Systems and methods for protecting against erroneous price entries in the electronic trading of financial and other instruments

• US 20060218072A1
• Filed: 08/30/2005
• Published: 09/28/2006
• Est. Priority Date: 03/24/2005
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: eSpeed Incorporated (BGC Group, Inc.)
• Inventors: Foley, Kevin M., Steger, Lon, Claus, Matthew, Lutnick, Howard W., Sweeting, Michael, Noviello, Joseph
• Granted Patent: US 8,219,480 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• 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

The invention relates to systems and methods that provide a user interface for use with an electronic trading system. The interface notifies the user that the price at which he or she may have attempted to trade has changed and presents the user with the opportunity to submit, modify or cancel the trade command. The user may configure the trading system to enable such a notification based on the time span for the price change, the number of increments of the price change, a combination thereof or any other appropriate consideration for protecting against the occurrence of erroneous price entries. Subsequent trade commands, such as those entered by third parties, may be used to validate prices and execute trades at these prices.

Claims

1. A method for protecting against the occurrence of erroneous price entries, the method comprising:

displaying on a user interface a plurality of bid and ask prices;

receiving a trade command from a user to hit or lift at least one price from the plurality of bid and ask prices;

determining whether the at least one price has changed by at least a predetermined number of increments from a first price to a second price; and

if the at least one price has changed by at least the predetermined number of increments, presenting the user with the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.

2. The method of claim 1 further comprising presenting the user with the opportunity to modify the trade command if the at least one price has changed by at least the predetermined number of increments.

3. The method of claim 1 wherein the presenting the user with the opportunity to submit or cancel the trade command comprises displaying a window indicating the second price and requesting that the user confirm the trade command.

4. The method of claim 1 further comprising notifying the user that the at least one price has changed through a sound.

5. The method of claim 1 wherein the user is presented with the opportunity to submit at least a portion of the trade command at the second price when the change in price is unfavorable to the user and not when the change in price is favorable to the user.

6. The method of claim 1 wherein the user is presented with the opportunity to submit at least a portion of the trade command at the second price for select bid and ask prices.

7. The method of claim 1 wherein the user may disable the feature presenting the user with the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.

8. The method of claim 1 wherein the predetermined number of increments is selected by the user.

9. The method of claim 1 further comprising:

determining whether the change in price has occurred within a predetermined period of time from the receipt of the trade command; and

if the change in price has occurred within the predetermined period of time, presenting the user with the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.

10. The method of claim 9 wherein the predetermined period of time is selected by the user.

11. The method of claim 1 wherein the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command is withdrawn and the trade is executed at the first price.

12. The method of claim 11 wherein the opportunity is withdrawn and the trade is executed in response to receiving a cancellation order for the order associated with the second price.

13. The method of claim 11 wherein the opportunity is withdrawn and the trade is executed in response to receiving a second trade command that intends to hit or lift the order associated with the second price.

14. The method of claim 11 wherein the opportunity is withdrawn and the trade is executed in response to receiving a second trade command providing a price that is different from the second price.

15. The method of claim 11 wherein the opportunity is withdrawn and the trade is executed in response to receiving a second trade command providing a price that is the same as or better than the first price.

16. A method for protecting against the occurrence of erroneous price entries, the method comprising:

displaying on a user interface a plurality of bid and ask prices;

receiving a trade command from a user to hit or lift at least one price from the plurality of bid and ask prices;

determining whether the at least one price has changed from a first price to a second price within a predetermined period of time from the receipt of the trade command; and

if the price has changed within the predetermined period of time, presenting the user with the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.

17. The method of claim 16 further comprising presenting the user with the opportunity to modify the trade command if the price has changed within the predetermined period of time.

18. The method of claim 16 wherein the presenting the user with the opportunity to submit or cancel the trade command comprises displaying a window indicating the second price and requesting that the user confirm the trade command.

19. The method of claim 16 further comprising notifying the user that the at least one price has changed through a sound.

20. The method of claim 16 wherein the user is presented with the opportunity to submit at least a portion of the trade command at the second price when the change in price is unfavorable to the user and not when the change in price is favorable to the user.

21. The method of claim 16 wherein the user is presented with the opportunity to submit at least a portion of the trade command at the second price for select bid and ask prices.

22. The method of claim 16 wherein the user may disable the feature presenting the user with the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.

23. The method of claim 16 wherein the predetermined period of time is selected by the user.

24. The method of claim 16 further comprising:

determining whether the price has changed by at least a predetermined number of increments; and

if the price has changed by at least the predetermined number of increments, presenting the user with the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.

25. The method of claim 24 wherein the predetermined number of increments is selected by the user.

26. The method of claim 16 wherein the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command is withdrawn and the trade is executed at the first price.

27. The method of claim 26 wherein the opportunity is withdrawn and the trade is executed in response to receiving a cancellation command for the order associated with the second price.

28. The method of claim 26 wherein the opportunity is withdrawn and the trade is executed in response to receiving a second trade command that intends to hit or lift the order associated with the second price.

29. The method of claim 26 wherein the opportunity is withdrawn and the trade is executed in response to receiving a second trade command providing a price that is different from the second price.

30. The method of claim 26 wherein the opportunity is withdrawn and the trade is executed in response to receiving a second trade command providing a price that is the same as or better than the first price.

31. A system for protecting against the occurrence of erroneous price entries displaying market information for an item, the system comprising a server adapted to distribute a plurality of bid and ask prices associated with the item to a plurality of workstations that are coupled to the server, each of the plurality of workstations displaying a user interface, having an input device and being adapted to:

display on the user interface the plurality of bid and ask prices;

receive a trade command from a user to hit or lift at least one price from the plurality of bid and ask prices;

determine whether the at least one price has changed by at least a predetermined number of increments from a first price to a second price; and

if the at least one price has changed by at least the predetermined number of increments, present the user with the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.

32. A system for protecting against the occurrence of erroneous price entries displaying market information for an item, the system comprising a server adapted to distribute a plurality of bid and ask prices associated with the item to a plurality of workstations that are coupled to the server, each of the plurality of workstations displaying a user interface, having an input device and being adapted to:

display on a user interface a plurality of bid and ask prices;

receive a trade command from a user to hit or lift at least one price from the plurality of bid and ask prices;

determine whether the at least one price has changed from a first price to a second price within a predetermined period of time from the receipt of the trade command; and

if the price has changed within the predetermined period of time, present the user with the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.