Flexible system and method for electronic trading

• US 20060085320A1
• Filed: 07/11/2005
• Published: 04/20/2006
• Est. Priority Date: 10/18/2004
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mittal, Bharat, Owens, Farley, Saucier, Diane, Singh, Nidhi, Kline, Robert J.
• Granted Patent: US 7,742,974 B2
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 50/06 Energy or water supply

Abstract

System, method, and program products offer flexibility to the rather rigid way of trading in an electronic trading system. Orders for a tradeable object may typically get matched according to set terms and/or conditions at an electronic exchange. A trader may log onto the electronic exchange to trade the tradeable object, and may choose to display and trade the tradeable object according to a different set of terms and/or conditions. As such, the market data sent to the trader from the exchange is converted to a format according to the trader'"'"'s selection, so that it may be presented to the trader in this format. Transaction messages sent to the exchange from the trader are converted to the format readable by the matching process, so that it can process the messages. Other features and advantages are described herein.

Claims

1. A method for use in electronic trading comprising:

receiving electronic market data from a computerized matching process, the electronic market data associated with a tradeable object and comprising information that is based, in part, on a unit of a first type;

converting the information that is based on the unit of the first type to a converted information that is based on a unit of a second type;

displaying the converted information in a screen region of a graphical user interface, the graphical user interface being coupled to a microprocessor;

receiving a command through a user input device to initiate placement of a trade order to buy or sell the tradeable object, the trade order having an order parameter that is based on the unit of the second type;

modifying the order parameter to be based on the unit of the first type; and

sending the trade order to the computerized matching process, wherein the trade order comprises the modified order parameter.

2. The method of claim 1 wherein a predefined relationship is used to convert the information that is based on the unit of the first type to the converted information that is based on the unit of the second type.

3. The method of claim 1 wherein the unit of the first type is associated with a set of terms and conditions utilized by the computerized matching process.

4. The method of claim 1 wherein the unit of the second type is associated with a set of terms and conditions preferred by a trader.

5. The method of claim 1 wherein the unit of the first type corresponds to a flow-based tradeable object and the unit of the second type corresponds to a contract-based tradeable object.

6. The method of claim 1 wherein the step of displaying the converted information on the graphical user interface comprises dynamically displaying bid quantities and ask quantities that are based on the unit of the second type.

7. The method of claim 1 further comprising:

receiving new electronic market data from the computerized matching process, the new electronic market data associated with the tradeable object and comprising information that is based, in part, on a unit of a first type;

converting the new information that is based on the unit of the first type to a new converted information that is based on a unit of a second type;

updating the the screen region of the graphical user interface with the new converted information.

18. The method of claim 1 wherein the first microprocessor and the second microprocessor either represent the same microprocessor or different microprocessors.

8. A system for use in electronic trading comprising:

an input interface for receiving electronic market data from a computerized matching process, the electronic market data associated with a tradeable object and comprising information that is based, in part, on a unit of a first type;

a first microprocessor for converting the information that is based on the unit of the first type to a converted information that is based on a unit of a second type;

a graphical user interface for displaying the converted information;

a user input device for sending a command to initiate placement of a trade order to buy or sell the tradeable object, the trade order having an order parameter that is based on the unit of the second type;

a second microprocessor for modifying the order parameter to be based on the unit of the first type; and

an output interface for sending the trade order to the computerized matching process, wherein the trade order comprises the modified order parameter.

9. The system of claim 8 wherein the input interface, the first microprocessor, the second microprocessor, and the output interface are located at a gateway device.

10. The system of claim 8 wherein the input interface, the first microprocessor, the second microprocessor, and the output interface are located at an electronic exchange.

11. The system of claim 8 wherein the input interface, the first microprocessor, the second microprocessor, and the output interface are located at a trading station.

12. The system of claim 8 wherein the first microprocessor and the second microprocessor are different microprocessors.

13. The system of claim 8 wherein the graphical user interface dynamically displays bid quantities and ask quantities that are based on the unit of the second type.

14. The system of claim 8 wherein a predefined relationship is used to convert the information that is based on the unit of the first type to the converted information that is based on the unit of the second type.

15. The system of claim 8 wherein the unit of the first type is associated with a set of terms and conditions utilized by the computerized matching process.

16. The system of claim 8 wherein the unit of the second type is associated with a set of terms and conditions preferred by a trader.

17. The system of claim 8 wherein the unit of the first type corresponds to a flow-based tradeable object and the unit of the second type corresponds to a contract-based tradeable object.

19. A method for use in electronic trading comprising:

receiving electronic market data from a computerized matching process, the electronic market data associated with a tradeable object and comprising quantity information corresponding to a plurality of orders for the tradeable object, the quantity information being based, in part, on a unit of a first type;

converting the quantity information that is based on the unit of the first type to a converted quantity information that is based on a unit of a second type;

setting a default quantity having units of the second type;

displaying the converted quantity information corresponding to the plurality of orders through a display of prices on a graphical user interface, the graphical user interface being coupled to a microprocessor, each of the plurality of orders being displayed having a quantity with units of the second type;

displaying an order entry region on the graphical user interface, the order entry region comprising a plurality of areas for receiving a command to send a trade order to the computerized matching process, each area corresponding to a price level of the display of prices;

receiving a command to send the trade order to the computerized matching process by selection of an area of the plurality of areas through an action of a user input device, the trade order comprising a first parameter being based on the default quantity and a second parameter being based on a price level that corresponds to the selected area;

modifying the trade order by changing the first parameter to have units of a first type; and

sending the trade order to the computerized matching process, wherein the trade order comprises a modified order parameter.

20. The method of claim 19 wherein the unit of a first type represents a flow-based tradeable object and the unit of the second type represents a contract-based tradeable object.