WO2000070518A2 - Method and system for anonymously and confidentially matching contraparties to a transaction which results in human negotiation of the final terms of a transaction - Google Patents

Abstract

The present invention relates to a method and system for anonymous and confidential matching of sought indications from potential buyers and sellers allowing human intervention of the matched parties to negotiate the final transaction. Prospective buyers and sellers independently enter the information sought in a central processing system containing specific information on security, price, type of order, duration and other related information. The indications sought are then compared to those already in the system to determine whether the orders on the buyer side and on the seller side are similar enough to create a match. When a match occurs, each party and / or its authorized representative receives contact information for the other party and / or its authorized representative to enable them to meet and negotiate the final transaction.

Description

METHOD AND SYSTEM FOR ANONYMOUSLY AND CONFIDENTIALLY

MATCHING CONTRAP ARTIES TO A TRANSACTION WHICH RESULTS

IN HUMAN NEGOTIATION OF THE FINAL TERMS OF A TRANSACTION

RELATED APPLICATIONS

This application claims the benefit of a provisional application, entitled

"Information Management System for Introducing Securely and Anonymously-

Matched Contra-Parties to a Transaction," which was filed on May 14, 1999, and

assigned Provisional Application Number 60/134,207, which is hereby incoφorated

by reference.

BACKGROUND OF THE INVENTION

Field of the Invention

The present invention relates to an anonymous matching system wherein

potential buyers and potential sellers confidentially enter indications of interest into a

central processing system which matches those indications and then informs the

parties and/or their authorized representatives of the match to allow the parties and/or

their authorized representatives to negotiate a transaction.

Discussion of the Related Art

The volume of securities transactions completed through computerized

crossing networks has grown exponentially in recent years. This growth, fueled in part by the more prevalent use of the Internet by individual investors for buying and

selling securities, and in part by the overall increase in market activity, has resulted in

a variety of different computer systems that anonymously match buyers and sellers to

execute trades. Through several well established trading systems such as the Instinet

Crossing Network (in excess of 35 million shares per day) and POSIT (in excess of 25

million shares per day), investors automatically trade millions of shares on an

anonymous basis each day, and through new companies such as OptiMark, (U.S.

Patent No. 5,689,652 to Lupien et al.), investors have been given new ways to enter

order data and greater flexibility in matching potential buyers with potential sellers.

These systems bring a number of advantages to investors, including the

identification of contraparties and anonymity, but each also contains a common

element: transactions are automatically executed when a match occurs. While this

method of trading works well in most circumstances, it is not the most efficient

method for trading large blocks of securities. These transactions are better handled

through negotiated transactions that allow the parties to account for numerous other

factors that become relevant when buying or selling a large block of securities. None

of the prior art discussed above permits human involvement after a crossing network

matches an order.

Each of these prior art arrangements provides an anonymous order crossing

system that results in an automatic execution that does not allow human intervention

and negotiation once a match occurs. For example, U.S. Patent No. 5,689,652 to

Lupien et al. (the OptiMark System), referred to in the foregoing discussion, allows traders to anonymously input a satisfaction density profile and maximum size limit

which characterizes the trader's degree of satisfaction to trade at any and all prices and

sizes, up to an aggregate limit. The system then matches buyers and sellers at specific

call times throughout the trading day, but results in an automatic execution and does

not allow for human intervention and negotiation before execution. Similarly, U.S.

Patent No. 5,794,207 to Walker et al. involves a method and apparatus for conducting

purchase transactions between buyers and sellers. In this arrangement, a purchase

offer from a prospective buyer automatically binds the buyer to the transaction when

the potential seller accepts the offer.

There is therefore a need for an anonymous matching system that notifies the

parties and/or their representatives of a potential transaction after a match occurs that

allows for human intervention and negotiation prior to execution of the transaction.

SUMMARY OF THE INVENTION

Accordingly, it is an object of the present invention to eliminate the limitations

and disadvantages of the related prior art by permitting human intervention and

negotiation after a computerized anonymous match has occurred.

It is another object of the present invention to preserve the anonymity of

contraparties until after a match has occurred.

It is a further object of the present invention to preserve the confidentiality of

the indications of interest entered by the parties until after a match has occurred. To achieve these and other advantages and in accordance with the purpose of

the present invention, as embodied and broadly described, a method for anonymously

and confidentially identifying contraparties to a transaction and notifying an

authorized representative of the contraparties to contact the contraparties in order to

negotiate a transaction is provided, including the following steps: receiving

indications of interest from potential buyers and potential sellers into a central

processing system, each indication of interest involving a purchase or sale of a

specific item; anonymously comparing indications of interest received from potential

buyers with indications of interest received from potential sellers within the central

processing system to determine whether a match has occurred; identifying

contraparties to a transaction based on said determination of whether a match has

occurred; notifying the authorized representative of the contraparties that a match has

occurred; providing contact information to the authorized representative to allow the

authorized representative to contact the contraparties so that a transaction can be

negotiated between the contraparties; and consummating the transaction between the

contraparties through direct negotiation between the authorized representative and the

contraparties.

In another aspect, a method for anonymously and confidentially identifying

contraparties to a transaction and introducing authorized representatives of each

respective contraparty to each other in order for the authorized representatives to

negotiate a transaction is provided, including the following steps: receiving

indications of interest from potential buyers and potential sellers into a central processing system, each indication of interest involving a purchase or sale of a

specific item; anonymously comparing indications of interest received from potential

buyers with indications of interest from potential sellers within the central processing

system to determine whether a match has occurred; identifying contraparties to a

transaction based on said determination of whether a match has occurred; notifying

the contraparties and their respective authorized representatives that a match has

occurred; providing contact information to each of the authorized representatives to

allow the authorized representatives of the contraparties to contact each other so that a

transaction can be negotiated between the contraparties; and

consummating the transaction between the contraparties through direct negotiation

between the authorized representatives of the contraparties.

In another aspect, a method for anonymously and confidentially identifying

contraparties to a transaction and disclosing contact information of the contraparties

between the contraparties in order to allow them to negotiate a transaction is provided,

including the following steps: receiving indications of interest from potential buyers

and potential sellers into a central processing system, each indication of interest

involving a purchase or sale of a specific item; anonymously comparing indications of

interest received from potential buyers with indications of interest from potential

sellers within the central processing system to determine whether a match has

occurred; identifying contraparties to a transaction based on said determination of

whether a match has occurred; notifying each of the contraparties to a transaction that

a match has occurred; providing contact information to each of the contraparties to a transaction to allow the contraparties to contact each other to negotiate their

transaction; and consummating the transaction between the contraparties through

direct negotiation between the contraparties.

Finally, another aspect of the present invention provides an information

management system for confidentially identifying contraparties to a transaction and

introducing them and/or their agents to each other in order to allow them to negotiate

the transaction, including means for receiving indications of interest from potential

buyers and potential sellers into a central processing system; means for confidentially

and anonymously comparing the received indications of interest from potential buyers

and potential sellers to determine whether a match has occurred, and thus whether

contraparties to a transaction have been identified; and means for informing identified

contraparties that a match has occurred and for providing contact information between

the identified contraparties so that further negotiations may take place between the

contraparties to consummate their mutually desired transaction.

It is to be understood that both the foregoing general description and the

following detailed description are exemplary and explanatory and are intended to

provide further explanation of the invention as claimed.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings, which are included to provide a further

understanding of the invention and are incorporated in and constitute a part of this specification, illustrate embodiments of the invention and together with the

description serve to explain the principles of the invention.

In the drawings:

Fig. 1 is a block diagram of the information management system of a first

embodiment of the instant invention;

Fig. 2 is a flow diagram of the method of the first embodiment of the instant

invention;

Fig. 3 is an illustration of a main summary screen of the first embodiment of

the instant invention that informs a party of various aspects of their current

indications;

Fig. 4 is an illustration of a screen used by a party to add their indications to

the system of the first embodiment of the instant invention;

Fig. 5 is an illustration of a screen used by a party to upload their indications

into the system of the first embodiment of the instant invention;

Fig. 6 is an illustration of a status screen for informing the party whether their

input indications were valid;

Fig. 7 is an illustration of an edit screen for allowing the party to edit their

indications before activating them;

Fig. 8 is an illustration of an alert screen for alerting an account executive of a match; and

Fig. 9 is an illustration of a change settings screen allowing a party to change

their default settings and their password. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Reference will now be made in detail to the preferred embodiments of the

present invention, examples of which are illustrated in the accompanying drawings.

Corresponding elements will be labeled with the same numbers, and a redundant

detailed description will be omitted.

Fig. 1 illustrates a block diagram of the information management system of the

instant invention showing a plurality of remote stations 10 as well as a central

database 100, also referred to as the "vault". This database 100 is preferably a secure,

centralized computer networked facility. This security may be provided through the

use of firewalls, secure socket layers, or weapons grade encryption techniques, for

example. The central database 100 is coupled to each remote station 10 via the

internet, an intranet, wide area network, a third party information carrier (such as

through a Bloomberg terminal), dial in access, a direct connection or other similar

method. The remote stations 10 are used by potential buyers and sellers to enter their

transactional interest indications into the database 100 and to receive alerts from the

system.

Fig. 2 shows a flow diagram of the method of an embodiment of the instant

invention. At step SI, each party enters their respective transactional interest

indications into the database 100 via respective remote stations 10. Once entered into

the database 100, these transactional interests have the potential of being matched

with contra parties to their interests. At step S2, the information management system

men searches the database 100 for a match (also known as a "synapse") between the respective indications that have been entered into the database by various parties in

step SI. If it is determined in step S3 that a synapse has occurred between any of the

entered indications, the contra-parties of the synapse are alerted and the broker of each

contraparty is provided the contact information of the other contra-party' s broker in

step S4. If it is determined in step S3 that no synapse has yet occurred between any of

the entered indications, the flow returns to step S2 to continue to compare entered

indications for a match.

An alternative to the above-described arrangement would simultaneously alert

the matched contra-parties and any authorized representatives or agents of the synapse

along with the associated contact information, or in cases where a contra-party does

not have an authorized representative, to notify and provide contact information only

to the contra-party. Once the matched contra-parties and any authorized

representatives are provided with the associated contact information, negotiation may

commence in step S8. On the other hand, if a determination is made in step S5 that

neither of the matched contra-parties have authorized representatives or agents,

negotiation will commence between only the matched contra-parties in step S6.

Accordingly, only the "interested" parties and/or their respective agents,

representatives, or account executives are notified so that negotiations between the

matched parties can occur. In other words, the transactional interests are matched in

secrecy. The trading details and the fact that a match occurred are not disclosed to

third parties. The matched parties (and/or their respective agents) are then given each

other's contact information according to a prior agreed upon protocol. In a preferred embodiment of the instant invention, a party is only notified that an active contra

party to their transactional interest exists and that negotiations of actual size and price

are to commence.

On the party's main summary screen, as shown in Fig. 3, the status indication

in the status column (ST) will change to "N" to indicate a negotiation phase.

Respective account executives and/or agents are notified that a contra party exists

with a pop-up alert screen, as shown in Fig. 8, if they are to be involved in the

particular transaction. This alert provides the account executive with their customer's

identifier, the side, the ticker symbol and the customer identifier of the contra party.

The account executives, agents and matched parties are then able to contact each other

and negotiate the final details of their transaction.

In a first embodiment of the instant invention, a party enters a secure web site

with a user name and password via an Internet browser. Once in the system, the main

screen displays that particular party's currently stored trading indication information,

as shown in Fig. 3. This screen is also referred to as the system blotter screen. The

embodiment shown in Fig. 3 is directed to a system for trading equity securities. This

screen displays the status (ST) of each indication of that party, its side (for example,

whether the party is a buyer or seller), the minimum amount of the shares for sale or

purchase (MIN), a ticker symbol (TKR), a company name (SECURITY), an

acceptable price range (PRX MTR), cancel time (the time that the indication of

interest will expire) (EXPIRES), and a time stamp (TSTAMP). The possible status indications (ST) that may appear in the second column of Fig. 3 are as shown in the

following chart.

From the main summary screen shown in Fig. 3 a party can enter, activate,

edit, or delete any of their stored indications.

The respective indications of interest of each party can be entered into the

database 100 of the information management system in a variety of ways. For

example, the individual indications can be entered from a standard web based front-

end application. By clicking the ADD button on the blotter screen of Fig. 3, the

screen shown in Fig. 4 will be displayed to the party so that their indications can be

entered to the system. This standard web application can also be used to load lists of

the party's indications. To make the system as easy as possible to use, the indication

iequirements of the system may be directly integrated with one or more of any of the

available buy side order management systems (OMS) including the MacGregor

Group's Preditor System, the Landmark's Longview System, and the Merrin Financial Group's Windows and Order Management Systems. The party can

highlight indications of interest by pointing and clicking on the OMS's blotter and

creating an export file to send and upload orders directly to the information

management system of the instant invention via the Financial Information Exchange

(F.I.X.) protocol. This F.I.X. protocol is an industry standard protocol being used for

the electronic delivery of indications of interest, orders, execution reports, and

allocations.

Using the standard web based front-end application referred to above, the

party selects the NEW button on the summary screen and the screen shown in Fig. 4

appears. This screen includes the following headers: Side, Security, Prx Mtr, and TIF.

The party is only required to fill in their side and security indications. However, the

party can also enter a limit price into the price monitor column (Prx Mtr). This is the

limit price where the indication becomes suspended.

The party may also enter a time-in-force restriction (TIF). This is the time that their

indication will expire. When the entry of these indications to this screen is completed,

the party selects a SUBMIT button displayed on the screen to enter the indications

into the information management system with a PENDING status.

It is possible for the party to enter a list of their indications for one or more

desired transactions from the standard web application into the system database 100.

To do this, the party selects the UPLOAD button of the web application. The screen

shown in Fig. 5 will then be displayed by the information management system. This

screen allows the party to input a list of securities for entry into the system database 100. Alternatively, the party can specify a file name and path for automatic upload

into the system database 100. The party can also CUT data from any available

software packages such as Excel, Word, Notepad, etc., for example. Once this data is

CUT, it can be pasted using the PASTE feature of these packages directly into the File

Upload Screen of the information management system of the instant invention that is

shown in Fig. 5.

Once the list containing the party's indication information is entered to the

File Upload Screen, the party selects the SUBMIT button on that screen to submit the

indication information to the system database 100. The system will validate any input

ticker symbols and will display the screen shown in Fig. 6 if an invalid ticker symbol

is detected. Once the indication information has been stored in the system database

100, the party's main summary screen shown in Fig. 3 is once again displayed to the

party. The summary screen now displays the minimum size required for submission.

The party may now select any of their stored indications that they wish to activate and

then select the displayed ACTIVATE button on the summary screen. The system

then displays the screen shown in Fig. 7 that allows the party to edit any of their

indications to be activated. It also displays the minimum share amount, for example,

for trading.

When the party selects the SUBMIT AND ACTIVATE ALL button displayed

on the screen shown in Fig. 7, the orders are sent to the system database 100 and the

status for those particular indications are changed to ACTIVE ("A"). Once active in

the database 100, the information management system searches other stored indication information in the database 100 for contra matches of order requests. For example,

the database searches for a buyer's indication information that will match the

indication details of a particular seller. More particularly, the search algorithm of an

embodiment of the instant invention operates as follows. When a new indication

enters the information management system, the system searches all ACTIVE ("A")

indications for a match. All contra indications are notified simultaneously regardless

of the time entered. In this embodiment, sizes and prices are not entered by the

parties, except for limit prices for cancellation. If an order exceeds its limit, it is

assigned a status of MONITOR ("M") and is not eligible for matching. There is no

hierarchy for the match. All parties are treated equally in that respect.

The parties with matched transactional indication interests are termed "contra¬

parties" or "contra-side parties", meaning a buyer for a seller or a seller for a buyer,

for example. Once this match occurs, the information management system alerts the

contra-parties and/or their respective account executives (AE's) and agents. On each

of the contra parties summary screens, the status of that particular matched indication

will change to NEGOTIATE ("N"). If account executives are to be alerted, they will

receive the alert screen shown in Fig. 8 and will be prompted to acknowledge the

match by selecting the displayed "ACKNOWLEDGE" button.

Fig. 9 shows an optional screen for the information management system that

allows a party to change their default settings for price amount and indication

expiration time. The screen also allows a party to change their password used to

access the system. Accordingly, the information management system of the instant invention

overcomes many of the problems and inefficiencies of prior information management

systems by providing a confidential, secure system for finding, matching and alerting

qualified contra parties to a mutually desired negotiation. The system of the instant

invention is not an execution system as discussed in the Background of the Invention

above. Instead, it is an information management system that utilizes a combination of

computer mediated information management and secure network communications to

provide a new way to identify and bring together parties interested in negotiating a

transaction while at the same time protecting their transactional interests before a

contra side to their interest is identified.

The system of the instant invention identifies the contra parties to a

negotiation in a completely confidential environment. The contra parties are

introduced to each other so that they, along with their agents if desired, can negotiate

to consummate the deal in a completely confidential environment without third parties

being aware of their dealings or even their initial transactional indication requests.

In accordance with the principles of the instant invention, no information

concerning either party's trading indications is revealed until there is a synapse in the

system between qualified contra parties. While multiple parties may be entering

transactional information at any time, none of the individual entries will be publicly

broadcast. Instead, the secure central database station compares the entries to find a

synapse between a buyer and a seller of the same item. The station may also look to

find more than one of either the synapse or the coincidence event. In one embodiment of the instant invention, upon the occurrence of a synapse,

all matched buyers and sellers are simultaneously informed that a synapse has

occurred. The notice provided by the instant invention presents the opportunity to

negotiate for the transfer of a larger number of shares, at the same or a different price,

again as a private matter between or among the parties involved.

It will be apparent to those skilled in the art that various modifications and

variations can be made in the improved promotional financial transaction machine

method of the present invention without departing from the spirit or scope of the

invention.

For example, a pre-qualification step may be added that requires all parties to

make a miriimum firm commitment or good faith deposit prior to being allowed to

enter a transactional interest into the system. This may, for example, entail a non-

performance penalty bond or earnest money deposit which shall go to the contra party

to a synapse if the other party fails to perform after a synapse occurs. This step would

help to keep non-interested information seekers away from the system and to assure

that each contra party is a natural contra party to the transaction to be negotiated.

Moreover, while the above described embodiment sets forth an Internet-based

information management system, the communications link can be of any variety that

would be known to the artisan including a direct wire installation.

While the above described embodiment describes a system using securities as

the item of transactional interest, the artisan will appreciate that the concepts of the

instant invention disclosed above are also applicable to a wide variety of applications where a buyer and seller wish to be introduced so that they may enter into

negotiations with each other. Such areas include real estate, wholesaling, corporate

purchasing, fine art, collectibles, stamps, coins, bullion, antiques, automobiles, other

types of financial securities, commodities, and derivatives, for example.

Thus, it is intended that the present invention cover the modifications and

variations of this invention provided they come within the scope of the appended

claims and their equivalents.

Claims

What Is Claimed Is:

1. A method for anonymously and confidentially identifying contraparties

to a transaction and notifying an authorized representative of the contraparties to

contact the contraparties in order to negotiate a transaction, comprising the steps of:

receiving indications of interest from potential buyers and potential sellers into

a central processing system, each indication of interest involving a purchase or sale of

a specific item;

anonymously comparing indications of interest received from potential buyers

with indications of interest received from potential sellers within the central

processing system to determine whether a match has occurred;

identifying contraparties to a transaction based on said determination of

whether a match has occurred;

notifying the authorized representative of the contraparties that a match has

occurred;

providing contact information to the authorized representative to allow the

authorized representative to contact the contraparties so that a transaction can be

negotiated between the contraparties; and

consummating the transaction between the contraparties through direct

negotiation between the authorized representative and the contraparties.

2. The method of claim 1, wherein at least one of the received indications

of interest involves the purchase or sale of an equity security.

3. The method of claim 1, wherein at least one of the received indications

f interest involves the purchase or sale of a debt security.

4. The method of claim 1, wherein at least one of the received indications

of interest involves the purchase or sale of a derivative security.

5. The method of claim 1, wherein at least one of the received indications

of interest contains a limit as to the acceptable price per unit of the specific item that

is the subject of its associated transaction.

6. The method of claim 1, wherein at least one of the received indications

of interest contains a limit as to the minimum acceptable total value of its associated

transaction.

7. The method of claim 1, wherein at least one of the received indications

of interest contains a limit as to the minimum acceptable number of units to be

purchased or sold in connection with a transaction.

8. The method of claim 1, wherein at least one of the received indications

of interest includes ancillary information not used in determining whether a match has occurred in said comparing step but which is transmitted to a matched contraparty

during said consummating the transaction step to assist in negotiations between the

contraparties.

9. The method of claim 5, wherein a match between a potential buyer and

a potential seller is not determined to have occurred in said comparing step unless any

price per unit limits established by each of the potential buyer and the potential seller

are satisfied.

10. The method of claim 6, wherein a match between a potential buyer and

a potential seller is not determined to have occurred in said comparing step unless any

miriimum acceptable total values of the transaction established by each of the

potential buyer and the potential seller, respectively, are satisfied.

11. The method of claim 7, wherein a match between a potential buyer and

a potential seller is not determined to have occurred in said comparing step unless any

..linimum acceptable number of units established by each of the potential buyer and

the potential seller, respectively, is satisfied.

12. The method of claim 1, wherein said providing step also includes

providing contact information directly to the contraparties.

13. The method of claim 1 , wherein a match is not determined to have

occurred between a potential buyer and a potential seller in said comparing step unless

all input fields making up the indication of interest entered by the potential buyer

matches all input fields making up the indication of interest entered by the potential

seller.

14. The method of claim 1, wherein a match is determined to have

occurred between a potential buyer and a potential seller in said comparing step even

though all input fields making up the indication of interest entered by the potential

buyer do not match all input fields making up the indication of interest entered by the

potential seller.

15. The method of claim 1 , wherein an indication of interest from a

potential buyer is not received into the central processing system unless the potential

buyer makes a good faith deposit.

16. The method of claim 1, wherein an indication of interest from a

potential seller is not received into the central processing system unless the potential

i-eller makes a minimum firm commitment.

17. The method of claim 1, further comprising the step of reporting the

consummation and terms of the transaction to the central processing system.

18. A method for anonymously and confidentially identifying contraparties

l a transaction and introducing authorized representatives of each respective

contraparty to each other in order for the authorized representatives to negotiate a

transaction, comprising the steps of:

receiving indications of interest from potential buyers and potential sellers into

a central processing system, each indication of interest involving a purchase or sale of

a specific item;

anonymously comparing indications of interest received from potential buyers

with indications of interest from potential sellers within the central processing system

to determine whether a match has occurred;

identifying contraparties to a transaction based on said determination of

whether a match has occurred;

notifying the contraparties and their respective authorized representatives that

a match has occurred;

providing contact information to each of the authorized representatives to

allow the authorized representatives of the contraparties to contact each other so that a

transaction can be negotiated between the contraparties; and

consummating the transaction between the contraparties through direct

negotiation between the authorized representatives of the contraparties.

19. The method of claim 18, wherein at least one of the received

indications of interest involves the purchase or sale of an equity security.

20. The method of claim 18, wherein at least one of the received

indications of interest involves the purchase or sale of a debt security.

21. The method of claim 18, wherein at least one of the received

indications of interest involves the purchase or sale of a derivative security.

22. The method of claim 18, wherein at least one of the received

indications of interest contains a limit as to the acceptable price per unit of the specific

item that is the subject of its associated transaction.

23. The method of claim 18, wherein at least one of the received

indications of interest contains a limit as to the minimum acceptable total value of its

associated transaction.

24. The method of claim 18, at least one of the received indications of

interest contains a limit as to the minimum acceptable number of units to be

purchased or sold in connection with a transaction.

25. The method of claim 18, wherein at least one of the received

indications of interest includes ancillary information not used in determining whether a match has occurred in said comparing step but which is transmitted to the authorized

representatives during said consummating the transaction step to assist in negotiations

between the contraparties.

26. The method of claim 22, wherein a match between a potential buyer

and a potential seller is not determined to have occurred in said comparing step unless

any price per unit limits established by each of the potential buyer and the potential

seller are satisfied.

27. The method of claim 23, wherein a match between a potential buyer

and a potential seller is not determined to have occurred in said comparing step unless

any minimum acceptable total values of the transaction established by each of the

potential buyer and the potential seller, respectively, are satisfied.

28. The method of claim 24, wherein a match between a potential buyer

and a potential seller is not determined to have occurred in said comparing step unless

any minimum acceptable number of units established by each of the potential buyer

and the potential seller, respectively, is satisfied.

29. The method of claim 18, wherein contact information for the

authorized representatives are also disclosed directly to the respective contraparties in

said providing step.

30. The method of claim 18, wherein a match is not determined to have

occurred between a potential buyer and a potential seller in said comparing step unless

all input fields making up the indication of interest entered by the potential buyer

matches all input fields making up the indication of interest entered by the potential

seller.

31. The method of claim 18, wherein a match is determined to have

occurred between a potential buyer and a potential seller in said comparing step even

though all input fields making up the indication of interest entered by the potential

buyer do not match all input fields making up the indication of interest entered by the

potential seller.

32. The method of claim 18, wherein an indication of interest from a

potential buyer is not received into the central processing system unless the potential

buyer makes a good faith deposit.

33. The method of claim 18, wherein an indication of interest from a

potential seller is not received into the central processing system unless the potential

: slier makes a minimum firm commitment.

34. The method of claim 18, further comprising the step of reporting the

consummation and terms of the transaction to the central processing system.

35. A method for anonymously and confidentially identifying contraparties

to a transaction and disclosing contact information of the contraparties between the

contraparties in order to allow them to negotiate a transaction, comprising the steps

of:

receiving indications of interest from potential buyers and potential sellers into

a central processing system, each indication of interest involving a purchase or sale of

a specific item;

anonymously comparing indications of interest received from potential buyers

with indications of interest from potential sellers within the central processing system

determine whether a match has occurred;

identifying contraparties to a transaction based on said determination of

whether a match has occurred;

notifying each of the contraparties to a transaction that a match has occurred;

providing contact information to each of the contraparties to a transaction to

allow the contraparties to contact each other to negotiate their transaction; and

consummating the transaction between the contraparties through direct

negotiation between the contraparties.

36. The method of claim 35, wherein at least one of the received

indications of interest involves the purchase or sale of an equity security.

37. The method of claim 35, wherein at least one of the received

indications of interest involves the purchase or sale of a debt security.

38. The method of claim 35, wherein at least one of the received

indications of interest involves the purchase or sale of a derivative security.

39. The method of claim 35, wherein at least one of the received

indications of interest contains a limit as to the acceptable price per unit of the specific

item that is the subject of its associated transaction.

40. The method of claim 35, wherein at least one of the received

indications of interest contains a limit as to the minimum acceptable total value of its

associated transaction.

41. The method of claim 35 , wherein at least one of the received

indications of interest contains a limit as to the minimum acceptable number of units

to be purchased or sold in connection with a transaction.

42. The method of claim 35, wherein at least one of the received

indications of interest includes ancillary information not used in determining whether

a match has occurred in said comparing step but which is transmitted to a matched

contraparty during said consummating the transaction step to assist in negotiations

between the contraparties.

43. The method of claim 39, wherein a match between a potential buyer

and a potential seller is not determined to have occurred in said comparing step unless

?. ny price per unit limits established by each of the potential buyer and the potential

seller are satisfied.

44. The method of claim 40, wherein a match between a potential buyer

and a potential seller is not determined to have occurred in said comparing step unless

any minimum acceptable total values of the transaction established by each of the

potential buyer and the potential seller, respectively, are satisfied.

45. The method of claim 41 , wherein a match between a potential buyer

and a potential seller is not determined to have occurred in said comparing step unless

any minimum acceptable number of units established by each of the potential buyer

and the potential seller, respectively, is satisfied.

46. The method of claim 35, wherein a match is not determined to have

occurred between a potential buyer and a potential seller in said comparing step unless

all input fields making up the indication of interest entered by the potential buyer

matches all input fields making up the indication of interest entered by the potential

seller.

47. The method of claim 35, wherein a match is determined to have

occuπed between a potential buyer and a potential seller in said comparing step even

though all input fields making up the indication of interest entered by the potential

buyer do not match all input fields making up the indication of interest entered by the

potential seller.

48. The method of claim 35 , wherein an indication of interest from a

potential buyer is not received into the central processing system unless the potential

buyer makes a good faith deposit.

49. The method of claim 35, wherein an indication of interest from a

potential seller is not received into the central processing system unless the potential

seller makes a minimum firm commitment.

50. The method of claim 35, further comprising the step of reporting the

consummation and terms of the transaction to the central processing system.

51. An information management system for confidentially identifying

contraparties to a transaction and introducing them and/or their agents to each other in

order to allow them to negotiate the transaction, consisting of:

means for receiving indications of interest from potential buyers and potential

sellers into a central processing system;

means for confidentially and anonymously comparing the received indications

of interest from potential buyers and potential sellers to determine whether a match

has occurred, and thus whether contraparties to a transaction have been identified; and

means for informing identified contraparties that a match has occuπed and for

providing contact information between the identified contraparties so that further

negotiations may take place between the contraparties to consummate their mutually

desired transaction.