TRADING RELATED TO FUND COMPOSITIONS

摘要

An electronic marketplace uses a fund composition to guide trading opportunities. Mutual funds typically have a target composition of financial instruments. When prices change for constituents of such a mutual fund, the fund typically needs to rebalance in order to maintain a desired composition. A marketplace that understands the target composition and the movement in prices targets trading opportunities to a fund in a more tailored manner than a traditional marketplace.

主权项

1. A method comprising:
receiving, by an electronic marketplace, an indication of a composition of an investment fund, in which the composition includes a plurality of financial instruments that the fund targets for ownership and respective percentages of the composition that the fund targets for ownership in each financial instrument; receiving, by the marketplace, an indication of an order, in which the order defines a side of a trade for a financial instrument; determining, by the marketplace, that the financial instrument is part of the composition of the fund based on the received indication of the composition; determining, by the marketplace, a change in price of the financial instrument that includes an increase or decrease in the price of the financial instrument; based on the determination of the change in price of the financial instrument and the determination that the financial instrument is part of the composition of the fund, transmitting, by the marketplace to an electronic device of the fund, a query asking if an offer to enter into a trade that fulfills at least a portion of the order is accepted; determining that the offer to enter into the trade is accepted based on a matching order to the order being in an order management system associated with the fund; and facilitating an execution of the trade without a negotiation about a price of the trade and a quantity of financial instruments in response to the determination that the offer is accepted.