System and Method for Order Placement in an Electronic Trading Environment

• US 20100070403A1
• Filed: 11/18/2009
• Published: 03/18/2010
• Est. Priority Date: 09/30/2005
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mintz, Sagy P., Burns, Michael J., Herz, Eric M., Dietz, Alexander D.
• Granted Patent: US 8,065,221 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 associated methods are provided for intelligent placement and movement of orders in an electronic trading environment. According to one example method, in addition to submitting a leg order at a calculated price level, additional orders, queue holder orders, are submitted for the leg order at prices either below or above the calculated price level. Based on this configuration, if the conditions change such that it is necessary to re-price the leg order, there will be already an order resting in the exchange order book at the re-calculated price that can be used in the strategy. Upon re-pricing the leg order, one or more additional queue holder orders will be placed in the market. Other tools are provided as well.

Claims

1. A method for trading in an electronic trading environment, comprising:

identifying by a computing device a price condition associated with a trading strategy, wherein the trading strategy comprises a first tradeable object and a second tradeable object;

sending by the computing device a first order to buy or sell the first tradeable object at a first price to be placed in an order book of a computerized matching process, wherein the first order at the first price satisfies the price condition;

sending by the computing device a second order to buy or sell the first tradeable object at a second price to be placed in the order book of the computerized matching process, wherein the second order at the second price does not satisfy the price condition;

determining by the computing device that the first order at the first price does not satisfy the price condition subsequent to placement of the first order and the second order in the order book; and

using the second order at the second price for the trading strategy instead of the first order when the second order at the second price satisfies the price condition.

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

3. The method of claim 2, wherein the spread trading strategy comprises a first leg and a second leg, wherein the first leg comprises the first tradeable object, and wherein the second leg comprises the second tradeable object.

4. The method of claim 3, wherein the price condition associated with the trading strategy comprises a price for the first leg of the spread trading strategy.

5. The method of claim 1, wherein the price condition is further based on market conditions associated with the second tradeable object.

6. The method of claim 1, wherein the price condition is based on a desired price defined for the trading strategy.

7. The method of claim 6, wherein the price condition satisfies the desired price defined for the trading strategy.

8. The method of claim 6, wherein the price condition is automatically updated to satisfy the desired price defined for the trading strategy.

9. The method of claim 1, wherein the price condition is updated upon detecting a change in market conditions associated with the second tradeable object.

10. The method of claim 1, further comprising:

subsequent to using the second order at the second price for the trading strategy, automatically sending a third order at a third price to be placed in the order book of the computerized matching process.

11. The method of claim 1, wherein the first price and the second price comprise consecutive prices corresponding to the first tradeable object.

12. The method of claim 1, wherein the first price and the second price comprise non-consecutive prices corresponding to the first tradeable object.

13. A computer readable medium having stored therein instructions which when executed cause a computer in an electronic trading environment to perform a method comprising:

identifying by a computing device a price condition associated with a trading strategy, wherein the trading strategy comprises a first tradeable object and a second tradeable object;

sending by the computing device a first order to buy or sell the first tradeable object at a first price to be placed in an order book of a computerized matching process, wherein the first order at the first price satisfies the price condition;

sending by the computing device a second order to buy or sell the first tradeable object at a second price to be placed in the order book of the computerized matching process, wherein the second order at the second price does not satisfy the price condition;

determining by the computing device that the first order at the first price does not satisfy the price condition subsequent to placement of the first order and the second order in the order book; and

using the second order at the second price for the trading strategy instead of the first order when the second order at the second price satisfies the price condition.

14. The computer readable medium of claim 13, wherein the trading strategy comprises a spread trading strategy.

15. The computer readable medium of claim 14, wherein the spread trading strategy comprises a first leg and a second leg, wherein the first leg comprises the first tradeable object, and wherein the second leg comprises the second tradeable object.

16. The computer readable medium of claim 15, wherein the price condition associated with the trading strategy comprises a price for the first leg of the spread trading strategy.

17. The computer readable medium of claim 13 wherein the price condition is further based on market conditions associated with the second tradeable object.

18. The computer readable medium of claim 13, wherein the price condition is based on a desired price defined for the trading strategy.

19. The computer readable medium of claim 18, wherein the price condition satisfies the desired price defined for the trading strategy.

20. The computer readable medium of claim 18, wherein the price condition is automatically updated to satisfy the desired price defined for the trading strategy.

21. The computer readable medium of claim 13, wherein the price condition is updated upon detecting a change in market conditions associated with the second tradeable object.

22. The computer readable medium of claim 13, wherein the method further comprises:

subsequent to using the second order at the second price for the trading strategy, automatically sending a third order at a third price to be placed in the order book of the computerized matching process.

23. The computer readable medium of claim 13, wherein the first price and the second price comprise consecutive prices corresponding to the first tradeable object.

24. The computer readable medium of claim 13, wherein the first price and the second price comprise non-consecutive prices corresponding to the first tradeable object.