System and method for timed order entry and modification

• US 7,483,850 B1
• Filed: 05/02/2006
• Issued: 01/27/2009
• Est. Priority Date: 06/30/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mintz, Sagy P., Murphy, Stephen J., Fishbain, Michael L.
• Primary Examiner(s): Cheung; Mary
• Assistant Examiner(s): APPLE, KIRSTEN SACHWITZ
• Application Number:
  US11/415,853
• Time in Patent Office: 1,001 Days
• Field of Search: 705/36.R, 705 36- 40, 707/202, 707/2
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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 method for defining and processing timed orders are defined. According to one embodiment, a trader may define a timed order by defining an intra-day time trigger or a time period when the timed order should be automatically modified, such as deleted or cancelled/replaced with a new order. In one embodiment, the intra-day time trigger or time period may be dynamically changed to a later time, for example, upon receiving a predetermined user input. Also, the time trigger and time period may be configured to dynamically vary based on any user configurable formula. Also, the timed order may be associated with one or more actions to be taken once the order is deleted, such as sending a new order, for example.

Claims

1. A method for configuring and processing timed orders associated with at least one tradeable object being traded in an electronic trading environment, the method comprising:

defining a timed order at a client device, wherein the timed order is associated with a first time trigger defining a time when the timed order should be automatically modified on at least one electronic exchange;

submitting the timed order to the at least one electronic exchange; and

automatically modifying the timed order at the at least one electronic exchange upon detecting the first time trigger, wherein said automatically modifying includes at least one of replacing the timed order and modifying at least one order parameter associated with the timed order, wherein the automatic modification is initiated by one of a gateway and the at least one electronic exchange.

2. The method of claim 1, wherein the automatic modification is initiated by the gateway.

3. The method of claim 1, wherein the automatic modification is initiated by the at least one electronic exchange.

4. The method of claim 1, further including cancelling the timed order.

5. The method of claim 1, wherein the automatic modification includes utilizing a cancel and replace request for the timed order.

6. The method of claim 1, wherein the automatic modification includes modifying at least one order parameter associated with the timed order.

7. The method of claim 1, wherein the first time trigger defines the time when the timed order should be automatically modified based on a detection of a market data related event.

8. The method of claim 1, wherein the first time trigger defines the time when the timed order should be automatically modified based on market volatility.

9. The method of claim 1, wherein the first time trigger defines the time when the timed order should be automatically modified based on data from a source external to the electronic trading environment.

10. The method of claim 1, wherein the first time trigger defines the time when the timed order should be automatically modified dynamically based on based on a user-defined formula having a market data related parameter.

11. A method for configuring and processing timed orders associated with at least one tradeable object being traded in an electronic trading environment, the method comprising:

defining a timed order associated with a plurality of tradeable objects corresponding to a trading strategy, wherein each of the plurality of tradeable objects is associated with the timed order through an order leg of the trading strategy, wherein the timed order is associated with a first time trigger defining a first intra-trading session time when the timed order should be automatically modified on at least one electronic exchange;

submitting at least one leg order for at least one order leg of the timed order to the at least one electronic exchange; and

automatically modifying the timed order upon detecting the first time trigger, wherein said automatically modifying includes at least one of replacing at least one order leg of the timed order and modifying at least one order parameter associated with at least one leg of the timed order.

12. The method of claim 11, wherein the timed order associated with a plurality of tradeable objects is a spread order.

13. The method of claim 12, wherein if one leg of the spread order is filled, the automatic modification includes replacing at least a second leg of the spread order with a market order.

14. The method of claim 11, wherein at least one of the plurality of tradeable objects is on a different electronic exchange from another of the plurality of tradeable objects.

15. The method of claim 11, wherein the automatic modification includes modifying less than all of the order legs associated with the timed order.

16. The method of claim 11, wherein the automatic modification includes modifying all of the order legs associated with the timed order.

17. The method of claim 11, further including cancelling the timed order.

18. The method of claim 11, wherein the automatic modification includes utilizing a cancel and replace request for the timed order.

19. The method of claim 11, wherein the automatic modification includes modifying at least one order parameter associated with the timed order.