System and Method for Dynamically Regulating Order Entry in an Electronic Trading Environment

• US 20090319418A1
• Filed: 08/27/2009
• Published: 12/24/2009
• Est. Priority Date: 03/31/2005
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Herz, Eric M.
• Granted Patent: US 7,831,505 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 40/04 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 a trading strategy defined for at least one tradeable object in an electronic trading environment. More specifically, one example method includes using a first pay-up tick value to determine a first acceptable price level for an order associated with the trading strategy, automatically modifying the first pay-up tick to a second pay-up tick value in response to detecting a predefined condition, and using the second pay-up tick value to determine a second acceptable price level for the order associated with the trading strategy.

Claims

1. A method for trading a tradeable object, comprising:

receiving a pay-up tick value via an input device associated with a processor;

modifying the pay-up tick value to a modified pay-up tick value according to a predefined condition via the processor; and

determining a price for at least one order of a trading strategy via the processor, the price being determined according to the modified pay-up tick value.

2. The method of claim 1 where the trading strategy comprises a spread trading strategy.

3. The method of claim 1 where at least one parameter of the predefined condition is user-configurable.

4. The method of claim 1 where at least one parameter of the predefined condition is determined according to market data associated with the trading strategy.

5. The method of claim 1 where modifying the pay-up tick value to the modified pay-up tick value comprises determining the modified pay-up tick value according to a user-defined formula.

6. The method of claim 1 further comprising determining a first price range for the at least one order according to the pay-up tick value.

7. The method of claim 6 further comprising determining a second price range for the at least one order according to the modified pay-up tick value, where the price is within the second price range.

8. The method of claim 1 where the order comprises an offset order.

9. A method for trading a tradeable object, comprising:

receiving a pay-up tick value for a trading strategy via a client device;

detecting a predefined condition via the client device;

in response to detecting the predefined condition, modifying the pay-up tick value to a modified pay-up tick value; and

determining a price of at least one order of a trading strategy according to the modified pay-up tick value via the client device.

10. The method of claim 9 where the trading strategy comprises a spread.

11. The method of claim 9 where the predefined condition is user-configurable.

12. The method of claim 9 further comprising determining a first price range for the at least one order according to the pay-up tick value.

13. The method of claim 12 further comprising determining a second price range for the at least one order according to the modified pay-up tick value, the price being within the second price range.

14. The method of claim 9 where the at least one order comprises an offset order.

15. The method of claim 9 where the at least one order comprises a hedge order.

16. The method of claim 9 where the predefined condition is based on at least market data.

17. A computer readable medium having instructions stored thereon that when executed by a processor cause the processor to carry out the steps comprising:

receiving a pay-up tick value via an input device associated with a processor;

modifying the pay-up tick value to a modified pay-up tick value according to a predefined condition via the processor; and

determining a price for at least one order of a trading strategy via the processor, the price being determined according to the modified pay-up tick value.

18. The method of claim 17 where at least one parameter of the predefined condition is determined according to market data associated with the trading strategy.

19. The computer readable medium of claim 17 where modifying the pay-up tick value to the modified pay-up tick value comprises determined the modified pay-up tick value according to a user-defined formula.

20. The computer readable medium of claim 19 where the steps further comprise determining a second price range for the at least one order according to the modified pay-up tick value, where the price is within the second price range.