Systems and methods for linking orders in electronic trading systems

• US 20050165670A1
• Filed: 03/18/2005
• Published: 07/28/2005
• Est. Priority Date: 08/03/1999
• Status: Abandoned Application

• Current Assignee: BGC Partners LP (BGC Group, Inc.)
• Original Assignee: eSpeed Incorporated (BGC Group, Inc.)
• Inventors: Woodmansey, Robert J., Ginsberg, Philip M., Kirwin, Glenn D.
• Application Number:
  US11/084,547
• Publication Number:
  US 20050165670A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Systems and methods for linking orders in electronic trading systems are provided. These systems and methods enable a trader to select two or more items that are to be linked and specify linking parameters for those items. Any desired set of items may be linked, and the linking parameters may include price adjustments, order sequencing instructions, automatic/manual execution controls, execution delays commands, and update frequency limits. Upon detecting a bid or offer for a linked item, the systems and methods may then determine a size and a price for each linked item based upon the size and the price of the bid or offer for the first linked item. In this way, the sizes and the prices for the other linked items may be propagated from the size and the price for the first item. Once the size and the price for each item is determined, the systems and methods may submit orders for the items in accordance with the linking parameters. In the case where orders for linked items may only be submitted in designated lot sizes, the systems and methods may round the sizes of the orders to the designated lot sizes, and then submit remainder orders to make up for the rounding.

Claims

1-47. -47. (canceled)

48. A computer system for trading a first item and a second item in one or more electronic trading systems, the computer system comprising:

a display device that displays information relating to the first item and the second item; and

a trade order submitting component for;

receiving a determination of the first item;

receiving a determination of the second item;

receiving a linking parameter that defines a relationship between the first item and the second item;

automatically monitoring bids and offers for the first item and bids and offers for the second item; and

submitting to the electronic trading systems an order for the first item and a first order for the second item and wherein (a) the order for the first item and the order for the second item are not linked until the occurrence of a trigger event, and, (b) upon the occurrence of the trigger event, the occurrence of the trigger event being detected using the automatic monitoring, canceling the order for the second item and submitting a second order for the second item, the second order for the second item being based at least in part on the linking parameter and the first item.

49. The computer system for trading a first item and a second item according to claim 48 wherein the trigger event is based on one of the group consisting of the price of the first item, the price of the second item and a combination of the price of the first item and the price of the second item.

50. The computer system for trading a first item and a second item according to claim 48 wherein the trigger event is based on one of the group consisting of the order size of the first item, the order size of the second item and a combination of the order size of the first item and the order size of the second item.

51. The computer system for trading a first item and a second item according to claim 48 wherein the trigger event is based on one of the group consisting of a yield of the first item, of a yield of the second item and a combination of a yield of the first item and the second item.

52. The computer system for trading a first item and a second item according to claim 48 wherein the trigger event is based on one of the group consisting of the rate of change of the price, size or yield of the first item, the rate of change of the price, size or yield of the second item and a combination of the rate of change of the price, size or yield of the first item and the second item.

53. A computer readable medium for trading a first item and a second item in one or more electronic trading systems, the computer readable medium comprising:

a first program code for receiving a determination of the first item;

a second program code for receiving a determination of the second item;

a third program code for receiving a linking parameter that defines a relationship between the first item and the second item;

a fourth program code for automatically monitoring bids and offers for the first item and bids and offers for the second item; and

a fifth program code for submitting to the electronic trading systems an order for the first item and a first order for the second item and wherein (a) the order for the first item and the order for the second item are not linked until the occurrence of a trigger event, and, (b) upon the occurrence of the trigger event, the occurrence of the trigger event being detected using the automatic monitoring, canceling the order for the second item and submitting a second order for the second item, the second order for the second item being based at least in part on the linking parameter and the first item.

54. The computer readable medium for trading a first item and a second item according to claim 53 wherein the trigger event is based on one of the group consisting of the price of the first item, the price of the second item and a combination of the price of the first item and the price of the second item.

55. The computer readable medium for trading a first item and a second item according to claim 53 wherein the trigger event is based on one of the group consisting of the order size of the first item, the order size of the second item and a combination of the order size of the first item and the order size of the second item.

56. The computer readable medium for trading a first item and a second item according to claim 53 wherein the trigger event is based on one of the group consisting of a yield of the first item, of a yield of the second item and a combination of a yield of the first item and the second item.

57. The computer readable medium for trading a first item and a second item according to claim 53 wherein the trigger event is based on one of the group consisting of the rate of change of the price, size or yield of the first item, the rate of change of the price, size or yield of the second item and a combination of the rate of change of the price, size or yield of the first item and the second item.

58. A method for trading a first item and a second item in one or more electronic trading systems, the method comprising:

receiving a determination of the first item;

receiving a determination of the second item;

receiving a linking parameter that defines a relationship between the first item and the second item;

automatically monitoring using a digital computer bids and offers for the first item and bids and offers for the second item; and

electronically submitting to the electronic trading systems an order for the first item and a first order for the second item and wherein (a) the order for the first item and the order for the second item are not linked until the occurrence of a trigger event, and, (b) upon the occurrence of the trigger event, the occurrence of the trigger event being detected using the automatic monitoring, canceling the order for the second item and submitting a second order for the second item, the second order for the second item being based at least in part on the linking parameter and the first item.

59. The method for trading a first item and a second item according to claim 58 wherein the trigger event is based on one of the group consisting of the price of the first item, the price of the second item and a combination of the price of the first item and the price of the second item.

60. The method for trading a first item and a second item according to claim 58 wherein the trigger event is based on one of the group consisting of the order size of the first item, the order size of the second item and a combination of the order size of the first item and the order size of the second item.

61. The method for trading a first item and a second item according to claim 58 wherein the trigger event is based on one of the group consisting of a yield of the first item, of a yield of the second item and a combination of a yield of the first item and the second item.

62. The method for trading a first item and a second item according to claim 58 wherein the trigger event is based on one of the group consisting of the rate of change of the price, size or yield of the first item, the rate of change of the price, size or yield of the second item and a combination of the rate of change of the price, size or yield of the first item and the second item.