Electronic spread trading tool

• US 7,243,083 B2
• Filed: 06/14/2001
• Issued: 07/10/2007
• Est. Priority Date: 06/14/2001
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Singer, Scott F., Burns, Mike
• Primary Examiner(s): NGUYEN, NGA B
• Application Number:
  US09/880,078
• Publication Number:
  US 20030004852A1
• Time in Patent Office: 2,217 Days
• Field of Search: 705/35, 705/36, 705/37, 705/38
• 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 versatile and efficient electronic spread trading tool to be used when buying and selling comparable commodities either simultaneously or in conjunction with one another. The spread trading tool involves a method of displaying, on an electronic display device, the market depth of a plurality of commodities including an anchor commodity and a non-anchor commodity, where the method includes dynamically displaying a plurality of bids and asks in the market for the commodities, statically displaying prices corresponding to those plurality of bids and asks, where the bids and asks are displayed in alignment with the prices corresponding thereto, displaying an anchor visual indicator corresponding to and in alignment with a desired price level of the anchor commodity, displaying a price level indicator corresponding to and in alignment with a price level of the non-anchor commodity. Based on an unhedged position, and taking into account the parameters and spread price point values, as determined by the trader, price level indicators are calculated and displayed, which provide a visual representation of where the trader should buy and sell the applicable commodities. The price level for the price level indicator in the non-anchor commodity is determined based upon said desired price level of the anchor commodity. The price level indicator also includes a first visual indicator corresponding to and in alignment with a first price level of the non-anchor commodity and a second visual indicator corresponding to and in alignment with a second price level of the non-anchor commodity.

Claims

1. A computer-based method for processing and displaying market data associated with a trading strategy involving at least two commodities being traded electronically on at least one electronic exchange, the method comprising:

receiving a first market data feed corresponding to a first commodity from at least one electronic exchange, wherein the first market data feed comprises price information for the first commodity;

receiving a second market data feed corresponding to a second commodity from at least one electronic exchange, wherein the second market data feed comprises price information for the second commodity;

displaying a price axis corresponding to a plurality of prices representing the trading strategy, wherein the plurality of prices representing the trading strategy are calculated using the price information from the first market data feed and the second market data feed;

dynamically displaying a first indicator at a first area in relation to a first price level on the price axis, the first indicator being associated with a highest bid price currently available to buy according to the trading strategy; and

dynamically displaying a second indicator at a second area in relation to a second price level on the price axis, the second indicator being associated with a lowest ask price currently available to sell according to the trading strategy.

2. The method of claim 1, wherein the first indicator moves relative to the price axis to a location in relation to another price level on the price axis when the highest bid price changes.

3. The method of claim 1, wherein the second indicator moves relative to the price axis to a location in relation to another price level on the price axis when the lowest ask price changes.

4. The method of claim 1, wherein the plurality of prices corresponding to the price axis do not move in response to a change in either the highest bid price currently available to buy or the lowest ask price currently available to sell according to the trading strategy.

5. The method of claim 1, wherein the plurality of prices representing the trading strategy are generated based on the price information of the first commodity and the second commodity.

6. The method of claim 5, further comprising:

displaying the plurality of calculated prices representing the trading strategy along the price axis.

7. The method of claim 1, further comprising:

calculating a bid quantity associated with the highest bid price currently available to buy according to the trading strategy; and

calculating an ask quantity associated with the lowest ask price currently available to sell according to the trading strategy.

8. The method of claim 7, wherein the first indicator represents the bid quantity associated with the highest bid price currently available to buy according to the trading strategy, and wherein the second indicator represents the ask quantity associated with the lowest ask price currently available to sell according to the trading strategy.

9. The method of claim 7, further comprising:

calculating a plurality of bid and ask quantities associated with price levels other than the highest bid price and the lowest ask price for the trading strategy; and

dynamically displaying a plurality of indicators in relation to price levels on the price axis, each of the plurality of indicators representing one of the plurality of order quantities determined for the trading strategy.

10. The method of claim 1, further comprising:

selecting the first commodity and the second commodity to trade as legs of the trading strategy.

11. The method of claim 10, further comprising:

designating the first tradeable object as an anchor commodity of the trading strategy; and

designating the second tradeable object as a non-anchor commodity of the trading strategy.

12. The method of claim 1, further comprising:

displaying market data representing the first commodity along a second axis; and

displaying market data representing the second commodity along a third axis.

13. The method of claim 12, wherein the second axis comprises a second axis of static prices that displays a plurality of price levels for the first commodity, and wherein the third axis comprises a third axis of static prices that displays a plurality of price levels for the second commodity.

14. The method of claim 13, further comprising:

displaying a first price level indicator in relation to one of the plurality of price levels along the second axis, wherein the first price level indicator can be used in determining a price to buy or sell the first commodity according to the trading strategy.

15. The method of claim 14, further comprising:

displaying a second price level indicator in relation to one of the plurality of price levels along the third axis, wherein the second price level indicator can be used in determining a price to sell or buy the second commodity according to the trading strategy.

16. The method of claim 15, wherein the second price level indicator is based on the first price level indicator.

17. The method of claim 16, further comprising:

automatically moving the second price level indicator in relation to the second axis to a location in relation to another price level in response to a change of the first price level indicator.

18. The method of claim 15, further comprising:

displaying a third price level indicator in the display of market data representing the second commodity, the third price level indicator and the second price level indicator representing a range of prices to buy or sell the second commodity according to the trading strategy.

19. The method of claim 18, wherein the third price level indicator is based on the first price level indicator.

20. The method of claim 19, further comprising:

automatically moving the third price level indicator in relation to the third axis to a location in relation to another price level in response to a change of the first price level indicator.

21. The method of claim 1, wherein the price axis is static.

22. The method of claim 1, wherein the trading strategy comprises a spread.

23. A computer-based method for displaying market information relating to commodities being traded electronically on a device that is connected to at least one electronic exchange, comprising:

receiving from the at least one electronic exchange first market data representing a first commodity;

receiving from the at least one electronic exchange second market data representing a second commodity;

calculating a highest bid price and a lowest ask price available for a spread based on the first and second market data;

dynamically displaying a first indicator in relation to a first price level on a common price axis, the first indicator being associated with the calculated highest bid price available for the spread; and

dynamically displaying a second indicator in relation to a second price level on the common price axis, the second indicator being associated with the calculated lowest ask price available for the spread.

24. The method of claim 23, wherein the first indicator moves relative to the common price axis when the calculated highest bid price available for the spread changes.

25. The method of claim 23, wherein the second indicator moves relative to the common price axis when the calculated lowest ask price available for the spread changes.

26. The method of claim 23, wherein the price levels along the common price axis do not move in response to a change of either the calculated highest bid price or the calculated lowest ask price available for the spread.

27. The method of claim 23, wherein the common price axis is static.

28. The method of claim 23, further comprising the step of calculating prices for the spread based on prices of the first and second commodities.

29. The method of claim 28, further comprising the step of displaying a portion of the common price axis.

30. The method of claim 23, further comprising calculating a bid quantity associated with the highest bid price available for the spread and an ask quantity associated with the lowest ask price available for the spread.

31. The method of claim 30, wherein the first indicator comprises the bid quantity associated with the highest bid price available for the spread and the second indicator comprises the ask quantity associated with the lowest ask price available for the spread.

32. The method of claim 23, further comprising:

calculating a plurality of order quantities associated with price levels other than the highest bid price and lowest ask price; and

dynamically displaying a plurality of indicators in relation with price levels on the common price axis, each indicator representing one of the plurality of order quantities.

33. The method of claim 23, wherein a plurality of the price levels associated with the common price axis are displayed in a window on a display screen of the device.

34. The method of claim 23, further comprising selecting the first and second commodities to trade as legs of the spread.

35. A computer readable medium having stored therein instructions to execute the method of processing and displaying market data associated with a trading strategy involving at least two commodities being traded electronically on at least one electronic exchange, the instructions comprising:

receiving a first market data feed corresponding to a first commodity from at least one electronic exchange, wherein the first market data feed comprises price information for the first commodity;

receiving a second market data feed corresponding to a second commodity from at least one electronic exchange, wherein the second market data feed comprises price information for the second commodity;

displaying a price axis corresponding to a plurality of prices representing the trading strategy, wherein the plurality of prices representing the trading strategy are calculated using the price information from the first market data feed and the second market data feed;

dynamically displaying a first indicator at a first area in relation to a first price level on the first axis, the first indicator being associated with a highest bid price currently available to buy according to the trading strategy; and

dynamically displaying a second indicator at a second area in relation to a second price level on the price axis, the second indicator being associated with a lowest ask price currently available to sell according to the trading strategy.