WO2001061528A2

WO2001061528A2 - Trading system

Info

Publication number: WO2001061528A2
Application number: PCT/GB2001/000671
Authority: WO
Inventors: Wai Kwan Tam; Kee Chee Keith Chan; Pak Cheung Lai
Original assignee: The Gold On-Line Trading Limited; Skone James, Robert, Edmund
Priority date: 2000-02-17
Filing date: 2001-02-16
Publication date: 2001-08-23
Also published as: AU2519800A; AU3388201A; GB2366630A; WO2001061528A3; GB0003721D0

Abstract

A trading system for trading via a communications network (6), the system comprises a trading centre (1) and at least one end station (7). The trading centre (1) comprises a database (2) which stores trade data representative of a number of current trade prices; a centre processor (5) coupled to the database; and, a communications device (9) for coupling the database to the communications network (6). The end station (7) coupled to the communications network (6) allows a user to trade therefrom, the end station comprises a store (72); an end station processor (73) coupled to the store (72); and, a display (74). In use, the end station processor (73) and the centre processor (5) cooperate such that the centre processor (5) transfers the trade data to the end station (7); and, the end station processor (73) stores the trade data in the store (72) and presents selected ones of the trade prices represented therein on the display (74).

Description

TRADING SYSTEM

The present invention relates to a trading system for trading via a communications network, and in particular to trading via the Internet.

Current Internet trading systems consist of web based servers which can be accessed remotely via the Internet. These systems operate by having users log on to the web based system using a predetermined user name and pass word. This gives the user access to a web page which allows the user to query the price and availability of particular products. Once the query has been entered, the request is transferred via the Internet to the trading company which operates the web based trading system. The company will then determine the price and availability of the product before transferring the information to the user. At this point, the web page accessed by the user is reloaded with the requested information provided therein.

Once the user has decided to purchase a particular product, details of the product, together with an indication of the quantity required are transferred to the trading company which then operates to perform the trade in the usual way.

The main disadvantages with this type of system result from the fact that users contact with the trading companies is via the web page and accordingly if the system is busy it takes a long time to gain access to the page. Similarly it will also take a long time for a request for a quote to be sent to the trading company and for the relevant information to be transferred. Current systems typically take between one and ten minutes to provide a product price to the user. By the time this product price is provided, it is typically already out of date so that the user ends up having to purchase the product blind in the sense that they do not know the actual price the product will have at the time of purchase. In addition to this, the current systems do not have any facilities for confirming the purchase to the user via the Internet. Instead, all such confirmations are carried out via alternative routes such as the postal networks. In accordance with the first aspect of the present invention, we provide a trading system for trading via a communications network, the system comprising: a. a trading centre, the trading centre comprising: i. a database which stores trade data representative of a number of current trade prices ; ii. a centre processor coupled to the database; and, iii. a communications device for coupling the database to the communications network; b. at least one end station coupled to the communications network to allow a user to trade therefrom, the end station comprising: i. a store; ii. an end station processor coupled to the store; and, iii. a display, wherein in use, the end station processor and the centre processor cooperate such that; (1) the centre processor transfers the trade data to the end station; and,

(2) the end station processor stores the trade data in the store and presents selected ones of the trade prices represented therein on the display. In accordance with a second aspect of the present invention, we provide a trading centre for trading via a communications network, the trading centre being adapted to communicate with an end station via a communications network, the centre comprising: a. a database which stores trade data representative of a number of current trade prices; b. a centre processor coupled to the database; and, c. a communications device for coupling the database to a communications network; wherein in use the centre processor cooperates with the end station to transfer the trade data to the end station for storage in a store and presentation of selected ones of the trade prices represented therein on a display. In accordance with a third aspect of the present invention, we provide an end station for trading via a communications network, the end station being adapted to communicate with a trading centre via a communications network, the trading centre including a database which stores trade data representative of a number of current trade prices, the end station comprising: a . a store ; b. an end station processor coupled to the store; and; c. a display, wherein in use, the trading centre operates to transfer the trade data to the end station, and wherein the end station processor is adapted to store the trade data in the store and present selected ones of the trade prices represented therein on the display.

Accordingly, the present invention provides a trading system, a trading centre and an end station for trading via a communications network. The system utilizes a centralised trading centre which includes a database which is updated with current product prices. When a user wishes to use the system, they are required to communicate with the trading centre using an end station. Once a link has been established between the trading centre and the end station, the trading centre can transfer the trade data directly to the end station. As this data is continuously updated and can be automatically transferred, no requests are required and the data is therefore up to date at the time of transfer. Furthermore because only trade data and no presentation information, such as an HTML file representing the web page layout, is transferred, the time taken to prepare and transfer the data is vastly reduced.

The end station processor preferably responds to a user to generate a trade request representing a trade to be performed, the trade request being transferred to the trade centre via the communications system, and wherein the trade centre responds to the request to perform the requested trade. This therefore advantageously allows the user to request trades via the trading system and then have these trades performed by the trading centre.

Typically the store stores working orders data representative of the trades in progress, and wherein the end station processor is adapted to update the working orders data upon the generation of the trade request. This allows the user of the end station to view a list of trades differently in progress helping the user monitor which trades have been performed and which trades are yet to be completed.

The trade is usually performed automatically by the centre processor. However, alternatively the trade may be performed manually by a trade centre operative or jointly by the trade centre operatives with the trade centre processor. A further alternative is that the trade can be outsourced to a different location by the trade centre. The centre processor is preferably adapted to transfer a completion indication to the end station upon completion of the trade. This allows the store of the end station to store log data representative of the completed trades, such that when a completion indication is received the end station processor can update the working orders data and the log data stored in the store. This is particularly useful as it allows the end station to maintain a list of completed trades such that the user can view his current trade portfolio. The centre processor is usually adapted to periodically update the trade data stored in the database and to transfer the updated trade data to the end station automatically and continuously without request. However, the updating of data may occur in a number of ways. Thus, the centre processor may be adapted to respond to a request from the end station processor to transfer trade data to the end station. Alternatively, the centre processor may only transfer trade data when the end station first connects to the trade centre, or alternatively, the update may be performed continuously without request prior to carrying out a trade, or the like. It will also be realised that the trade data stored in the database can be continuously updated, or periodically updated as required. The communications system is preferably the Internet . However, alternative communications systems may be used, such as a local, or wide area networks (LAN or WAN) or wireless networks, or the like. However, the Internet is particularly advantageous as this allows end stations to be located in any country.

Typically the trades include the purchase or sale of products although any suitable form of trading may be used on this system.

It will be realised from the above that the end stations may be any form of computer, such as a personal computer, a palm top, a lap top, a Unix workstation, a wireless communications system, or the like. Similarly, the trading centre will usually include a number of end stations coupled to the database and the controller via a local area network. This allows trade centre operatives to obtain data from the database via the LAN, whilst the processing performed by the centre processor can be distributed between the controller and the end stations, as required.

Examples of the present invention will now be described with reference to the accompanying drawings, in which: - Figure 1A is a schematic diagram of a trading system according to the present invention; Figure IB is a schematic diagram of an end station for use in the example of Figure 1A;

Figure 2 is an example of information that will be presented to a user of the system; Figure 3 is a second example of information that will be presented to a user;

Figure 4 is a third example of information that will be presented to a user;

Figure 5 is a fourth example of information that will be presented to a user;

Figure 6 is a fifth example of information that will be presented to a user;

Figure 7A is an example of a buy request form;

Figure 7B is an example of a sell request form; Figures 8A and 8B are examples of confirm action messages presented to the user;

Figure 9 is an example of further information presented to the user; and

Figure 10 is an example of data presented to the trader located at the trading centre of Figure 1.

Figure 1 is a schematic diagram of a system according to the present invention. As shown, the system comprises a trading centre 1 which includes a database 2 which stores trade data representative of current trading prices, together with user data, which will be explained in more detail below.

The database 2 is coupled to a number of end stations 3 and a controller 5, via a local area network (LAN) 4, such as an Ethernet or Token Ring network. The LAN 4, is then coupled to a communications network 6, such as the

Internet, via an appropriate communications device 9, such as a modem, or the like.

The Internet 6 is in turn coupled to a number of System User end stations 7, either directly or via an Internet service provider 8, in the usual way.

An example of an end station 7 suitable for use in the present invention is shown in more detail in Figure IB. As shown, each end station includes an Input/Output device 71, a memory 72, a processor 73, a display 74 and a communications device 75, such as a modem or the like, all of which are coupled together via a bus 76 as shown. It will be appreciated that the end station may therefore comprise a personal computer, a laptop, a palm top, or the like.

Operation of the system in accordance with the present invention will now be described. Firstly, customers intending to use the system for the first time must register with the Trading Company that operates the system. This registration procedure will involve assigning the potential user a User Name and a User Password, which are stored as part of the user data in the database 2. This procedure will also generally include other requirements to be fulfilled, such as the provision of suitable funds for trading, and the like.

Concurrently with the registration procedure, the user must configure their end station 7 for use with the system by loading software into the memory 72. The software defines a program which when operated by the processor 72, presents a trading screen on the display 74. The program also operates as a communication system allowing the end station 7 to communicate with the trading centre 1, via the Internet. This obviates the need for separate browsing software, such as Internet Explorer^®, Netscape Navigator^®, or the like.

Accordingly, the trading screen presented to the user is defined by the software itself which is located in the memory 72. This therefore does not rely on the download of presentation information, such as HTML files, when data is to be displayed, as is the case with normal web-page based applications that operate using normal browser software . It will be appreciated that the loading of the software may be performed before the initial registration, allowing the registration to be performed online, depending on the requirements of the trading company. Alternatively, the registration procedure may need to be completed in order for the user to obtain a copy of the software needed to operate the end station in accordance with the system. When the user wishes to use the trading system, the user must input their User Name and a User Password in an appropriate manner. The User Name and a User Password are then transferred via the Internet 6 to the trading centre 1 where the controller 5 compares the entered details to the user data to verify that the user is a subscriber to the system. In the event that the user is not a subscriber, then they will be given the option to register as a subscriber, as required.

Once the User Name and a User Password have been verified, the controller causes the trade data stored in the database 2 to be transferred via the LAN 4, the communications device 5, and the Internet 6 to the respective end station 2.

Upon receipt of the trade data, the processor 73 causes the trade data to be downloaded into the memory 72.

This data is then available to the program being executed by the processor 73, allowing selected portions of the data to be displayed on the end users display 74.

The entire process from the validation of the user password to the presentation of the information on the screen typically takes less than a second thereby ensuring that the user is presented with up-to-date trading prices.

The user is then presented with a general user screen as shown for example in Figure 2. The user screen includes a number of sections providing different information as set out below.

An existing products section 10 provides a number of buttons 10A, 10B, 10C, 10D, 10E representing various products that are currently available for trade. This is generally not an exhaustive list but rather a list of a small number of products in a given category, with the selected category being chosen from a drop down menu 10F. Once a given product is selected, data regarding the product is obtained from the memory 72 and displayed as will be explained below. As this information is downloaded directly from the memory 72, then there is no download time required. In this example, the selected product is HK Gold.

A buying prices of selected products section 11 indicates the current price that must be paid to buy the selected product. Thus in this example, the current price is 2805 per unit measure. Again, this information is obtained from the memory 72. A buy button 11A is also provided to allow the user to buy a desired product.

A selling prices of selected products section 12 indicates the current price that the product could be sold for. In this example, the current price is 2806 per unit measure. Again, this information is obtained from the memory 72. A sell button 12A is also provided to allow the user to sell a desired product.

A working orders section 13 is provided which indicates details of transaction currently in process as will be explained below.

A dealable price section 14 is provided which displays details of other products available. Again, this information is obtained from the memory 72.

A trade log section 15 is used to display the most recently completed transactions, as will be explained below.

Corresponding examples for the products London Gold, Silver, Platinum, and Palladium are shown as Figures 3, 4, 5 and 6 respectively. Once the user has selected a desired product, the user can buy or sell the product, by activating the appropriate buy or sell button 11A, 12A respectively. The user will then be presented with a buy or sell form, as shown in Figures 7A and 7B respectively. The buy form includes a price field 21, quantity field 22, a password field 23, together with a BUY button 24 and a Cancel button 25. The sell form similarly includes a price field 31, quantity field 32, a password field 33, together with a SELL button 34 and a Cancel button 35.

The current price at which the product can be bought or sold is automatically and continuously without request downloaded from the trade data stored in the memory 72 and placed in the respective price field 21,31. However, the user can adjust these values if they intend to make an offer at an alternative price.

The user must then enter a value in the relevant quantity field 22,32 indicating the amount of product which is to be bought or sold, together with a verification password which is entered in the password field 23,33. The relevant BUY or SELL button 24,34 is then clicked. The procedure can be cancelled at any time by clicking the Cancel button 25,35.

A confirm action message is then presented on the display 74 indicating to the user that they are to confirm the values entered. The confirm action message for buying a product is shown in Figure 8A, whilst Figure 8B shows the equivalent confirm action message for a sell procedure.

Once the user indicates the transaction is to proceed, by clicking the appropriate YES button, details of the transaction are transferred via the communication device 75 and the Internet 6 to the LAN 4. The processor 5 will then operate to transfer the details to an appropriate one of the end stations 3 where a trading operative will operate to perform a trade.

Concurrently, details of the transaction in process are displayed to the user in the working orders section 13. Prior to carrying out the trade, a security check is performed on the user. This usually involves checking that the user has sufficient funds or credit available to make the purchase. This checking procedure is preferably implemented automatically by the processor 73 and/or the controller 5. However, in some circumstances, such as if the check initially fails, manual intervention by a trading operative may be required. Once the trade has been authorised, the trade may be actuated either on-line, in which case an automated process may be implemented, or alternatively this may be performed in the normal way. Once the transaction has been completed, data representing the users updated portfolio is transferred to the users end station 7. This information is then displayed to the user in the trade log section 15, as shown for example at 15 A in Figure 9. It will be appreciated that as confirmation of a transaction is received, details of the transaction will be removed from the working order section 13.

An example of the screen presented to a trading operative using one of the end stations 3 is shown in Figure 10. In a similar manner to the screen for the user, shown in Figure 2, this screen includes a product section 50, which indicates the products currently available for trade, and a trade log 55 indicating the trades performed to date. Additionally, an Order section 56 is provided which allows trades to be performed. This is used in conjunction with the Buy section 51 and the Sell section 52, which allow details of a proposed trade, including quantity and price information to be displayed. The Buy and Sell sections are further sub-divided into Market and Proposed portions A,B as shown. The market portion A indicates the current value and availability of the product on the market, whereas the proposed portion B indicates the quantity and price of the product which has been proposed for the current trade.

The details contained within the proposed portion of the Buy or Sell field are transferred together with the trade request from the end station 7. This ensures that the proposed trade is carried out in accordance with the requirements of the system user, and overcomes the risk of an incorrect value being entered by the trader. Operation of the end station 3 by the operative is not relevant to the present invention and will not therefore be described in any detail.

In addition to updating the trade data stored in the memory 72 of a given end station when the end station user initially logs on to the system, the trade data can be further updated during use of the system. This can be achieved in a number of ways. Thus, for example, the controller 5 of the trading centre 1 may be configured to periodically update the trade data of all currently logged on users. Alternatively, the trade data could be updated each time there is a variation in trade price, or upon the receipt of a request for an update from the user. This allows the system to be configured to ensure that each user of the system has suitably up-to-date information so as to ensure trading operates smoothly.

As set out above, the present invention does not need to use normal web browsing software, such as Internet Explorer^® or Netscape Navigator^®. Instead the system uses its own platform for presentation purposes. As the platform is implemented locally by the processor 73, there is no need for presentation information to be supplied by the trading centre 1. Instead, raw trade data can be transferred directly into the memory 72 of the end station and then presented to the user in accordance with the software platform.

This is in complete contrast to normal web-based systems which must provide presentation information in the form of an HTML file to the system user, to allow the web- browser to display an associated data. As will be appreciated by a person skilled in the art, this vastly reduces the amount of data which can be transferred ensuring a significantly faster download time is obtained for the display of the trade prices. This therefore allows the systems to kept up-to-date without requiring a large amount of data to be transferred and stored within the end station. In order to ensure the security of the system, all trading communication is carried out using SSL (secure socket layer) communication. Furthermore, each user will have a unique certificate for authentication and encryption purposes .

Claims

1. A trading system for trading via a communications network, the system comprising: a. a trading centre, the trading centre comprising: i . a database which stores trade data representative of a number of current trade prices; ii. a centre processor coupled to the database; and, iii. a communications device for coupling the database to the communications network; b. at least one end station coupled to the communications network to allow a user to trade therefrom, the end station comprising: i. a store; ii. an end station processor coupled to the store; and, iii. a display, wherein in use, the end station processor and the centre processor cooperate such that;

(1) the centre processor transfers the trade data to the end station; and,

(2) the end station processor stores the trade data in the store and presents selected ones of the trade prices represented therein on the display.

2. A system according to claim 1, wherein end station processor responds to a user to generate a trade request representing a trade to be performed, the trade request being transferred to the trade centre via the communications system, and wherein the trade centre responds to the request to preform the requested trade.

3. A system according to 2, wherein the store stores working orders data representative of trades in progress, and wherein the end station processor is adapted to update the working orders data upon the generation of a trade request .

4. A system according to claim 2 or claim 3, wherein the trade is performed automatically by the centre processor.

5. A system according to any of claims 2 to 4 , wherein the centre processor is adapted to automatically transfer a completion indication to the end station upon completion of the trade.

6. A system according to claim 5, wherein the store stores log data representative of completed trades, and wherein upon receipt of a completion indication the end station processor is adapted to update the working orders data and the log data stored in the store.

7. A system according to any of the preceding claims, wherein the centre processor is adapted to periodically update the trade data stored in the database, and to transfer the updated trade data to the end station automatically and continuously without request.

8. A system according to any of the preceding claims, wherein the centre processor is adapted to respond to a request from the end station processor to transfer trade data to the end station.

9. A system according to any of the preceding claims, wherein the communications system comprises the Internet.

10. A system according to any of the preceding claims, wherein the trades include the purchase or sale of products.

11. A trading centre for trading via a communications network, the trading centre being adapted to communicate with an end station via a communications network, the centre comprising: a. a database which stores trade data representative of a number of current trade prices; b. a centre processor coupled to the database; and, c. a communications device for coupling the database to a communications network; wherein in use the centre processor cooperates with the end station to transfer the trade data to the end station for storage in a store and presentation of selected ones of the trade prices represented therein on a display.

12. A centre according to any of the preceding claims, the centre processor responding to a trade request to perform a trade, the centre processor being further adapted to transfer a completion indication to the end station upon completion of the trade.

13. A centre according to claim 11 or claim 12, wherein the centre processor is adapted to periodically update the trade data stored in the database, and to transfer the updated trade data to the end station automatically and continuously without request.

14. A centre according to any of claims 11 to 13, wherein the centre processor is adapted to respond to a request to transfer trade data to the end station.

15. An end station for trading via a communications network, the end station being adapted to communicate with a trading centre via a communications network, the trading centre including a database which stores trade data representative of a number of current trade prices, the end station comprising: a . a store ; b . an end station processor coupled to the store ; and; c . a display, wherein in use, the trading centre operates to transfer the trade data to the end station, and wherein the end station processor is adapted to store the trade data in the store and present selected ones of the trade prices represented therein on the display.

16. An end station according to claim 15, the end station processor being responsive to a user to generate a trade request representing a trade to be performed and to transfer the trade request to the trade centre via the communications system.

17. An end station according to 16, wherein the store stores working orders data representative of trades in progress, and wherein the end station processor is adapted to update the working orders data upon the generation of a trade request.

18. An end station according to claim 17, wherein the store stores log data representative of completed trades, and wherein upon receipt of a completion indication from the trade centre the end station processor is adapted to update the working orders data and the log data stored in the store.