A SYSTEM AND METHOD FOR FINDING AND MATCHING TRANSACTION COUNTER PARTIES IN LESS LIQUID MARKETS

摘要

An on-line trading system and method for finding and matching the most likely counter parties to a transaction and for aggregating sufficient trade data from securities custodians or other data suppliers, to more accurately estimate a security's fair value and simultaneously communicate with a trade order the estimate of the security's fair value. The on-line trading system includes trading client systems, a message server, custodial systems, and trade management systems. Traders, associated with participants of the inventive system, use the trading client systems to send trades to the message server. The message server process orders and filters them against bond holding and transaction data of multiple custodians. As there is only likely to be a few buyers or sellers for a given fixed income security at a particular time, the inventive system solves the liquidity issue by effectively informing of most likely counter parties of an offer through its filtering process. By publishing on the trading clients all orders and price and volume details of completed trades; by using historic transaction data from multiple data suppliers to more accurately estimate a security's fair value and then publishing these estimates with messages regarding an order, the inventive system offers trading and price transparency to market participants.