System and Method for Smart Hedging in an Electronic Trading Environment
4 Assignments
0 Petitions
Accused Products
Abstract
A system and associated methods are provided for smart hedging in an electronic trading environment. According to one example method, a first order for a first tradeable object and a second order for a second tradeable object are placed based on a spread strategy. Upon receiving an indication that a quantity of the first order is filled, the method involves determining if the second order can be used to offset the quantity filled of the first order by determining if a price of the second order would result in achieving a desired spread price defined for the spread strategy. If the price results in the desired price, the second order is used to offset the quantity filled for the first order in an attempt to achieve the desired spread price. Other tools are provided as well.
21 Citations
43 Claims
-
1-25. -25. (canceled)
-
26. A system for trading in an electronic trading environment, the system comprising:
-
a computing device adapted to receive a definition for a spread strategy comprising at least a first tradeable object and a second tradeable object, wherein the computing device is adapted to receive a desired spread price, wherein the computing device is adapted to automatically place a first order in an order book of a first electronic matching process corresponding to the first tradeable object, the first order being placed at a first price that is computed based on market conditions in the second tradeable object and the desired spread price, wherein the computing device is adapted to automatically place a second order in an order book of a second electronic matching process corresponding to the second tradeable object, the second order being placed at a second price that is computed based on market conditions in the first tradeable object and the desired spread price, wherein the computing device is adapted to receive an indication that a quantity of the first order is filled by the first electronic matching process after the first order and the second order are placed, wherein the computing device is adapted to determine after the first order and the second order are placed whether the second order can be used to offset the quantity filled of the first order by determining if the second price corresponding to the second order would result in achieving a price associated with the desired spread price, wherein the computing device is adapted to use the second order to offset the quantity filled for the first order in an attempt to achieve the desired spread price when the second order would result in achieving the price associated with the desired spread price, and wherein the computing device is adapted to cancel the second order at the second price when the second order would not result in achieving the price associated with the desired spread price and placing a third order at a third price that would result in achieving the price associated with the desired spread price. - View Dependent Claims (27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37)
-
-
38. A system for trading in an electronic trading environment, the system comprising:
-
a computing device adapted to receive an indication that at least a portion of a first leg order of a spread has been filled, wherein the spread includes a plurality of leg orders that have been quoted, wherein the plurality of leg orders includes the first leg order for a first tradeable object and a second leg order for a second tradeable object, wherein the indication is received after the first leg order and second leg order have been quoted, wherein the computing device is adapted to use the second leg order as an offset order for the first leg order when the second leg order has been determined after the first leg order and second leg order have been quoted to be at a price level that results in a desired spread price for the spread, and wherein the computing device is adapted to cancel the second leg order and place an offsetting order that achieves the desired spread price for the spread when the second leg order has been determined to not be at a price level that results in the desired spread price for the spread. - View Dependent Claims (39, 40, 41, 42, 43)
-
Specification