METHOD AND SYSTEM FOR ELECTRONIC TRADING VIA A YIELD CURVE ON PLURAL NETWORK DEVICES

• US 20110022509A1
• Filed: 09/14/2010
• Published: 01/27/2011
• Est. Priority Date: 11/13/2005
• Status: Abandoned Application

• Current Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Original Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Inventors: MACKEY, Richard J. JR.
• Application Number:
  US12/881,860
• Publication Number:
  US 20110022509A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and system for providing automatic electronic trading via yield curves. A yield curve is automatically traded via one or more electronic trading exchanges on a client device and/or a server device and/or a combination thereof, thereby making the execution of electronic trades for the yield curve faster and more reliable than when executing on one network device alone.

Claims

1. A method for automatic yield curve trading, comprising:

creating the yield curve from electronic trading information from two or more real or synthetic trading instruments or contracts on a first application on a target network device with one or more processors;

creating a yield curve trading strategy on the first application on the target network device for the yield curve to automatically and simultaneously execute one or more electronic trades for the yield curve in one or more electronic trading markets;

sending the yield curve and the yield curve trading strategy to a second application on a server network device with one or more processors via a communications network to automatically execute the one or more electronic trades for the yield curve, thereby making the execution of the one or more electronic trades for the yield curve faster and more reliable than executing the one or more electronic trades via the first application on the target network device alone;

receiving simultaneously on the first application on the target network device and on the second application on the server network device two or more sets of electronic trading information from one or more electronic trading exchanges including electronic trading information for the two or more real or synthetic trading entities for the yield curve via the communications network;

automatically executing on the second application on the server network device with the yield curve trading strategy created for the yield curve the one or more electronic trades for the yield curve;

displaying automatically via the first application on the target network device selected ones of the two or more sets of electronic trading information on a graphical window on a graphical user interface with a plurality of graphical windows used for electronic trading; and

automatically requesting via the graphical window on the first application on the target network device one or more additional electronic trades be executed for the yield curve on the one or more electronic trading exchanges, wherein the one or more additional electronic trade requests are automatically sent to the second application on the server network device by the graphical window for execution.

2. One or more processors including a non-transitory computer readable medium having stored therein a plurality of instructions for causing the one or more processors to execute steps of the method of claim 1.

3. The method of claim 1 wherein the yield curve includes a real or synthetic trading entity created from two or more selected real or synthetic financial instruments.

4. The method of claim 1 wherein the yield curve includes the yield curve created from two or more selected real or synthetic financial or commodity futures contracts.

5. The method of claim 1 further comprising:

displaying automatically via the first application on the target network device selected ones of the two or more sets of electronic trading information on the graphical window including an aggregate book view/ask bid volume (ABV) window on a graphical user interface with a plurality of graphical windows used for electronic trading, including displaying bid size and bid offer by price in a market depth format for the two or more real or synthetic electronic trading entities used to create the yield curve and displaying prices in a dynamic price column in the ABV window,

wherein the ABV window includes an order entry mode for entering a trade near, or away from a current last traded price,

wherein the ABV window allows entering and canceling of electronic trading orders and automatically sending electronic trading orders entered into the ABV window at a selected price to the one or more electronic trading exchanges; and

automatically and dynamically re-centering the dynamic price column in the ABV window upon a current last traded price that continuously and dynamically changes with price fluctuations in the current last traded price.

6. The method of claim 1 further comprising:

displaying automatically via the first application in the graphical window one or more yield curve trading entities and a plurality of created yield curve values in the graphical window including a plurality of graphical yield curve trading indicators comprising a dynamic yield curve impact indicator, a dynamic yield curve ratio indicator and a dynamic yield curve settlement indicator.

7. The method of claim 1 wherein the yield curve trading strategies include if-then trading strategies, one-cancels-other (OCO), market-on-open (MOO), market-on-close (MCO), block trading, good-til-canceled (GTC), good-til-date (GTD), fill-and-kill (FAK), fill-or-kill (FOK), Iceberg, multi-leg spread, over-the-counter (OTC) or yield curve yield curve trading strategies or a combination thereof.

8. The method of claim 1 further comprising:

automatically executing on the first application on the target network device a first trade for the yield curve on a first electronic trading exchange; and

automatically executing on the second application on the server network device a second trade for the yield curve on a second electronic trading exchange,

thereby splitting execution of the yield curve between the first application on the target network device and the second application on the server network device.

9. The method of claim 8 wherein second trade executed on the second application on the server network device is for a larger trade order than the first trade executed on the first application the target network device.

10. The method of claim 8 wherein the first trade includes a trade for a real financial instrument or contract for a first leg of a spread and the second trade includes a trade or synthetic financial instrument or contract for a second leg of a spread for a yield curve.

11. The method of claim 1 wherein the first application on the target network device and the second application on the server network device provide an integrated viewpoint of yield curve trading across all trading accounts and across all electronic trading exchanges for an electronic trader.

12. The method of claim 10 wherein integrated viewpoint information is displayed on a an aggregate book view/ask bid volume (ABV) window on the target network device.

13. The method of claim 1 wherein the second application on the server network device includes on an aggregate book view/ask bid volume (ABV) window with a dynamic price column on a graphical user interface with a plurality of graphical windows used for electronic trading.

14. The method of claim 1 wherein selected ones of the two or more sets of received electronic trading information for yield curve trading are displayed in a graphical yield curve trading window.

15. The method of claim 1 wherein the step of automatically executing on the second application on the server network device with the yield curve trading strategy provides fault tolerance against loss of communication between the target network device and the communications network for electronic trading.

16. A system for automatic yield curve trading, comprising in combination:

means for creating the yield curve from two or more real or synthetic trading instruments or contracts on a first application on a target network device with one or more processors;

means for creating a yield curve trading strategy on the first application on the target network device for the yield curve to automatically and simultaneously execute one or more electronic trades for the yield curve in one or more electronic trading markets, wherein the one or more trades in the yield curve have a pre-determined relationship;

means for sending the yield curve and the yield curve trading strategy to a second application on a server network device with one or more processors via a communications network to automatically execute the one or more electronic trades for the yield curve, thereby making the execution of the one or more electronic trades for the yield curve faster and more reliable than executing the one or more electronic trades via the first application on the target network device alone;

means for receiving simultaneously on the first application on the target network device and on the second application on the server network device two or more sets of electronic trading information from one or more electronic trading exchanges including electronic trading information for the two or more real or synthetic trading entities for the yield curve via the communications network;

means for automatically executing on the second application on the server network device with the yield curve trading strategy created for the yield curve the one or more electronic trades for the yield curve;

means for displaying automatically via the first application on the target network device selected ones of the two or more sets of electronic trading information on an aggregate book view/ask bid volume (ABV) window on a graphical user interface with a plurality of graphical windows used for electronic trading, including displaying bid size and bid offer by price in a market depth format for the two or more real or synthetic electronic trading entities used to create the yield curve and displaying prices in a dynamic price column in the ABV window,

wherein the ABV window includes an order entry mode for entering a trade near, or away from a current last traded price,

wherein the ABV window allows entering and canceling of electronic trading orders and automatically sending electronic trading orders entered into the ABV window at a selected price to the one or more electronic trading exchanges;

means for automatically and dynamically re-centering the dynamic price column in the ABV window upon a current last traded price that continuously and dynamically changes with price fluctuations in the current last traded price; and

means for automatically requesting via the ABV window on the first application on the target network device one or more additional electronic trades be executed for the yield curve on the one or more electronic trading exchanges, wherein the one or more additional electronic trades are automatically sent to the second application on the server network device by the ABV window for execution.

17. The system of claim 16 further comprising:

means for automatically executing on the first application on the target network device a first trade for the yield curve on a first electronic trading exchange; and

means for automatically executing on the second application on the server network device a second trade for the yield curve on a second electronic trading exchange,

thereby splitting execution of the yield curve between the first application on the target network device and the second application on the server network device.

18. The system of claim 16 wherein the yield curve trading strategies include if-then trading strategies, one-cancels-other (OCO), market-on-open (MOO), market-on-close (MCO), block trading, good-til-canceled (GTC), good-til-date (GTD), fill-and-kill (FAK), fill-or-kill (FOK), Iceberg, multi-leg spread, over-the-counter (OTC) or black box yield curve trading strategies.

20. The method of claim 16 further comprising:

means for displaying automatically via the first application one or more yield curve trading entities and a plurality of created yield curve values in the ABV window including a plurality of graphical yield curve trading indicators comprising a dynamic yield curve impact indicator, a dynamic yield curve ratio indicator and a dynamic yield curve settlement indicator.

19. The method of system 16 further comprising:

means for fault tolerance against loss of communication between the target network device and the communications network for electronic trading for yield curves by executing one or more trades on the target network device and one or more trades for the server network device on the server network device.