System and Method for Quick Quote Configuration

• US 20100023443A1
• Filed: 09/15/2009
• Published: 01/28/2010
• Est. Priority Date: 12/28/2004
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Tam, Simon
• Granted Patent: US 7,844,541 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

Abstract

A method and system are described for providing a trader with the ability to quickly configure the quoting side of a trading tool, without experiencing the normal delays associated with conventional methods of quoting. In spread trading, an automated spread trading tool may automatically work an order to buy or sell a tradeable object. A user may configure the trading tool to work an order in a certain tradeable object first. The system allows the user to essentially on-the-fly configure the trading tool to work a second order in another tradeable object, and in response to the change, the system can take specific actions such as deleting the order in the first tradeable object and automatically entering the second order in the other tradeable object. This allows the trader to trade quickly and efficiently.

Claims

1-21. -21. (canceled)

22. A computer readable medium having stored therein instructions executable by a processor to perform a method including:

providing at a computing device a slider switch adapted to allow a user using a user input device to dynamically switch between a first tradeable object and a second tradeable object when trading a spread, wherein the spread is between the first tradeable object and the second tradeable object;

receiving at the computing device a first quick quote command to trade the second tradeable object and hedge into the first tradeable object;

sending from the computing device a first order to buy or sell the second tradeable object to an electronic exchange at a price based on a desired spread price and market conditions in the first tradeable object in response to the first quick quote command, wherein a first hedging order to buy or sell the first tradeable object is sent to the electronic exchange when the first order is filled by the electronic exchange to complete the spread;

receiving at the computing device a second quick quote command through the slider switch for dynamically switching to trade the first tradeable object and hedge into the second tradeable object, wherein the second quick quote is received subsequent to sending the first order to buy or sell the second tradeable object to the electronic exchange, but before the first order is completely filled by the electronic exchange;

automatically sending from the computing device a message to delete the first order to buy or sell the second tradeable object to the electronic exchange in response to the second quick quote command;

computing at the computing device a price of a second order to buy or sell the first tradeable object based on the desired spread price and market conditions in the second tradeable object; and

automatically sending from the computing device the second order to buy or sell the first tradeable object at the computed price to an electronic exchange in response to the second quick quote command.

23. The computer readable medium of claim 22, further comprising instructions to perform the step of determining the price of the second order to sell the first tradeable object by computing a price that would result in the desired spread price if, after the second order to sell the first tradeable object filled, the second tradeable object was bought at the best ask price.

24. The computer readable medium of claim 22, further comprising instructions to perform the step of determining the price of the second order to buy the first tradeable object by computing a price that would result in the desired spread price if, after the second order to buy the first tradeable object filled, the second tradeable object was sold at the best bid price.

28. The computer readable medium of claim 22, further comprising instructions to perform the steps of:

receiving a third quick quote command through the slider switch for dynamically switching to trade both the first tradeable object and the second tradeable object;

computing a first price of an order to buy or sell the first tradeable object based on a desired spread price and market conditions in the second tradeable object;

computing a second price of an order to buy or sell the second tradeable object based on a desired spread price and market conditions in the first tradeable object;

automatically sending an order to buy or sell the first tradeable object at the computed first price to an electronic exchange in response to the third quick quote command; and

automatically sending an order to buy or sell the second tradeable object at the computed second price to an electronic exchange in response to the third quick quote command.

29. A computer readable medium having stored therein instructions executable by a processor to perform a method including:

providing at a computing device a slider switch adapted to allow a user using a user input device to dynamically switch between a first tradeable object and a second tradeable object when trading a spread, wherein the spread is between the first tradeable object and the second tradeable object;

sending from the computing device a first order to buy or sell the first tradeable object to a first electronic exchange, the first order has a price based on a desired spread price and market conditions in the second tradeable object;

receiving at the computing device a quick quote command through the slider switch for dynamically switching to trade the second tradeable object by an action of the user input device;

automatically sending from the computing device a message to cancel the first order to the first electronic exchange in response to the quick quote command; and

automatically sending from the computing device a second order to buy or sell the second tradeable to a second electronic exchange in response to the quick quote command, the second order has a price based on the desired spread price and market conditions in the first tradeable object.

32. A system for providing a quick quote configuration when trading a spread between a first tradeable object and a second tradeable object, the system including:

a trading station adapted to receive a desired spread price for a spread comprising a first tradeable object and a second tradeable object, the trading station further adapted to automatically monitor market data corresponding to the first tradeable object and the second tradeable object to determine a market direction of each market corresponding to the first tradeable object and the second tradeable object, the trading station further adapted to, based on the market direction for each tradeable object, automatically select the first tradeable object as a leg to be quoted and the second tradeable object as a leg to be hedged, the trading station further adapted to compute a price of an order to buy or sell the first tradeable object based on the desired spread price and market conditions in the second tradeable object, the trading station further adapted to automatically send the order to buy or sell the first tradeable object at the computed price to an electronic exchange in response to automatically selecting the first tradeable object as the leg to be quoted, the trading station further adapted to detect a change in the market direction for the second tradeable object, the trading station further adapted to dynamically switch the selection of the leg to be quoted and the leg to be hedged such that the second tradeable object is selected as the leg to be quoted and the first tradeable object is selected as the leg to be hedged, the trading station further adapted to compute a price of an order to buy or sell the second tradeable object based on the desired spread price and market conditions in the first tradeable object, the trading station further adapted to automatically send the order to buy or sell the second tradeable object at the computed price to an electronic exchange in response to dynamically switching the selection, the trading station further adapted to automatically send a message to the electronic exchange to delete the order to buy or sell the first tradeable object in response to dynamically switching the selection.

33. The system of claim 32, wherein the trading station is further adapted to compute the price of the order to sell the first tradeable object by computing the price that would result in the desired spread price if, after the order to sell the first tradeable object filled, the second tradeable object was bought at a best ask price available for the second tradeable object.

34. The system of claim 32, wherein the trading station is further adapted to compute the price of the order to buy the first tradeable object by computing the price that would result in the desired spread price if, after the order to buy the first tradeable object filled, the second tradeable object was sold at a best bid price available for the second tradeable object.

35. The system of claim 32, wherein the trading station is further adapted to send the order to buy or sell the first tradeable object at the price based on the desired spread price and the market conditions in the second tradeable object is initiated when a user inputs the desired spread price and a desired spread quantity.

36. The system of claim 32, wherein the trading station is further adapted to determine market volatility of each market corresponding to the first tradeable object and the second tradeable object, wherein the trading station is further adapted to, based on the market volatility for each the first tradeable object and the second tradeable object, select the first tradeable object as a leg to be quoted and the second tradeable object as a leg to be hedged.