Distributed Server Side Device Architecture

• US 20120016786A1
• Filed: 07/14/2010
• Published: 01/19/2012
• Est. Priority Date: 07/14/2010
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mintz, Sagy Pundak, Burns, Michael J.
• Granted Patent: US 8,781,946 B2
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An electronic trading method is provided. The method includes receiving a trading strategy order having a parent trading strategy including multiple quoting legs; splitting the trading strategy order into multiple child orders; and submitting each of the multiple child orders to exchange systems adapted to fill the quoting legs in the child orders. Each child order includes a child trading strategy having a single quoting leg or a reduced number of quoting legs relative to the parent trading strategy. The child trading strategies are the same as the parent trading strategy except for the number of legs marked as quoting legs. The method may be performed by a trading strategy device disposed between a client device and multiple server side devices.

Claims

1. A method comprising:

performing with a computing device;

receiving a trading strategy order according to a trading strategy with multiple quoting legs;

determining that the trading strategy order includes multiple quoting legs;

in response to determining that the trading strategy order includes multiple quoting legs, generating multiple child orders, each child order including fewer quoting legs than the trading strategy order; and

submitting the multiple child orders for matching.

2. The method of claim 1, wherein the multiple child orders include a first child order and a second child order, the first child order being submitted to a first exchange system for matching and the second child order being submitted to a second exchange system for matching, wherein the first exchange system is different than the second exchange system.

3. The method of claim 2, wherein the first child order includes only a first quoting leg and the second child order includes only a second quoting leg.

4. The method of claim 2, wherein matching either the first child order or the second child order is the same as matching the trading strategy order.

5. The method of claim 2, wherein submitting the child orders for matching includes transmitting the first child order to a first server side device physically located at, near, or in the first exchange system and transmitting the second child order to a second server side device physically located at, near, or in the second exchange system, wherein the first server side device is different than the second server side device.

6. The method of claim 5, wherein the first server side device works the first child order at the first exchange system and the second server side device works the second child orders at the second exchange system.

7. The method of claim 1, wherein submitting the multiple child orders for matching includes submitting the multiple child orders for matching based on latency.

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

receive a trading strategy order including a trading strategy having multiple quoting legs;

determine that the trading strategy order includes multiple quoting legs;

generate multiple child orders when the trading strategy order includes multiple quoting legs, wherein each child order includes less quoting legs than the trading strategy order; and

submit the multiple child orders for matching.

9. The computer readable medium of claim 8, wherein the multiple child orders include a first child order and a second child order, the first child order being submitted to a first exchange system for matching and the second child order being submitted to a second exchange system for matching, wherein the first exchange system is different than the second exchange system.

10. The computer readable medium of claim 9, wherein the instructions executable to generate multiple child orders includes instructions executable to generate the first child order with only a first quoting leg and generate the second child order with only a second quoting leg.

11. The computer readable medium of claim 9, wherein matching either the first child order or the second child order is the same as matching the trading strategy order.

12. The computer readable medium of claim 8, wherein the instructions for submitting the child orders for matching includes instructions executable to transmit the first child order to a first server side device physically located at, near, or in the first exchange system and transmitting the second child order to a second server side device physically located at, near, or in the second exchange system, wherein the first server side device is different than the second server side device.

13. The computer readable medium of claim 12, wherein the first server side device works the first child order at the first exchange system and the second server side device works the second child orders at the second exchange system.

14. The computer readable medium of claim 8, wherein the instructions executable to submit the multiple child orders for matching include instructions executable to submit the multiple child orders for matching based on latency.

15. A method comprising:

performing with a trading strategy device;

receiving a trading strategy order having a parent trading strategy including multiple quoting legs;

splitting the trading strategy order into multiple child orders, wherein each child order includes a child trading strategy having a single quoting leg, the child trading strategies are the same as the parent trading strategy except for the number of legs marked as quoting legs; and

submitting each of the multiple child orders to exchange systems adapted to fill the quoting legs in the child orders.

16. The method of claim 15, wherein splitting includes determining whether the trading strategy order has multiple quoting legs.

17. The method of claim 16, wherein splitting includes defining child trading strategies and generating the plurality of child orders, wherein the child orders are for one or more of the child trading strategies.

18. The method of claim 15, wherein the one or more exchange systems include a first exchange system and a second exchange system.

19. The method of claim 15, wherein splitting the initial order occurs prior to the initial order being transmitted to a first exchange system in the one or more exchange systems.

20. The method of claim 15, wherein submitting is based on latency.