Electronic spread trading tool

• US 10,275,829 B2
• Filed: 09/23/2013
• Issued: 04/30/2019
• Est. Priority Date: 06/14/2001
• Status: Expired due to Term

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Burns, Michael J., Singer, Scott F.
• Primary Examiner(s): Nguyen, Nga B
• Application Number:
  US14/033,825
• Publication Number:
  US 20140229357A1
• Time in Patent Office: 2,045 Days
• Field of Search: 705 35, 705 36 R, 705 37
• 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

A versatile and efficient electronic spread trading tool to be used when buying and selling comparable commodities either simultaneously or in conjunction with one another.

Claims

1. A method including:

receiving by a computing device a trading strategy configuration from a user, wherein the trading strategy configuration represents a trading strategy including a first commodity and a second commodity;

receiving by the computing device market data for the first commodity, wherein the market data for the first commodity includes a plurality of levels of market depth for the first commodity, wherein the plurality of levels of market depth for the first commodity includes an inside market for the first commodity including a best bid price, a best ask price, a best bid quantity, and a best ask quantity;

receiving by the computing device market data for the second commodity, wherein the market data for the second commodity includes a plurality of levels of market depth for the second commodity, wherein the plurality of levels of market depth for the second commodity includes an inside market for the second commodity including a best bid price, a best ask price, a best bid quantity, and a best ask quantity;

determining by the computing device a plurality of trading strategy prices, a plurality of trading strategy bid quantities, and a plurality of trading strategy ask quantities based on the market data for the first commodity and the market data for the second commodity by iteratively calculating a trading strategy price and a corresponding trading strategy bid quantity and a trading strategy ask quantity based on each level of market depth of the first commodity and the second commodity, wherein the iterative calculation begins with the inside market for the first commodity and the inside market for the second commodity and continues for the remaining market depth of the first commodity and the second commodity, wherein the plurality of trading strategy bid quantities includes a trading strategy best bid quantity at an associated trading strategy best bid price in the plurality of trading strategy prices, wherein the plurality of trading strategy ask quantities includes a trading strategy best ask quantity at an associated trading strategy best ask price in the plurality of trading strategy prices;

displaying by the computing device a trading strategy price axis based on the plurality of trading strategy prices;

dynamically displaying by the computing device a best bid indicator at a location aligned with the trading strategy price axis corresponding to the calculated trading strategy best bid price, wherein the best bid indicator moves relative to the trading strategy price axis to a new location aligned with the trading strategy axis corresponding to a new calculated trading strategy best bid price according to a change in the market data for the first commodity and the second commodity; and

dynamically displaying by the computing device a best ask indicator at a location aligned with the trading strategy price axis corresponding to the calculated trading strategy best ask price, wherein the best ask indicator moves relative to the trading strategy price axis to a new location aligned with the trading strategy axis corresponding to a new calculated trading strategy best ask price according to the change in the market data for the first commodity and the second commodity.

2. The method of claim 1, wherein the market data for the first commodity is received from a first exchange, wherein the market data for the second commodity is received from the first exchange.

3. The method of claim 1, wherein the market data for the first commodity is received from a first exchange, wherein the market data for the second commodity is received from a second exchange, wherein the first exchange is different than the second exchange.

4. The method of claim 1, wherein the iterative calculation includes zeroing out the appropriate quantity in the market data for the first commodity and the market data for the second commodity with each iteration.

5. The method of claim 1, further including:

displaying by the computing device a trading strategy price along the trading strategy price axis at a location corresponding to the trading strategy price.

6. The method of claim 1, further including:

displaying by the computing device each trading strategy price of the plurality of trading strategy prices along the trading strategy price axis at a location corresponding to the trading strategy price.

7. The method of claim 1, wherein the best bid indicator represents the trading strategy best bid quantity.

8. The method of claim 1, wherein the best ask indicator represents the trading strategy best ask quantity.

9. The method of claim 1, further including:

receiving by the computing device a command to place an order for the first commodity.

10. The method of claim 1, further including:

receiving by the computing device a command to place an order for the second commodity.