Method and system for providing automatic execution of trading strategies for electronic trading

• US 7,620,586 B2
• Filed: 09/08/2005
• Issued: 11/17/2009
• Est. Priority Date: 09/08/2004
• Status: Active Grant

• Current Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Original Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Inventors: Rosenthal, Leslie, Collins, J. Robert
• Primary Examiner(s): Diaz; Susanna M
• Assistant Examiner(s): Robinson; Kito R
• Application Number:
  US11/222,147
• Publication Number:
  US 20060080223A1
• Time in Patent Office: 1,531 Days
• Field of Search: 705/35, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and system for providing automatic execution of trading strategies for electronic trading. A synthetic trading entity is created from two or more actual trading entities. Two or more sets of electronic trading information are received from one or more electronic trading exchanges including trading information for the two or more actual trading entities for the created synthetic trading entity. Two or more electronic trades for the synthetic trading entity are automatically and electronically executed from on the one or more electronic trading exchanges to execute the synthetic trading entity.

Claims

1. A method for automatically executing a synthetic trading entity, comprising:

creating a synthetic trading entity from two or more actual trading entities via a graphical synthetic entity input window on an application on a target device with one or more processors, wherein the graphical synthetic entity input window creates the synthetic trading entity for displaying in a plurality of other graphical windows, wherein the synthetic trading entity is selectable in the plurality of other graphical windows and wherein selecting the synthetic trading entity from a graphical window displays the two or more actual trading entities used to create the synthetic trading entity;

receiving two or more sets of electronic trading information from one or more electronic trading exchanges on the application on the target device including electronic trading information for the two or more actual trading entities for the created synthetic trading entity;

automatically and electronically executing two or more electronic trades for the synthetic trading entity via the application on the target device on the one or more electronic trading exchanges by selecting at least one of a plurality of graphical buttons; and

displaying the synthetic trading entity and electronic trading information for the synthetic trading entity and the two or more actual trading entities used to create the synthetic trading entity on a graphical Aggregated Book View (ABV) window on the application, wherein the ABV window includes a dynamically displayed price column and wherein the ABV window displays bid size and offer size by price for the synthetic trading entity and the two or more actual trading entities in a market depth-type format, wherein the ABV window provides a dynamic price column centered upon a current lasted traded price for the synthetic trading entity and wherein the ABV window displays a plurality of other graphical columns including a buy column, a bid column, an ask column, a sell column, a quantity column, a net position column and a total profit and loss column and a plurality of graphical buttons including a re-center button, a cancel buy button, a cancel sell button, a cancel all button, a market buy button, a flatten button, a bracket button and a TStop button, wherein the plurality of graphical columns provide visual trading information and the plurality of graphical buttons provide trading functionality for automatically and electronically executing two or more electronic trades for the synthetic trading entity via the application on the target device on the one or more electronic trading exchanges; and

automatically and dynamically re-centering the dynamic price column in the ABV window upon a current last traded price that continuously and dynamically changes with price fluctuations in the current last traded price for the synthetic trading entity.

3. The method of claim 1 wherein the synthetic trading entity includes a synthetic contract or a synthetic financial instrument.

4. The method of claim 1 wherein the synthetic contract includes a synthetic futures contract, a synthetic financial instrument contract or a synthetic cash instrument contract.

5. The method of claim 1 wherein the Aggregated Book View window is also a window for displaying “

Ask, Bid, Volume”

information for actual trading entities and synthetic trading entities.

6. The method of claim 1 further comprising displaying automatic electronic trading results for the synthetic trading entity via the application on an Order Ticket window, wherein the Order Ticket window displays a bid price, bid size, ask price, ask size, and last traded price for actual and synthetic trading entities.

7. The method of claim 1 wherein the step of creating a synthetic trading entity comprises creating a synthetic trading entity including a pre-determined electronic trading strategy, an If-Then trading strategy, a one-cancels-other (OCO) trading strategies or a trading strategy based on previously executed electronic trades.

8. The method of claim 1 wherein the step of creating a synthetic trading entity includes an If-Then electronic trading strategy information that comprises upon receiving of an acknowledgement of an order fill:

creating a profit/loss bracket around a fill price for a filled quantity;

creating a stop or stop limit order at an offset from a fill price for the quantity of a fill;

creating a trailing stop order at an offset from a fill price for a quantity of the fill;

creating a limit order at an offset from a fill price for a quantity of the fill;

or creating one or more one-cancels-other (OCO) order pairs.

9. The method of claim 1 further comprising:

displaying the created synthetic trading entity with a first color on the application on the graphical Ask Bid Volume (ABV) window on the target device; and

displaying the two or more actual trading entities in colors other than the first color via the application on the target device on the graphical ABV window on the application, wherein the ABV window includes a dynamically displayed price column and wherein the ABV window displays bid size and offer size by price for the synthetic trading entity and the two or more actual trading entities in a market depth-type format, wherein the ABV window provides a dynamic price column centered upon a current lasted traded price for the synthetic trading entity; and

automatically and dynamically re-centering the dynamic price column in the ABV window upon a current last traded price that continuously and dynamically changes with price fluctuations in the current last traded price for the synthetic trading entity.

10. The method of claim 9 wherein the synthetic trading entity includes a synthetic contract.

11. The method of claim 9 wherein the synthetic contract includes a synthetic futures contract, a synthetic financial instrument contract or a synthetic cash instrument contract.

12. The method of claim 9 wherein the step of displaying the created synthetic trading entity with a first color includes displaying the synthetic trading entity with the first color via the application on an Order Ticket window, wherein the Order Ticket window displays a bid price, bid size, ask price, ask size, and last traded price for actual and synthetic trading entities.

13. The method of claim 9 wherein the step of displaying the created synthetic trading entity with a first color further includes:

receiving a selection input for the created synthetic trading entity; and

displaying the two or more actual trading entities used to create the synthetic trading entity via the application in other than the first color on the ABV window.

14. The method of claim 9 wherein the step of creating a synthetic trading entity includes creating a synthetic trading entity including a pre-determined electronic trading strategy, an If-Then trading strategy, a one-cancels-other (OCO) trading strategies or a trading strategy based on previously executed electronic trades.

2. A computer readable medium have stored therein computer-executable instructions for causing an application on a target device with one or more processors to execute the steps of:

creating a synthetic trading entity from two or more actual trading entities via a graphical synthetic entity input window on an application on a target device with one or more processors, wherein the graphical synthetic entity input window creates the synthetic trading entity for displaying in a plurality of other graphical windows, wherein the synthetic trading entity is selectable in the plurality of other graphical windows and wherein selecting the synthetic trading entity from a graphical window displays the two or more actual trading entities used to create the synthetic trading entity;

receiving two or more sets of electronic trading information from one or more electronic trading exchanges on the application on the target device including electronic trading information for the two or more actual trading entities for the created synthetic trading entity;

automatically and electronically executing two or more electronic trades for the synthetic trading entity via the application on the target device on the one or more electronic trading exchanges; and

displaying the synthetic trading entity and electronic trading information for the synthetic trading entity and the two or more actual trading entities used to create the synthetic trading entity on a graphical Aggregated Book View (ABV) window on the application, wherein the ABV window includes a dynamically displayed price column and wherein the ABV window displays bid size and offer size by price for the synthetic trading entity and the two or more actual trading entities in a market depth-type format, wherein the ABV window provides a dynamic price column centered upon a current lasted traded price for the synthetic trading entity and wherein the ABV window displays a plurality of other graphical columns including a buy column, a bid column, an ask column, a sell column, a quantity column, a net position column and a total profit and loss column and a plurality of graphical buttons including a re-center button, a cancel buy button, a cancel sell button, a cancel all button, a market buy button, a flatten button, a bracket button and a TStop button, wherein the plurality of graphical columns provide visual trading information and the plurality of graphical buttons provide trading functionality for automatically and electronically executing two or more electronic trades for the synthetic trading entity via the application on the target device on the one or more electronic trading exchanges; and

automatically and dynamically re-centering the dynamic price column in the ABV window upon a current last traded price that continuously and dynamically changes with price fluctuations in the current last traded price for the synthetic trading entity.

15. A synthetic trading entity system, comprising in combination:

means for creating a synthetic trading entity from two or more actual trading entities via graphical synthetic entity input window on an application on a target device with one or more processors, wherein the graphical synthetic entity input window creates the synthetic trading entity for displaying in a plurality of other graphical windows, wherein the synthetic trading entity is selectable in the plurality of other graphical windows and wherein selecting the synthetic trading entity from a graphical window displays the two or more actual trading entities used to create the synthetic trading entity;

means for receiving two or more sets of electronic trading information from one or more electronic trading exchanges on the application on the target device including trading information for the two or more actual trading entities for the created synthetic trading entity;

means for automatically and electronically executing two or more electronic trades for the synthetic trading entity via the application on the target device on the one or more electronic trading exchanges; and

means for displaying the synthetic trading entity and electronic trading information for the synthetic trading entity and the two or more actual trading entities used to create the synthetic trading entity on a graphical Aggregated Book View (ABV) window on the application, wherein the ABV window includes a dynamically displayed price column and wherein the ABV window displays bid size and offer size by price for the synthetic trading entity and the two or more in a market depth-type format, wherein the ABV window provides a dynamic price column centered upon a current lasted traded price for the synthetic trading entity, wherein the ABV window displays a plurality of other graphical columns including a buy column, a bid column, an ask column, a sell column, a quantity column, a net position column and a total profit and loss column and a plurality of graphical buttons including a re-center button, a cancel buy button, a cancel sell button, a cancel all button, a market buy button, a flatten button, a bracket button and a TStop button, wherein the plurality of graphical columns provide visual trading information and the plurality of graphical buttons provide trading functionality for automatically and electronically executing two or more electronic trades for the synthetic trading entity via the application on the target device on the one or more electronic trading exchanges; and

means for automatically and dynamically re-centering the dynamic price column in the ABV window upon a current last traded price that continuously and dynamically changes with price fluctuations in the current last traded price for the synthetic trading entity.

16. The synthetic trading entity system of claim 15 further comprising:

means for displaying the created synthetic trading entity with a first color via the application on the target device on the ABV window; and

means for displaying the two or more actual trading entities in colors other than the first color via the application on the target device on the ABV window.