System and method for event-based trading

• US 7,734,528 B1
• Filed: 12/12/2003
• Issued: 06/08/2010
• 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:
  US10/734,862
• Time in Patent Office: 2,370 Days
• Field of Search: 705/35, 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 method for event-based trading, the method comprising:

receiving by a computer device a news data feed originating from a source other than an exchange, wherein the news data feed provides an actual event value for a news event that affects a market related to a tradeable object;

receiving by the computer device an estimated event value for the news event prior to announcement of the actual event value;

defining by the computer device a first trading strategy comprising a first plurality of trading rules to be executed based on a comparison of the estimated event value to the actual event value;

receiving by the computer device the actual event value subsequent to receiving the estimated event value and defining the first trading strategy;

selecting by the computer device a trading rule of the first plurality of trading rules corresponding to the first trading strategy based on a comparison of the actual event value to the estimated event value; and

executing by the computer device the selected trading rule, wherein executing the selected trading rule comprises generating a transaction message to be sent to the exchange.

3. The method of claim 1, wherein the estimated event value comprises an estimated news-related event indicator value, and wherein the actual event value comprises an actual news-related indicator value.

4. The method of claim 1, wherein the actual event value and the estimated event value are received directly from a news source through the news data feed.

5. The method of claim 1, further comprising:

displaying the estimated event value in a first graphical format on a graphical user interface.

6. The method of claim 5, further comprising:

upon receiving the actual event value, displaying the actual event value in a second graphical format on the graphical user interface.

7. The method of claim 5, wherein the actual event value and the estimated event value are input by a user via the graphical user interface.

8. The method of claim 5, further comprising:

displaying the first plurality of trading rules corresponding to the first trading strategy defined in relation to the estimated and actual event values being displayed via the graphical user interface.

9. The method of claim 5, wherein the estimated and actual event values are displayed using different indicators.

10. The method of claim 6, further comprising:

defining a second trading strategy comprising a second plurality of trading rules to be applied based on a comparison of the actual event value to a revised event value to be announced at some later time;

receiving the revised event value;

selecting a trading rule of the second plurality of trading rules based on a comparison of the revised event value compared to the actual event value; and

executing the selected trading rule of the second plurality of trading rules corresponding to the second trading strategy.

11. The method of claim 10, further comprising:

displaying the revised event value in a third graphical format on the graphical user interface.

12. The method of claim 10, wherein the revised event value comprises a revised news-related indicator value.

13. The method of claim 5, further comprising:

displaying on the graphical user interface a time left before the actual event value is released.

14. The method of claim 5, further comprising:

once the actual event value is received, displaying a time since the release of the actual event value.

15. The method of claim 1, further comprising:

sending the transaction message to the exchange.

16. The method of claim 1, wherein the transaction message comprises an order transaction message.

17. The method of claim 16, wherein the order transaction message comprises an order message to buy or sell the tradeable object.

18. The method of claim 16, wherein the order transaction message comprises an order cancel request message.

19. The method of claim 16, wherein the order transaction message comprises an order change request message.

2. A computer readable medium having stored therein instructions executable by a processor to perform a method for event-based trading, the method comprising:

receiving a news data feed originating from a source other than an exchange, wherein the news data feed provides an actual event value for a news event that affects a market related to a tradeable object;

receiving an estimated event value for the news event prior to announcement of the actual event value;

defining a first trading strategy comprising a first plurality of trading rules to be executed based on a comparison of the estimated event value to the actual event value;

receiving the actual event value subsequent to receiving the estimated event value and defining the first trading strategy;

selecting a trading rule of the first plurality of trading rules corresponding to the first trading strategy based on a comparison of the actual event value to the estimated event value; and

executing the selected trading rule, wherein executing the selected trading rule comprises generating a transaction message to be sent to the exchange.