Trading related to fund compositions

Abstract

An electronic marketplace uses a fund composition to guide trading opportunities. Mutual funds typically have a target composition of financial instruments. When prices change for constituents of such a mutual fund, the fund typically needs to rebalance in order to maintain a desired composition. A marketplace that understands the target composition and the movement in prices targets trading opportunities to a fund in a more tailored manner than a traditional marketplace.

What is claimed is: 
     
         1 . A method comprising:
 receiving, by an electronic marketplace, an indication of a composition of an investment fund, in which the composition includes a plurality of financial instruments that the fund targets for ownership and respective percentages of the composition that the fund targets for ownership in each financial instrument;   receiving, by the marketplace, an indication of an order, in which the order defines a side of a trade for a financial instrument;   determining, by the marketplace, that the financial instrument is part of the composition of the fund based on the received indication of the composition;   determining, by the marketplace, a change in price of the financial instrument that includes an increase or decrease in the price of the financial instrument;   based on the determination of the change in price of the financial instrument and the determination that the financial instrument is part of the composition of the fund, transmitting, by the marketplace to an electronic device of the fund, a query asking if an offer to enter into a trade that fulfills at least a portion of the order is accepted;   determining that the offer to enter into the trade is accepted based on a matching order to the order being in an order management system associated with the fund; and   facilitating an execution of the trade without a negotiation about a price of the trade and a quantity of financial instruments in response to the determination that the offer is accepted.   
     
     
         2 . The method of  claim 1 , in which the price change includes an increase in the price, the side of the trade includes an offer to buy the financial instrument. 
     
     
         3 . The method of  claim 2 , in which the increase includes an increase relative to other financial instruments of the composition. 
     
     
         4 . The method of  claim 1 , in which the price change includes a decrease in the price, the side of the trade includes an offer to sell the financial instrument. 
     
     
         5 . The method of  claim 4 , in which the decrease includes a decrease relative to other financial instruments of the composition. 
     
     
         6 . The method of  claim 5 , in which transmitting the query includes
 transmitting a first information asking if the matching order to the order is stored in the order management system; and   transmitting a second information asking if the offer is accepted.   
     
     
         7 . The method of  claim 6 , in which transmitting the first information and the second information are part of transmitting the query to the electronic device, and in which the electronic device is configured to interpret the query as asking if the matching order is stored in the order management system and, if the matching order is stored in the order management system, if the offer is accepted. 
     
     
         8 . The method of  claim 1 , in which facilitating the execution includes facilitating the execution with a price and a quantity that may be identified from the query. 
     
     
         9 . The method of  claim 1 , comprising suppressing evidence of the transmission of the query. 
     
     
         10 . The method of  claim 1 , in which if the opposite side of the trade includes a sale of the financial instrument, then the transmission of the query is made only if the price change includes an increase. 
     
     
         11 . The method of  claim 1 , in which if the opposite side of the trade includes a buy of the financial instrument, then the transmission of the query is made only if the price change includes a decrease. 
     
     
         12 . The method of  claim 1 , in which the order includes a firm order. 
     
     
         13 . The method of  claim 1 , in which the order includes a non-firm order. 
     
     
         14 . The method of  claim 1 , in which the change in price includes a change in price from a receipt of the indication of the composition. 
     
     
         15 . The method of  claim 1 , comprising: determining that a transmission of a second query regarding a second order should not be transmitted to the fund based on the change in price and the second order being for the opposite side of the trade. 
     
     
         16 . The method of  claim 1 , comprising:
 determining that other funds are likely to be interested in the opposite side of the trade based on other fund compositions of the other funds and the price change; and   in response to the determination that the other fund are likely to be interested, transmitting other queries regarding the order to the other funds.   
     
     
         17 . The method of  claim 1 , comprising:
 receiving other orders that define the side of the trade; and   in response to determining that the operator is likely to be interested, transmitting other queries regarding the other orders to the fund.   
     
     
         18 . The method of  claim 1 , in which the marketplace is a trading platform. 
     
     
         19 . The method of  claim 1 , in which the electronic device is the order management system. 
     
     
         20 . An apparatus comprising:
 a computing device of an electronic marketplace; and a non-transitory medium having stored thereon a plurality of instructions that when executed by the computing device, cause the computing device to perform a method comprising:   receive an indication of a composition of an investment fund, in which the composition includes a plurality of financial instruments that the fund targets for ownership and respective percentages of the composition that the fund targets for ownership in each financial instrument;   receive an indication of an order, in which the order defines a side of a trade for a financial instrument;   determine that the financial instrument is part of the composition of the fund based on the received indication of the composition;   determine a change in price of the financial instrument that includes an increase or decrease in the price of the financial instrument;   based on the determination of the change in price of the financial instrument and the determination that the financial instrument is part of the composition of the fund, transmit, to an electronic device of the fund, a query asking if an offer to enter into a trade that fulfills at least a portion of the order is accepted;   determine that the offer to enter into the trade is accepted based on a matching order to the order being in an order management system associated with the fund; and   facilitate an execution of the trade without a negotiation about a price of the trade and a quantity of financial instruments in response to the determination that the offer is accepted.