System and Method for Management and Analysis of Electronic Trade Orders

• US 20100293088A1
• Filed: 07/27/2010
• Published: 11/18/2010
• Est. Priority Date: 03/21/2007
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mintz, Sagy P., Deitz, Alexander D.
• Granted Patent: US 8,290,851 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 40/03 Credit; Loans; Processing thereof
• 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 methods are provided for using order descriptor identifiers in relation to orders being used in trading strategies. According to one example method, when a hedge order is submitted upon detecting a fill of another order, the hedge order includes one or more order descriptor identifiers conveying a purpose of the hedge order to a user. The order descriptor identifiers can be used to search for desired orders and perform more effective order management and post trade analysis.

Claims

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

generating an order message by a first software application for a first trade order to buy or sell a tradable object at an electronic exchange in response to detecting a fill of a second trade order, the first trade order having an order quantity and an order price;

inserting an order descriptor identifier into the generated order message, wherein the order descriptor identifier comprises information that links the first trade order to the fill of the second trade order; and

using the order descriptor identifier to create an association between the first trade order and the fill of the second trade order, wherein the order descriptor is accessible by a second software application that is different from the first software application.

2. The method of claim 1, wherein the first trade order and the second trade order are generated based on a trading strategy.

3. The method of claim 2, further comprising:

defining the trading strategy.

4. The method of claim 2, wherein the order descriptor identifier further comprises information that identifies the trading strategy.

5. The method of claim 4, wherein the order descriptor identifier further comprises information that identifies the trading strategy as an automated trading strategy.

6. The method of claim 4, wherein the order descriptor identifier further comprises information that identifies the trading strategy as a manual trading strategy.

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

8. The method of claim 1, wherein the order descriptor identifier comprises information identifying the first trade order as a hedge order.

9. The method of claim 1, wherein the second trade order is to buy or sell the tradable object.

10. The method of claim 1, wherein the second trade order is to buy or sell a second tradable object that is different than the tradable object.

11. The method of claim 1, wherein the order descriptor identifier is accessible by the first software application.

12. The method of claim 1, further comprising:

sending the order message comprising the order descriptor identifier to an electronic exchange.

13. A computer readable medium having stored therein instructions executable by a processor, wherein the instructions are executable to:

generate an order message by a first software application for a first trade order to buy or sell a tradable object at an electronic exchange in response to detecting a fill of a second trade order, the first trade order having an order quantity and an order price;

insert an order descriptor identifier into the generated order message, wherein the order descriptor identifier comprises information that links the first trade order to the fill of the second trade order; and

use the order descriptor identifier to create an association between the first trade order and the fill of the second trade order, wherein the order descriptor is accessible by a second software application that is different from the first software application.

14. The computer readable medium of claim 13, wherein the first trade order and the second trade order are generated based on a trading strategy.

15. The computer readable medium of claim 14, wherein the instructions are further executable to:

define the trading strategy.

16. The computer readable medium of claim 14, wherein the order descriptor identifier further comprises information that identifies the trading strategy.

17. The computer readable medium of claim 16, wherein the order descriptor identifier further comprises information that identifies the trading strategy as an automated trading strategy.

18. The computer readable medium of claim 16, wherein the order descriptor identifier further comprises information that identifies the trading strategy as a manual trading strategy.

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

20. The computer readable medium of claim 13, wherein the order descriptor identifier comprises information identifying the first trade order as a hedge order.

21. The computer readable medium of claim 13, wherein the second trade order is to buy or sell the tradable object.

22. The computer readable medium of claim 13, wherein the second trade order is to buy or sell a second tradable object that is different than the tradable object.

23. The method of claim 13, wherein the order descriptor identifier is accessible by the first software application.

24. The method of claim 13, further comprising:

sending the order message comprising the order descriptor identifier to an electronic exchange.