Method and apparatus for spread-adjusted electronic riskless principal trading

摘要

An automated system for asset trading transactions maximizes the returns to the principals. The system preferably includes a distributed data entry and display system (500), coupled to a central processor (510) through an appropriate network (508), such as the internet. Upon receipt of information concerning a position, a plurality of alternative adjusted prices are formulated to reflect consideration of potential pricing variables, including the nature of the asset, the character of the principal, the character of potential contra positions, and the like. The spread-adjusted prices are then compared to contra spread-adjusted prices for the same asset previously entered into the system. If a match is not identified the system allows for direct, albeit anonymous contact between the initiating position and one or more contra positions for purposes of negotiating a trade. Alternatively, an asset may be entered into the system for a bid or auction process. The spread-adjusted prices may be further adjusted at the position of a system operator to facilitate trading.