Patents by Inventor James W. Farrell

James W. Farrell has filed for patents to protect the following inventions. This listing includes patent applications that are pending as well as patents that have already been granted by the United States Patent and Trademark Office (USPTO).

  • Patent number: 10719874
    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.
    Type: Grant
    Filed: April 21, 2010
    Date of Patent: July 21, 2020
    Assignee: Chicago Mercantile Exchange Inc.
    Inventors: Paul Andrew Bauerschmidt, Ari L. Studnitzer, William J. Albert, Lori Flemm, Paul J. Callaway, James W. Farrell, A. Shanthi Thiruthuvadoss
  • Publication number: 20200219192
    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.
    Type: Application
    Filed: March 13, 2020
    Publication date: July 9, 2020
    Applicant: Chicago Mercantile Exchange Inc.
    Inventors: Paul Andrew Bauerschmidt, Ari L. Studnitzer, William J. Albert, Paul J. Callaway, James W. Farrell, A. Shanthi Thiruthuvadoss
  • Patent number: 10628883
    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.
    Type: Grant
    Filed: November 17, 2006
    Date of Patent: April 21, 2020
    Assignee: Chicago Mercantile Exchange Inc.
    Inventors: Paul Andrew Bauerschmidt, Ari L. Studnitzer, William J. Albert, Lori Flemm, Paul J. Callaway, James W. Farrell, A. Shanthi Thiruthuvadoss
  • Publication number: 20190139140
    Abstract: An electronic trading system utilizes a Match Engine that receives orders, stores them internally, calculates tradable combinations and advertises the availability of real and implied orders in the form of market data. New tradable items defined as combinations of other tradable items may be included in the calculation of tradable combinations. A technique is disclosed for suppression of the calculation and/or subsequent listing of an implied order when the order is either undesired or unnecessary in the market therefore.
    Type: Application
    Filed: January 7, 2019
    Publication date: May 9, 2019
    Inventors: Brian M. Wolf, John F. Curran, James W. Farrell, Paul J. Callaway, Barry Galster, Andrew Milne, Giuseppe Scimeca, Pearce Peck-Walden, James Wilcox
  • Patent number: 10217165
    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.
    Type: Grant
    Filed: January 22, 2018
    Date of Patent: February 26, 2019
    Assignee: Chicago Mercantile Exchange Inc.
    Inventors: Scott Johnston, John Falck, Charlie Troxel, Jr., James W. Farrell, Agnes Shanthi Thiruthuvadoss, Arjuna Ariathurai, David Salvadori
  • Patent number: 10204377
    Abstract: An electronic trading system utilizes a Match Engine that receives orders, stores them internally, calculates tradable combinations and advertises the availability of real and implied orders in the form of market data. New tradable items defined as combinations of other tradable items may be included in the calculation of tradable combinations. A technique is disclosed for suppression of the calculation and/or subsequent listing of an implied order when the order is either undesired or unnecessary in the market therefore.
    Type: Grant
    Filed: June 27, 2012
    Date of Patent: February 12, 2019
    Assignee: Chicago Mercantile Exchange Inc.
    Inventors: Brian M. Wolf, John F. Curran, James W. Farrell, Paul J. Callaway, Barry L. Galster, Andrew Milne, Giuseppe Scimeca, Pearce Peck-Walden, James Wilcox
  • Publication number: 20180144405
    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.
    Type: Application
    Filed: January 22, 2018
    Publication date: May 24, 2018
    Inventors: Scott Johnston, John Falck, Charlie Troxel, JR., James W. Farrell, Agnes Shanthi Thiruthuvadoss, Arjuna Ariathurai, David Salvadori
  • Patent number: 9911157
    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.
    Type: Grant
    Filed: July 2, 2009
    Date of Patent: March 6, 2018
    Assignee: Chicago Mercantile Exchange Inc.
    Inventors: Scott Johnston, John Falck, Charlie Troxel, Jr., James W. Farrell, Shanthi Thiruthuvadoss, Arjuna Ariathurai, David Salvadori
  • Publication number: 20170193603
    Abstract: A system mitigates the effects of a market spike caused by the triggering and the election of a conditional order in an automated matching system. Conditional orders submitted to a trading engine are evaluated to compare a price of an order to a predetermined price range. Matching of the orders may be delayed when the price of the orders lies outside of the predetermined price range. An opening price to be used by the trading engine is derived and a time interval is used to delay a matching of the orders until the opening price is within a predetermined price range up to a maximum delay time set by a control center. Implied spreads are also removed until other instruments within a trading unit are verified open.
    Type: Application
    Filed: March 22, 2017
    Publication date: July 6, 2017
    Inventors: James W. Farrell, James Krause
  • Publication number: 20150026033
    Abstract: Protections against self-matching trade orders are disclosed which maximize liquidity/efficiency by reducing/minimizing unnecessary cancelations and/or resubmissions. Rather than automatically cancel or modify the incoming and/or self-matching counter orders, those resting counter orders, which would result in the occurrence of a self-match with an incoming order, are placed in a hold state or otherwise set aside such that the incoming order may be matched with other non-self-matching orders. The held orders are subsequently returned to the order book at the same, or different, priority to await a subsequent incoming order.
    Type: Application
    Filed: October 3, 2014
    Publication date: January 22, 2015
    Inventors: John Curran, Akira Yamaguchi, Brian Wolf, Pearce Peck-Walden, James Wilcox, James Bailey, Neil Lustyk, Katherine Patrick, Paul A. Bauerschmidt, Ari L. Studnitzer, William J. Albert, Paul J. Callaway, James W. Farrell, A. Shanthi Thiruthuvadoss
  • Publication number: 20140324668
    Abstract: The disclosure describes systems and methods for using enhanced RFQs and incoming enhanced orders to assist in detecting implied orders using an implied spread determination module. In one example, a system includes a processor and memory storing a search list and computer-executable instructions, where the instructions determine whether the financial instrument associated with an eRFQ or new enhanced order is on the search list, and then determine if an implied order exists in combination with that financial instrument and CCP attribute designations. In some embodiments, a timer may be used to track a predetermined amount of time to spend towards determining if implied orders exist for a particular financial instrument at particular clearing houses.
    Type: Application
    Filed: July 14, 2014
    Publication date: October 30, 2014
    Inventors: Ari Studnitzer, Pearce Peck-Walden, James W. Farrell, Paul J. Callaway, Barry L. Galster
  • Publication number: 20140244472
    Abstract: A system can include a first computer hardware means for identifying a first available order book for a first available product listed on an exchange and a second available order book for a second available product listed on the exchange, the first available product comprising a first component and the second available product comprising a second component, the first and the second components being part of a new product. The system can also include a second computer hardware means for generating a new order book for the new product based on the first and second available products. The system can also include a third computer hardware means for causing the new product to be listed on the exchange such that subsequently received orders to buy or sell the new product are matched based on the new order book or entered into the new order book.
    Type: Application
    Filed: March 3, 2014
    Publication date: August 28, 2014
    Applicant: CHICAGO MERCANTILE EXCHANGE
    Inventors: Paul A. Bauerschmidt, Ari L. Studnitzer, William J. Albert, Paul J. Callaway, James W. Farrell, Agnes Shanthi Thiruthuvadoss
  • Patent number: 8781948
    Abstract: The disclosure describes systems and methods for using enhanced RFQs and incoming enhanced orders to assist in detecting implied orders using an implied spread determination module. In one example, a system includes a processor and memory storing a search list and computer-executable instructions, where the instructions determine whether the financial instrument associated with an eRFQ or new enhanced order is on the search list, and then determine if an implied order exists in combination with that financial instrument and CCP attribute designations. In some embodiments, a timer may be used to track a predetermined amount of time to spend towards determining if implied orders exist for a particular financial instrument at particular clearing houses.
    Type: Grant
    Filed: August 1, 2012
    Date of Patent: July 15, 2014
    Assignee: Chicago Mercantile Exchange Inc.
    Inventors: Ari Studnitzer, Pearce Peck-Walden, James W. Farrell, Paul J. Callaway, Barry L. Galster
  • Patent number: 8751361
    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.
    Type: Grant
    Filed: May 3, 2013
    Date of Patent: June 10, 2014
    Assignee: Chicago Mercantile Exchange Inc.
    Inventors: James W. Farrell, Agnes Shanthi Thiruthuvadoss, Scott Johnston, John Falck, Charlie Troxel, Jr., Arjuna Ariathurai, David Salvadori
  • Patent number: 8738511
    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.
    Type: Grant
    Filed: September 3, 2013
    Date of Patent: May 27, 2014
    Assignee: Chicago Mercantile Exchange Inc.
    Inventors: Scott Johnston, John Falck, Charlie Troxel, Jr., James W. Farrell, Agnes Shanthi Thiruthuvadoss, Arjuna Ariathurai, David Salvadori
  • Patent number: 8738508
    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.
    Type: Grant
    Filed: January 9, 2013
    Date of Patent: May 27, 2014
    Assignee: Chicago Mercantile Exchange Inc.
    Inventors: Scott Johnston, John Falck, Charlie Troxel, Jr., James W. Farrell, Arjuna Ariathurai, Agnes Shanthi Thiruthuvadoss, David Salvadori
  • Patent number: 8700520
    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.
    Type: Grant
    Filed: March 18, 2013
    Date of Patent: April 15, 2014
    Assignee: Chicago Mercantile Exchange
    Inventors: Paul A. Bauerschmidt, Ari L. Studnitzer, William J. Albert, Paul J. Callaway, James W. Farrell, A. Shanthi Thiruthuvadoss
  • Patent number: 8630941
    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.
    Type: Grant
    Filed: January 7, 2013
    Date of Patent: January 14, 2014
    Assignee: Chicago Mercantile Exchange, Inc.
    Inventors: Scott Johnston, John Falck, Charlie Troxel, Jr., James W. Farrell, Agnes Shanthi Thiruthuvadoss, Arjuna Ariathurai, David Salvadori
  • Publication number: 20140006250
    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.
    Type: Application
    Filed: September 3, 2013
    Publication date: January 2, 2014
    Applicant: Chicago Mercantile Exchange, Inc.
    Inventors: Scott Johnston, John Falck, Charlie Troxel, JR., James W. Farrell, Agnes Shanthi Thiruthuvadoss, Arjuna Ariathurai, David Salvadori
  • Publication number: 20130246247
    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.
    Type: Application
    Filed: May 3, 2013
    Publication date: September 19, 2013
    Applicant: CHICAGO MERCANTILE EXCHANGE, INC.
    Inventors: James W. Farrell, Agnes Shanthi Thiruthuvadoss, Scott Johnston, John Falck, Charlie Troxel, JR., Arjuna Ariathurai, David Salvadori