METHOD AND SYSTEM FOR AUTOMATICALLY INPUTTING, MONITORING AND TRADING SPREADS

• US 20080288391A1
• Filed: 07/09/2008
• Published: 11/20/2008
• Est. Priority Date: 05/31/2005
• Status: Abandoned Application

• Current Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Original Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Inventors: Rosenthal, Leslie, Downs, James C.
• Application Number:
  US12/169,738
• Publication Number:
  US 20080288391A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and system for providing dynamic display of electronic trading information for trading spreads. The method and system allow spreads to be automatically inputted, executed and monitored on one or more trading exchanges. The method and system also allows inputting and monitoring of the spreads from one or more graphical windows on a graphical user interface. The method and system provide automatic generation of one or more legs of an automatic spread and automatic readjustment of desired market limit prices using one or more pre-determined spread trading factors and market depth information to maintain the desired price differential for the automatic spread.

Claims

1. A method for automatically executing trading spreads, comprising:

placing a first trading order for a first leg of an automatic spread on a first electronic trading exchange via a trading application on target device via a communications network, wherein the first trading order includes a first desired market limit price;

automatically readjusting on the trading application the first desired market limit price of the first trading order on the first trading exchange to represent changes in a second desired market price of a second trading order on a second electronic trading exchange to maintain a desired price differential for the automatic spread using pre-determined automatic spread calculations;

receiving a confirmation for fulfillment of the first trading order from the first electronic trading exchange on the trading application;

automatically generating the second trading order via the trading application for a price that satisfies the desired price differential between the first desired market limit price and the second desired market limit price for the second trading order, wherein the second trading order is generated automatically using a pre-determined spread trading factor that automatically considers market depth information on a second electronic trading exchange and the first trading exchange; and

automatically placing the second trading order on the second electronic trading exchange, wherein the second trading order includes the second desired market limit price.

2. The method of claim 1 further comprising a computer readable medium having stored therein a plurality of instructions for causing one or more processors to execute the steps of the method.

3. The method of claim 1 further comprising:

viewing the automatic spread via an Ask Bid Volume (ABV) graphical window on graphical user interface with a plurality of graphical windows generated by the trading application, wherein the ABV window displays a market depth for electronic trades being executed for the automatic spread.

4. The method of claim 1 further comprising:

assigning a unique display color to a plurality of components comprising the automatic spread;

displaying the same assigned unique color for plurality of components of the automatic spread in a plurality of different graphical windows on a graphical user interface, wherein each of the plurality of components of the automatic spread can be easily recognized by the assigned unique color in the plurality of different graphical windows.

5. The method of claim 1 wherein the pre-determined spread trading factor includes a spread lean factor.

6. The method of claim 1 wherein the spread lean factor is a multiplier for a number of instruments bid and/or offered for one or more instruments for a trading order in one leg of the automatic spread to be maintained in another leg of the automatic spread determined using market depth information.

7. The method of claim 1 wherein the pre-determined automatic spread calculations include automatic spread calculations complete using a spread lean factor, spread slippage factor, spread side factor, spread price factor and spread quantity factor.

8. The method of claim 7 wherein the spread slippage factor includes a number of trading price ticks to be added or subtracted to the second trading order to help ensure execution of the second trading order on the second trading exchange, the spread side factor includes and indication of which leg is to be bought when the automatic spread is bought, the spread price includes a desired automatic spread price differential and the spread quantity factor includes a number of instruments for the automatic spread.

10. The method of claim 1 wherein the step of automatically readjusting the price of the first desired market limit price includes automatically readjusting the price using automatic ask and bid price and quantity calculations to maintain the desired price differential for the automatic spread.

11. The method of claim 1 wherein the first trading order includes a set of a plurality first trading orders and the second trading order includes a set of plurality of second trading orders for real or synthetic trading instruments.

12. The method of claim 1 further comprising:

entering desired automatic spread factors used for the pre-determined spread calculations via a graphical automatic spread definition window on the graphical user interface,

wherein the graphical automatic spread definition window accepts inputs for desired automatic spread factors including a spread name, a spread lean factor, a spread slippage factor, a spread instrument factor, a spread side factor, spread price factor and spread quantity factor.

13. The method of claim 1 wherein a graphical contracts windows displays information about the automatic spread on the graphical user interface.

14. A method for automatically executing trading spreads, comprising:

receiving a plurality of automatic spread factors via graphical window on a graphical user interface with a plurality of graphical windows via a trading application on target device via a communications network to execute an automatic spread with a desired price differential for a plurality of trading entities traded the automatic spread;

automatically generating one or more electronic trade orders for one or more legs of the automatic spread on one more electronic trading exchanges via the trading application using a set of pre-determined automatic spread calculations;

receiving a confirmation fulfillment of the one or more electronic trade orders on one or more electronic trading exchanges for one or more legs of the electronic spread on the trading application; and

receiving automatically price adjustments to desired market limits for the electronic trade orders for one or more legs of the automatic spread on the trading application to maintain the desired price differential for the automatic spread, wherein the automatic price adjustments are determined using a pre-determined spread trading factor that automatically considers market depth information and wherein market depth information is automatically considered for the one or more legs of the automatic spread on the one or more electronic trading exchanges to adjust prices to the desired market limits for the electronic trade orders.

15. The method of claim 14 further comprising a computer readable medium having stored therein a plurality of instructions for causing one or more processors to execute the steps of the method.

16. The method of claim 14 further comprising:

displaying the automatic spread via an Ask Bid Volume (ABV) graphical window on graphical user interface with a plurality of graphical windows generated by the trading application, wherein the ABV window displays a market depth for electronic trades being executed affecting the automatic spread.

17. The method of claim 14 wherein the set of pre-determined automatic spread calculations include a first set of automatic calculations using a spread lean factor, spread slippage factor, spread side factor, spread price factor and spread quantity factor and a second set of calculations using ask and bid price and quantity calculations.

18. The method of claim 14 wherein the spread lean factor is a multiplier for a number of instruments bid and/or offered for one or more instruments for an electronic trade order in the one or more legs of the automatic spread to be maintained for other one or more legs of the automatic spread determined using market depth information.

19. A method for automatically executing trading spreads, comprising:

automatically generating on a trading application a first electronic trade for a first leg of an automatic spread on a first electronic trading exchange using market depth information;

automatically generating on the trading application a second electronic trade for a second leg of an automatic spread on a second electronic trading exchange using market depth information;

determining automatically on the trading application using a pre-determined spread trading factor that automatically considers market depth information, price adjustments to desired marked limits for the first electronic trade for the first spread leg and/or desired marked limits of the second electronic trade for the second spread leg of the automatic spread to maintain the desired price differential for the automatic spread.

20. The method of claim 19 further comprising a computer readable medium having stored therein a plurality of instructions for causing one or more processors to execute the steps of the method.

21. The method of claim 19 wherein the pre-determined spread trading factor is a spread lean factor wherein the spread lean factor a multiplier for a number of instruments bid and/or offered for one or more instruments for the first electronic trade in of the automatic spread to be maintained for the second electronic trade of the automatic spread determined using market depth information

22. A system for automatically executing trading spreads on a computer readable medium having stored therein a plurality of instructions for causing one more processors to execute the means for the system, comprising in combination:

means for entering a plurality of automatic spread factors via graphical window on a graphical user interface with a plurality of graphical windows via a trading application on target device via a communications network to execute an automatic spread with a desired price differential for a plurality of trading entities traded the automatic spread;

means for automatically generating one or more electronic trades for one or more legs of the automatic spread on one more electronic trading exchanges via the trading applications using a set of pre-determined automatic spread calculations;

means for automatically making price adjustments to desired marked limits for the electronic trades for one or more legs of the automatic spread on the trading application to maintain the desired price differential for the automatic spread, wherein the automatic price adjustments are determined using the set of pre-determined automatic spread calculations; and

means for determining automatically using a pre-determined spread factor that uses market depth information for making price adjustments to desired marked limits for the electronic trades one or more legs of the automatic spread on the trading application to maintain the desired price differential for the automatic spread.

23. The system of claim 22 further comprising:

means for displaying the automatic spread via an Ask Bid Volume (ABV) graphical window on graphical user interface with a plurality of graphical windows generated by the trading application, wherein the ABV window displays a market depth for electronic trades being executed affecting the automatic spread.