Implied market trading system

• US 20060149660A1
• Filed: 03/06/2006
• Published: 07/06/2006
• Est. Priority Date: 10/04/2001
• Status: Active Grant

• Current Assignee: ICE Futures Europe (Intercontinental Exchange, Inc.)
• Original Assignee: New York Mercantile Exchange Incorporated (CME Group Incorporated), The International Petroleum Exchange of London Ltd. (Intercontinental Exchange, Inc.)
• Inventors: Neumann, Kai, Morano, Matt N., West, Iain
• Granted Patent: US 8,165,951 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 40/10 Tax strategies

Abstract

A computer based trading system implies spread markets from multiple real or implied spread markets. In particular, one aspect of the invention permits implication of a spread market from a combination of inter-commodity and inter-calendar spread orders. Furthermore, another aspect of the invention allows use of nontradeable implied or bridge markets to combine with other implied or real markets to create further tradeable implied markets. The method described herein thereby permits the creation of all implied markets that are inherent in the combination of futures, calendar spread and inter-commodity spread real orders.

Claims

1. A computer implemented method for trading real and implied orders for futures contracts, the method comprising the steps of:

storing at least one real order in a computerized trading system;

storing at least one implied order in the computerized trading system;

prioritizing the stored orders based on the type of order in the computerized trading system; and

comparing the stored orders in the computerized trading system based on order priority to find a matched trade.

2. The method of claim 1, wherein the stored implied orders are prioritized with the same priority as the stored real orders.

3. The method of claim 1, wherein the prioritization of the stored orders is according to a time priority.

4. The method of claim 1, wherein the prioritization of the stored orders is according to a plurality of priority bases.

5. The method of claim 1, wherein the implied order is an implied spread order.

6. The method of claim 1, wherein the implied order is a futures order.

7. The method of claim 1, wherein the stored orders match in price.

8. The method of claim 1, further comprising:

generating the at least one implied order from a first spread order and a second spread order.

9. The method of claim 8, wherein the first spread order and the second spread order are of different spread order types.

10. The method of claim 8, wherein the first spread order is an implied spread order.

11. The method of claim 8, wherein the first spread order is a first implied spread order and the second spread order is a second implied spread order.

12. The method of claim 8, wherein the first spread order and the second spread order have a common and offsetting leg.

13. The method of claim 1, where the implied order is a non-tradable implied spread order.

14. The method of claim 1, further comprising:

generating matched trade information for the matched trade.

15. The method of claim 1, further comprising:

executing the matched trade.

16. The method of claim 1, further comprising:

displaying the matched trade.