Electronic spread trading tool

• US 7,590,578 B2
• Filed: 06/19/2006
• Issued: 09/15/2009
• Est. Priority Date: 06/14/2001
• Status: Expired due to Term

• 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:
  US11/454,888
• Publication Number:
  US 20060235787A1
• Time in Patent Office: 1,184 Days
• Field of Search: 705/35, 705/36, 705/37, 705/38
• US Class Current: 705/35
• 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 method for displaying, on an electronic display device, data associated with a trading strategy involving at least two commodities being traded electronically on at least one electronic exchange, the method comprising:

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

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

determining at the computing device a plurality of prices representing the trading strategy, wherein the plurality of prices are computed using at least the price information from the first market data feed and the second market data feed;

determining at the computing device a total traded quantity associated with the trading strategy at each price of the plurality of prices, wherein the total traded quantity at a price is computed by adding a new traded quantity at the price to a previous total traded quantity at the price, the new traded quantity being computed using at least the quantity information from the first market data feed and the second market data feed;

displaying at a client device the plurality of prices; and

dynamically displaying at the client device an indicator corresponding to each price of the plurality of prices, each indicator representing the total traded quantity associated with the trading strategy corresponding to one of the plurality of prices.

2. The method of claim 1, further comprising the step of updating each indicator of the plurality of indicators to reflect any additional traded quantity.

3. The method of claim 2, wherein the step of updating each indicator of the plurality of indicators maintains a running total of traded quantity at each corresponding price over a determinable period of time.

4. The method of claim 1, wherein the indicator comprises a numerical value.

5. The method of claim 1, wherein the plurality of prices are arranged vertically.

6. The method of claim 1, wherein the plurality of prices are arranged horizontally.

7. The method of claim 1, wherein the trading quantity provides a trader with historical data illustrating prices at which the trading strategy could have traded.

8. The method of claim 1, wherein the trading strategy represents a spread between at least the first and second commodities.

9. The method of claim 1, wherein the quantity information for the first commodity comprises a last trade quantity.

10. The method of claim 1, wherein the quantity information for the second commodity comprises a last trade quantity.

11. The method of claim 1, wherein the price information for the first commodity comprises a best bid price and a best ask price currently available for the first commodity.

12. The method of claim 1, wherein the price information for the second commodity comprises a best bid price and a best ask price currently available for the second commodity.

13. The method of claim 1, further comprising the step of:

displaying at the client device a price axis comprising the plurality of prices;

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

dynamically displaying at the client device 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;

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 and 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.

14. The method of claim 13, wherein the price axis comprises a range of prices that represent the trading strategy and are calculated using the price information from the first market data feed and the second market data feed.

15. The method of claim 14, wherein the previous total traded quantity at a price is zero if no trade associated with the trading strategy has previously occurred at that price.

16. The method of claim 15, wherein an indicator is not displayed corresponding to a price if no trade associated with the trading strategy has previously occurred at the price associated with the price level.

21. The method of claim 1, wherein the computing device is the client device.

17. A method for displaying market information associated with a spread involving at least two commodities being traded electronically on at least one electronic exchange, the method comprising:

displaying at a client device a price axis corresponding to a plurality of prices representing the spread, wherein the plurality of prices representing the spread are based on market information corresponding to a first commodity and a second commodity;

dynamically displaying at the client device a first indicator at a first area in relation to a first price level of the price axis, the first indicator being associated with a highest bid price currently available for the spread;

dynamically displaying at the client device 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 for the spread;

dynamically displaying at the client device a total traded quantity in association with the plurality of prices representing the spread, such that each price of the plurality of prices where a trade has occurred according to the spread during a time period has an indicator representing the total traded quantity at that price.

18. The method of claim 17, 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, and 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.

19. The method of claim 17, wherein the first indicator represents the bid quantity associated with the highest bid price currently available for the spread, and wherein the second indicator represents the ask quantity associated with the lowest ask price currently available for the spread.

20. The method of claim 17, wherein the indicator comprises a numerical value.