Opinion ID: 210724
Heading Depth: 3
Heading Rank: 1

Heading: Methods involving open outcry and trade capture

Text: 3 The '580 patent pertains to automated methods and systems for trading financial instruments, particularly fixed income securities. Prior to the development of the invention described in the '580 patent, financial instruments were sold using an open-outcry method whereby voice brokers would express various bid and offer prices for a given instrument. '580 patent, col.3 ll.6-9. According to the '580 patent, [t]his expression would involve the loud oral `cry' of a customer-proposed bid or offer and the coordination with the fellow representatives regarding the extraction of complementary positions — until a transaction match is made and a deal is done. Id. at col.3 ll.9-12. Open outcry auction bond brokering served its customers well because it was efficient and permitted trading at near perfect market pricing. Id. at col.2 ll.64-66. 4 While voice brokers were participating in open outcry trading, a process known as trade capture was performed by designated clerks. Id. at col.3 ll.13-18. These clerks would attempt to record the outcry of many individual brokers simultaneously using electronic input devices, such as a computer or workstation. Id. at col.3 ll.18-21. As might be apparent from its description, the quality of the information inputted into the electronic devices by a clerk was a function of the interpretative skill of the input clerk, and the volume and the volatility of customer orders. Id. at col.3 ll.22-23. 5 The inventors of the '580 patent recognized that there was a need for greater efficiency and accuracy in the trading of instruments such as fixed income securities. Id. at col.3 l.29-col.4 l.3. Therefore, they sought to create a system to automate the trading process and avoid the use of open outcry and trade capture processes.