System and method for facilitating trading of multiple tradeable objects in an electronic trading environment

• US 7,523,064 B2
• Filed: 09/30/2004
• Issued: 04/21/2009
• Est. Priority Date: 11/13/2002
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: West, Robert A., Burns, Michael J., Murphy, Stephen J., O'Connor, Gerald J.
• Primary Examiner(s): Kramer; James A
• Assistant Examiner(s): Wong; Eric T
• Application Number:
  US10/954,682
• Publication Number:
  US 20060015436A1
• Time in Patent Office: 1,664 Days
• Field of Search: 705/37
• 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

A system and method are provided for trading multiple tradeable objects. One example method includes displaying at least one combined quantity indicator representing a combined quantity associated with at least two tradeable objects, detecting an input associated with an order for a predetermined order quantity in relation to one of the combined quantity indicators, and allocating the order quantity between the at least two tradeable objects using at least one quantity allocation rule. In one example embodiment, a plurality of quantity allocation rules can be user-configurable, and different rules can be defined and applied in relation to different order types.

Claims

1. A computer-based method for use in facilitating trading of multiple tradeable objects in an electronic trading environment, the method comprising:

displaying, via a computing device, a first combined quantity indicator at a location corresponding to a price level along a common axis of static prices, the combined quantity indicator representing quantity associated with an order to buy a first tradeable object and an order to buy a second tradeable object, where the first tradeable object and the second tradeable objects are different tradeable objects;

displaying, via the computing device, a second combined quantity indicator at a location corresponding to a price level along the common axis of static prices, the second combined quantity indicator representing quantity associated with an order to sell the first tradeable object and an order to sell the second tradeable object;

displaying, via the computing device, an order entry region comprising a plurality of locations for receiving a command to send a trade order, each location corresponding to a price level along the common axis of static prices;

receiving, via the computing device, a plurality of quantity allocation rules to be used to allocate an order quantity of a trade order received by the order entry region;

receiving, via the computing device, a command to send a trade order, including an order quantity, by selection of one of the plurality of locations of the order entry region, the trade order operable to initiate a trade for the first tradeable object and the second tradeable object substantially simultaneously;

determining, via the computing device, at least one of the plurality of quantity allocation rules in response to receiving the command; and

in response to the command, allocating, via the computing device, the order quantity of the trade order to the first tradeable object, the second tradeable object, or both the first and second tradeable objects.

2. The method of claim 1, where determining further comprises determining which of the plurality of quantity allocation rules is based upon by determining if the trade order is lifting or joining.

3. The method of claim 1, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule for lifting and at least one quantity allocation rule for joining.

4. The method of claim 1, further comprising the step of enabling a user to select at least one of the plurality of quantity allocation rules.

5. The method of claim 1, further comprising the step of dynamically changing at least one of the plurality of quantity allocation rules upon detecting a user-defined condition.

6. The method of claim 5, wherein the user-defined condition comprises at least one of a market-related event, a trader-related event, or an exchange-related event.

7. The method of claim 1, wherein the plurality of quantity allocation rules comprises at least one percentage allocation rule defining a percentage to be used to allocate the order quantity between the at least two tradeable objects.

8. The method of claim 1, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule that allocates the order quantity based on a trader'"'"'s net position.

9. The method of claim 8, wherein, when the order quantity is allocated to flatten a trader'"'"'s net position, a remaining order quantity is allocated based on another quantity allocation rule.

10. The method of claim 9, wherein, upon allocating the order quantity to flatten the trader'"'"'s net position, the at least one quantity allocation rule further comprises at least one percentage value to be used to allocate a remaining order quantity between the at least two tradeable objects.

11. The method claim 1, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule that allocates the order quantity based on an attempt to flatten a trader'"'"'s net position while accounting for a trader'"'"'s working orders at better price levels than an available price level.

12. The method of claim 1, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule that allocates the order quantity based at least in part on an attempt to flatten a trader'"'"'s net position while accounting for at least one trader'"'"'s working order.

13. The method of claim 1, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule that allocates the order quantity using available order quantities pending at a best available price.

14. The method of claim 1, further comprising the step of receiving market information data related to the at least two tradeable objects from at least one electronic exchange.

15. The method of claim 1, further comprising the step of sending at least one order to the at least one electronic exchange based on the quantity allocation between the at least two tradeable objects.

16. The method of claim 1, further comprising the steps of:

receiving a request to delete a plurality of working orders associated with at least one the first tradeable object, the second tradeable object, or both the first tradeable object and the second tradeable object; and

deleting the plurality of working orders, wherein an order in which the plurality of working orders are deleted depends on a relative position of each order in relation to an inside market and further based on the at least one of the plurality of quantity allocation rules, wherein a working order at a price level closest to the inside market is deleted first before a next working order at a price level that is farther from the inside market is deleted.

30. The method of claim 1, further comprising:

generating a plurality of price levels along a common static price axis corresponding to price levels for the first tradeable object;

establishing an offset parameter to be used to display the order to buy the second tradeable object and an order to sell the second tradeable object in relation to the plurality of price levels along the common static price axis; and

applying the offset parameter to determine the first combined quantity indicator and the second combined quantity indicator.

17. A computer readable medium having program code recorded thereon, for execution on a computer having a graphical user interface and a user input device, the program code operable by the computer to perform operations comprising:

displaying, via a computing device, a first combined quantity indicator at a location corresponding to a price level along a common axis of static prices, the combined quantity indicator representing quantity associated with an order to buy a first tradeable object and an order to buy a second tradeable object, where the first tradeable object and the second tradeable objects are different tradeable objects;

displaying, via the computing device, a second combined quantity indicator at a location corresponding to a price level along the common axis of static prices, the second combined quantity indicator representing quantity associated with an order to sell the first tradeable object and an order to sell the second tradeable object;

displaying, via the computing device, an order entry region comprising a plurality of locations for receiving a command to send a trade order, each location corresponding to a price level along the common axis of static prices;

receiving, via the computing device, a plurality of quantity allocation rules to be used to allocate an order quantity of a trade order received by the order entry region;

receiving, via the computing device, a command to send a trade order, including an order quantity, by selection of one of the plurality of locations of the order entry region, the trade order operable to initiate a trade for the first tradeable object and the second tradeable object substantially simultaneously;

determining, via the computing device, at least one of the plurality of quantity allocation rules in response to receiving the command; and

in response to the command, allocating, via the computing device, the order quantity of the trade order to the first tradeable object, the second tradeable object, or both the first and second tradeable objects.

18. A client system for use in facilitating trading of multiple tradeable objects in an electronic trading environment, the system comprising:

a display device for displaying;

a first combined quantity indicator at a location corresponding to a price level along a common axis of static prices, the combined quantity indicator representing quantity associated with an order to buy a first tradeable object and an order buy a second tradeable object, where the first tradeable object and the second tradeable objects are different tradeable objects;

a second combined quantity indicator at a location corresponding to a price level along the common axis of static prices, the second combined quantity indicator representing quantity associated with an order to sell the first tradeable object and an order to sell the second tradeable object; and

an order entry region comprising a plurality of locations for receiving a command to send a trade order, each location corresponding to a price level along the common axis of static prices;

an interface for receiving a plurality of quantity allocation rules to be used to allocate an order quantity of a trade order received by the order entry region and for receiving a command to send a trade order, including an order quantity, by selection of one of the plurality of locations of the order entry region, the trade order operable to initiate a trade for the first tradeable object and the second tradeable object substantially simultaneously; and

an allocating quantity component for determining at least one of the plurality of quantity allocation rules in response to receiving the command and for, allocating the order quantity of the trade order to the first tradeable object, the second tradeable object, or both the first and second tradeable objects.

19. The client system of claim 18, wherein the at least one quantity allocation rule that is used to allocate the order quantity is determined on whether the trade order is lifting or joining.

20. The client system of claim 18, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule for lifting and at least one quantity allocation rule for joining.

21. The client system of claim 18, wherein the at least one quantity allocation rule that is used to allocate the order quantity is user-selectable.

22. The client system of claim 18, wherein the at least one quantity allocation rule that is used to allocate the order quantity of the entered order can be dynamically changed upon detecting at least one user-defined condition.

23. The client system of claim 22, wherein the user-defined condition comprises at least one of a market-related event, a trader-related event, or an exchange-related event.

24. The client system of claim 22, wherein the plurality of quantity allocation rules comprises at least one percentage allocation rule defining a percentage to be used to allocate the order quantity between the at least two tradeable objects.

25. The client system of claim 18, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule that allocates the order quantity based on a trader'"'"'s net position.

26. The client system of claim 18, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule that allocates the order quantity based on an attempt to flatten a trader'"'"'s net position while accounting for a trader'"'"'s working orders at better price levels than an available price level.

27. The client system of claim 18, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule that allocates the order quantity based at least in part on an attempt to flatten a trader'"'"'s net position while accounting for at least one trader'"'"'s working order.

28. The client system of claim 18, wherein the plurality of quantity allocation rules comprises at least one quantity allocation rule that allocates the order quantity using available order quantities pending at a best available price.

29. The client system of claim 18, further comprising an order sending component for sending at least one order to the at least one electronic exchange based on the quantity allocation between the at least two tradeable objects.