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Method and system of trading a security in a foreign currency

A trading and securities technology, applied in calculation, payment system, currency conversion, etc., can solve problems such as weakening of foreign exchange exchange

Inactive Publication Date: 2013-09-11
M DAQ PTE
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  • Summary
  • Abstract
  • Description
  • Claims
  • Application Information

AI Technical Summary

Problems solved by technology

[0008] Due to the above disadvantages, interest in counters listed on non-domestic exchanges is often waned due to the uncertainty of foreign exchange conversion, leading many investors to avoid investing in securities denominated in foreign currencies

Method used

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  • Method and system of trading a security in a foreign currency
  • Method and system of trading a security in a foreign currency
  • Method and system of trading a security in a foreign currency

Examples

Experimental program
Comparison scheme
Effect test

Embodiment 1

[0186] Example 1: Stop Loss / Opportunity Take Profit for "Buy" order (CCY1 / CCY2, where CCY1 for FCY)

[0187] Assume that the best exchange rate taken from a liquidity provider at a certain point in time is:

[0188] BID

ASK

84.552

84.573

[0189] If an investor in the United States decides to invest in Japanese stocks listed on the Tokyo Stock Exchange and buy 1,000 shares at USD29.51 per share, the order entered is:

[0190] the code

buy / sell

Order Type

quantity

FCY offer

Stock A

B

new

1，000

29.51

[0191] Orders are converted to LCY using the best rates from liquidity providers:

[0192] the code

buy / sell

Order Type

quantity

LCY offer

Adjusted LCY quotes

Stock A

B

new

1，000

2495.13

2459

[0193] When applying the SLOG not worse than (NWT) rule, the LCY quote Yen2495.13 is rounded down to Yen2495. Assuming that TSE ...

Embodiment 2

[0199] Example 2: Stop Loss / Opportunity Take Profit for "Sell" order (CCY1 / CCY2, where CCY1 for FCY)

[0200] Assume that the best exchange rate taken from a liquidity provider at a certain point in time is:

[0201] BID

ASK

84.565

84.575

[0202] If an investor in the United States decides to invest in Japanese stocks listed on the Tokyo Stock Exchange and sells 1,000 copies of USD30 / share, the order entered is:

[0203] the code

buy / sell

Order Type

quantity

FCY offer

Stock A

S

new

1，000

30

[0204] Orders are converted to LCY using the best rates from liquidity providers:

[0205] the code

buy / sell

Order Type

quantity

LCY offer

Adjusted LCY quotes

Stock A

S

new

1，000

2537.25

2538

[0206] When applying the SLOG not worse than (NWT) rule, the LCY quote Yen2537.25 is rounded up to Yen2538. Assuming that the Tokyo Sto...

Embodiment 3

[0212] Example 3: Stop Loss / Opportunity Take Profit for "Buy" order (CCY1 / CCY2, where CCY2 for FCY)

[0213] Assume that the best exchange rate taken from a liquidity provider at a point in time is:

[0214] BID

ASK

1.3953

1.3954

[0215] If an American investor decides to invest in European stocks listed on the London Stock Exchange and buys 1,000 USD24 / share, the order entered is:

[0216] the code

buy / sell

Order Type

quantity

FCY offer

Stock A

B

new

1，000

24

[0217] Orders are converted to LCY using the best rates from liquidity providers:

[0218] the code

buy / sell

Order Type

quantity

LCY offer

Adjusted LCY quotes

Stock A

S

new

1，000

17.1994

17

[0219] When applying the SLOG Not Worse Than (NWT) rule, the LCY quote EUR17.1994 is rounded down to EUR17. Assuming that LSE does not accept orders with decimal places...

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PUM

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Abstract

A system and method for trading a security in a foreign currency. The system comprising: an FX pricing module for maintaining FX data streamed from one or more liquidity providers; and a market manager module configured to receive original trade data associated with the security in a trading currency of the security and to generate converted trade data associated with the security in the foreign currency; wherein the market manager module generates the converted trade data based on an FX rate provided by the FX pricing module.

Description

technical field [0001] The present invention relates to methods and systems for trading securities denominated in foreign currencies. technical background [0002] Since all exchanges currently offer stock quotes in the local currency (LCY) only, investors wishing to trade securities on non-domestic exchanges will need to perform currency conversion (ie, foreign exchange or FX). For example, a U.S. dollar-based investor who wants to buy shares of a particular company on the Singapore Exchange (SGX) would have to do a U.S.-Singapore dollar exchange because the shares are quoted in Singapore dollars only. In other words, foreign currency (FCY) based investors are restricted from directly buying and selling products quoted in LCY. [0003] Currently, brokers help investors buy or sell securities. Meanwhile, on a post-trading basis, trading brokers can handle foreign exchange conversions for investors. In other words, foreign exchange conversion occurs after a securities tran...

Claims

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Application Information

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Patent Type & Authority Applications(China)
IPC IPC(8): G06Q40/04
CPCG06Q40/04G06Q20/381
Inventor 小龙·理查德·许
Owner M DAQ PTE
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