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Method and system for matching short trading positions with long trading positions

a short trading position and trading position technology, applied in the field of short trading position matching with long trading position, can solve the problems of inability to ensure the dealer's success, the process is generally time-consuming, and the dealer's cost and at times inefficien

Inactive Publication Date: 2014-08-28
GOLDMAN SACHS & CO LLC
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  • Summary
  • Abstract
  • Description
  • Claims
  • Application Information

AI Technical Summary

Benefits of technology

The invention provides a way to automatically determine if someone has a short or long position in a financial market. This is done by receiving two short positions and two long positions, and identifying specific positions based on certain parameters. The system then sends information to other terminals so that a transaction between the identified positions can take place. This helps traders make informed decisions and reduces the risk of trading mistakes.

Problems solved by technology

This process is generally time consuming, costly and at times inefficient.
Furthermore, unless the dealer seeking to cover short positions contacts each and every broker, dealer or securities lender, there is no way to ensure that the dealer will find the security they need to cover a short position.

Method used

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  • Method and system for matching short trading positions with long trading positions
  • Method and system for matching short trading positions with long trading positions
  • Method and system for matching short trading positions with long trading positions

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Embodiment Construction

[0010]The various embodiments of the invention described below may be practiced by a small group of members, such as members of a group or consortium. The embodiments may also be practiced more generally by investors individually or through their broker, dealer, agents, in conjunction with a smaller member group.

[0011]To better understand the various embodiments of the invention, it is helpful to generally understand short and long positions within the context of securities and securities trading. A short position generally means that an investor has sold more of a particular asset or security than they own. A long position generally means that an investor owns more of a particular asset or security than they have sold. The asset or security might be an equity security, such as a stock, or it might be a debt security, such as a bond. Conceptually with a short position, the investor will eventually have to get the rest of the assets they sold, but don't currently own. Alternatively, ...

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Abstract

A system and method for automatically matching short and long positions of participants and automatically generating repurchase agreements (“repo”) and reverse repurchase agreements (“reverse repo”). The system and method provide trading anonymity and various filtering options for the members.

Description

CROSS-REFERENCE TO RELATED APPLICATION(S)[0001]This application is a continuation of U.S. patent application Ser. No. 13 / 561,803, filed Jul. 30, 2012, entitled “Method And System For Matching Short Trading Positions With Long Trading Positions,” now allowed, which is a continuation of U.S. patent application Ser. No. 10 / 032,653, filed Nov. 13, 2001, entitled “Method And System For Matching Short Trading Positions With Long Trading Positions,” now U.S. Pat. No. 8,234,204, which claims priority to U.S. Provisional Patent Application No. 60 / 248,133, filed Nov. 13, 2000, entitled “Method And System For Providing An Efficient, Cost Effective Centralized Mechanism By Which A Dealer Looking To Cover Short Positions Will Find Favorable Rate,” all of which are incorporated herein by reference in their entirety.BACKGROUND[0002]Presently, a securities dealer seeking to cover short positions will individually contact other clients, dealers, brokers or securities lenders to do so. This process i...

Claims

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Application Information

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Patent Type & Authority Applications(United States)
IPC IPC(8): G06Q40/04G06Q40/00
CPCG06Q40/04G06Q20/10G06Q40/00G06Q40/06G06Q50/188G06Q40/03
Inventor BLAUVELT, JOSEPH P.CURIALLE, FRANK J.
Owner GOLDMAN SACHS & CO LLC