A negotiated matching system includes a plurality of remote terminals
associated with respective potential counterparties, a communications
network for permitting communication between the remote terminals, and a
matching station. Each user enters trading information and ranking
information into his or her remote terminal. The matching station then
uses the trading and ranking information from each user to identify
transactions between counterparties that are mutually acceptable based on
the ranking information, thereby matching potential counterparties to a
transaction. Once a match occurs, the potential counterparties transmit
negotiating messages to negotiate some or all terms of the transaction.
Thus, the negotiated matching system first matches potential
counterparties who are acceptable to each other based on trading and
ranking information, and then enables the two counterparties to negotiate
and finalize the terms of a transaction.