Method and system for displaying and trading spreads

• US 7,542,937 B1
• Filed: 08/28/2002
• Issued: 06/02/2009
• Est. Priority Date: 08/28/2002
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Cohen, Joel
• Primary Examiner(s): Kazimi; Hani M.
• Assistant Examiner(s): TINKLER, MURIEL S
• Application Number:
  US10/229,986
• Time in Patent Office: 2,470 Days
• Field of Search: None
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A trading application can receive price and quantity information for tradeable objects. The trading application can compute implied price and quantity information for spreads of the tradeable objects. Direct and indirect price and quantity information for the spreads can be displayed in a manner that shows the relationship with each other and with the price and quantity information for the tradeable objects.

Claims

1. A method for displaying spread information and trading spreads, the method comprising:

calculating a first spread between a first tradable object and a second tradable object, the first tradable object having a first identifier and the second tradable object having a second identifier;

receiving market data from the first and second tradable objects from an electronic exchange, wherein the market data for the first tradable object comprises a highest bid price and a lowest ask price currently available for the first tradable object and the market data for the second tradable object comprises a highest bid price and a lowest ask price currently available for the second tradable;

calculating price and quantity information for a the first spread, wherein the price and quantity information for the first spread comprises a highest bid price and a lowest ask price currently available for the first spread;

displaying on a graphical user interface the first identifier for the first tradable object at a first location displayed in a first column; and

displaying on the graphical user interface the second identifier for the second tradable object at a second location in the first column, wherein the second location is adjacent to the first location in the first column;

displaying on the graphical interface the highest bid price and a lowest ask price currently available for the first tradable object at a third location in a second column, the second column being adjacent to the first column, wherein the third location is in horizontal alignment with the first location in the first column;

displaying on the graphical user interface the highest bid price and a lowest ask price currently available for the second tradable object at a fourth location in the second column, wherein the fourth location is in horizontal alignment with the second location in the second column;

displaying on the graphical user interface the highest bid price and a lowest ask price currently available for the first spread at a fifth location in a third column, the third column being adjacent to the second column, wherein the fifth location is centered in horizontal alignment with respect to the third and fourth locations in the second column to correlate the first spread to the first and second tradable objects;

providing a first order entry region for initiating spread orders for the first spread on the graphical user interface, wherein the first order entry region overlaps the third column and comprises a first order entry location that overlaps the highest bid price for the first spread and a second order entry location that overlaps the lowest ask price for the first spread; and

selecting the first order entry location or the second order entry location with a user input device to set a price level for an order to buy or sell the first spread at the highest bid price or a lowest ask price available for the first spread.

3. The method of claim 1, further comprising:

wherein the third column comprises a first sub-column and a second sub-column, and wherein displaying the price and quantity information highest bid price and a lowest ask price for the first spread comprises;

displaying the highest bid price and a lowest ask price for the first spread information in the first sub-column; and

displaying the quantity information for the first spread in the second sub-column.

4. The method of claim 3, further comprising:

the price information includes a bid price and an ask price,

wherein the quantity information includes a bid quantity and an ask quantity,

wherein the highest bid price in the first sub-column is displayed adjacently to the bid quantity in the second sub-column, and

wherein the lowest ask price in the first sub-column is displayed adjacently to the ask quantity in the second sub-column.

5. The method of claim 1, further comprising:

displaying on the graphical user interface a direct highest bid price and a direct lowest ask price for each of the first tradable object and the second tradable object in the third and fourth locations;

displaying on the graphical user interface a highest bid quantity associated with the direct highest bid price and a best lowest ask quantity associated with the direct lowest ask price currently available for the first tradable object at a sixth location in the second column, wherein the sixth location is in horizontal alignment with the third location;

displaying on the graphical user interface a highest bid quantity associated with the direct highest bid price and a lowest ask quantity associated with the direct ask price currently available for the second tradable object at a seventh location in the second column, wherein the seventh location is in horizontal alignment with the fourth location.

6. The method of claim 1, further comprising:

wherein the first column, the second column and the third column are displayed adjacently in decreasing order of column height.

7. The method of claim 1, further comprising:

wherein obtaining price and quantity information for the first spread comprises receiving direct prices and quantities for the spread from an exchange.

8. The method of claim 1, further comprising:

wherein the price and quantity information includes direct price and quantity information for each of the first tradable object and the second tradable object, and wherein obtaining price and quantity information comprises;

receiving the direct price and quantity information for each of the first tradable object and the second tradable object plurality of legs;

computing an implied price for the first spread using the direct price information for each of the first tradable object and the second tradable object; and

computing an implied quantity for the first spread using the direct quantity information for each of the first tradable object and the second tradable object.

9. The method of claim 1, further comprising:

wherein the price and quantity information includes a direct price and quantity for the first spread.

10. The method of claim 1, further comprising:

wherein the price and quantity information includes an ask price, an ask price quantity, a bid price and a bid price quantity.

11. The method of claim 1, further comprising:

wherein the said first and second identifiers represent expiration dates for each the first tradable object and the second tradable object, the expirations dates comprising days, weeks, months or years.

12. The method of claim 1, further comprising:

wherein the first column includes identifiers for each leg of a plurality of spreads, wherein each leg is associated with a tradable object and each identifier represents the tradable object,

wherein the third column includes price and quantity information for the plurality of spreads, and

wherein the price and quantity information for each spread in the third column is centered with respect to the corresponding identifiers for each spread in the first column.

13. The method of claim 12 further comprising:

displaying direct price and quantity information for each leg in the plurality of spreads,

wherein the direct price and quantity information for each leg in the plurality of spreads is displayed in the second column, and

wherein the direct price and quantity information is aligned with the corresponding identifier in the first column.

21. The method of claim 1, further comprising:

providing a second order entry region for initiating orders to buy or sell the first tradable object or the second tradable object on the graphical user interface, wherein the second order entry region overlaps the second column and comprises a third order entry location that overlaps the third location, and wherein the second order entry region comprises a fourth order entry location that overlaps the fourth location;

selecting the third order entry location to set a price level for an order to buy or sell the first tradable object;

sending the order to buy or sell the first tradable object in response to selecting the third order entry location;

selecting the fourth order entry location to set a price level for an order to buy or sell the second tradable object; and

sending the order to buy or sell the second tradable object in response to selecting the fourth order entry location.

23. The method of claim 1 further comprising:

wherein selecting the first order entry location or the second order entry location comprises single clicking on the first order entry location or the second order entry location.

24. The method of claim 1 further comprising:

wherein selecting the first order entry location or the second order entry location comprises double clicking on the first order entry location or the second order entry location.

27. The method of claim 1, further comprising:

sending the order to buy or sell the first spread to an electronic exchange.

2. A computer readable medium having stored therein instructions for causing a central processing unit to execute the method of displaying spread information and trading spreads, the method comprising:

calculating a first spread between a first tradable object and a second tradable object, the first tradable object having a first identifier and the second tradable object having a second identifier;

receiving market data from the first and second tradable objects from an electronic exchange, wherein the market data for the first tradable object comprises a highest bid price and a lowest ask price currently available for the first tradable object and the market data for the second tradable object comprises a highest bid price and a lowest ask price currently available for the second tradable;

calculating price and quantity information for a the first spread, wherein the price and quantity information for the first spread comprises a highest bid price and a lowest ask price currently available for the first spread;

displaying on a graphical user interface the first identifier for the first tradable object at a first location displayed in a first column; and

displaying on the graphical user interface the second identifier for the second tradable object at a second location in the first column, wherein the second location is adjacent to the first location in the first column;

displaying on the graphical interface the highest bid price and a lowest ask price currently available for the first tradable object at a third location in a second column, the second column being adjacent to the first column, wherein the third location is in horizontal alignment with the first location in the first column;

displaying on the graphical user interface the highest bid price and a lowest ask price currently available for the second tradable object at a fourth location in the second column, wherein the fourth location is in horizontal alignment with the second location in the second column;

displaying on the graphical user interface the highest bid price and a lowest ask price currently available for the first spread at a fifth location in a third column, the third column being adjacent to the second column, wherein the fifth location is centered in horizontal alignment with respect to the third and fourth locations in the second column to correlate the first spread to the first and second tradable objects;

providing a first order entry region for initiating spread orders for the first spread on the graphical user interface, wherein the first order entry region overlaps the third column and comprises a first order entry location that overlaps the highest bid price for the first spread and a second order entry location that overlaps the lowest ask price for the first spread; and

selecting the first order entry location or the second order entry location with a user input device to set a price level for an order to buy or sell the first spread at the highest bid price or a lowest ask price available for the first spread.

14. A method for displaying spread information, the method comprising:

calculating a first type of spread between a first tradable object and a second tradable object, the first tradable object having a first identifier and the second tradable object having a second identifier;

displaying on a graphical user interface the first and second identifiers for the plurality of first and second tradable objects, the first identifier being displayed at a first location along a first axis and the second identifier being displayed at a second location along the first axis, wherein the second location is adjacent to the first location along the first axis;

displaying on the graphical user interface a highest bid price and a lowest ask price currently available for the first tradable object at a third location along a second axis that is parallel and adjacent to the first axis, wherein the third location is in alignment with the first location along the first axis;

displaying on the graphical user interface a highest bid price and a lowest ask price currently available for the second tradable object at a fourth location along the second axis, wherein the fourth location is in alignment with the second location along the first axis;

displaying on the graphical user interface a highest bid price and a lowest ask price currently available for the first type of spread at a fifth location along a third axis, wherein the fifth location is centered with respect to the third and fourth locations along the second axis to correlate the first type of spread to the first and second tradable objects;

providing a first order entry region for initiating spread orders for the first type of spread on the graphical user interface, wherein the first order entry region overlaps the fifth location along the third axis and comprises a first order entry location that overlaps the highest bid price for the first type of spread and a second order entry location that overlaps the lowest ask price for the first type of spread; and

selecting the first order entry location or the second order entry location with a user input device to set a price level for an order to buy or sell the first type of spread at the best bid price or the best ask price available for the spread.

15. The method of claim 14 comprising:

a central processing unit executing stored instructions.

16. The method of claim 14, further comprising:

obtaining the highest bid price and a lowest ask price for the first type of spread from an exchange.

17. The method of claim 14 further comprising:

obtaining pricing and quantity information for the first and second tradable objects;

computing an implied price and an implied quantity for the first type of spread using the pricing and quantity information for the first and second tradable objects; and

displaying the implied price and the implied quantity for the first type of spread at the fifth location along the third axis.

18. The method of claim 14, wherein further comprising:

obtaining a direct price and a direct quantity for each of the first and second tradable objects;

obtaining a direct price and a direct quantity for the first type of spread;

computing an implied price and an implied quantity for the first type of spread, wherein the implied price and the implied quantity are computed using the direct price and the direct quantity for the first and second tradable objects;

determining that the implied price is more favorable than the direct price;

and displaying the implied price and the implied quantity for the first type of spread at the fifth location along the third axis.

19. The method of claim 14, further comprising:

establishing a second type of spread between the first tradable object, the second tradable object and a third tradable object, wherein the third tradable object has a third identifier;

obtaining market data for the second type of spread, wherein the market data for the second type of spread comprises a highest bid price and a lowest ask price currently available for the second type of spread, and wherein the highest bid price and a lowest ask price currently available for the second type of spread is determined based on market data for the first, second, and third tradable objects;

displaying on the graphical user interface the third identifier at a sixth location in the first column, wherein the sixth location is adjacent to the second location in the first column; and

displaying on the graphical user interface the highest bid price and a lowest ask price currently available for the second type of spread at a seventh location along a fourth axis, wherein the fifth location is centered with respect to the first, second, and sixth locations to correlate the second type of spread to the first, second, and third tradable objects.

20. The method of claim 19, further comprising:

displaying on the graphical user interface a highest bid price and a lowest ask price currently available for a third type of spread at an eighth location along a fifth axis,

wherein the third type of spread is established between the first tradable object, the second tradable object, the third tradable object and a fourth tradable object

wherein a fourth identifier associated with the fourth tradable object is displayed at a ninth location adjacent to the sixth location in the first column, and

wherein the eighth location is centered with respect to the first, second, sixth, and ninth locations to correlate the third type of spread to, the first, second, third and fourth tradable objects.

22. The method of claim 14, further comprising:

providing a second order entry region for initiating orders to buy or sell the first tradable object or the second tradable object on the graphical user interface, wherein the second order entry region displayed along the second axis comprises a third order entry location that overlaps the third location, and wherein the second order entry region comprises a fourth order entry location that overlaps the fourth location;

selecting the third order entry location to set a price level for an order to buy or sell the first tradable object;

sending the order to buy or sell the first tradable object in response to selecting the third order entry location;

selecting the fourth order entry location to set a price level for an order to buy or sell the second tradable object; and

sending the order to buy or sell the second tradable object in response to selecting the fourth order entry location.

25. The method of claim 14, further comprising:

wherein selecting the first order entry location or the second order entry location comprises single clicking on the first order entry location or the second order entry location.

26. The method of claim 14, further comprising:

wherein selecting the first order entry location or the second order entry location comprises double clicking on the first order entry location or the second order entry location.

28. The method of claim 14 further comprising:

sending the order to buy or sell the first spread to an electronic exchange.