Abstract:
Electronic trading systems and methods which facilitate principal/broker trading are provided. In a first aspect of the invention, a database relating to trading participants in the trading system is designed to indicate which traders utilize a principal/broker relationship and what, if any, limitations are placed on the activity of the broker, trading commands submitted by the broker, and counterparties in a transaction with the broker. In another aspect of the invention, trading commands and executed trades involving principals/brokers may be presented to other traders using special designations. The ability to enter certain trading commands by, and in response to, brokers may be limited. In a further aspect of the invention, anonymous trading features may prevent traders from knowing whether another trader is a broker or principal, may restrict traders from being able to block trading with brokers, and may permit brokers to configure anonymous trading parameters.

Description:
CROSS REFERENCE TO RELATED APPLICATIONS 
       [0001]    This application claims the benefit of U.S. provisional application No. 60/295,300, filed Jun. 1, 2001, which is hereby incorporated by reference herein in its entirety. 
     
    
     BACKGROUND OF THE INVENTION 
       [0002]    This invention relates to processes for electronic trading systems. More particularly, this invention relates to systems and methods for electronic trading that permit principal/broker trading. 
         [0003]    With the expansion of the use and capabilities of computer infrastructure there has been a corresponding progression of buyer/seller transactions away from classical “open outcry auctions” toward electronic trading systems. Computer-based electronic trading systems have been used in a variety of markets including, for example, stocks, bonds, currency, commodities and futures markets. The use of electronic trading systems offers many advantages over conventional methods for trading including increased speed of price dissemination and trade execution, reduced transaction costs, potential for trading across multiple markets simultaneously, reduced probability of erroneous trades, enhanced compliance with credit limits, reduction of risk exposure, and the potential to provide controlled anonymous trading. 
         [0004]    In an electronic trading system, a trader desiring to make a trade may directly access a trading system, typically using a trading system workstation, personal computer, dumb terminal connected to a network, or any other suitable device, and submit trading commands to participate in an electronic transaction. For example, a first trader may submit a bid to buy a certain quantity (or size) of a given item at a specified price using a workstation that is part of the electronic trading system. In response to this bid, a second trader may sell a certain quantity and “hit” the bid by pressing a suitable button or entering a command on another workstation connected to the trading system. If the second trader meets certain requirements, the second trader then causes a trade to be executed upon hitting the first trader&#39;s bid. 
         [0005]    Despite the advantages afforded by electronic trading systems, some traders cannot or do not wish to operate electronic trading system workstations. They may lack the computer equipment or competency required to operate a workstation, or may simply not wish to perform the related duties. Instead these traders may act as a principal trader and call a broker trader of an electronic trading system and verbally relay their requested transaction. Alternatively, a principal trader may use instant messaging or electronic mail (e-mail) communications to convey information to a broker trader regarding a requested transaction. All of these types of communications require that a broker trader receiving the communications submit corresponding trading commands into an electronic trading system. Thus, there may exist principal traders, who direct the trading actions of broker traders, and broker traders who actually utilize the electronic trading system to engage in trading. 
         [0006]    Thus, it is an object of the invention to provide systems and methods for electronic trading that permit principal/broker trading. 
       SUMMARY OF THE INVENTION 
       [0007]    This and other objects of the invention are accomplished in accordance with the principles of the present invention by providing systems and methods for electronic trading that permit principal/broker trading. 
         [0008]    In accordance with the invention, these systems and methods provide a variety of features in an electronic trading system to facilitate principal/broker trading using the electronic trading system. The systems and methods provide a plurality of workstations which present trading information to traders on a display screen and enable those traders to respond to that trading information to complete a trade. Trading is controlled using a processor that is coupled to the plurality of workstations. In a first aspect of the invention, a database containing information relating to traders in the trading system is designed to indicate which participants utilize a principal/broker relationship and what, if any, limitations are placed on the activity of the broker trader, such as on types of trading commands submitted by the broker trader, and counterparties in a transaction with the broker trader. In another aspect of the invention, trading commands and executed trades involving principals/brokers may be presented to other traders using a specific designation on the display screen. Similarly, the ability of broker traders to enter certain trading commands, and the ability of other traders to enter certain trading commands in response to broker traders, may be limited. In a further aspect of the invention, anonymous trading features may prevent traders from knowing whether another trader is a broker or principal, may prevent traders from being able to block trading with broker traders, and may permit broker traders to configure anonymous trading parameters for their principals. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0009]    Further features of the invention, its nature and various advantages will become more apparent from the following detailed description of the invention, taken in conjunction with the accompanying drawings, in which like reference characters refer to like parts throughout, and in which: 
           [0010]      FIG. 1  is a block diagram of one embodiment of hardware that may be used to implement the present invention; 
           [0011]      FIG. 2  is an illustration of a market cell screen display that may be presented in accordance with certain embodiments of the present invention; 
           [0012]      FIG. 3  is an illustration of a trading interface that may be presented in accordance with certain embodiments of the present invention; 
           [0013]      FIG. 4  is an illustration of a trade history interface that may be presented in accordance with certain embodiments of the present invention; 
           [0014]      FIG. 5  is a flow diagram of a process for configuring trader workstations and processing bids and offers in accordance with certain embodiments of the present invention; 
           [0015]      FIGS. 6A-6C  are flow diagrams of a process for processing hits and lifts (or takes) and reconfiguring trader workstations in accordance with certain embodiments of the present invention; and 
           [0016]      FIG. 7  is an illustration of a configuration interface that may be used to configure trader workstations in accordance with certain embodiments of the present invention. 
       
    
    
     DETAILED DESCRIPTION OF THE INVENTION 
       [0017]    The present invention is now described in connection with  FIGS. 1-7 . Although the present invention is described below in connection with a bid/offer, hit/take trading system, it should be apparent to one of ordinary skill in the art that many of the features of the present invention may be used with any other suitable trading, information display, and/or data processing system that enables the buying and selling of all items in an electronic environment for trading. 
         [0018]    Turning first to  FIG. 1 , an example of hardware  100  that may be used to implement one embodiment of the present invention is shown. As illustrated, hardware  100  may include an electronic trading system  101  comprising one or more local workstations  102  and one or more remote workstations  104  that may be used by traders to view trading data and enter trading commands. Workstations  102  and  104  may be any suitable means for presenting data and, in preferred embodiments of this invention, accepting input. For example, workstations  102  and  104  may be personal computers, laptop computers, mainframe computer terminals, dumb terminals, data displays, Internet browsers, Personal Digital Assistants (PDAs), two-way pagers, wireless terminals, portable telephones, etc., or any combination of the same. 
         [0019]    To orchestrate trading between traders using workstations  102  and  104 , the workstations preferably submit commands to, and receive data to be displayed from, a processor  106  that is also part of system  101 . In alternative embodiments, however, workstations may communicate with additional processors, or include processors to orchestrate trading in a distributed fashion without requiring processor  106 . In yet other embodiments, processor  106  may be connected to an external trading system (not shown) that controls trading by the traders. Processor  106 , and any additional processors, may be any suitable circuitry or devices capable of processing data such as microprocessors, personal computers, network servers, mainframe computers, dedicated computer systems, etc. 
         [0020]    Processor  106  may include or be coupled to a database for storing information relating to traders (whether acting as principal or broker), items traded, trades executed, and/or any other suitable information. This database may be implemented using any suitable hardware and/or software. 
         [0021]    As shown, processor  106  may be connected to workstations  102  and  104  by networks  108  and  110  of system  101 , respectively. Each of networks  108  and  110  may be any suitable data network for communicating data between workstations  102  and  104  and processor  106 , such as a local area network, a wide area network, the Internet, an intranet, a wireless network, a hard wired connection, a dial-up network, etc., or any combination of the same. In an arrangement of hardware  100  without processor  106 , workstations  102  and  104  may be linked together by networks  108  and  110  directly. 
         [0022]    As also shown in  FIG. 1 , a telephone network  120  may be provided that comprises a principal telephone  122  and a broker telephone  124  connected by a telephone line  126 . Telephone network  120  may be used to enable a principal at a remote location to communicate with a broker at a workstation  102 . The broker would receive trading instructions from the principal and then input required information into workstation  102 . This may be useful when the principal does not have access to a workstation  102  or  104  or when the principal only has access to a display-only workstation  102  or  104 . Obviously, telephone network  120  may be implemented as a private telephone network, a public telephone network, a wireless telephone network, or any suitable combination of the same. 
         [0023]    Similarly, as further shown in  FIG. 1 , computer communication network  128  may be provided. Computer communication network  128  may include user computers  130  and  134  and data network  132 . User computers  130  and  134  may be used to provide instant messaging, e-mail, “voice over IP,” video conferencing, and any other suitable communication functions. Computers  130  and  132  may be personal computers, laptop computers, mainframe computer terminals, dumb terminals, data displays, Internet browsers, Personal Digital Assistants (PDAs), two-way pagers, wireless terminals, portable telephones, etc., or any combination of the same. Data network  132  may be any suitable data network for communicating data between computers  130  and  134 , such as a local area network, a wide area network, the Internet, an intranet, a wireless network, a hard wired connection, a dial-up network, etc., or any combination of the same, and may be the same network as any of networks  108  and  110 . 
         [0024]    As still further shown in  FIG. 1 , a connection  142  from processor  106  to back office computers  136 ,  138 , and  140  of trading entities (e.g., banks, investment firms, trading firms, etc.) may also be provided. Connection  142  may facilitate trading history information, credit information, and any other suitable data being transferred between processor  106  and computers  136 ,  138 , and  140 . For example, trade data may be sent from processor  106  to back office computer  136  to initiate subsequent clearing of a trade from a trader employed by the owner of computer  136  and operating one of workstations  104 . Computers  136 ,  138 , and  140  may be any suitable circuitry or devices capable of processing data such as microprocessors, personal computers, network servers, mainframe computers, dedicated computer systems, etc. Connection  142  may be any suitable data network for communicating data between processor  106  and computers  136 ,  138 , and  140 , such as a local area network, a wide area network, the Internet, an intranet, a wireless network, a hard wired connection, a dial-up network, etc., or any combination of the same, and may be the same network as any of networks  108 ,  110 , and  132 . 
         [0025]    When used to implement a bid/offer, hit/take trading system as described above or connect to an external bid/offer, hit/take trading system, hardware  100  may enable a trader to submit a bid to buy, or an offer to sell, an item at one of workstations  102  and  104 . This bid or offer (both passive trading commands) may then be communicated to processor  106 , where the bid or offer can be ranked and stored in a bid-offer queue. The ranking may be based upon time of submission, price, or any other suitable criterion. The bid or offer may then be presented to other traders via other workstations  102  and  104  dependent upon its ranking in the bid-offer queue. Once displayed, the bid or offer can then be hit or taken (both aggressive trading commands) by one or more of the other traders so that a trade of the item can proceed to execution. 
         [0026]    An example of a display  200  for presenting a bid and offer  201  to a trader is shown in  FIG. 2 . As illustrated, bid and offer  201  may include portions indicating a description of the underlying instrument  202 , a bid price  204 , an offer price  206 , a bid size  208 , and an offer size  210 . In accordance with the present invention, these portions of bid and offer  201  may be highlighted with one or more colors, or in any other suitable manner, to indicate various traits of the bid and offer. For example, portions  204  and  208  may be colored purple to indicate that a counterparty principle trader is using a broker trader to submit the corresponding bid or offer to the trading system. As another example, portions  204  and  208  may be colored red to indicate that a counterparty switch of the bidder has been turned off by the trader and, thus, is not tradable by the trader as explained below in connection with  FIGS. 5-7 . 
         [0027]    Turning to  FIG. 3 , an interface  300  is shown that may be used to submit and respond to bids and offers presented in display  200  in accordance with the present invention. Interface  300  may be presented on a trader&#39;s workstation in response to the trader clicking on any of portions  202 ,  204 ,  206 ,  208 , and  210  of bid and offer  201 . When presented, interface  300  may then indicate information about the bid and offer clicked-on by the trader in a display  301 . As shown, for example, upon the trader clicking on portion  204  of bid and offer  201 , interface  300  may be presented with the instrument “usg 05Y” indicated in display  301 . Display  301  may also indicate the current bid price for the instrument (i.e., “99.12+”) and the current bid size for the instrument (i.e., “10”). 
         [0028]    As also shown in  FIG. 3 , a variety of buttons and entry fields may be incorporated into interface  300 . At the center of interface  300 , a numeric keypad  302  is displayed. As illustrated, numeric keypad  302  provides buttons for numbers zero through nine, ten, twenty-five, fifty, and one hundred. Numeric keypad  302  also contains a plus button (“+”), a minus button (“−”), a decimal point button (“.”), a backspace button (“BKS”), and a delete button (“DEL”). Interface  300  also provides a buy button  304 , a sell button  306 , a cancel buy button  308 , a cancel sells button  310 , a bid button  312 , an offer button  314 , a cancel bids button  316 , a cancel offers button  318 , cancel all buttons  320 , cancel all for all instruments buttons  322 , a price entry field  324 , price up and down buttons  326 , bid price up and down buttons  328 , offer price up and down buttons  334 , a size entry field  330 , and size up and down buttons  332 . 
         [0029]    In order to submit a bid or offer for the instrument indicated in display  301  using interface  300 , a trader may first set a bid or offer price and a bid or offer size by entering the appropriate values in fields  324  and  330 , respectively, using up and down buttons  326 ,  328 ,  332 , and/or  334  and/or using keypad  302 . Once the desired price and size for the bid or offer have been specified, the trader may then submit the bid or offer by pressing bid button  304  or the offer button  314 . 
         [0030]    In order to hit a bid or lift (or take) an offer for the instrument indicated in display  301  using interface  300 , a trader may first specify a size in field  330  using up and down buttons  332  and/or  334  and/or using keypad  302 . Once the desired size has been specified, the trader may then hit the bid or lift (or take) the offer for the specified size by pressing sell button  306  or buy button  304 , respectively. 
         [0031]    In the event that a trader desires to cancel a bid, an offer, a hit, or a lift (or take), the trader may press any corresponding one of buttons  308 ,  310 ,  316 ,  318 ,  320 , and  322 . 
         [0032]    Because limitations may be placed by an administrator of trading system  101  or by a broker trader operating one of workstations  102  or  104  (or by the broker trader&#39;s employer or principal, as the case may be), interface  300  may prevent a trader from submitting bids and offers and/or from acting on certain bids and offers posted by another trader, when the trader is acting as a broker. If limitations are to be imposed, the trader will have to provide a designation to the trading system  101  when the trader is acting as a broker trader. Such limitations may be based upon the identity of a potential counterparty. Controls to implement such limitations may be included in a set-up screen of interface  300 , or may be transmitted from processor  106  to interface  300  depending on who wants to place the limitation. Similar limitations may be applied to the behavior of a trader acting as a principal. For example, a trader acting as a principal may be permitted to hit bids of broker traders only when those broker traders are representing certain principals. 
         [0033]    Displays and interfaces similar to those illustrated in  FIGS. 2 and 3  are described in more detail in U.S. patent application Ser. No. 09/745,651, filed Dec. 22, 2000, which is hereby incorporated by reference herein in its entirety. 
         [0034]      FIG. 4  illustrates a trade history interface  400  that may be presented in connection with the display of  FIG. 2  and/or the interface of  FIG. 3  in accordance with the present invention. Alternatively, all views may be tiled on the screen or may be seen all at once. As shown, interface  400  may present information on trades executed in one or more markets of trading system  101  ( FIG. 1 ). For each trade, this information may include a type  401  for the trade, a size  402  for the trade, a trader name  404  for the trade, an instrument name  406  for the trade, a price/rate trade price  408  for the trade, a settlement price  410  for the trade, a trade posting time  412  for the trade, a trade date  414  for the trade, a settlement date  416  for the trade, a trade side  418  for the trade, a trade reference number  420  for the trade, an end date  422  associated with a contract being traded, a counterparty name  424  for the trade, and comments  426  for the trade. 
         [0035]    Because certain trades may have either a trader name  404  or a counterparty name  424  that is of a trader acting as a broker rather than that of a trader acting as a principal (i.e., the client of the broker), a trader or the operator of trading system  101  may desire not to have information for those trades displayed in interface  400 . In such instances the information may be blocked from being displayed at least until the portions of the information corresponding to the broker are replaced with information relating to the principal, when such information is known. Similarly, special messages may be displayed to alert a trader that a counterparty is acting as a broker so that the trader can decide whether to confirm that the broker has the authority to complete the trade. For example, trader name  404  or counterparty name  424  may indicate “Bank A—verify trade with desk.” In this example, “Bank A” may be the name of the principal of the broker. As another example, trader name  404  or counterparty name  424  may simply indicate “Call desk to verify trade.” 
         [0036]    In certain instances, traders using trading system  101  may desire to trade anonymously. This may be the because one or more of the traders is concerned that he or she will not receive the true market price when trading, but rather inflated prices, for example. Systems and methods for anonymous electronic trading are disclosed in detail in U.S. provisional application No. 60/223,028, filed Aug. 4, 2000, and U.S. patent application Ser. No. 09/853,430 filed May 10, 2001 which is hereby incorporated by reference herein in its entirety. 
         [0037]    Turning to  FIG. 5 , a process  500  for configuring a workstation  102  or  104  ( FIG. 1 ) and processing bids and offers that may be executed in processor  106  ( FIG. 1 ) in accordance with one embodiment of the present invention is shown. As illustrated at step  502 , process  500  may first allow a trader to select how the workstation is to react when a bid or offer is hit or lifted, respectively, and when execution of a trade would exceed a warning limit of one of the traders in the trade. The workstation may be configured to automatically accept the full trade, automatically accept only the part of the trade that would not exceed the warning limits of both traders, automatically reject the whole trade, manually accept the full trade after prompting the trader, or manually accept only the part of the trade that would not exceed the warning limits of both traders after prompting the trader. The options of manually accepting the full trade and manually accepting only part of the trade may not be available at workstations  102  or  104  ( FIG. 1 ) in order to speed trading, simplify trading, or limit decision making by traders with respect to counterparty risk. Alternatively, the manual options may be available and the automatic options may not be available in some embodiments of the invention. 
         [0038]    Referring to  FIG. 7 , an example of an interface  700  that facilitates selection of one of these options is shown. As illustrated, by selecting one of the options from drop-down menu  702 , a trader can select how the workstation is to react when execution of a trade would exceed a warning limit of at least one of the traders. Although this selection is shown in interface  700  as being made by selecting one of the options from drop-down menu  702 , selection of one of these options may be made in any suitable manner. 
         [0039]    Turning back to  FIG. 5 , process  500  may enable each trader to set counterparty switches for the other traders at step  504 . These counterparty switches enable a trader to indicate whether the trader wants to be able to trade with each other trader. A trader may indicate that the trader does not want to trade with another trader, for example, because the other trader backed out of a trade on a previous occasion, because the other trader trades only in small sizes, or for any other reason. 
         [0040]    As can be seen in  FIG. 7 , a trader trading at a workstation  102  or  104  on behalf of Institution A may select whether to trade with certain counterparty institutions by selecting which of check boxes  704 ,  706 ,  708 ,  710 , and  712  to check. Where a check box is checked, the corresponding institution is preferably set to “ON” so that bids and offers from that institution are presented to the trader. 
         [0041]    As shown in  FIG. 5 , once a trader has set the counterparty switches for the other traders, the trader at step  506  may optionally set warning limits for each counterparty having a counterparty switch that is set to “ON.” Through interface  700  of  FIG. 7 , for example, the trader may set warning limits by specifying values in fields  714 ,  716 ,  718 ,  720 ,  722 ,  724 ,  726 ,  728 ,  730 , and/or  732 . These values may be a total dollar amount of buy and sell side transactions, a total dollar amount of buy side only transactions, a total dollar amount of sell side only transactions, a count of the total number of buy and sell side transactions, a count of the total number of buy side only transactions, a count of the total number of sell side only transactions, any other suitable values or combinations of values that are related to order submission of the counterparty and/or any other characteristic of the trader, or any other suitable values or combinations of values that are independent of order submissions of the counterparty and any other characteristic of the trader. Although interface  700  is illustrated with fields  714 ,  716 ,  718 ,  720  and  722  in a buy column  734  and fields  724 ,  726 ,  728 ,  730 , and  732  in a sell column  736 , the present invention may be implemented with only a single column for total buy and sell transactions or for only one of buy and sell transactions. 
         [0042]    Although steps  502 ,  504  and  506  are illustrated in process  500  of  FIG. 5  in a specific order, these steps may be executed in any suitable order or in parallel if desired. 
         [0043]    When a trader is acting as a broker for a principal, it may be necessary for the broker to configure the settings illustrated in  FIG. 7 . Alternatively, the principal trader may be able to configure these settings in advance through the trading system  101  ( FIG. 1 ) administrator or broker trader&#39;s employer, for example, and prohibit the broker trader from altering these settings. In certain embodiments of the invention, traders may be prohibited from turning off the counterparty switch of counterparties using brokers. Alternatively, the traders may be prevented from knowing which counterparties are using brokers. 
         [0044]    After a trader has specified warning limits at step  506  of  FIG. 5 , process  500  may next wait for new bids and offers to be entered at step  508 . As explained above, bids and offers may be entered at workstations  102  or  104  ( FIG. 1 ) using an interface  300  as illustrated in and described in connection with  FIG. 3 . Once a new bid or offer has been entered, process  500  may next receive the bid or offer at step  510 . At step  512 , process  500  may then determine whether the counterparty switches both to and from the passive side (i.e., the counterparty submitting the bid or offer that was received at step  510 ) are set to “ON.” If both the counterparty switches to and from the passive side are set to “ON,” process  500  may then display the bid or offer as available (i.e., a bid or offer that the trader may hit or take (or lift)) at step  514 . Otherwise, process  500  may display the bid or offer as not available or may not display the bid or offer at all at step  516 . A bid or offer may be displayed as being available or not available by displaying the bid or offer in a corresponding color (e.g., available bids or offers in green and unavailable bids or offers in red), by displaying the bid or offer in a corresponding font (e.g., available bids or offers in bold and unavailable bids or offers in italics), by flashing or not flashing the bid or offer (e.g., available bids or offers flashing and unavailable bids or offers/not flashing), by only displaying a bid or offer if it is available, or in any other suitable manner. 
         [0045]    Turning now to  FIGS. 6A-6C , a process  600  for processing hits and lifts (or takes) in response to available bids and offers that may be executed in processor  106  ( FIG. 1 ) in accordance with preferred embodiments of the present invention is shown. As explained above, hits and lifts (or takes) may be entered using interface  300  illustrated in and discussed in connection with  FIG. 3 , for example. Process  600  may begin by waiting for a hit or lift (or take) to be entered on an available bid or offer at step  604 . Once a hit or lift is received, process  600  receives the new hit or lift at step  606 . The bid or offer for which the hit or lift was received may then be set to inactive at step  608 . The bid or offer is set to inactive in order to prevent the bid or offer from being hit or lifted by another trader while process  500  is determining whether execution of the trade corresponding to the hit or lift of the bid or offer can be executed. 
         [0046]    Next, at step  610 , process  600  may check the warning limits for each of the traders in the trade. In the case where both a buy side warning limit and a sell side warning limit is specified by a trader, step  610  will first select the appropriate limit for each trader. For example, if a trader A hits a bid by a trader B, and traders A and B both set up both a buy side warning limit and a sell side warning limit, for trader A, the sell side warning limit will be checked and for trader B, the buy side warning limit will be checked. In the event where the sell side warning limit has been disabled and a trader has hit or lifted a bid, the trade may be treated as either exceeding the warning limit check or as not exceeding the warning limit check, depending on the settings of the trading system  101  ( FIG. 1 ). 
         [0047]    If the trade would not exceed the warning limit of either trader, at step  612 , process  600  may branch to step  616  to execute the trade and then return to step  604 . Alternatively, if the trade would exceed the warning limit of either trader, process  600  may proceed to step  620  ( FIG. 6B ) via links  614  and  618  ( FIG. 6B ). 
         [0048]    At step  620 , process  600  may then determine if either trader selected automatic rejection of the whole trade in configuring workstations  102  and  104  ( FIG. 1 ). If either trader did select automatic rejection, then process  600  may take the AR branch and restore the bid or offer to active at step  622  so that the bid or offer may be acted upon by other traders. Once a bid or offer has been restored to active at step  622 , process  600  may then proceed to step  648  ( FIG. 6C ) via links  624  and  646  ( FIG. 6C ). 
         [0049]    If neither trader is configured for automatic rejection, then process  600  may determine at step  626  whether both traders selected automatic acceptance of only part of the trade, or whether one trader selected automatic acceptance of only part of the trade and the other trader selected automatic acceptance of the full trade. If not, process  600  may proceed to step  632 . If so, process  600  may take the AP branch and, at step  628 , split the bid or offer into a bid or offer for the size that would not exceed either warning limit and a bid or offer for the remaining size. Process  600  may then execute the bid or offer for the size that would not exceed the warning limit at step  630 , and proceed to step  648  ( FIG. 6C ) via links  624  and  646  ( FIG. 6C ). 
         [0050]    At step  632 , process  600  may determine whether both traders are configured for automatic acceptance of the full trade. If so, process  600  may then take the AF branch and executes the trade at step  630  and proceed to step  648  ( FIG. 6C ) via links  624  and  646  ( FIG. 6C ). Otherwise, process  600  may proceed to step  634 . 
         [0051]    At step  634 , process  600  may determine whether either trader is configured for manual acceptance of only part of the trade or whether one trader is configured for automatic acceptance of only part of the trade and the other trader is configured for manual acceptance of the full trade. If yes, then process  600  may take the MP branch and proceed to step  636  whereupon each trader that is configured for manual acceptance of either only part of the trade or the full trade is asked whether that trader would like to execute a partial trade. 
         [0052]    Next, at step  638 , process  600  may determine whether each trader prompted at step  636  elected to execute a partial trade. If so, then process  600  may branch to step  628  and perform that step and the subsequent steps in process  600  as described above. Otherwise process  600  may branch to step  622  and perform that step and the subsequent steps in process  600  as described above. 
         [0053]    If process  600  determines at step  634  that neither trader is configured for manual acceptance of only part of the trade and that one trader is not configured for automatic execution of only part of the trade and/or the other trader is not configured for manual acceptance of the full trade, then process  600  may take the MF branch and proceed to step  640 . Then each trader configured for manual acceptance of the full trade is asked whether that trader would like to execute the full trade. 
         [0054]    Next, at step  644 , process  600  may determine whether each trader prompted at step  640  elected to execute the full trade. If so, process may branch to step  630  and perform that step and the subsequent steps in process  600  as described above. Otherwise, process  644  may branch to step  622  and perform that step and the subsequent steps in process  600  as described above. 
         [0055]    Although  FIG. 6B  illustrates a process  600  that tests for and processes automatic rejection (AR), automatic partial acceptance (AP), automatic full acceptance (AF), manual partial acceptance (MP), and manual full acceptance (MP), the present invention may be implemented without testing for these configuration selections and only perform tests, and subsequent processes, for configuration selections that are available. 
         [0056]    Upon completing either step  622  or step  630 , process  600  may proceed to step  648  ( FIG. 6C ) via links  624  and  646  ( FIG. 6C ) and then display a prompt asking the passive side trader if that trader would like to turn off the counterparty switch for the current counterparty (the aggressor). 
         [0057]    After performing step  648  of  FIG. 6C , process  600  then may determine at step  650  whether the passive side trader elected to turn “OFF” the counterparty switch at step  648 . If so, then process  600  may turn “OFF” the corresponding counterparty switch at step  652 . Once the switch has been turned “OFF” at step  652  or if the passive side trader did not elect to turn off the counterparty switch, process  600  may then display a prompt to the aggressive side trader asking whether the aggressive side trader would like to turn “OFF” the counterparty switch corresponding to the passive side trader. If the aggressive side trader elected to turn “OFF” the passive side trader at step  654 , process  600 , at step  656 , may branch to step  658  whereupon the corresponding counterparty switch is set to “OFF.” Otherwise, process  600  may return to step  604  ( FIG. 6A ) via links  660  and  602  ( FIG. 6A ). 
         [0058]    Those skilled in the art will appreciate that the present invention can be practiced by other than the described embodiments, which are presented for purposes of illustration and not of limitation, and the present invention is limited only by the claims.