Intercontinental Exchange. has been granted a patent for an electronic trading system that implements risk mitigation methods. The system monitors trading positions for risk threshold breaches and can disable a user’s trading status if breaches exceed a set limit, while also managing re-enablement requests. GlobalData’s report on Intercontinental Exchange 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 Intercontinental Exchange, Retail trading platforms was a key innovation area identified from patents. Intercontinental Exchange's grant share as of June 2024 was 65%. Grant share is based on the ratio of number of grants to total number of patents.
Electronic trading system for risk mitigation and order management
The patent US12045889B2 outlines a computer-implemented method for managing user statuses within an electronic trading system (ETS) to enhance risk mitigation. The method begins with the receipt of electronic messages from a user device linked to an active user, allowing the issuance of electronic orders. A risk mitigation (RM) module evaluates these messages to determine if any breaches of a predetermined threshold occur within a specified rolling time period. If the total number of breaches exceeds a set maximum, the RM module automatically disables the user's status, preventing further electronic orders. This process includes rejecting outstanding orders and canceling pending transactions associated with the user. The RM module can also receive re-enablement requests, count them, and potentially restore the user's active status based on specific conditions, including risk-reset events and the number of requests received.
Further details of the method include the capability of the RM module to track breaches and re-enablement requests, with a rolling time period that can be as short as 100 milliseconds. The RM module increments a breach count each time a breach occurs and activates a counter upon the first breach. The method also allows for generating alerts to notify users of their status changes. Importantly, the re-enabling process is designed to prevent excessive re-enablement requests, thereby avoiding a runaway condition. The claims specify that the user may include various types of traders, such as agency brokers and market makers, and emphasize the importance of monitoring and managing user activity to maintain the integrity of the trading system.
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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.
