James W Farrell

US Patent:

7152041, Dec 19, 2006

Filed:

Mar 10, 2003

Appl. No.:

10/385152

Inventors:

Arjuna Ariathurai - Chicago IL, US
John Falck - Chicago IL, US
James W. Farrell - Carol Stream IL, US
Scott Johnston - Oak Park IL, US
Agnes S. Thiruthuvadoss - Chicago IL, US
Charlie Troxel, Jr. - Naperville IL, US

Assignee:

Chicago Mercantile Exchange, Inc. - Chicago IL

International Classification:

G06Q 40/00

US Classification:

705 36R, 705 35

Abstract:

Methods and systems for an exchange to handle variable derivative product order prices are disclosed. The price of a derivative product order (bid or offer) is updated based on changes in the price of a related underlying product. Price determination variable(s), such as delta and gamma, are used to determine the price of the order. The exchange may periodically recalculate the price without requiring the trader to transmit additional information to the exchange.

US Patent:

7440917, Oct 21, 2008

Filed:

Oct 1, 2003

Appl. No.:

10/676318

Inventors:

James W. Farrell - Carol Stream IL, US
David Salvadori - Bartlett IL, US
Arjuna Ariathurai - Chicago IL, US
John Falck - Chicago IL, US
Scott Johnston - Oak Park IL, US
Agnes Shanthi Thiruthuvadoss - Chicago IL, US
Charlie Troxel, Jr. - Naperville IL, US

Assignee:

Chicago Mercantile Exchange, Inc. - Chicago IL

International Classification:

G06Q 40/00

US Classification:

705 36R, 705 35, 705 37

Abstract:

Systems and methods are provided for processing derivative product orders at an exchange. Traders provide derivative product order risk data to the exchange. The order risk data may include maximum delta, gamma and/or vega utilization values for derivative product contracts based on the same underlying product. Before executing a trade, a match system analyzes the trader's current utilization state and the utilization that would result after the trade. The match system may then execute all or a portion of the trade.

US Patent:

7567932, Jul 28, 2009

Filed:

Nov 3, 2006

Appl. No.:

11/556499

Inventors:

David Salvadori - Bartlett IL, US
Arjuna Ariathurai - Chicago IL, US
John Falck - Chicago IL, US
James W. Farrell - Carol Stream IL, US
Scott Johnston - Oak Park IL, US
Agnes S. Thiruthuvadoss - Chicago IL, US
Charlie Troxel, Jr. - Naperville IL, US

Assignee:

Chicago Mercantile Exchange, Inc. - Chicago IL

International Classification:

G06Q 40/00

US Classification:

705 36R, 705 35

Abstract:

Methods and systems for an exchange to handle variable derivative product order prices are disclosed. The price of a derivative product order (bid or offer) is updated based on changes in the price of a related underlying product. Price determination variable(s), such as delta and gamma, are used to determine the price of the order. The exchange may periodically recalculate the price without requiring the trader to transmit additional information to the exchange.

US Patent:

7571133, Aug 4, 2009

Filed:

Jul 1, 2003

Appl. No.:

10/611458

Inventors:

James W. Farrell - Carol Stream IL, US
Agnes Shanti Thiruthuvadoss - Chicago IL, US
David Salvadori - Bartlett IL, US
Scott Johnson - Oak Park IL, US
John Falck - Chicago IL, US
Charlie Troxel, Jr. - Naperville IL, US
Arjuna Ariathurai - Chicago IL, US

Assignee:

Chicago Mercantile Exchange, Inc. - Chicago IL

International Classification:

G06Q 40/00

US Classification:

705 37, 705 35, 705 36 R

Abstract:

Systems and methods are provided for executing a hedge transaction in connection with the execution of a derivative product order in which the price of the derivative product is defined by one or more variables. The hedge transaction may be executed at an exchange or match engine that is different from the exchange or match engine executing the derivative product order. The execution of derivative product transaction may be contingent on the existence of an appropriate hedge transaction. Alternatively, a best efforts approach may be used to fill the hedge transaction order after executing the derivative product transaction.

US Patent:

7672899, Mar 2, 2010

Filed:

Dec 10, 2007

Appl. No.:

11/953650

Inventors:

James W. Farrell - Carol Stream IL, US
Agnes Shanti Thiruthuvadoss - Chicago IL, US
David Salvadori - Bartlett IL, US
Scott Johnson - Oak Park IL, US
John Falck - Chicago IL, US
Charlie Troxel - Naperville IL, US
Arjuna Ariathurai - Chicago IL, US

Assignee:

Chicago Mercantile Exchange, Inc. - Chicago IL

International Classification:

G06Q 40/00

US Classification:

705 37, 705 35, 705 36 R

Abstract:

Systems and methods are provided for executing a hedge transaction in connection with the execution of a derivative product order in which the price of the derivative product is defined by one or more variables. The hedge transaction may be executed at an exchange or match engine that is different from the exchange or match engine executing the derivative product order. The execution of derivative product transaction may be contingent on the existence of an appropriate hedge transaction. Alternatively, a best efforts approach may be used to fill the hedge transaction order after executing the derivative product transaction.

US Patent:

7734538, Jun 8, 2010

Filed:

Nov 17, 2006

Appl. No.:

11/600984

Inventors:

Paul Andrew Bauerschmidt - Chicago IL, US
Ari L. Studnitzer - Chicago IL, US
William J. Albert - Arlington Heights IL, US
Lori Flemm, legal representative - Olympia WA, US
Paul J. Callaway - Chicago IL, US
James W. Farrell - Carol Stream IL, US
A. Shanthi Thiruthuvadoss - Chicago IL, US

Assignee:

Chicago Mercantile Exchange Inc. - Chicago IL

International Classification:

G06Q 40/00

US Classification:

705 38

Abstract:

The disclosed systems and methods relate to allowing trading of over the counter (“OTC”) foreign exchange (“FX”) contracts on a centralized matching and clearing mechanism, such as that of the Chicago Mercantile Exchange's (“CME”'s) futures exchange system (the “Exchange”). The disclosed systems and methods allow for anonymous transactions, centralized clearing, efficient settlement and the provision of risk management/credit screening mechanisms to lower risk, reduce transaction costs and improve the liquidity in the FX market place. In particular, the disclosed embodiments increase speed of execution facilitating growing demand for algorithmic trading, increased price transparency, lower cost of trading, customer to customer trading, and automated asset allocations, recurring trades as well as clearing and settlement efficiencies.

US Patent:

7778911, Aug 17, 2010

Filed:

Dec 6, 2007

Appl. No.:

11/951895

Inventors:

David Salvadori - Bartlett IL, US
Arjuna Ariathurai - Chicago IL, US
John Falck - Chicago IL, US
James W. Farrell - Carol Stream IL, US
Scott Johnson - Oak Park IL, US
Agnes S. Thiruthuvadoss - Chicago IL, US
Charlie Troxel, Jr. - Naperville IL, US

Assignee:

Chicago Mercantile Exchange, Inc. - Chicago IL

International Classification:

G06Q 40/00

US Classification:

705 36R, 705 35, 705 37

Abstract:

Systems and methods are provided for processing derivative product orders at an exchange. Traders provide derivative product order risk data to the exchange. The order risk data may include maximum delta, gamma and/or vega utilization values for derivative product contracts based on the same underlying product. Before executing a trade, a match system analyzes the trader's current utilization state and the utilization that would result after the trade. The match system may then execute all or a portion of the trade.

US Patent:

7805360, Sep 28, 2010

Filed:

Dec 29, 2006

Appl. No.:

11/617915

Inventors:

Seshadri Sundaram - Aurora IL, US
Stanislav Liberman - Buffalo Grove IL, US
James W. Farrell - Wheaton IL, US
Michael S. Kenniston - San Jose CA, US
Dileep C. Konduru - Palatine IL, US
Mark W. Robinson - Oak Park IL, US

Assignee:

Chicago Mercantile Exchange Inc. - Chicago IL

International Classification:

G06Q 40/00

US Classification:

705 37, 705 35

Abstract:

Systems and methods for matching orders are provided. One or more trade templates are created. The trade templates define groups of orders for financial instruments that may be combined such that all of the orders are matched. New orders and resting orders are analyzed using one or more trade templates to determine whether a combination of orders satisfies all of the elements of a trade template. When all of the elements of a trade template are satisfied, the corresponding orders may be matched contemporaneously.