System and Method for Coordinating Automated and Semi-Automated Trading Tools

• US 20090192933A1
• Filed: 04/08/2009
• Published: 07/30/2009
• Est. Priority Date: 12/30/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Burns, Michael J., Singer, Scott F., Musgrave, Mark A.
• Granted Patent: US 8,214,280 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

The present embodiments include methods, systems, and computer program products that provide tools for use in any type of electronic trading environment. In one aspect, leaning manager includes software that can be implemented on any type of computer device for tracking and/or coordinating the buying and selling of available market quantities by multiple automated or semi-automated trading tools. For instance, if more than one automated or semi-automated trading tool is leaning on the same tradeable object then the leaning manager may track and/or coordinate such action. The trading tools can use the tracked information and/or the allocated quantities and their prices to enhance their trading strategies.

Claims

1-20. -20. (canceled)

21. A method for implementing an automated trading strategy relating to a tradeable object being traded in an electronic exchange, the method comprising:

receiving market information for a first tradeable object from an electronic exchange, the market information comprising order quantities available to buy or sell the first tradeable object at a plurality of prices;

determining a first estimated price for a first order quantity of the first tradeable object to be allocated for use by a first trading strategy, wherein the first estimated price is determined based on the order quantities in the received market information;

determining a second estimated price for a second order quantity of the first tradeable object to be allocated for use by a second trading strategy, wherein the second estimated price is determined based on the order quantities in the received market information and further based on the first order quantity allocated to the first estimated price; and

upon detecting a predetermined event, reallocating at least a portion of the first order quantity of the first tradeable object at the first estimated price to be used by the second automated trading strategy.

22. The method of claim 21, further comprising:

taking a first action of the first automated trading strategy based on the first estimated price, wherein the first action comprises sending an order by the first automated trading strategy to an electronic exchange, wherein the order is for a second tradeable object, and wherein a price of the order is based on the first estimated price.

23. The method of claim 22, wherein detecting the predetermined event comprises detecting that the order for the first automated trading strategy is deleted.

24. The method of claim 21, further comprising:

taking a second action of the second automated trading strategy based on the second estimated price, wherein the second action comprises sending an order by the second automated trading strategy to an electronic exchange, wherein the order is for a second tradeable object, and wherein a price for the order is based on the second estimated price.

25. The method of claim 24, wherein detecting the predetermined event comprises detecting a fill of the order by the second automated trading strategy, the method further comprising:

reallocating at least the portion of the first order quantity based on the fill.

26. The method of claim 21, wherein detecting the predetermined event comprises detecting a change in priority associated with the second automated trading strategy.

27. The method of claim 21, further comprising, upon the reallocation:

recalculating the first estimated price for the first order quantity to be allocated for use by the first trading strategy; and

providing a recalculated estimated price to the first trading strategy.

28. The method of claim 21, wherein the event comprises placement of an order for the first tradeable object by the second trading strategy prior to placement of an order for the first tradeable object by the first trading strategy.

29. A computer readable medium having program code recorded thereon for causing a microprocessor to execute a method comprising:

receiving market information for a first tradeable object from an electronic exchange, the market information comprising order quantities available to buy or sell the first tradeable object at a plurality of prices;

determining a first estimated price for a first order quantity of the first tradeable object to be allocated for use by a first trading strategy, wherein the first estimated price is determined based on the order quantities in the received market information;

determining a second estimated price for a second order quantity of the first tradeable object to be allocated for use by a second trading strategy, wherein the second estimated price is determined based on the order quantities in the received market information and further based on the first order quantity allocated to the first estimated price; and

upon detecting a predetermined event, reallocating at least a portion of the first order quantity of the first tradeable object from the first estimated price to be used by the second automated trading strategy.

30. The computer readable medium of claim 29, further comprising:

taking a first action of the first automated trading strategy based on the first estimated price, wherein the first action comprises sending an order by the first automated trading strategy to an electronic exchange, wherein the order is for a second tradeable object, and wherein a price of the order is based on the first estimated price.

31. The computer readable medium of claim 30, wherein detecting the event comprises detecting that the order for the first automated trading strategy is deleted.

32. The computer readable medium of claim 30, further comprising:

taking a second action of the second automated trading strategy based on the second estimated price, wherein the second action comprises sending an order by the second automated trading strategy to an electronic exchange, wherein the order is for a second tradeable object, and wherein a price for the order is based on the second estimated price.

33. The computer readable medium of claim 32, wherein detecting the predetermined event comprises detecting a fill of the order by the second automated trading strategy, the method further comprising:

reallocating at least the portion of the first order quantity based on the fill.

34. The computer readable medium of claim 29, wherein detecting the predetermined event comprises detecting a change in priority associated with the second automated trading strategy.

35. The computer readable medium of claim 29, further comprising, upon the reallocation:

recalculating the first estimated price for the first order quantity to be allocated for use by the first trading strategy; and

providing a recalculated estimated price to the first trading strategy.

36. The computer readable medium of claim 29, wherein the event comprises placement of an order for the first tradeable object by the second trading strategy prior to placement of an order for the first tradeable object by the first trading strategy.