Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Patent
1996-09-19
2000-10-17
Voeltz, Emanuel Todd
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
705 36, G06F 1760
Patent
active
061345350
DESCRIPTION:
BRIEF SUMMARY
This invention relates to automated means for effecting the purchase and sale of shares traded on a stock exchange. More particularly, it relates to computer software and hardware by which an operator may instantaneously effect the transfer of shares of a large number of corporations.
BACKGROUND
For many years the trading of shares listed on a stock exchange were effected by the activities of people known as traders on the trading floor of a stock exchange, and were confirmed by some form of notation or writing on paper. Once effected, the trades or transfers of shares were formally reported to brokers for the purchasing and selling customers in a formal way with or without the delivery of the share certificates.
More recently the transactions have become automated so that trades may be done by a trader operating a keyboard to enter the necessary commands into a terminal connected to the mainframe computer of the stock exchange, or a small personal computer with a terminal emulator. With this automated system a trader may enter an order to buy or sell which is transmitted to the central system of the stock exchange where it matched with another trader who is willing to sell or buy the same shares, and the computer then confirms the completion of the transaction to each trader, and the transaction is confirmed and recorded by means of a hard copy generated on a printer.
Although this computerized automated system was much faster than the trading floor, it still required a trader to key in by hand the necessary data and commands for each individual stock being traded. From the information available at a terminal, the trader/operator would have to input the symbol for the company shares, the price, the exchange, the size of the order, and the instructions to buy, sell, cross or short trade the stock.
It has even become possible to effect trades in certain stocks automatically when they reach a certain price level.
However, modern investment strategies involve the investment in large groups or "basket" of listed shares as part of an entire portfolio which is strategically selected to provide a balance of growth potential, income generation, and risk avoidance. These portfolios are often held by mutual funds, banks, insurance companies, or other institutional investors, and they are frequently being changed to adjust the balance in the factors which effect growth, income and risks.
Some institutions invest in an established mixture of stocks which reflect the current economic climate in the country, such as the TSE 35, the TSE 100, the TSE 300, and in the United States the Dow Jones or other representative portfolios. In some cases institutional investors will establish their own collection of shares which it considers to represent their investment strategy and objectives. These may be weighted in favour of industry groups such as mining companies, financial institutions, manufacturing, or others considered preferable by the investment manager.
As a result of this strategy of investing in a mixed "basket" of shares, institutional investors are often increasing or decreasing their investment in the entire range of shares in a basket or index. This therefore requires a large number of trades in order to effect the single investment move. Hitherto, this has been done by a trader/operator keying in the necessary trades in each individual stock through a computer terminal. Where the portfolio includes a list of 100 stocks, for example, this is a lengthy process and in fact the problem arises that the prices of many shares would change during the time it takes to key in the various orders, and the original conditions necessary to satisfy the requirements of the particular trade may no longer be present.
SUMMARY OF THE INVENTION
It is therefore the purpose of the present invention to provide an automated, computerized trading system in which multiple share order entries can be executed automatically within seconds by the trader/operator in activating a few entries on a keyboard. This method of trading is accompl
REFERENCES:
patent: 4674044 (1987-06-01), Kalmus et al.
patent: 4750135 (1988-06-01), Boilen
patent: 4868866 (1989-09-01), Williams, Jr.
patent: 5101353 (1992-03-01), Lupien et al.
patent: 5297031 (1994-03-01), Gutterman et al.
patent: 5297032 (1994-03-01), Trojan et al.
patent: 5339392 (1994-08-01), Risberg et al.
patent: 5675746 (1997-10-01), Marshall
Kelly, Doug, "Broker's Software Advances Computerized Stock Trading", Financial Post (Toronto, Canada), Sec. 1, p. 1, Aug. 14, 1992.
Mesa User's Guide--Beta Release--Jul. 1992 together with Release Note dated Jul. 1, 1992.
Mesa User's Guide--Release 1.5, Athena Design, Inc., May 1993 (particularly pp. 3, 4, 26, 275, and Section 2 pp. 7-15).
Monsen, L., Using Microsoft.COPYRGT. Excel.RTM. 97, Chapters 19 and 20, Copyright.RTM. 1997, pp. 305-337.
Nextworld, Mesa spreadsheet product advertisement and article, winter 1992.
Nextworld, Mesa spreadsheet product advertisement and article, Feb./Mar. 1993.
Nextworld, Mesa spreadsheet product advertisement, Apr/May. 1993.
Nextworld, Mesa spreadsheet product advertisement, Jun./Jul. 1993.
Nextworld, Mesa spreadsheet product advertisement and article, Aug. 1993.
Nextworld, Mesa spreadsheet product advertisement, Sep. 1993.
Nextworld, Mesa spreadsheet product advertisement, Oct. 1993.
Nextworld, Mesa spreadsheet product advertisement, Nov. 1993.
Nextworld, Mesa spreadsheet product advertisement, Dec. 1993.
Nextworld, Mesa spreadsheet product advertisement, Feb. 1994.
Nextworld, Mesa spreadsheet product advertisement, Mar. 1994.
Nextworld, Mesa spreadsheet product advertisement, Apr. 1994.
Dialog File 16 (Gale group PROMT(R)), "Mesirow `Black Box` Integrates Order Routing on ADP T.1 Network", Wall Street Network News, 3 pages, May 7, 1993.
"Davidge Debuts DOT/PC Order Routing for NYSE Members," Trading Systems Technology, Wafers Information Services, Inc., Sep. 28, 1987, p. 1.
"SIA Technology Show Bucks Down Market: Blue Smoke and Mirrors at Hilton Bash," Trading Systems Technology, Waters Information Services, Inc., Feb. 15, 1988, pp. 1-4.
"Slim Pickin's at FinCom: A Vegas Trade Show in NYC," Trading Systems Technology, Waters Information Services, Inc., Jul. 18, 1988, pp. 1-3.
"Quotron's Open Windows: Q1000 Data for PC Users," Trading Systems Technology, Waters Information Services, Inc., Oct. 10, 1988, pp. 1-3.
"What's Next on Wall Street's Automation Agenda?," I. Schmerken, Wall Street Computer Review, vol. 6, No. 7, Apr., 1989, pp. 44-50.
"The Bulls and Bears Come Out at Night; Electronic Trading," I. Schmerken, Wall Street Computer Review, vol. 7, No. 12, Sep., 1990, pp.14-23.
"Financial Technology Corp. Unveils Basket Trading System," Trading Systems Technology, Waters Information Services, Inc., Jun. 17, 1991, pp. 1-2.
"TST Interviews Bob McFarlane, Head of Consultants Interport," Trading Systems Technology, Waters Information Services, Inc., Jul. 1, 1991, pp. 1-6.
"Data Exchange, Salomon Launch Equities Order-Routing System," Trading Systems Technology, Waters Information Services, Inc., Jul. 29, 1991, pp. 1-2.
"LIT Uses Beats to Route Orders to NYSE's Superdot," Trading Systems Technology, Waters Information Services, Inc., Sep. 23, 1991, pp. 1-3.
"J.P. Morgan Selects Unix for Program-Trading Group," Trading Systems Technology, Waters Information Services, Inc., Apr. 20, 1992, pp. 1-3.
"Nikko N.Y. Taps Davidge, Sun for Equities Trading Systems," Trading Systems Technology, Waters Information Services, Inc., Apr. 20, 1992, pp. 1-2.
"Wall Street's Quiet Revolution," I. Schmerken, Wall Street & Technology, vol. 9, No. 10, Jun., 1992, pp.25-32.
"CIBC/Wood Gundy Proprietary Traders Lead the Way for 275-Position Room," Trading Systems Technology, Waters Information Services, Inc., Jul. 13, 1992, pp. 1-3.
"Reuters Buys Chunk of Effix; Expands Triarch/Effic Line," Trading Systems Technology, Waters Information Services, Inc., Jun. 15, 1992, pp. 1-4.
"WOSA Extensions for Real-Time Market Data," Backgrounders and White Papers, Microsoft Development Library, Jan., 1994, pp
Belzberg Financial Markets & News International Inc.
Kalinowski Alexander
Todd Voeltz Emanuel
LandOfFree
Computerized stock exchange trading system automatically formatt does not yet have a rating. At this time, there are no reviews or comments for this patent.
If you have personal experience with Computerized stock exchange trading system automatically formatt, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Computerized stock exchange trading system automatically formatt will most certainly appreciate the feedback.
Profile ID: LFUS-PAI-O-478605