System and method for improved electronic trading

• US 20050027635A1
• Filed: 07/28/2003
• Published: 02/03/2005
• Est. Priority Date: 07/28/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Monroe, Fred, Brumfield, Harris C.
• Granted Patent: US 7,756,782 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system and method is described herein for an exchange to act based on a market event on behalf of a trader. According to one aspect, a first electronic market can send orders to and/or manage orders at a second electronic market based on an internal and/or external market event on behalf of a trader. According to another aspect, an electronic market may manage orders in its own market based on an external market event on behalf of a trader. In particular, a trader, and exchange, or some other party can define an internal or external market event that comprises a condition and an action. Upon receiving internal and/or external information, when the market event condition is satisfied, the electronic market performs the action associated with the condition. An advantage, among many others, of the present embodiments is that it makes internal and external market influences and conditions visible to electronic markets to facilitate trading on behalf of a trader.

Claims

1. A method for sending an order to an electronic market, comprising:

sending an order on behalf of a trader from the a first electronic market to a second electronic market.

2. The method of claim 1 wherein the step of sending is performed when a condition is satisfied.

3. The method of claim 2 further comprising the step of receiving a first order at the first electronic market.

4. The method of claim 3 wherein the condition comprises at least a portion of the first order being filled.

5. The method of claim 2 further comprising the step of receiving a market event request message at the first electronic market that establishes a condition.

6. The method of claim 2 wherein the condition is in the form of a lookup table.

7. The method of claim 1 further comprising the step of sending a message from the first electronic market to the second electronic market instructing the second electronic market to modify the order sent on behalf of the trader.

8. The method of claim 7 wherein the message to modify the order sent on behalf of a trader is sent when a second condition has been satisfied.

9. The method of claim 1 wherein the electronic market comprises a matching engine that matches bids and offers for a given market.

10. The method of claim 1 wherein the electronic market comprises software running at an electronic exchange.

11. The method of claim 1 wherein the electronic market comprises software running at a point of access that is outside of the electronic exchange.

16. The method of claim 9 wherein modifying the order comprises changing the order price, changing the order quantity, or deleting the order.

12. A method for managing an order at a first electronic market on behalf of a trader, comprising the steps of:

receiving the order at the first electronic market from the trader;

monitoring data external to the first electronic market; and

automatically modifying the order based on the monitoring;

wherein the steps of monitoring and modifying are performed by the first electronic market.

13. The method of claim 12 wherein the data external to the first electronic market comprises a price feed from a second electronic market.

14. The method of claim 12 wherein the data external to the first electronic market comprises a news feed.

15. The method of claim 12 wherein the step of monitoring comprises determining whether a condition has been satisfied.

17. A system for performing an act by an electronic market on behalf of a trader, the system comprising:

a receive component for receiving a market event request message;

a monitoring component for monitoring data according to the market event request message; and

an action taking component for automatically triggering an action by an electronic market based in part on the market event request message and the step of monitoring.

18. The system of claim 17 wherein the market event request message indicates the source of the data to be monitored.

19. The system of claim 17 wherein the data is market information from an order book of the electronic market, market information from an external order book, or news.

20. The system of claim 17 wherein the action is sending an order to a second electronic market or managing the order in the second electronic market.

21. The system of claim 17 wherein the action comprises managing an order in the electronic market based in part of external market events.