Trading circles

• US 10,102,576 B2
• Filed: 06/25/2014
• Issued: 10/16/2018
• Est. Priority Date: 03/15/2013
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Lane, Richard, Weiss, Thomas Jeffrey, Woo, Thurston, Shaffer, Jason, Buck, Brian J., Unetich, Michael, Mintz, Sagy Pundak
• Primary Examiner(s): Madamba, Clifford B
• Application Number:
  US14/314,427
• Publication Number:
  US 20150019399A1
• Time in Patent Office: 1,574 Days
• Field of Search: 705 37
• 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 disclosed embodiments provide trading circles. An example method includes defining a group having a plurality of members, wherein one or more of the plurality of members interacts with an exchange that facilitates market transactions; detecting a first interaction of a first group member with the exchange; and communicating, in response to detecting the first interaction, data related to the first interaction to a second group member before the first group member receives confirmation of the first interaction from the exchange.

Claims

1. A non-transitory computer readable medium having stored therein instructions executable by a processor, wherein the instructions are executable to:

receive by a trading circle manager a definition for a trading group, wherein the trading group includes as members a first trading application and a second trading application, wherein the first trading application and the second trading application are trading applications executing on a computing device including the processor, wherein the first trading application is working a first trading strategy including a first tradeable object and a second tradeable object, wherein the second trading application is working a second trading strategy including the second tradeable object and a third tradeable object, wherein the first trading strategy is quoting the first tradeable object and leaning on the second tradeable object, wherein the second trading strategy is quoting the third tradeable object and leaning on the second tradeable object;

track by a circle data manager of the trading circle manager the members of the trading group, wherein the tracking includes associating the first trading application with the first tradeable object and the second tradeable object, wherein the tracking includes associating the second trading application with the second tradeable object and the third tradeable object;

detect by an order status monitor of the trading circle manager that a hedge order has been sent from the first trading application for the second tradeable object of the first trading strategy to an electronic exchange, wherein the hedge order is for a quantity at a price, wherein a market effect of the hedge order will be received by the second trading application after the electronic exchange receives and processes the hedge order and the electronic exchange sends a market update message reflecting the market effect of the processing of the hedge order by the electronic exchange;

determine by an exchange analysis module of the trading circle manager, in response to detecting by the order status monitor the hedge order has been sent from the first trading application, before the market effect of the hedge order is received by the second trading application from the electronic exchange, an expected effect, wherein the expected effect represents a quantity available for the second tradeable object at the electronic exchange at a price level corresponding to the price of the hedge order reduced by the quantity of the hedge order;

determine by the circle data manager of the trading circle manager, in response to determining by the exchange analysis module the expected effect, before the market effect of the hedge order is received by the second trading application from the electronic exchange, which of the members of the trading group are affected by the expected effect from the exchange analysis module based on the tracked members and the expected effect, wherein the tracked second trading application is determined to be affected based on the association of the second trading application and the second tradeable obiect;

generate by a communication module of the trading circle manager, in response to determining the second trading application is affected, before the market effect of the hedge order is received by the second trading application from the electronic exchange, a message including the determined expected effect from the exchange analysis module;

send by the communication module of the trading circle manager, in response to generating the message including the determined expected effect, before the market effect of the hedge order is received by the second trading application from the electronic exchange, the generated message including the determined expected effect to the second trading application;

determine by the second trading application, in response to receiving the generated message, before the market effect of the hedge order is received by the second trading application from the electronic exchange, a new lean price for the second trading strategy based on the reduced quantity available at the electronic exchange indicated by the expected effect in the generated message leaned on by the second trading strategy; and

send by the second trading application, before the market effect of the hedge order is received by the second trading application from the electronic exchange, a command to change a quoting order for the third tradeable object of the second trading strategy based on the new lean price.

2. The computer readable medium of claim 1,

wherein the first trading application is the same as the second trading application.

3. The computer readable medium of claim 1,

wherein the first trading application is different from the second trading application.

4. The computer readable medium of claim 1,

wherein the first trading strategy is the same as the second trading strategy.

5. The computer readable medium of claim 1,

wherein the first trading strategy is different from the second trading strategy.

6. The computer readable medium of claim 1,

wherein the first tradeable object is the same as the third tradeable object.

7. The computer readable medium of claim 1,

wherein the first tradeable object is different from the third tradeable object.

8. The computer readable medium of claim 1,

wherein the hedge order is sent in response to the first trading application receiving from the electronic exchange a fill notification for a quoting order of the first tradeable object.

9. The computer readable medium of claim 1,

wherein the trading group further includes a plurality of other members.

10. The computer readable medium of claim 9,

wherein the instructions are further executable to:

track by the circle data manager of the trading circle manager another member of the plurality of other members of the trading group by associating the another member with the second tradeable object;

determine by the circle data manager of the trading circle manager, in response to determining by the exchange analysis module the expected effect, before the market effect of the hedge order is received by the another member from the electronic exchange, the expected effect from the exchange analysis module affects the tracked another member based on the association of the another member and the second tradeable object;

generate by the communication module of the trading circle manager, in response to determining the another member is affected, before the market effect of the hedge order is received by the another member from the electronic exchange, a second message including the determined expected effect from the exchange analysis module;

send by the communication module of the trading circle manager, in response to generating the second message including the determined expected effect, before the market effect of the hedge order is received by the another member from the electronic exchange, the generated second message including the determined expected effect to the another member;

send by the communication module of the trading circle manager, in response to generating the second message including the determined expected effect, before the market effect of the hedge order is received by the another member from the electronic exchange, the generated second message including the determined expected effect to the another member of the trading group.

11. The computer readable medium of claim 10,

wherein the generated first message and the generated second message are the same message.