Dynamic market order execution validation mechanism

• US 10,169,815 B2
• Filed: 07/09/2013
• Issued: 01/01/2019
• Est. Priority Date: 06/09/2000
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Buck, Brian J.
• Primary Examiner(s): Borlinghaus, Jason
• Assistant Examiner(s): Alladin, Ambreen A.
• Application Number:
  US13/937,785
• Publication Number:
  US 20150019397A1
• Time in Patent Office: 2,002 Days
• Field of Search: 705 37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system, method, and non-transitory computer-readable information recording medium allows a user or trader to prepare, and send to an exchange, a trade order using a trading device. The trading device receives market data from an exchange and displays the received market data on a display unit of the trading device. The trading device also receives a trade order instruction via an input device at the trading device and detecting an occurrence of a market update as a function of the received market data within an established trade order time period associated with a time at which the trade order was received. If the occurrence of the market update was detected during the established trade order time period, the execution of the trade order is prevented.

Claims

1. A method comprising:

receiving at a computer device market data related to a tradeable object from an electronic exchange;

displaying a trading graphical user interface on a display screen of a computer device, wherein the trading graphical user interface comprises an order entry region including a plurality of order entry locations, wherein each order entry location of the plurality of order entry locations corresponds to a price, wherein the trading graphical user interface further displays market data received at the computer device;

configuring a trade order validation time period, wherein the trade order time period is activated in relation to the trading graphical user interface when a selection of an order entry location of the plurality of order entry location is received via a user input device;

receiving at the computer device a first selection of a first order entry location of the plurality of order entry locations in the order entry region via the user input device on the trading graphical user interface;

in response to receiving the first selection of the first order entry location;

initiating the trade order to buy or sell a tradeable object at an electronic exchange at a price corresponding to the selected first order entry location;

initiating the trade order validation time period during which the initiated trade order is not sent to the electronic exchange, wherein the trade order validation time period has a start time and an end time set based on a time when the selection of the first order entry location was received;

in response to initiating the trade order validation time period, determining at the computer device whether to send the trade order to the electronic exchange based on whether a market data update related to the tradeable object is received during the trade order time period from the electronic exchange at the computing device;

determining that the market data was received during the trade order validation time period;

in response to determining that the market update was received during the trade order validation time period, preventing the trade order from being sent from the computer device to the electronic exchange and displaying a notification dialog interface in relation to the trading graphical user interface, wherein the notification dialog interface comprises an order confirmation selection icon, an order cancellation selection icon, or an order modification selection icon,

wherein in response to a user input selecting the order confirmation selection icon, the trade order is sent to the electronic exchange,

wherein in response to a user input selecting the order cancellation selection icon, the trade order is cancelled,

wherein in response to a user input selecting the order modification icon, at least one trade order parameter of the trade order is modified;

determining that no market update was received at the computer device during the trade order validation time period; and

in response to determining that no market update was received at the computer device during the trade order validation time period, sending the trade order to the electronic exchange when the end time of the trade order time period is detected.

2. The method of claim 1, wherein the input device is one of a computer mouse, a trackpad, a keyboard, a touchscreen device and a non-contact order detection system.

3. The method of claim 1, wherein the trading device displays a cursor on the display screen and the cursor is controlled by the input device, and wherein the cursor was moving during the established trade order validation time period.

4. The method of claim 3, wherein the end time of the trade order validation time period is after a time at which the cursor stops moving and/or the selection was received.

5. The method of claim 1, wherein the display screen includes a touchscreen display, the input device being implemented by the touchscreen display.

6. The method of claim 1 wherein the notification dialog interface is configured to receive a user input to enter a new price for the trade order.

7. The method of claim 1, wherein the end time associated with the established trade order validation time period occurs after the start time that is set to a time at which the selection of the location in the order entry region is received.

8. The method of claim 1, wherein the market data includes inside market data and market depth data, wherein the market update is a change within at least one of the inside market data and the market depth data.

9. The method of claim 1, wherein the start time of the trade order validation time period is set to a time before the selection of the location in the order entry region is received.

10. A non-transitory computer readable medium having stored therein instructions, which when executed by a processor cause the processor to carry out acts comprising:

receiving at a computer device market data related to a tradeable object from an electronic exchange;

displaying a trading graphical user interface on a display screen of a computer device, wherein the trading graphical user interface comprises an order entry region including a plurality of order entry locations, wherein each order entry location of the plurality of order entry locations corresponds to a price, wherein the trading graphical user interface further displays market data received at the computer device;

configuring a trade order validation time period, wherein the trade order time period is activated in relation to the trading graphical user interface when a selection of an order entry location of the plurality of order entry location is received via a user input device;

receiving at the computer device a first selection of a first order entry location of the plurality of order entry locations in the order entry region via the user input device on the trading graphical user interface;

in response to receiving the first selection of the first order entry location;

initiating the trade order to buy or sell a tradeable object at an electronic exchange at a price corresponding to the selected first order entry location;

initiating the trade order validation time period during which the initiated trade order is not sent to the electronic exchange, wherein the trade order validation time period has a start time and an end time set based on a time when the selection of the first order entry location was received;

in response to initiating the trade order validation time period, determining at the computer device whether to send the trade order to the electronic exchange based on whether a market data update related to the tradeable object is received during the trade order time period from the electronic exchange at the computing device;

determining that the market data was received during the trade order validation time period;

in response to determining that the market update was received during the trade order validation time period, preventing the trade order from being sent from the computer device to the electronic exchange and displaying a notification dialog interface in relation to the trading graphical user interface, wherein the notification dialog interface comprises an order confirmation selection icon, an order cancellation selection icon, or an order modification selection icon,

wherein in response to a user input selecting the order confirmation selection icon, the trade order is sent to the electronic exchange,

wherein in response to a user input selecting the order cancellation selection icon, the trade order is cancelled,

wherein in response to a user input selecting the order modification icon, at least one trade order parameter of the trade order is modified;

determining that no market update was received at the computer device during the trade order validation time period; and

in response to determining that no market update is received at the computer device during the trade order validation time period, sending the trade order to the electronic exchange when the end time of the trade order time period is detected.

11. The non-transitory computer readable medium of claim 10, wherein the input device is one of a computer mouse, a trackpad, a keyboard, a touchscreen device and a non-contact order detection system.

12. The non-transitory computer readable medium of claim 10, wherein the trading device displays a cursor on the display screen and the cursor is controlled by the input device, and wherein the cursor was moving during the established trade order validation time period.

13. The non-transitory computer readable medium of claim 12, wherein the end time of the trade order validation time period is after a time at which the cursor stops moving and/or after the selection was received.

14. The non-transitory computer readable medium of claim 10, wherein the display screen includes a touchscreen display, the input device being implemented by the touchscreen display.

15. The non-transitory computer readable medium of claim 10 wherein the notification dialog interface is configured to receive a user input to enter a new price for the trade order.

16. The non-transitory computer readable medium of claim 10, wherein the end time associated with the established trade order validation time period occurs after the start time that is set to a time at which the selection of the location in the order entry region is received.

17. The non-transitory computer readable medium of claim 10, wherein the market data includes inside market data and market depth data, wherein the market update is a change within at least one of the inside market data and the market depth data.

18. The non-transitory computer readable medium of claim 10, wherein the start time of the trade order validation time period is set to a time before the selection of the location in the order entry region is received.