SYSTEM AND METHOD FOR EVENT-BASED TRADING

• US 20100198749A1
• Filed: 04/21/2010
• Published: 08/05/2010
• Est. Priority Date: 12/12/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Murphy, Stephen J., O'Connor, Gerald J.
• Granted Patent: US 8,065,222 B2
• Time in Patent Office: Days
• US Class Current: 705/36.00R
• 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 for news-based trading are developed. According to one method, a trader can pre-define a trading strategy including a number of trading rules to be applied based on a comparison of one or more estimated event values to the respective actual event values to be released at some later time. The example method further includes, upon receiving one or more actual event values via a user input or directly from outside sources, executing one or more predefined trading rules selected based on the comparison of the received actual event values to the respective estimated indicator values.

Claims

1. A method for event-based trading, comprising:

receiving, by a computer device, an electronic trading rule to be executed when a first news event value matches a second news event value to be known at a later time, wherein the second news event value originates from a source other than an electronic exchange that matches orders at prices for a tradable object;

displaying, on a graphical interface, a trading rule icon at a first location of a plurality of locations corresponding to news event values along an axis, wherein the first location corresponds to the first news event value, and wherein the trading rule icon is adjustable via a user input device to be displayed at a second location corresponding to a third news event value, wherein when the trading rule icon is displayed at the second location, the electronic trading rule is to be executed when the third news event value matches the second news event value;

receiving, by the computer device, the second news event value;

executing, by the computer device, the electronic trading rule when the second news event value matches the first news event value, wherein executing the electronic trading rule comprises generating a transaction message to be sent to the electronic exchange; and

providing a graphical indicator in relation to the trading rule icon to indicate a current stage of execution of the electronic trading rule.

2. The method of claim 1, further comprising:

updating the graphical indicator as the current stage of execution of the electronic trading rule changes.

3. The method of claim 1, wherein the first news event value comprises an estimated news event value, and wherein the second news event value comprises an actual news event value.

4. The method of claim 1, wherein the first news event value comprises

an actual news event value, and wherein the second news event value comprises a revised news event value.

5. The method of claim 1, wherein executing the electronic trading rule comprises sending the transaction message to the electronic exchange.

6. The method of claim 1, wherein the graphical indicator indicates that the electronic trading rule was activated for execution.

7. The method of claim 1, wherein the graphical indicator indicates that the transaction message was sent to the electronic exchange.

8. The method of claim 1, wherein the graphical indicator indicates different stages of execution of the transaction message at the electronic exchange.

9. The method of claim 1, wherein the transaction message comprises an order to buy or sell the tradable object at the electronic exchange.

10. The method of claim 1, wherein the transaction message comprises an order to delete a working order quantity pending for the tradable object at the electronic exchange.

11. The method of claim 1, wherein the trading rule icon is adjusted by dragging a boundary of the trading rule icon to the second location corresponding to the third event value along the axis.

12. The method of claim 1, wherein the graphical indicator is color coded to indicate the current stage of execution of the electronic trading rule.

13. The method of claim 1, wherein placement of the trading rule icon at the first location indicates that the electronic trading rule is to be executed when the second news event value falls within a user defined range of values from and including the first news event value.

14. A computer readable medium having stored therein instructions to execute

a method for event-based trading comprising:

receiving, by a computer device, an electronic trading rule to be executed when a first news event value matches a second news event value to be known at a later time, wherein the second news event value originates from a source other than an electronic exchange that matches orders at prices for a tradable object;

displaying, on a graphical interface, a trading rule icon at a first location of a plurality of locations corresponding to news event values along an axis, wherein the first location corresponds to the first news event value, and wherein the trading rule icon is adjustable via a user input device to be displayed at a second location corresponding to a third news event value, wherein when the trading rule icon is displayed at the second location, the electronic trading rule is to be executed when the third news event value matches the second news event value;

receiving, by the computer device, the second news event value;

executing, by the computer device, the electronic trading rule when the second news event value matches the first news event value, wherein executing the electronic trading rule comprises generating a transaction message to be sent to the electronic exchange; and

providing a graphical indicator in relation to the trading rule icon to indicate a current stage of execution of the electronic trading rule.

15. The computer readable medium of claim 14, further comprising:

updating the graphical indicator as the current stage of execution of the electronic trading rule changes.

16. The computer readable medium of claim 14, wherein the first news event value comprises an estimated news event value, and wherein the second news event value comprises an actual news event value.

17. The computer readable medium of claim 14, wherein the first news event value comprises an actual news event value, and wherein the second news event value comprises a revised news event value.

18. The computer readable medium of claim 14, wherein executing the electronic trading rule comprises sending the transaction message to the electronic exchange.

19. The computer readable medium of claim 14, wherein the graphical indicator indicates that the electronic trading rule was activated for execution.

20. The computer readable medium of claim 14, wherein the graphical indicator indicates that the transaction message was sent to the electronic exchange.

21. The computer readable medium of claim 14, wherein the graphical indicator indicates different stages of execution of the transaction message at the electronic exchange.

22. The computer readable medium of claim 14, wherein the transaction message comprises an order to buy or sell the tradable object at the electronic exchange.

23. The computer readable medium of claim 14, wherein the transaction message comprises an order to delete a working order quantity pending for the tradable object at the electronic exchange.

24. The computer readable medium of claim 14, wherein the trading rule icon is adjusted by dragging a boundary of the trading rule icon to the second location corresponding to the third event value along the axis.

25. The computer readable medium of claim 14, wherein the graphical indicator is color coded to indicate the current stage of execution of the electronic trading rule.

26. The computer readable medium of claim 14, wherein placement of the trading rule icon at the first location indicates that the electronic trading rule is to be executed when the second news event value falls within a user defined range of values from and including the first news event value.