Systems and methods for linking orders in electronic trading systems

• US 10,055,787 B2
• Filed: 10/21/2010
• Issued: 08/21/2018
• Est. Priority Date: 08/03/1999
• Status: Expired due to Term

• Current Assignee: BGC Partners LP (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Woodmansey, Robert J., Ginsberg, Philip N., Kirwin, Glenn D.
• Primary Examiner(s): Maguire, Lindsay M
• Application Number:
  US12/909,728
• Publication Number:
  US 20110040673A1
• Time in Patent Office: 2,861 Days
• Field of Search: 705 35- 45
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Systems and methods for linking orders in electronic trading systems are provided. These systems and methods enable a trader to select two or more items that are to be linked and specify linking parameters for those items. Any desired set of items may be linked, and the linking parameters may include price adjustments, order sequencing instructions, automatic/manual execution controls, execution delays commands, and update frequency limits. Upon detecting a bid or offer for a linked item, the systems and methods may then determine a size and a price for each linked item based upon the size and the price of the bid or offer for the first linked item. In this way, the sizes and the prices for the other linked items may be propagated from the size and the price for the first item. Once the size and the price for each item is determined, the systems and methods may submit orders for the items in accordance with the linking parameters. In the case where orders for linked items may only be submitted in designated lot sizes, the systems and methods may round the sizes of the orders to the designated lot sizes, and then submit remainder orders to make up for the rounding.

Claims

1. A method for facilitating electronic trading with interfaces of workstations of traders over a communication network, the method, comprising:

transmitting, by a computing device, data representing a plurality of financial instruments to be displayed on a display screen of an interface of a workstation of a trader;

receiving, by a computing device, from the interface of the workstation of the trader, data representing a selection of a first financial instrument from the plurality of financial instruments, wherein the first financial instrument is transacted in a first market;

receiving, by the computing device, from the interface of the workstation of the trader, data representing a selection of a second financial instrument from the plurality of financial instruments, wherein the second financial instrument is transacted in a second market, wherein the first financial instrument is different from the second financial instrument, and wherein the first financial instrument is to be linked to the second financial instrument;

transmitting, by the computing device, data representing a plurality of linking relationships to be displayed on a display screen of the interface of the workstation of the trader, wherein the data representing the plurality of linking relationships represents the first financial instrument and the second financial instrument;

after transmitting the data for displaying, receiving, by the computing device, from the interface of the workstation of the trader, a selection, from the plurality of linking relationships, a linking relationship between the first financial instrument and the second financial instrument;

monitoring, by the computing device, data representing bids and offers from at least one external electronic trading system, wherein the bids and offers comprise bids and offers for the first financial instruments and the second financial instrument;

ranking and sorting, by the computing device, in a queue data structure in a memory of the computing device, the data representing the bids and offers for the first financial instruments and the second financial instrument;

in response to determining to submit an order to an external trading system, generate electronic signals representing lock commands that are transmitted to the external trading system to cause to lock the electronic trading system for a time period to allow orders for linked instruments to be submitted without interference from external sources in response a new bid or offer;

controlling, by the computing device, a submission of orders for the second financial instrument based at least in part on the linking relationship, wherein controlling the submission of orders for the second financial instrument comprises;

generating, by the computing device, a price of an order for the second financial instrument and a size of the order for the second financial instrument based at least in part on the linking relationship; and

submitting, by the computing device, the order for the second financial instrument to a second electronic trading system; and

wherein controlling the submission of orders for the second financial instrument based at least in part on the linking relationship further comprises;

limiting, by the computing device, order updates for the second financial instrument based at least in part on the linking relationship; and

performing, by the computing device, based at least in part on the linking relationship, at least one of the following;

adjusting the price of the second financial instrument relative to a market value for the second financial instrument;

sequencing the submission of orders for the second financial instrument relative to a submission of orders for the first financial instrument; and

holding orders for the second financial instrument for a time period.

2. The method of claim 1, further comprising:

determining, by the computing device, one or more financial instruments to which the first instrument can be linked, wherein the one or more financial instruments comprises the second financial instrument;

causing, by the computing device, the one or more financial instruments to be displayed at an interface at a workstation; and

wherein receiving, from the trader, the selection of the second financial instrument comprises;

after causing the one or more financial instruments to be displayed, receiving, by the computing device, from the trader, the selection of the second financial instrument.

3. The method of claim 1, wherein the computing device comprises at least one of:

a workstation used by the trader;

an electronic trading system configured to rank and store bid and offers for instruments in a queue; and

a device that facilitates communication between the trader and an external trading system.

4. The method of claim 1, wherein the first market comprises a cash market and the second market comprises a futures market;

and

wherein the first financial instrument comprises a bond and the second financial instrument comprises a corresponding futures contract for the bond.

5. The method of claim 1, wherein the first market and the second market are the same market;

wherein the first financial instrument comprises a first bond and the second financial instrument comprises a second bond.

6. The method of claim 1, wherein the first market and the second market are the same market;

wherein the first financial instrument comprises a first futures contract and the second financial instrument comprises a second futures contract.

7. The method of claim 1, wherein the second financial instrument comprises a derivative of the first financial instrument.

8. The method of claim 1, wherein the first financial instrument comprises a derivative of the second financial instrument.

9. The method of claim 1, wherein the at least one external trading system comprises the second trading system.

10. The method of claim 1, wherein the at least one external trading system and the second trading system are different trading systems.

11. The method of claim 1, further comprising:

receiving, by the computing device, from the trader, a selection of a trigger event.

12. The method of claim 11, further comprising:

receiving data;

monitoring, by the computing device, the data;

determining, by the computing device, based at least in part on the data, that the trigger event has occurred.

13. The method of claim 12, further comprising:

in response to determining that the trigger event has occurred, linking, by the computing device, the first financial instrument and the second financial instrument together.

14. The method of claim 1, wherein controlling the submission of orders for the second financial instrument comprises:

controlling, by the computing device, the submission of orders for the second financial instrument based at least in part on the linking relationship based at least in part on a trader-selected trigger event having occurred.

15. The method of claim 1, further comprising:

determining, by the computing device, that an event has occurred.

16. The method of claim 15, wherein the event comprises a trader-selected trigger event.

17. The method of claim 15, wherein the event comprises at least one of:

the first financial instrument attaining at least one of;

a particular market price, a particular market size, and a particular market yield;

the second financial instrument attaining at least one of;

a particular market price, a particular market size, and a particular market yield;

the first financial instrument together and the second financial instrument attaining at least one of the following with respect to one another;

a particular subtractive difference in at least one of;

market price, market size, and market yield;

a particular ratio in at least one of;

market price, market size, and market yield;

a particular average in at least one of;

market price, market size, and market yield;

a market index attaining a particular market value;

a particular date having occurred;

a particular business transaction having closed; and

a third financial instrument having attained at least one of;

a particular market price, a particular market size, and a particular market yield;

wherein the third financial instrument is different from the first financial instrument and the second financial instrument.

18. The method of claim 15, wherein controlling the submission of orders for the second financial instrument comprises:

after determining that the event has occurred, controlling, by the computing device, the submission of orders for the second financial instrument based at least in part on the linking relationship.

19. A method for facilitating electronic trading with interfaces of workstations of traders over a communication network, the method comprising:

transmitting, by a computing device, data representing a plurality of financial instruments to be displayed on a first display screen of an interface of a workstation of a trader;

receiving, by the computing device, from the interface of the workstation of the trader, data representing a selection of a first financial instrument from the plurality of financial instruments, wherein the first financial instrument is transacted in a first market;

receiving, by the computing device, from the interface of the workstation of the trader, data representing a selection of a second financial instrument from the plurality of financial instruments, wherein the second financial instrument is transacted in a second market, wherein the first financial instrument is different from the second financial instrument, and wherein the first financial instrument is to be linked to the second financial instrument;

transmitting, by the computing device, data representing a plurality of linking relationships to be displayed on a second display screen of the interface of the workstation of the trader, wherein the data representing the plurality of linking relationships represents the first financial instrument and the second financial instrument;

receiving, by the computing device, from the interface of the workstation of the trader, data representing a selection of a linking relationship between the first financial instrument and the second financial instrument;

monitoring, by the computing device, data representing bids and offers from at least one external interface of an electronic trading system, wherein the bids and offers comprise bids and offers for the first financial instrument and the second financial instrument;

ranking and sorting, by the computing device, in a queue data structure in a memory of the computing device of the electronic trading system, the data representing the bids and offers for the first financial instruments and the second financial instrument;

controlling, by the computing device, a submission of data representing orders for the second financial instrument based at least in part on the linking relationship, wherein controlling the submission of orders for the second financial instrument comprises;

generating, by the computing device, a price of an order for the second financial instrument and a size of the order for the second financial instrument based at least in part on the linking relationship;

in response to determining to submit an order to an external trading system, generate electronic signals representing lock commands that are transmitted to the external trading system to cause to lock the electronic trading system for a time period to allow orders for linked instruments to be submitted without interference from external sources in response a new bid or offer;

submitting, by the computing device, data representing the order for the second financial instrument to an interface of a second electronic trading system; and

limiting, by the computing device, order updates for the second financial instrument based at least in part on the linking relationship.

20. An apparatus for facilitating electronic trading with interfaces of workstations of traders over a communication network, the apparatus comprising:

a processor; and

a non-transitory memory, wherein the non-transitory memory stores instructions which, when executed by the processor, direct the processor to;

transmit, by a computing device, data representing a plurality of financial instruments to be displayed on a display screen of an interface of a workstation of a trader;

receive, by a computing device, from the interface of the workstation of the trader, data representing a selection of a first financial instrument from the plurality of financial instruments, wherein the first financial instrument is transacted in a first market;

receive, by the computing device, from the interface of the workstation of the trader, data representing a selection of a second financial instrument from the plurality of financial instruments, wherein the second financial instrument is transacted in a second market of an electronic trading system, wherein the first financial instrument is different from the second financial instrument, and wherein the first financial instrument is to be linked to the second financial instrument;

transmit, by the computing device, data representing a plurality of linking relationships to be displayed on a display screen of the interface of the workstation of the trader, wherein the data representing the plurality of linking relationships represents the first financial instrument and the second financial instrument;

after transmitting the data for displaying, receive, by the computing device, from the interface of the workstation of the trader, a selection, from the plurality of linking relationships, a linking relationship between the first financial instrument and the second financial instrument;

monitor, by the computing device, data representing bids and offers from at least one external electronic trading system, wherein the bids and offers comprise bids and offers for the first financial instruments and the second financial instrument;

rank and sort, by the computing device, in a queue data structure in a memory of the computing device, the data representing the bids and offers for the first financial instruments and the second financial instrument;

in response to determining to submit an order to an external trading system, generate electronic signals representing lock commands that are transmitted to the external trading system to cause to lock the electronic trading system for a time period to allow orders for linked instruments to be submitted without interference from external sources in response a new bid or offer;

control, by the computing device, a submission of orders for the second financial instrument based at least in part on the linking relationship, wherein controlling the submission of orders for the second financial instrument comprises;

generate, by the computing device, a price of an order for the second financial instrument and a size of the order for the second financial instrument based at least in part on the linking relationship; and

submit, by the computing device, the order for the second financial instrument to a second electronic trading system; and

wherein controlling the submission of orders for the second financial instrument based at least in part on the linking relationship further comprises;

limit by the computing, order updates for the second financial instrument based at least in part on the linking relationship; and

perform, by the computing, based at least in part on the linking relationship, at least one of the following;

 

adjust the price of the second financial instrument relative to a market value for the second financial instrument;

 

sequence the submission of orders for the second financial instrument relative to a submission of orders for the first financial instrument; and

 

hold orders for the second financial instrument for a time period.