System and method for coordinating automated and semi-automated trading tools

• US 10,078,869 B2
• Filed: 05/14/2012
• Issued: 09/18/2018
• Est. Priority Date: 12/30/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Singer, Scott F., Musgrave, Mark A., Burns, Michael J.
• Primary Examiner(s): Shrestha, Bijendra K
• Application Number:
  US13/471,352
• Publication Number:
  US 20120239546A1
• Time in Patent Office: 2,318 Days
• Field of Search: 705 35, 705 36 R, 705 37, 705 38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

The present embodiments include methods, systems, and computer program products that provide tools for use in any type of electronic trading environment. In one aspect, leaning manager includes software that can be implemented on any type of computer device for tracking and/or coordinating the buying and selling of available market quantities by multiple automated or semi-automated trading tools. For instance, if more than one automated or semi-automated trading tool is leaning on the same tradable object then the leaning manager may track and/or coordinate such action. The trading tools can use the tracked information and/or the allocated quantities and their prices to enhance their trading strategies.

Claims

1. A method for coordinating and managing shared resources utilization by multiple trading sessions of a plurality of trading strategies in an electronic trading environment, comprising:

receiving, by a computer device, market information including an available quantity of a first tradeable object, wherein the market information is received from an electronic exchange, and wherein the available quantity reflects the quantity of the first tradeable object available at a plurality of price levels;

populating, by the computer device, a market information table, wherein populating the market information table comprises including the available quantity, wherein the available quantity is stored at each respective price level of the plurality of price levels;

receiving, by the computer device, a first reservation request from a first trading session, wherein the first reservation request specifies a first lean quantity of the first tradeable object, wherein the first trading session is associated with a first trading strategy comprising a first tradeable object and a second tradeable object, wherein the first trading strategy leans on the first tradeable object and determines a price for an order to buy or sell the second tradeable object based on a lean price available for the first tradeable object;

allocating, by the computer device, a first portion of the available quantity stored in the market information table equal to the first lean quantity associated with the first trading session of the first trading strategy, wherein the first portion corresponds to a first price;

updating, by the computer device, the market information table, wherein updating the market information table comprises (i) indicating in the market information table the first portion of the available quantity at the first price level, and (ii) indicating in the market information table an identifier associated with the first trading session to which the first portion of the available quantity was allocated, to reflect the allocation of the first portion of the available quantity at the first price level to the first trading session;

generating, by the computer device, the order for the second tradeable object based on a first definition for the first trading strategy, wherein the second trading strategy determines the price for the order to buy or sell the second tradeable object using the first price as the lean price for the first tradeable object;

sending, by the computer device, the generated order for the second tradeable object over a computer network to an electronic exchange at which the second tradeable object is traded;

receiving, by the computer device, a second reservation request from a second trading session, wherein the second reservation request is received after the first reservation request, wherein the second reservation request specifies a second lean quantity of the first tradeable object, wherein the second trading session is associated with a second trading strategy comprising the first tradeable object and a third tradeable object, wherein the second trading strategy leans on the first tradeable object and determines a price for an order to buy or sell the third tradeable object based on a lean price available for the first tradeable object also leaned on by the first trading session associated with the first trading strategy;

allocating, by the computer device, a second portion of the updated available quantity stored in the market information table equal to the second lean quantity associated with the second trading session of the second trading strategy, wherein the second portion corresponds to a second price and accounts for the first portion of the available quantity at the first price allocated to the first trading session based on the first reservation request recorded in the market information table, wherein accounting for the first portion of the available quantity at the first price already allocated to the first trading session results in preventing the second trading strategy from leaning on the first portion of the available quantity already allocated to the first trading session of the first trading strategy; and

updating, by the computer device, the market information table, wherein updating the market information table comprises (i) indicating in the market information table the second portion of the available quantity at the second price level, and (ii) indicating in the market information table an identifier associated with the second trading session to which the second portion of the available quantity was allocated, to reflect the allocation of the second portion of the available quantity at the second price level to the second trading session;

generating, by the computer device, the order for the third tradeable object based on a second definition of the second trading strategy, wherein the second trading strategy determines the price for the order to buy or sell the third tradeable object using the second price as the lean price for the first tradeable object; and

sending, by the computer device, the generated order for the third tradeable object over a computer network to an electronic exchange at which the third tradeable object is traded.

2. The method of claim 1, wherein the first trading strategy and the second trading strategy are implemented by a common trading tool.

3. The method of claim 1, wherein the first trading strategy is implemented by a first trading tool and the second trading strategy is implemented by a second trading tool.

4. The method of claim 1, wherein the second tradeable object and the third tradeable object are the same tradeable object.

5. The method of claim 1, wherein the second tradeable object and the third tradeable object are different tradeable objects.

6. The method of claim 1, further comprising:

determining, by the computer device, the allocation of the first and second portions based on a pro-rata allocation scheme.

7. The method of claim 1, further comprising:

determining, by the computer device, the allocation of first and second portions allocation based on a first-in, first-out allocation scheme.

8. The method of claim 1, further comprising:

determining, by the computer device, an update to the first price and the second price in response to a detected predetermined event.

9. The method of claim 8, wherein the predetermined event is based on an update to the market information for the tradeable object received from the electronic exchange.

10. The method of claim 8, wherein the predetermined event comprises a priority based event associated with at least one of the first trading strategy, the second trading strategy, and a third trading strategy.

11. The method of claim 1, further comprising:

providing, by the computer device, the first price for the allocated first portion of the available quantity to the first trading strategy.

12. The method of claim 1, further comprising:

providing, by the computer device, the second price for the allocated second portion of the available quantity to the second trading strategy.

13. The method of claim 1, wherein the second portion includes a third portion from a second available quantity.

14. The method of claim 13, wherein the second price is a weighted average price.