BGC Partners has been granted a patent for an apparatus and method to stimulate trading in limited-liquidity financial instruments. The technology involves receiving orders, tracking time elapsed, and imposing penalties for failure to submit a two-way market. This innovation aims to enhance liquidity in financial markets. GlobalData’s report on BGC Partners gives a 360-degree view of the company including its patenting strategy. Buy the report here.
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According to GlobalData’s company profile on BGC Partners, Retail trading platforms was a key innovation area identified from patents. BGC Partners's grant share as of January 2024 was 49%. Grant share is based on the ratio of number of grants to total number of patents.
Method to stimulate trading in limited-liquidity financial instruments
A recently granted patent (Publication Number: US11875403B2) discloses a computer-implemented method aimed at stimulating trading in limited-liquidity financial instruments. The method involves receiving orders related to bid-offer spreads, tracking time elapsed since a trade, and generating electronic commands to submit default markets if predetermined time limits are exceeded. Penalties are imposed on users failing to meet obligations, with automatic execution of orders for default markets for other users based on preset choices. The penalties include restrictions on participation rights, and the default market is based on existing live prices.
Furthermore, the patent also covers an electronic device and a non-transitory computer-readable medium storing instructions for implementing the method. The electronic device includes input circuitry, memory, and a processor to receive orders, track time, generate commands, and impose penalties. Similarly, the non-transitory computer-readable medium contains executable instructions for receiving orders, tracking time, generating commands, imposing penalties, and executing orders automatically for default markets. The penalties involve restrictions on participation rights for users failing to meet obligations, and the default market is determined based on existing live prices. This innovative method and system aim to enhance trading activity in limited-liquidity financial instruments by incentivizing market-making activities and ensuring timely execution of trades.
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GlobalData Patent Analytics tracks bibliographic data, legal events data, point in time patent ownerships, and backward and forward citations from global patenting offices. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.
