securities, a method for facilitating execution of a financial transaction based upon an order relating to a financial instrument communicated by a first investor over the computerized system, the method comprising:
 presenting to a broker dealer using the computerized system said order including at least one bid or offer related to said financial instrument;   allowing the broker dealer to decide, among other possible choices, whether to match the presented order or communicate an intermediate order relating to the financial instrument to a plurality of other parties using the computerized system, wherein the intermediate order includes at least one bid or offer related the said financial instrument;   if the broker dealer decides to match the presented order, executing the financial transaction by at least executing over the computerized system the presented order communicated by the first investor; and   if the broker dealer decides to communicate the intermediate order, communicating over the computerized system the intermediate order to the one or more other parties using the computerized system, wherein when communicating the intermediate order terms of the intermediate order may be different from terms of the first order.   
     
     
         8 . The method of  claim 7 , comprising allowing the broker dealer to further decide to submit a counteroffer to the order and communicating the counteroffer. 
     
     
         9 . The method of  claim 7 , comprising allowing the first investor to select whether the order is a live, executable order or a subject order. 
     
     
         10 . The method of  claim 7 , wherein the order communicated by the first investor is a live, executable order, and wherein the step of communicating the order from the broker dealer comprises communicating a live, executable order. 
     
     
         11 . The method of  claim 7 , wherein the step of executing the derivative financial transaction comprises automatically executing the derivative financial transaction upon a match between the order communicated by the first investor and a matching live, executable order. 
     
     
         12 . The method of  claim 7 , wherein the order communicated by the first investor is an order subject to satisfaction of a condition, and wherein the step of executing the derivative financial transaction comprises executing the derivative financial transaction only if the condition is satisfied. 
     
     
         13 . At least one storage medium containing one or more computer programs operable to cause a computerized system to facilitate execution of a derivative financial transaction between a first party and a second party through a plurality of intermediaries, the computerized system being operable under control of the program to carry out actions comprising, for each intermediary involved in the derivative financial transaction:
 presenting to the intermediary an order received by the intermediary relating to the derivative financial transaction;   storing information for identifying a list of other parties in a memory accessible to the intermediary;   displaying the list to the intermediary;   allowing the intermediary to select one or more parties from the list to which the intermediary can communicate an order relating to the derivative financial transaction; and   communicating the order from the intermediary to the one or more selected parties.   
     
     
         14 . The method of  claim 7 , wherein said difference in said intermediate order terms and the first order terms includes a difference in price of the at least one bid or offer. 
     
     
         15 . The method of  claim 7 , wherein said difference in said intermediate order terms and the first order terms includes a difference in amount of the at least one bid or offer.