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

• US 7,848,994 B1
• Filed: 05/02/2006
• Issued: 12/07/2010
• Est. Priority Date: 01/31/2003
• Status: Expired due to Term

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mitz, Sagy P., Andrews, Ryan N., Garrison, David W., Chawla, Jyoti
• Primary Examiner(s): Kramer; James A
• Assistant Examiner(s): LEMIEUX, JESSICA
• Application Number:
  US11/415,949
• Time in Patent Office: 1,680 Days
• Field of Search: 705/37, 705/36
• 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, the method comprising:

receiving an order request via an input device associated with a client computing device to submit a first order for a first quantity of a first tradeable object at a first price from the client computing device to a first electronic exchange;

in response to receiving the order request;

(i) submitting the first order from the client computing device to the first electronic exchange for the first quantity of the first tradeable object,

(ii) determining a second price of a second order for a second tradeable object according to the first price and a predetermined relationship between the first tradeable object and the second tradeable object, and

(iii) submitting the second order from the client computing device to a second electronic exchange for a second quantity of the second tradeable object at the second price, the second order being submitted from the client computing device substantially simultaneously as the first order, where, at a first time subsequent to both the first order and the second order being submitted, the first order is executable by the first electronic exchange and the second order is executable by the second electronic exchange;

receiving, at the client computing device at the first time, an electronic market data transmission from the first electronic exchange, the electronic market data transmission including a first updated order parameter for the first order; and

in response to receiving the electronic market data transmission, submitting an update message via the client computing device to the second electronic exchange to update the second order executable by the second electronic exchange with a second updated order parameter determined according to the predetermined relationship and the first updated order parameter.

2. The method of claim 1, where submitting the update message to the second electronic exchange further comprises cancelling the second order.

3. The method of claim 2, where submitting the update message to the second electronic exchange further comprises submitting a new second order to trade an updated second quantity of the second tradeable object determined according to the predetermined relationship.

4. The method of claim 1, further comprising:

receiving via the input device a user command to change the first quantity; and

in response to receiving the user command, submitting a change message to the second electronic exchange to change the second quantity of the second order executable by the second electronic exchange to a changed second quantity determined according to the predetermined relationship.

5. The method of claim 4, where submitting a change message to the second electronic exchange further comprises:

cancelling the second order executable by the second electronic exchange; and

submitting a new second order to trade the changed second quantity of the second tradeable object determined according to the predetermined relationship.

6. The method of claim 1, further comprising:

receiving via the input device a user command to change the first price;

in response to receiving the user command, submitting a change message to the second electronic exchange to change the second quantity of the second order executable by the second electronic exchange to a changed second quantity determined according to the predetermined relationship.

7. The method of claim 1, further comprising:

receiving via the input device a user command to change the first price; and

in response to receiving the user command, submitting a change message to the second electronic exchange to change the second price of the second order executable by the second electronic exchange to a changed second price determined according to the predetermined relationship.

8. The method of claim 1, where the first updated order parameter for the first order comprises an update to the first quantity.

9. The method of claim 1, where the first updated order parameter for the first order comprises an update to the first price.

10. The method of claim 1, where together the first order and second order comprise an order cancel order.

11. The method of claim 1, where the first electronic exchange is different from the second electronic exchange.

12. The method of claim 1, further comprising:

receiving via the input device a user command to delete the first quantity; and

in response to receiving the user command, submitting a delete message to the second electronic exchange to delete the second order executable by the second electronic exchange.

13. The method of claim 1, further comprising:

submitting, from the client computing device to a third electronic exchange, a third order to trade a third quantity of a third tradeable object at a third price, the submitted third order executable by a third electronic exchange; and

detecting a predetermined condition associated with the submitted third order executable by the third electronic exchange, where submitting the first order from the client computing device to the first electronic exchange is in response to detecting the predetermined condition and receiving the order request.

14. The method of claim 13, where the predetermined condition comprises a fill update associated with the third order, and where the first quantity is determined based on a filled order quantity identified in the fill update.

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

16. The method of claim 1, where the first order is submitted to the first electronic exchange according to a predefined time period.

17. A computer readable medium having instructions stored thereon executable by a computing device to carry out the steps comprising:

receiving an order request via an input device associated with a client computing device to submit a first order for a first quantity of a first tradeable object at a first price from the client computing device to a first electronic exchange;

in response to receiving the order request;

(i) submitting the first order from the client computing device to the first electronic exchange to trade the first quantity of the first tradeable object,

(ii) determining a second price of a second order for a second tradeable object according to the first price and a predetermined relationship between the first tradeable object and the second tradeable object, and

(iii) submitting the second order from the client computing device to a second electronic exchange for a second quantity of the second tradeable object at the second price, the second order being submitted from the client computing device substantially simultaneously as the first order, where, at a first time subsequent to both the first order and the second order being submitted, the first order is executable by the first electronic exchange and the second order is executable by the second electronic exchange;

receiving, at the client computing device at the first time, an electronic market data transmission from the first electronic exchange, the electronic market data transmission including a first updated order parameter for the first order; and

in response to receiving the electronic market data transmission, submitting an update message to the second electronic exchange to update the second order executable by the second electronic exchange with a second updated order parameter determined according to the predetermined relationship and the first updated order parameter.

18. The computer readable medium of claim 17, where submitting the update message to the second electronic exchange further comprises:

cancelling the second order executable by the second electronic exchange; and

submitting a new second order to trade an updated second quantity of the second tradeable object determined according to the predetermined relationship.

19. The computer readable medium of claim 17, where the first updated order parameter for the first order comprises an update to the first quantity and the predetermined relationship comprises a predetermined ratio between the first quantity and the second quantity.

20. A computing device configured for electronic trading, comprising:

an order input configured to receive a command to submit a first order to trade a first quantity of a first tradeable object at a first price to a first electronic exchange;

an order transmitter configured to;

submit, from the computing device to the first electronic exchange, the first order to trade the first quantity of the first tradeable object at the first price;

determine a second price of a second order for a second tradeable object according to the first price and a predetermined relationship defining a relationship between the first tradeable object and the second tradeable object; and

submit the second order for a second quantity of the second tradeable object at the second price, the second order being submitted from the client computing device to a second electronic exchange substantially simultaneously as the first order, where, at a first time subsequent to both the first order and the second order being submitted, the first order is executable by the first electronic exchange and the second order executable by the second electronic exchange;

a receiver configured to receive, at the client computing device, an electronic market data transmission from the first electronic exchange, the electronic market data transmission including a first updated order parameter for the first order; and

an update transmitter configured to submit, in response to receiving the electronic market data transmission at the first time, an update message to the second electronic exchange to update the second order executable by the second electronic exchange with a second updated order parameter determined according to the predetermined relationship and the first updated order parameter.

21. The computing device of claim 20, where the update transmitter is further configured to submit an update message to cancel the second order and to submit a new second order to trade an updated second quantity of the second tradeable object determined according to the predetermined relationship.

22. The computing device of claim 20, where the first updated order parameter for the first order comprises an update to the first quantity, and where the predetermined relationship comprises a predetermined ratio between the first quantity and the second quantity.