Electronic spread trading tool

• US 7,707,086 B2
• Filed: 05/02/2006
• Issued: 04/27/2010
• Est. Priority Date: 06/14/2001
• Status: Expired due to Term

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Burns, Mike, Singer, Scott F.
• Primary Examiner(s): Nguyen; Nga B.
• Application Number:
  US11/415,177
• Publication Number:
  US 20060200405A1
• Time in Patent Office: 1,456 Days
• Field of Search: 705/35, 705/36.R, 705/37
• 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 device for processing and displaying market data associated with a trading strategy involving at least two commodities traded electronically on at least one electronic exchange, comprising:

a processor configured to execute code including instructions to display an interface for receiving a first market data feed having price information corresponding to pending orders for a first commodity, and a second commodity; and

an output device associated with the processor and configured to display;

a price axis corresponding to a plurality of price levels representing the trading strategy calculated based on the price information,

a first indicator at a highest bid area in relation to a highest bid price level on the price axis associated with a highest bid price currently available according to the trading strategy, where the first indicator moves relative to the price axis to a new highest bid area relative to a new highest bid price level on the price axis according to a change in the highest bid price, and

a second indicator at a lowest ask area in relation to a lowest ask price level on the price axis associated with a lowest ask price currently available according to the trading strategy, where the second indicator moves relative to the price axis to a new lowest ask area relative to a new lowest ask price level on the price axis according to a change in the lowest ask price.

2. The device of claim 1, where the processor is further configured to calculate the plurality of price levels representing the trading strategy based on the price information.

3. The device of claim 1, further comprising a user input device configured to receive a user command for sending an order to at least one exchange in response to the user command received via the user input device.

4. The device of claim 1, where the processor is further configured to automatically calculate a quantity for an order based in part on a formula and a current position for the first commodity, and automatically set a quantity parameter for a next order for the second commodity according to the calculated quantity.

5. The device of claim 4, wherein the formula comprises a ratio that has a numerator that is associated with the first commodity and denominator that is associated with the second commodity.

6. The device of claim 5, wherein calculating the quantity comprises multiplying the current position for the first commodity by the ratio.

7. The device of claim 1, wherein the output device further displays first market data representing the first commodity along a second axis and displays second market data representing the second commodity along a third axis.

8. The device of claim 7, wherein the output device statically displays a plurality of price levels along the second axis and a plurality of price levels along the third axis.

9. The device of claim 7, wherein the processor is further configured to generate a first price level indicator associated with a price to buy or sell the first commodity according to the trading strategy.

10. The device of claim 9, wherein the output device is further configured to display the first price level indicator at a first area in relation to a first price level along the second axis.

11. The device of claim 10, wherein the processor is further configured to generate a second price level indicator associated with a price to buy or sell the second commodity according to the trading strategy.

12. The device of claim 11, wherein the output device is further configured to display the second price level indicator at a second area in relation to a second price level along the third axis.

13. The method of claim 1, wherein the price axis is a static price axis.

14. A client device for displaying market data for a plurality of tradeable objects, comprising:

a display device;

a market data receiver configured to receive streaming financial market data identifying pending orders for a plurality of tradeable objects; and

a processor coupled with the display device and configured to execute instructions to cause the display device to visually display a graphical user interface having;

a price axis having an alignment of a plurality of price levels for a trading strategy, the plurality of price levels determined according to pending orders of at least two tradeable objects identified by the market data,

a first indicator in a highest bid region associated with a highest bid price level of the price axis according to a current highest bid price of the trading strategy, and

a second indicator in a lowest ask region associated with a lowest ask price level of the price axis according to a current lowest ask price of the trading strategy, the highest bid and lowest ask regions changeable according to changes in pending orders of the at least two tradeable objects as identified by the market data, where the first indicator moves relative to the price axis to a new highest bid region associated with a new highest bid price level of the price axis according to changes in the current highest bid price and the second indicator moves relative to the price axis to a new lowest ask region associated with a new lowest ask price level of the price axis according to changes in the current lowest ask price.

15. The client device of claim 14, wherein the price axis is changeable in response to a user input.

16. The client device of claim 14, where the graphical user interface further comprises an input region having a plurality of areas associated with a plurality of price levels, the input region configured to identify a user command received via a user input device and to effect an order in response to the user command.

17. The client device of claim 14, where the price axis is a static price axis.

18. The client device of claim 14, where the at least two tradeable objects comprises a first tradeable object associated with a first electronic exchange and a second tradeable object associated with a second electronic exchange.

19. The client device of claim 18, where the first electronic exchange is different from the second electronic exchange.

20. A computer-readable medium having code stored thereon and executable by a processor to display market data for a plurality of tradeable objects, the computer code comprising:

a market data receiving module configured to receive streaming financial market data identifying pending orders for a plurality of tradeable objects;

a price axis display module configured to display a plurality of price levels of a trading strategy determined according to pending orders of at least two tradeable objects identified by the market data; and

an indicator display module configured to display a first indicator at a highest bid price level of the price axis according to a current highest bid price for the trading strategy, and display a second indicator at a lowest ask price level of the price axis according to a current lowest ask price for the trading strategy, the first and second indicators changeable according to changes in pending orders of the at least two tradeable objects as identified by the market data, where the first indicator moves relative to the price axis to a new highest bid price level of the price axis according to changes in the current highest bid price and the second indicator moves relative to the price axis to a new lowest ask price level of the price axis according to changes in the current lowest ask price.