Method of monitoring market liquidity

Details Method of monitoring market liquidity Method of monitoring market liquidity

2005-06-28

2005-06-28

Rosen, Nicholas D. (Department: 3625)

Data processing: financial, business practice, management, or co

Automated electrical financial or business practice or...

Finance

C705S03600T

Reexamination Certificate

active

06912511

ABSTRACT:
The present invention provides market participants the ability to infer the current internal state, i.e., the depth and activity of active buyers and sellers, in a variety of markets, such as double-auction markets. The invention does so by measuring certain averages and correlations of various indicators of market liquidity and producing useful market liquidity assessments and trader recommendations as a result.Various measures of market liquidity such as the bid-offer spread, the time to mid-market trade, spread fluctuations, deal rate, and bid and offer size are correlated, and monitored to assess a market's current internal state. From that information, the relationship between fluctuations in the bid price and the average number of buyers can be calculated to determine whether, for example, there is an excess of buyers or sellers in the market. Accordingly, based upon such calculations, accurate trader recommendations may be produced.

REFERENCES:
patent: 5297032 (1994-03-01), Trojan et al.
patent: 6272474 (2001-08-01), Garcia
patent: 6405180 (2002-06-01), Tilfors et al.
patent: 6408282 (2002-06-01), Buist
patent: 2003/0097325 (2003-05-01), Friesen et al.
patent: WO-97/22072 (1997-06-01), None
Anon., “France: A Special Report Prepared by Banque Paribas,” Euromoney, 1997 Guide to Repo and Securities Lending Supplement, The, pp. 4-5, Mar. 1997.

Affiliated with

Also associated with

Rating

Method of monitoring market liquidity does not yet have a rating. At this time, there are no reviews or comments for this patent.

If you have personal experience with Method of monitoring market liquidity, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Method of monitoring market liquidity will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFUS-PAI-O-3522269