Patent ID: 8165950

Claim:
A computer implemented trading apparatus for matching bids and offers entered by a number of traders, where fixed-income instruments paying a coupon, referred to as bonds, and fixed-income instruments not paying a coupon, referred to as stripped bonds, are traded, where for a stripped bond a coupon is split from its principal for separate trading, and where there is a relationship between bond prices and stripped bond prices, the apparatus comprising: a matching processor having an associated memory forming one or more orderbooks wherein both fixed income instruments paying a coupon, referred to as bonds, and fixed income instruments not paying a coupon, referred to as stripped bonds, are traded, and a computer server configured to collect prices for all stripped bonds required to form a bond for which an order has been placed, and if there exists prices for all required stripped bonds except one missing stripped bond, to create a new derived order in a bond orderbook derived from one or more orders placed in a stripped bond orderbook for the one missing stripped bonds associated with the bond at a price which when combined with the collected prices matches the bond order in order to increase thereby permitting matching by the matching processor of the bond order trade matching opportunities in the bond orderbook.