System and method for management and analysis of electronic trade orders

• US 7,788,167 B1
• Filed: 03/21/2007
• Issued: 08/31/2010
• Est. Priority Date: 03/21/2007
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mintz, Sagy P., Deitz, Alexander D.
• Primary Examiner(s): Kyle; Charles R
• Assistant Examiner(s): Niquette; Robert R
• Application Number:
  US11/689,178
• Time in Patent Office: 1,259 Days
• Field of Search: 705 35- 45
• 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 40/03 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 system and methods are provided for using order descriptor identifiers in relation to orders being used in trading strategies. According to one example method, when a hedge order is submitted upon detecting a fill of another order, the hedge order includes one or more order descriptor identifiers conveying a purpose of the hedge order to a user. The order descriptor identifiers can be used to search for desired orders and perform more effective order management and post trade analysis.

Claims

1. A method for trade order management in an electronic trading environment, comprising:

defining at a computing device a trading strategy that generates a trade order to buy or sell a tradeable object at an electronic exchange upon detecting a predefined event, wherein the electronic exchange comprises a matching process for matching incoming trade orders;

detecting at the computing device the predefined event that triggers generation of the trade order;

generating at the computing device an order message for the trade order to buy or sell a tradeable object at the electronic exchange, the trade order having an order quantity and an order price;

inserting at the computing device an order descriptor identifier into the generated order message, wherein the order descriptor identifier comprises information that links the trade order to the trading strategy that generated the trade order upon detecting the predefined event;

sending from the computing device the order message with the order descriptor identifier to the electronic exchange, wherein the order descriptor identifier is accessible by a software application that generated the trade order and other software applications that did not generate the trade order;

receiving an order update related to the trade order from the electronic exchange, wherein the order update comprises the order descriptor identifier; and

linking at the computing device the order update to the trading strategy based on the order descriptor identifier in the order update.

2. The method of claim 1, wherein the order descriptor identifier comprises information that identifies the trade order as a timed order that was entered upon detecting a time related event.

3. The method of claim 1, wherein the order descriptor identifier comprises information that identifies that the trade order was entered upon detecting a fill of another order associated with the tradeable object or another tradeable object.

4. The method of claim 1, wherein the order descriptor identifier comprises information that identifies a news event that relates to the predefined event.

5. The method of claim 1, wherein the order descriptor identifier comprises information that identifies a condition satisfied by market data provided by the electronic exchange.

6. The method of claim 1, wherein the order descriptor identifier comprises information that identifies the trade order as a hedge trade order.

7. The method of claim 6, wherein the order descriptor identifier comprises information that identifies a fill of another trade order that triggered the step of generating the hedge trade order.

8. The method of claim 1, wherein the order descriptor identifier comprises information that identifies the trading strategy as an automated trading strategy.

9. The method of claim 1, wherein the order descriptor identifier comprises information that identifies the trading strategy as a manual trading strategy.

10. The method of claim 1, further comprising:

monitoring the trade order at the electronic exchange using the order descriptor identifier.

11. The method of claim 10, further comprising:

changing an order parameter of the trade order pending at the electronic exchange upon detecting another predefined event.

12. The method of claim 11, wherein the order parameter comprises an order price or an order quantity.

13. The method of claim 10, further comprising:

deleting the trade order from a matching engine at the electronic exchange upon detecting a predetermined event.

14. The method of claim 1, further comprising:

removing the order descriptor identifier from the order message at an intermediary device before sending the order message from the intermediary device to the electronic exchange.

15. The method of claim 1, further comprising:

using the order descriptor identifier for post trade analysis.

16. The method of claim 15, wherein the trade order comprises a hedge order configured to use a pay-up tick, and wherein the post trade analysis comprises determining a price level at which the hedge order was filled.

17. A method for trade order management in an electronic trading environment, comprising:

sending from a computing device a first trade order message representing a first trade order to buy or sell a first tradeable object to an electronic exchange, the first trade order associated with a trading strategy, the electronic exchange comprising a matching process for matching incoming trade orders for the first tradeable object;

detecting at the computing device a fill of the first trade order;

based on the fill, dynamically generating at the computing device a second trade order message representing a second trade order to buy or sell a second tradeable object;

inserting at the computing device an order descriptor identifier into the generated second trade order message, wherein the order descriptor identifier comprises information that links the second trade order message to the fill of the first trade order, wherein the order descriptor identifier is accessible by a software application that generated the second trade order and other software applications that did not generate the trade order;

sending from the computing device the second trade order message comprising the order descriptor identifier to a matching process for matching incoming trade orders for the second tradeable object;

receiving an order update related to the second trade order from the electronic exchange, wherein the order update comprises the order descriptor identifier; and

linking at the computing device the order update to the fill of the first trade order based on the order descriptor identifier in the order update.

18. The method of claim 17, wherein the first tradeable object is the same as the second tradeable object.

19. The method of claim 17, wherein the first tradeable object is different than the second tradeable object.

20. The method of claim 17, wherein the second trade order comprises a hedge order generated by an automatic trading application.

21. The method of claim 20, wherein the order descriptor identifier comprises information that identifies the automatic trading application.

22. The method of claim 17, further comprising:

using the order descriptor identifier for post trade analysis.

23. The method of claim 22, wherein the second trade order comprises a hedge order configured to use a pay-up tick, and wherein the post trade analysis comprises determining a price level at which the second trade order was filled.

24. A computer readable medium having program code recorded thereon for execution on a computer for trade order management in an electronic trading environment, comprising:

defining at a computing device a trading strategy that generates a trade order to buy or sell a tradeable object at an electronic exchange upon detecting a predefined event, wherein the electronic exchange comprises a matching process for matching incoming trade orders;

detecting at the computing device the predefined event that triggers generation of the trade order;

generating at the computing device an order message for the trade order to buy or sell a tradeable object at the electronic exchange, the trade order having an order quantity and an order price;

inserting at the computing device an order descriptor identifier into the generated order message, wherein the order descriptor identifier comprises information that links the trade order to the trading strategy that generated the trade order upon detecting the predefined event;

sending from the computing device the order message with the order descriptor identifier to the electronic exchange, wherein the order descriptor identifier is accessible by a software application that generated the trade order and other software applications that did not generate the trade order;

receiving an order update related to the trade order from the electronic exchange, wherein the order update comprises the order descriptor identifier; and

linking at the computing device the order update to the trading strategy based on the order descriptor identifier in the order update.