Automatic generation of an order in an instrument in a specified currency

• US 20040236664A1
• Filed: 05/23/2003
• Published: 11/25/2004
• Est. Priority Date: 05/23/2003
• Status: Active Grant

• Current Assignee: Nasdaq Technology AB (Nasdaq, Inc.)
• Original Assignee: OM Technology AB (OM Gruppen AB)
• Inventors: Sellberg, Lars-Ivar, Dackberg, Claes Urban, Wennerberg, Christer
• Granted Patent: US 8,027,901 B2
• Time in Patent Office: Days
• US Class Current: 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

In an automated trading system wherein orders in an instrument in a specified currency are received and a trade in the instrument is performed when, for a certain volume of the instrument, a bid price matches an ask price, a method is provided for automatically generating an order in the instrument in said specified currency. The method comprised the steps of receiving from e.g. a currency market or a market maker a current exchange rate between a currency other than said specified currency and the specified currency; receiving from a trader an order in the instrument in said other currency; calculating a price of the order in the specified currency based on the received order and the current exchange rate; and generating the order in the instrument in the specified currency.

Claims

1. In an automated trading system wherein orders in an instrument in a specified currency are received and a trade in said instrument is performed when, for a certain volume of said instrument, a bid price matches an ask price, a method for automatically generating an order in said instrument in said specified currency, comprising the steps of:

receiving a current exchange rate between a currency other than said specified currency and said specified currency;

receiving from a trader an order in said instrument in said other currency; and

calculating a price of said order in said specified currency based on said received order and said current exchange rate; and

generating said order in said instrument in said specified currency.

2. The method of claim 1 wherein, provided that said generated order in said instrument in said specified currency is met by another order, a trade in said instrument and a currency transaction are performed concurrently.

3. The method of claim 1 wherein an updated exchange rate between said other currency and said specified currency is received repeatedly and automatically, and the last received updated exchange rate between said other currency and said specified currency at the time of calculating said price is defined as said received current exchange rate.

4. The method of claim 3 wherein, provided that an updated exchange rate between said other currency and said specified currency is received subsequent to said step of generating said order in said instrument in said specified currency, said generated order is adjusted to reflect said updated exchange rate received subsequent to said step of generating said order.

5. The method of claim 4 wherein said generated order is adjusted each time an updated exchange rate between said other currency and said specified currency is received subsequent to said step of generating said order to reflect the respective updated exchange rates received.

6. The method of claim 3 wherein said updated exchange rate between said other currency and said specified currency is received repeatedly and automatically from a market maker, which guarantees to perform a currency transaction based on said received current exchange rate.

7. The method of claim 3 wherein

said updated exchange rate between said other currency and said specified currency is received repeatedly and automatically from a currency market, in which bids and offers in currencies are received and a trade in a currency is performed when, for a certain amount of that currency, a bid price matches an ask price;

and

said received updated exchange rate is determined based on bids or offers in said specified currency.

8. The method of claim 1 wherein said order received from said trader is a bid and said current exchange rate between said other currency and said specified currency is a buying price for buying said specified currency.

9. The method of claim 1 wherein said order received from said trader is an offer and said current exchange rate between said other currency and said specified currency is a selling price for selling said specified currency.

10. The method of claim 1 wherein said other currency is selected from a group of available currencies.

11. A computer program product loadable into the internal memory of a computer, comprising software code portions for performing the method of claim 1 when said product is run on said computer.

12. An automated trading system comprising:

means for receiving orders in an instrument in a specified currency;

means for performing a trade in said instrument when, for a certain volume of said instrument, a bid price matches an ask price;

means for receiving from a trader an order in said instrument in another currency;

means for receiving a current exchange rate between said other currency and said specified currency;

means for calculating a price of said order in said specified currency based on said received order and said current exchange rate; and

means for transferring said order in said instrument in said specified currency to said means for receiving orders in an instrument in a-specified currency.

13. The automated trading system of claim 12 comprising means for repeatedly and automatically receiving an updated exchange rate between said other currency and said specified currency, wherein the last received updated exchange rate between said other currency and said specified currency at the time of calculating said price is defined as said received current exchange rate.

14. The automated trading system of claim 13 comprising means for, provided that an updated exchange rate between said other currency and said specified currency is received subsequent to the generation of said order in said instrument in said specified currency, adjusting said generated order to reflect said updated exchange rate received subsequent to the generation of said order.

15. The automated trading system of claim 14 wherein said means for adjusting is adapted to adjust said generated order each time an updated exchange rate between said other currency and said specified currency is received subsequent to the generation of said order to reflect the respective updated exchange rates received.

16. In an automated trading system wherein orders in an instrument in a specified currency are received and a trade in said instrument is performed when, for a certain volume of said instrument, a bid price matches an ask price;

and wherein orders in said specified currency are received and a trade in said specified currency is performed when, for a certain amount of said specified currency, a bid price matches an ask price;

a method for automatically generating an order in said instrument in said specified currency, comprising the steps of;

receiving from a trader an order in said instrument in another currency;

forming a combination order comprising one order in said instrument in said specified currency and one order in said specified currency in said other currency based on said received order in said instrument in said other currency; and

provided that said combination order is met by other orders performing trades in said instrument and said specified currency simultaneously.

17. The method of claim 16 wherein, provided that the said combination order is not met by other orders, a derived order in said instrument or in said specified currency is generated, wherein said derived order is formed so that provided that said derived order will be met by another order, the other order of said combination order will automatically be met by still another order, and trades in said instrument and said specified currency will be performed simultaneously.

18. In a client-based trader system connectable to a server-based trading system wherein orders in an instrument traded in a specified currency are received in said specified currency and in a currency other than said specified currency;

an exchange rate between a currency other than said specified currency and said specified currency is received repeatedly; and

, provided that an order in said instrument in said other currency is received from a trader, a price of said order in said specified currency based on said received order and the last received exchange rate is calculated, said order in said instrument is generated in said specified currency, and if said order in said instrument generated in said specified currency is met by another order, a trade in said instrument and a currency transaction are performed concurrently, a method for automatically trading in said instrument in said currency other than said specified currency, comprising the steps of;

sending to said server-based trading system a buy or sell order in said instrument in said other currency;

receiving information of said buy or sell order in said instrument as generated in said specified currency by said server-based trading system; and

if said buy or sell order in said instrument as generated in said specified currency is met on the market, receiving information of a trade in said instrument and a currency transaction as performed concurrently by said server-based trading system.