System and method for linking and managing linked orders in an electronic trading environment

• US 7,844,536 B1
• Filed: 01/31/2003
• Issued: 11/30/2010
• Est. Priority Date: 01/31/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mintz, Sagy P., Andrews, Ryan N., Garrison, David W., Chawla, Jyoti
• Primary Examiner(s): Kramer; James A
• Assistant Examiner(s): Lemieux; Jessica L
• Application Number:
  US10/356,277
• Time in Patent Office: 2,860 Days
• Field of Search: 705/36, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system and method for linking and managing linked orders are described. According to one method, a trader may first link two or more orders into a linked order, and then one or more parameters associated with one of the orders may be dynamically changed based on user inputs or information being received from an exchange. For example, a trader may link any two orders as an order cancel order, and each linked order may be associated with the same or different tradable objects, order quantities, and may be submitted to one or more exchanges. The order quantities may be then dynamically updated based on updates being received from the one or more exchanges and further based on a quantity ratio between the two orders. Further, the linked order may be submitted upon detecting a fill for another order.

Claims

1. A method for managing orders in an electronic trading environment comprising:

submitting a first order to trade a first quantity of a first tradeable object at a first price to a first electronic exchange via a computing device, the submitted first order pending in a first order book at the first electronic exchange for the first tradeable object and being executable by the first electronic exchange at a first time;

in response to submitting the first order, submitting a second order to trade a second quantity of a second tradeable object at a second price via the computing device, the second quantity being set according to a predetermined quantity relationship between the second quantity and the first quantity, the second order being submitted to a second electronic exchange substantially simultaneously as submitting the first order, the submitted second order pending in a second order book at the second electronic exchange for the second tradeable object and being executable by the second electronic exchange at the first time that the first order is pending in the first order book at the first electronic exchange and executable by the first electronic exchange;

detecting, via the computing device, a change in at least one order parameter of the submitted first order at the first time; and

in response to detecting the change in the at least one order parameter, submitting a first update message via the computing device to the second electronic exchange to change at least one order parameter of the second order pending in the second order book.

2. The method of claim 1, where the predetermined quantity relationship comprises a quantity ratio between the first and second tradeable objects.

3. The method of claim 1, where the change in the at least one order parameter derives from a fill update received from the first electronic exchange for the first order.

4. The method of claim 3, further comprising:

decreasing the second quantity according to a fill quantity in the received fill update.

5. The method of claim 4, wherein the first and second orders together comprise an order cancel order pair.

6. The method of claim 1, further comprising:

submitting a third order to trade a third quantity of a third tradeable object at a third price to a third electronic exchange via the computing device, the submitted third order pending in a third order book at the third electronic exchange for the third tradeable object;

detecting a predetermined condition associated with the submitted third order; and

submitting the first order to the first electronic exchange in response to detecting the predetermined condition associated with the third order.

7. The method of claim 6, where the predetermined condition comprises a fill update for the third order, and the predetermined quantity relationship is determined according to a filled order quantity of the fill update for the third order.

8. The method of claim 1, where the first tradeable object and the second tradeable object comprise different tradeable objects.

9. The method of claim 1, wherein detecting a change in at least one order parameter associated with the first order comprises detecting a user input.

10. The method of claim 1 further comprising dynamically updating price levels associated with the first order and the second order based on a market movement.

11. The method of claim 1 where the computing device comprises a client computing device.

12. The method of claim 11 where the client computing device comprises a server.

13. The method of claim 1 where the computing device comprises a distributed system.

14. A computer readable medium having instructions stored thereon executable by a processor for carrying out the acts comprising:

submitting a first order to trade a first quantity of a first tradeable object at a first price to a first electronic exchange, the submitted first order pending in a first order book at the first electronic exchange for the first tradeable object and being executable by the first electronic exchange at a first time;

in response to submitting the first order, submitting a second order to trade a second quantity of a second tradeable object at a second price, the second quantity being set according to a predetermined quantity relationship between the second quantity and the first quantity, the second order being submitted to a second electronic exchange substantially simultaneously as submitting the first order, the submitted second order pending in a second order book at the second electronic exchange for the second tradeable object and being executable by the second electronic exchange at the first time that the first order is pending in the first order book at the first electronic exchange and executable by the first electronic exchange;

detecting a change in at least one order parameter of the submitted first order at the first time; and

in response to detecting the change in the at least one order parameter, submitting a first update message to the second electronic exchange to change at least one order parameter of the second order pending in the second order book.

15. The computer readable medium of claim 14, where the method further comprises:

submitting a third order to trade a third quantity of a third tradeable object at a third price to a third electronic exchange, the submitted third order pending in a third order book at the third electronic exchange for the third tradeable object;

detecting a predetermined condition associated with the submitted third order; and

submitting the first order to the first electronic exchange in response to detecting the predetermined condition associated with the third order.

16. The computer readable medium of claim 15, where the predetermined quantity relationship between the second quantity and the first quantity is determined according to a filled order quantity of a fill update for the third order.

17. The computer readable medium of claim 14, where the first tradeable object and the second tradeable object comprise different tradeable objects.

18. The computer readable medium of claim 14, wherein detecting a change in at least one order parameter associated with the first order comprises detecting a user input.