System and Method for Facilitating Trading of Multiple Tradeable Objects in an Electronic Trading Environment

• US 20090119201A1
• Filed: 01/06/2009
• Published: 05/07/2009
• Est. Priority Date: 11/13/2002
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: West, Robert A., Burns, Michael J., Murphy, Stephen J., O'Connor, Gerald J.
• Granted Patent: US 7,774,267 B2
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method are provided for trading multiple tradeable objects. One example method includes displaying at least one combined quantity indicator representing a combined quantity associated with at least two tradeable objects, detecting an input associated with an order for a predetermined order quantity in relation to one of the combined quantity indicators, and allocating the order quantity between the at least two tradeable objects using at least one quantity allocation rule. In one example embodiment, a plurality of quantity allocation rules can be user-configurable, and different rules can be defined and applied in relation to different order types.

Claims

1. A trading terminal configured to administer trading of tradeable objects, comprising:

a display configured to display a user interaction region having;

a first combined quantity indicator at a location corresponding to a price level along a common axis of static prices, the first combined quantity indicator representing quantity associated with an order to buy a first tradeable object and an order to buy a second tradeable object, where the first tradeable object and the second tradeable objects are different tradeable objects;

a second combined quantity indicator at a location corresponding to a price level along the common axis of static prices, the second combined quantity indicator representing quantity associated with an order to sell the first tradeable object and an order to sell the second tradeable object;

an order entry region having a plurality of locations configured to receive a user command to transmit a trade order, each location corresponding to a price level along the common axis of static prices;

a rules allocator configured to apply at least one of a plurality of quantity allocation rules to allocate an order quantity between a first quantity for the first tradeable object and a second quantity for the second tradeable object; and

an order transmitter configured to substantially simultaneously transmit a first order including the first quantity for the first tradeable object and a second order including the second quantity for the second tradeable object in response to a selection of one of the plurality of locations of the order entry region, the first quantity for the first tradeable object and the second quantity for the second tradeable object being determined according to at least one of the plurality of quantity allocation rules.

2. The trading terminal of claim 1, where the rules allocator is further configured to apply at least one of the plurality of quantity allocation rules according to whether the selection of one of the plurality of locations of the order entry region comprises lifting or joining.

3. The trading terminal of claim 1, where the plurality of quantity allocation rules comprises at least one quantity allocation rule for lifting and at least one quantity allocation rule for joining.

4. The trading terminal of claim 1, where the plurality of quantity allocation rules are user selectable.

5. The trading terminal of claim 1, where the rules allocator is further configured to dynamically select at least one of the plurality of quantity allocation rules in response to a predetermined condition.

6. The trading terminal of claim 5, where the predetermined condition comprises at least one of a market-related event, a trader-related event, an exchange-related event and combinations thereof.

7. The trading terminal of claim 1, where the plurality of quantity allocation rules comprises a percentage allocation rule defining an allocation percentage between the first quantity and the second quantity.

8. The trading terminal of claim 1, where the plurality of quantity allocation rules comprises a quantity allocation rule defining an order allocation according to a net position.

9. The trading terminal of claim 1, where the plurality of quantity allocation rules comprises a quantity allocation rule to flatten a net position and a remaining order quantity is allocated based on another quantity allocation rule.

10. The trading terminal of claim 9, where, upon allocating the order quantity to flatten the net position, the at least one quantity allocation rule further comprises at least one percentage value to be used to allocate a remaining order quantity between the first and second tradeable objects.

11. The trading terminal of claim 1, where the plurality of quantity allocation rules comprises at least one quantity allocation rule to allocate the order quantity based on an attempt to flatten a net position while accounting for working orders at better price levels than an available price level.

12. The trading terminal of claim 1, where the plurality of quantity allocation rules comprises at least one quantity allocation rule to allocate an order quantity according to an attempt to flatten a net position while accounting for at least one working order.

13. The trading terminal of claim 1, where the plurality of quantity allocation rules comprises at least one quantity allocation rule to allocate an order quantity using available order quantities pending at a best available price.

14. The trading terminal of claim 1, further comprising a market data receiver configured to receive market information related to the first tradeable object and the second tradeable object from at least a single electronic exchange.

15. The trading terminal of claim 1, where the order transmitter is configured to transmit at least one order to an at least one electronic exchange.

16. The trading terminal of claim 1, further comprising:

an order canceller configured to transmit instructions to delete a plurality of working orders associated with at least one of the first tradeable object, the second tradeable object, or both the first tradeable object and the second tradeable object, where an order in which the plurality of working orders are deleted depends on a relative position of each order in relation to an inside market and the at least one of the plurality of quantity allocation rules, wherein a working order at a price level closest to the inside market is deleted before a next working order at a price level that is farther from the inside market.

17. A computer readable medium having code stored thereon executable by a processor, the code comprising:

a combined quantity display module configured to cause a display associated with the processor to display a combined quantity indicator at a location corresponding to a price level along a common axis of static prices, the combined quantity indicator representing quantity associated with an order for a plurality of tradeable objects, where each of the plurality of tradeable objects are different tradeable objects;

an order module configured to cause the display to provide a user order entry region having a plurality of locations to receive a selection of parameters for a trade order, each location corresponding to a price level along the common axis of static prices;

a rules allocation module configured to allocate a quantity of a trade order between orders for plurality of tradeable objects according to a quantity allocation rule; and

an order transmitting module configured to substantially simultaneously send orders for the plurality of objects, each order having a quantity determined according to the quantity allocation rule.

18. A client system for trading of tradeable objects comprising:

a display device configured to display;

combined quantity indicators, each displayed at a location corresponding to a price level along a common price axis and representing a quantity associated with an orders a plurality of tradeable objects, where each of the plurality of tradeable objects are different tradeable objects;

displaying an order entry region having a plurality of locations each configured to receive user instructions for an trade order at a price level according to the location along the common price axis;

an order allocator configured to allocate a quantity of a trade order received via the order entry region between the plurality of tradeable objects;

an order transmitter configured to substantially simultaneously send a trade order for the each of the plurality of tradeable objects, each order having a quantity determined according to the order allocator.

19. The client system of claim 18 where the order allocator is further configured to allocate the quantity of the trade order according to least one of the plurality of quantity allocation rules.

20. The client system of claim 19, where the at least one quantity allocation rule is determined according to whether the trade order is lifting or joining.

21. The client system of claim 19, where the at least one quantity allocation is selectable according to a predetermined condition.

22. The client system of claim 21, where the predetermined condition comprises at least one of a market-related event, a trader-related event, or an exchange-related event.

23. The client system of claim 18, where the order allocator is further configured to allocate the quantity according to a trader'"'"'s net position.

24. The client system of claim 18, where the order allocator is further configured to allocate the quantity according to flattening a net position and accounting for a working orders at better price levels than an available price level.