Click based trading with intuitive grid display of market depth and price consolidation

• US 7,567,929 B2
• Filed: 05/02/2006
• Issued: 07/28/2009
• Est. Priority Date: 03/02/2000
• Status: Expired due to Fees

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Brumfield, Harris, Kemp, Gary Allan II
• Primary Examiner(s): Havan; Thu Thao
• Application Number:
  US11/415,161
• Publication Number:
  US 20060195387A1
• Time in Patent Office: 1,183 Days
• Field of Search: 705 35- 36 R, 705 35- 36
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/0275 Auctions
• CPC Class Codes: G06Q 30/08 Auctions
• 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 method and system for reducing the time it takes for a trader to place a trade when electronically trading on an exchange, thus increasing the likelihood that the trader will have orders filled at desirable prices and quantities. The “Mercury” display and trading method of the present invention ensure fast and accurate execution of trades by displaying market depth on a vertical or horizontal plane, which fluctuates logically up or down, left or right across the plane as the market prices fluctuate. This allows the trader to trade quickly and efficiently. The price consolidation feature of the present invention, as described herein, enables a trader to consolidate a number of prices in order to condense the display. Such action allows a trader to view a greater range of prices and a greater number of orders in the market at any given time. By consolidating prices, and therefore orders, a trader reduces the risk of a favorable order scrolling from the screen prior to filling a bid or ask on that order at a favorable price.

Claims

1. A method for placing a trade order for a commodity on an electronic exchange with a highest bid price and a lowest ask price on an electronic display device, said method comprising:

consolidating price levels on a common static price axis for the commodity into a plurality of consolidated price levels such that each of the plurality of consolidated price levels corresponds to a combined plurality of price levels available for the commodity;

dynamically displaying, in a bid display region, a consolidated bid indicator for said commodity in a first location associated with a first consolidated price level, the consolidated bid indicator representing a quantity associated with a first plurality of price levels within the first consolidated price level;

dynamically displaying, in an ask display region, a consolidated ask indicator for said commodity in a second location associated with a second consolidated price level, the consolidated ask indicator representing a quantity associated with a second plurality of price levels within the second consolidated price level;

displaying an order entry region comprising a plurality of locations for receiving commands aligned with the common static price axis of consolidated price levels for receiving commands to send trade orders for the commodity, wherein each of the plurality of locations for receiving commands is associated with a consolidated price level;

establishing an order allocation rule to be used to allocate an order quantity of a trade order to at least one price level of a consolidated price level selected for the trade order;

selecting a particular location in the order entry region with a user input device to send a trade order for an order quantity to the electronic exchange, the particular location corresponding to a consolidated price level;

using the order allocation rule to allocate the order quantity of the trade order among a plurality of price levels of the consolidated price level of the particular location;

generating at least one trade order based on the allocated order quantity; and

sending the at least one trade order to the electronic exchange.

2. The method of claim 1, wherein the bid display region and the ask display region comprise columns.

3. The method of claim 1, wherein the bid display region and the ask display region comprise rows.

4. The method of claim 1, wherein the bid display region and the ask display region are oriented vertically.

5. The method of claim 1, wherein the bid display region and the ask display region are oriented horizontally.

6. The method of claim 1, wherein a number of price levels that is consolidated into a consolidated price level is adjustable by a user.

7. The method of claim 1, further comprising:

displaying the common static price axis of consolidated prices in a price display region.

8. The method of claim 1, further comprising:

displaying a bid order entry region comprising a plurality of locations for receiving commands to send buy orders; and

displaying an ask order entry region comprising a plurality of locations for receiving commands to send sell orders.

9. The method of claim 8, wherein the bid order entry region overlaps the bid display region, and wherein the ask order entry region comprises the ask display region.

10. The method of claim 1, wherein the order allocation rule comprises a rule that allocates the order quantity of the trade order to a preselected price level to buy or sell the commodity in the consolidated price level selected for the trade order.

11. The method of claim 1, wherein the order allocation rule comprises a rule that allocates the order quantity between price levels of the consolidated price level selected for the trade order.

12. The method of claim 11, wherein the rule randomly allocates the order quantity between the price levels of the consolidated price level selected for the trade order.

13. The method of claim 11, wherein the rule evenly allocates the order quantity between the price levels of the consolidated price level selected for the trade order.

14. The method of claim 11, wherein the rule allocates the order quantity between the price levels of the consolidated price level according to an established weighted distribution formula.

15. The method of claim 11, wherein the rule allocates the order quantity between the price levels of the consolidated price level based on an established percentage allocation formula.

16. The method of claim 1, wherein selecting the particular location in the order entry region with the user input device comprises selecting the particular location through a single action of the user input device with a pointer of the user input device positioned over the particular location.

17. The method of claim 16, wherein the single action consists a single click of a mouse button.

18. The method of claim 16, wherein the single action consists a double click of a mouse button.

19. A computer readable medium having program code recorded thereon for execution on a computer for placing a trade order for a commodity on an electronic exchange with a highest bid price and a lowest ask price, the program code causing a machine to perform the following method steps:

consolidating price levels on a common static price axis for the commodity into a plurality of consolidated price levels such that each of the plurality of consolidated price levels corresponds to a combined plurality of price levels available for the commodity;

dynamically displaying, in a bid display region, a consolidated bid indicator for said commodity in a first location associated with a first consolidated price level, the consolidated bid indicator representing a quantity associated with a first plurality of price levels within the first consolidated price level;

dynamically displaying, in an ask display region, a consolidated ask indicator for said commodity in a second location associated with a second consolidated price level, the consolidated ask indicator representing a quantity associated with a second plurality of price levels within the second consolidated price level;

displaying an order entry region comprising a plurality of locations aligned with the common static price axis of consolidated prices for receiving commands to send trade orders for the commodity, wherein each of the plurality of locations for receiving commands is associated with a consolidated price level;

establishing an order allocation rule to be used to allocate an order quantity of a trade order to at least one price level of a consolidated price level selected for the trade order;

selecting a particular location in the order entry region with a user input device to send a trade order for an order quantity to the electronic exchange, the particular location corresponding to a consolidated price level;

using the order allocation rule to allocate the order quantity of the trade order among a plurality of price levels of the consolidated price level of the particular location;

generating at least one trade order based on the allocated order quantity; and

sending the at least one trade order to the electronic exchange.