System and method for event-based trading

• US 7,640,206 B1
• Filed: 05/02/2006
• Issued: 12/29/2009
• Est. Priority Date: 12/12/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Murphy, Stephen J., O'Connor, Gerald J.
• Primary Examiner(s): Kramer; James A
• Assistant Examiner(s): Vezeris; James A
• Application Number:
  US11/415,963
• Time in Patent Office: 1,337 Days
• Field of Search: 705/37
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method for news-based trading are developed. According to one method, a trader can pre-define a trading strategy including a number of trading rules to be applied based on a comparison of one or more estimated event values to the respective actual event values to be released at some later time. The example method further includes, upon receiving one or more actual event values via a user input or directly from outside sources, executing one or more predefined trading rules selected based on the comparison of the received actual event values to the respective estimated indicator values.

Claims

1. A computer implemented method for event-based trading, the method comprising:

defining, at a computer, an electronic trading rule to be executed when a first estimated event value for an event matches an actual event value for the event to be known at a later time, wherein the first estimated event value is an earlier estimate of the actual event value, and wherein the actual event value originates from a source other than an exchange that matches orders at prices for a tradeable object;

displaying, on an interface, a trading rule icon at a first location of a plurality of locations, each location corresponding to a an event value along an axis, wherein the first location corresponds to the first estimated event value, and wherein placement of the trading rule icon at the first location graphically indicates that the electronic trading rule is to be executed when the actual event value matches the first estimated event value;

adjusting, at said computer, via a user-initiated command, the trading rule icon to be displayed at a second location of the plurality of locations, wherein the second location corresponds to a second estimated event value for the event, and wherein placement of the trading rule icon at the second location graphically indicates a change in execution of the electronic trading rule such that the electronic trading rule is to be executed when the actual event value matches the second estimated event value;

receiving, at said computer, the actual event value subsequent to the step of adjusting the trading rule icon; and

executing, by said computer, the electronic trading rule when the actual event value matches the second estimated event value, wherein executing the trading rule comprises generating and sending a transaction message to the exchange.

2. The method of claim 1, further comprising:

providing a visual indication when the actual event value matches the second estimated event value to indicate execution of the electronic trading rule.

3. The method of claim 2, wherein providing the visual indication to indicate execution of the electronic trading rule comprises highlighting the trading rule icon.

4. The method of claim 1, wherein adjusting the trading rule icon comprises dragging a boundary of the trading rule icon to the second location corresponding to the second estimated event value along the axis.

12. The computer readable medium of claim 3, further comprising:

displaying an actual event value indicator at a location corresponding to the actual event value when the actual event value falls in the range of values.

15. The method of claim 1, further comprising:

defining another trading rule to be executed when the actual value for the event falls within a range of estimated event values; and

displaying another trading rule icon overlapping a number of locations of the plurality of locations along the axis, wherein the number of locations correspond to the range of estimated event values, and wherein placement of the trading rule icon to overlap the number of locations graphically indicates that the another electronic trading rule is to be executed when the actual event value matches a value in the range of estimated event values.

16. The method of claim 1, wherein placement of the trading rule icon at the first location indicates that the electronic trading rule is to be executed when the actual event value falls within a user defined range of values from and including the first estimated event value.

17. The method of claim 1, wherein placement of the trading rule icon at the second location indicates a change in execution of the electronic trading rule such that the electronic trading rule is to be executed when the actual event value falls within a user defined range of values from and including the second estimated event value.

18. The method of claim 17, further comprising:

displaying an actual event value indicator at a location corresponding to the actual event value when the actual event value falls in the range of values.

19. The method of claim 1, wherein, upon adjustment, placement of the trading rule icon graphically indicates a change in execution of the electronic trading rule such that the electronic trading rule is to be executed when the actual event value matches a value in a range of values comprising the first estimated event value and the second estimated event value.

20. The method of claim 19, further comprising:

displaying an actual event value indicator at a location corresponding to the actual event value when the actual event value falls in the range of values.

5. A computer readable medium having stored therein instructions to execute a method for event-based trading comprising:

defining an electronic trading rule to be executed when a first estimated event value for an event matches an actual event value for the event to be known at a later time, wherein the first estimated event value is an earlier estimate of the actual event value, and wherein the actual event value originates from a source other than an exchange that matches orders at prices for a tradeable object;

displaying a trading rule icon at a first location of a plurality of locations, each location corresponding to an event value along an axis, wherein the first location corresponds to the first estimated event value, and wherein placement of the trading rule icon at the first location graphically indicates that the electronic trading rule is to be executed when the actual event value matches the first estimated event value;

adjusting via a user-initiated command the trading rule icon to be displayed at a second location of the plurality of locations, wherein the second location corresponds to a second estimated event value for the event, and wherein placement of the trading rule icon at the second location graphically indicates a change in execution of the electronic trading rule such that the electronic trading rule is to be executed when the actual event value matches the second estimated event value;

receiving the actual event value subsequent to the step of adjusting the trading rule icon; and

executing the electronic trading rule when the actual event value matches the second estimated event value, wherein executing the trading rule comprises generating and sending a transaction message to the exchange.

6. The computer readable medium of claim 5, further comprising:

providing a visual indication when the actual event value matches the second estimated event value to indicate execution of the electronic trading rule.

7. The computer readable medium of claim 6, wherein providing the visual indication to indicate execution of the electronic trading rule comprises highlighting the trading rule icon.

8. The computer readable medium of claim 5, wherein adjusting the trading rule icon comprises dragging a boundary of the trading rule icon to the second location corresponding to the second estimated event value along the axis.

9. The computer readable medium of claim 5, further comprising:

defining another trading rule to be executed when the actual value for the event falls within a range of estimated event values; and

displaying another trading rule icon overlapping a number of locations of the plurality of locations along the axis, wherein the number of locations correspond to the range of estimated event values, and wherein placement of the trading rule icon to overlap the number of locations graphically indicates that the another electronic trading rule is to be executed when the actual event value matches an event value in the range of estimated event values.

10. The computer readable medium of claim 5, wherein placement of the trading rule icon at the first location indicates that the electronic trading rule is to be executed when the actual event value falls within a user defined range of values from and including the first estimated event value.

11. The computer readable medium of claim 5, wherein placement of the trading rule icon at the second location indicates a change in execution of the electronic trading rule such that the electronic trading rule is to be executed when the actual event value falls within a user defined range of values from and including the second estimated event value.

13. The computer readable medium of claim 5, wherein, upon adjustment, placement of the trading rule icon graphically indicates a change in execution of the electronic trading rule such that the electronic trading rule is to be executed when the actual event value matches a value in a range of values comprising the first estimated event value and the second estimated event value.

14. The computer readable medium of claim 13, further comprising:

displaying an actual event value indicator at a location corresponding to the actual event value when the actual event value falls in the range of values.