Electronic spread trading tool

• US 20060200405A1
• Filed: 05/02/2006
• Published: 09/07/2006
• Est. Priority Date: 06/14/2001
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Singer, Scott F., Burns, Mike
• Granted Patent: US 7,707,086 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 40/03 Credit; Loans; Processing thereof
• 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

A versatile and efficient electronic spread trading tool to be used when buying and selling comparable commodities either simultaneously or in conjunction with one another. The spread trading tool involves a method of displaying, on an electronic display device, the market depth of a plurality of commodities including an anchor commodity and a non-anchor commodity, where the method includes dynamically displaying a plurality of bids and asks in the market for the commodities, statically displaying prices corresponding to those plurality of bids and asks, where the bids and asks are displayed in alignment with the prices corresponding thereto, displaying an anchor visual indicator corresponding to and in alignment with a desired price level of the anchor commodity, displaying a price level indicator corresponding to and in alignment with a price level of the non-anchor commodity. Based on an unhedged position, and taking into account the parameters and spread price point values, as determined by the trader, price level indicators are calculated and displayed, which provide a visual representation of where the trader should buy and sell the applicable commodities. The price level for the price level indicator in the non-anchor commodity is determined based upon said desired price level of the anchor commodity. The price level indicator also includes a first visual indicator corresponding to and in alignment with a first price level of the non-anchor commodity and a second visual indicator corresponding to and in alignment with a second price level of the non-anchor commodity.

Claims

1. A device for processing and displaying market data associated with a trading strategy involving at least two commodities being traded electronically on at least one electronic exchange, comprising:

an interface for receiving a first market data feed corresponding to a first commodity from the at least one electronic exchange, and further for receiving a second market data feed corresponding to a second commodity from the at least one electronic exchange, wherein the first market data feed comprises price information for the first commodity, and wherein the second market data feed comprises price information for the second commodity; and

a screen for displaying a price axis corresponding to a plurality of prices representing the trading strategy, wherein the plurality of prices are calculated using the price information from the first market data feed and from the second market data feed, wherein the screen further displays a first indicator at a first area in relation to a first price level on the price axis, and a second indicator at a second area in relation to a second price level on the price axis, the first indicator being associated with a highest bid price currently available to buy according to the trading strategy, and the second indicator being associated with a lowest ask price currently available to sell according to the trading strategy.

2. The device of claim 1, further comprising:

a processor for calculating the plurality of prices representing the trading strategy using the first market data feed corresponding to the first commodity and the second market data feed corresponding to the second commodity.

3. The device of claim 2, further comprising a user input device for sending an order to the at least one exchange in response to a single action of the user input device in relation to an order entry region comprising a plurality of areas associated with a plurality of price levels, wherein each area is selectable by the user input device.

4. The device of claim 3, wherein the processor automatically calculates a quantity based in part on a formula and a current position for the first commodity, and automatically setting a quantity parameter for a next order for the second commodity to the calculated quantity.

5. The device of claim 4, wherein the formula comprises a ratio that has a numerator that is associated with the first commodity and denominator that is associated with the second commodity.

6. The device of claim 5 , wherein calculating the quantity comprises multiplying the current position for the first commodity by the ratio.

7. The device of claim 4, wherein the screen further displays first market data representing the first commodity along a second axis and displays second market data representing the second commodity along a third axis.

8. The device of claim 7, wherein a plurality of price levels along the second axis are statically displayed and a plurality of price levels along the third axis are statically displayed.

9. The device of claim 7, wherein the processor further generates a first price level indicator that can be used in determining a price to buy or sell the first commodity according to the trading strategy.

10. The device of claim 9, wherein the screen displays the first price level indicator at a first area in relation to a first price level along the second axis.

11. The device of claim 10, wherein the processor further generates a second price level indicator that can be used in determining a price to buy or sell the second commodity according to the trading strategy.

12. The device of claim 11, wherein the screen displays the second price level indicator at a second area in relation to a second price level along the third axis.

13. The method of claim 1, wherein the price axis is a static price axis.