System and method for holding and sending an order to a matching engine

• US 7,647,266 B1
• Filed: 03/24/2004
• Issued: 01/12/2010
• Est. Priority Date: 03/24/2004
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Triplett, Mark W.
• Primary Examiner(s): Kramer; James A
• Assistant Examiner(s): Vezeris; James A
• Application Number:
  US10/807,762
• Time in Patent Office: 2,120 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

Abstract

A user can submit an order to buy or sell a tradeable object, only the order does not get sent to the matching engine. Instead, the order is placed in temporary storage and it is displayed to the user in the form of a virtual order icon. The virtual order icon indicates that an order request is waiting for an event to occur before it is automatically released to the matching engine. The virtual order icon can be managed by the user, which might include moving the virtual order icon to a different price level or deleting it. The preferred system continuously monitors for an event to take place, and in response to detecting the event, the order is released to the matching engine. As such, a real order icon is displayed to indicate that the order has now been sent to the matching engine.

Claims

1. A method for sending an order to an electronic exchange, the method comprising:

receiving, via a computer device, a command representing an order request that comprises an order to buy or sell a quantity of a tradeable object at a particular price;

temporarily holding the order request in a memory unit such that the order request is not sent to a matching engine at the electronic exchange until a preset rate of trades occurring at one or more prices to buy or sell the tradeable object is detected, wherein the preset rate of trades is based on an order quantity traded at the one or more prices;

receiving, via a computing device, market data comprising quantity and price information relating to the tradeable object being traded at the electronic exchange;

using the market data to determine, via a computing device a rate of trades occurring at one or more prices to buy or sell the tradeable object at the electronic exchange;

comparing, via a computing device, the rate of trades to a preset rate of trades; and

automatically releasing the order request to the matching engine at the electronic exchange upon detecting the preset rate of trades.

2. The method of claim 1 further comprising displaying an order entry region comprising a plurality of locations for receiving the command to send the order request, each location corresponding to a price level along a common static price axis.

3. The method of claim 2 further comprising in response to a selection of a particular location of the order entry region by a single action of a user input device, setting a plurality of parameters for the order request relating to the tradeable object and sending the order request to a gateway.

4. The method of claim 2 further comprising displaying a second plurality of locations in the order entry region for receiving the command to send an order to an electronic exchange, each location corresponding to a price level along the common static price axis.

5. The method of claim 2 wherein the order entry region is displayed on a screen of a user terminal.

6. The method of claim 1 further comprising:

dynamically displaying a first indicator in one of a plurality of locations in a bid display region, each location in the bid display region corresponding to a price level along a common static price axis, the first indicator representing quantity associated with at least one order to buy the tradeable object at the highest bid price currently available in the market; and

dynamically displaying a second indicator in one of a plurality of locations in an ask display region, each location in the ask display region corresponding to a price level along the common static price axis, the second indicator representing quantity associated with at least one order to sell the tradeable object at the lowest ask price currently available in the market.

7. The method of claim 1 further comprising displaying a first type of order indicator representing the order request at a first time, wherein the first time represents a time before the preset rate of trades is detected.

8. The method of claim 7 further comprising displaying a second type of order indicator representing the order request at a second time, wherein the second time represents a time after the preset rate of trades is detected, and wherein the first type of order indicator is no longer displayed.

9. The method of claim 7 further comprising modifying the first type of order indicator into a second type of order indicator representing the order request at a second time, wherein the second time represents a time after the preset rate of trades is detected.

10. The method of claim 7 further comprising displaying a second type of order indicator representing a real order, wherein the first type of order indicator is visually distinguishable from the second type of order indicator.

11. The method of claim 7 wherein the first type of order indicator indicates a quantity of the order request and if the order request is a buy or sell order request.

12. The method of claim 7 wherein the first type of order indicator indicates the preset rate of trades.

13. The method of claim 1 further comprising:

receiving the order request at an intermediary device in communication with a user terminal at which the order request was initiated and further in communication with the electronic exchange, wherein the intermediary device automatically releases the order request to the matching engine at the electronic exchange upon detecting the preset rate of trades.

14. The method of claim 1 further comprising:

receiving the order request at a computer device at the electronic exchange, the computer device in communication with a user terminal at which the order request was initiated, wherein the computer device automatically releases the order request to the matching engine at the electronic exchange upon detecting the preset rate of trades.

15. The method of claim 1 further comprising:

receiving the order request at a computer device that is remote to the electronic exchange and that is in communication with the electronic exchange, wherein the computer device automatically releases the order request to the matching engine at the electronic exchange upon detecting the preset rate of trades.

16. A method for sending an order to an electronic exchange, the method comprising:

receiving, via a computer device, a command representing an order request that comprises an order to buy or sell a quantity of a tradeable object at a particular price;

refraining from sending the order request to a matching engine at the electronic exchange until a preset rate of trades occurring at one or more prices to buy or sell the tradeable object is detected, wherein the preset rate of trades is based on an order quantity traded at the one or more prices;

receiving, via a computing device, market data comprising quantity and price information relating to the tradeable object being traded at the electronic exchange;

using the market data to determine, via a computing device a rate of trades occurring at one or more prices to buy or sell the tradeable object at the electronic exchange;

comparing, via a computing device, the rate of trades to a preset rate of trades; and

automatically forwarding the order request to the matching engine at the electronic exchange upon detecting the preset rate of trades.

17. The method of claim 16 further comprising displaying a first type of order indicator representing the order request at a first time, wherein the first time represents a time before the preset rate of trades is detected.

18. The method of claim 17 further comprising displaying a second type of order indicator representing the order request at a second time, wherein the second time represents the time after the preset rate of trades is detected.

19. The method of claim 16 further comprising displaying a first type of order indicator that represents a virtual order and a second type of order indicator that represents a real order, wherein the first type of order indicator is visually distinguishable from the second type of order indicator.

20. The method of claim 16 further comprising deleting the order request from an exchange order book at the matching engine.

21. A computer readable medium having stored therein instructions to execute a method for sending an order to an electronic exchange, the method comprising:

receiving a command representing an order request to buy or sell a quantity of a tradeable object at a particular price;

refraining from sending the order request to a matching engine at the electronic exchange until a preset rate of trades occurring at one or more prices to buy or sell the tradeable object is detected based on market data, wherein the preset rate of trades is based on an order quantity traded at the one or more prices;

receiving market data comprising quantity and price information relating to the tradeable object being traded at the electronic exchange;

using the market data to determine a rate of trades at the one or more prices for the tradeable object at the electronic exchange;

comparing the rate of trades to the preset rate of trades; and

automatically forwarding the order request to the matching engine at the electronic exchange upon detecting the preset rate of trades.

22. A method for sending an order to an electronic exchange, the method comprising:

receiving, via a computer device, a command representing an order request that comprises an order to buy or sell a quantity of a tradeable object at a particular price;

displaying at a user terminal a first type of indicator representing the order request;

refraining from sending the order request to a matching engine at the electronic exchange until a preset rate of trades occurring at one or more prices to buy or sell the tradeable object is detected, wherein the preset rate of trades is based on an order quantity traded at the one or more prices;

receiving, via a computing device, market data comprising quantity and price information relating to the tradeable object being traded at the electronic exchange;

using the market data to determine, via a computing device a rate of trades occurring at one or more prices to buy or sell the tradeable object at the electronic exchange;

comparing, via a computing device, the rate of trades to a preset rate of trades; and

forwarding the order request to the matching engine at the electronic exchange upon detecting the preset rate of trades; and

displaying at a user terminal a second type of indicator representing the order request, wherein the first type of indicator represents the order request at a first time which represents a time before the preset rate of trades is detected and the second type of indicator represents the order request at a second time which represents a time after the preset rate of trades is detected.