Importance

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Abstract

A system is provided for processing spot trades in selected commodities among a group of trading stations in a communication network through a series of structured stages. Each trading station is capable of initiating a transaction with any other trading station in the network by transmitting a request for a quotation on a selected commodity. The receiving, or counterparty, trading station responds by transmitting a quotation back to the initiating trader, and the trader transmits a proposal based on this quotation. The counterparty then transmits an acceptance of the proposal and upon receipt of this acceptance by the initiating trader, a confirmation signal is automatically transmitted back to the counterparty and the deal is automatically logged at both sites. Alterations of transmitted quotations and proposals and extensive negotiation are also possible. At each stage of a transaction, the responses available to the initiating trader or counterparty are limited or structured such that only certain responses are transmitted so that trades progress within the structure of the invention. The structure of the invention greatly improves operator ability to transact numerous trades accurately and quickly in a format that is readily processed by digital computers.

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First Claim