System and method for variably regulating order entry in an electronic trading system
First Claim
Patent Images
1. A computer based method for variably regulating order entry in an electronic trading application, the method comprising:
- placing a first order having an order parameter via a computing device, the order parameter associated with a desired spread order parameter;
automatically calculating an effective order parameter in response to a command via the computing device;
retrieving a range from a plurality of ranges to obtain at least one tolerance parameter associated with the retrieved range via the computing device;
determining whether the effective order parameter remains within a plurality of values determined by the desired spread order parameter and the at least one tolerance parameter associated with the retrieved range via the computing device; and
if so,refraining from replacing the first order with a second order having a different order parameter from the first order via the computing device.
1 Assignment
0 Petitions
Accused Products
Abstract
A system and method are provided to intelligently limit the frequency at which automated or semi-automated trading tools move or re-price orders in an exchange order book. A tolerance may be input that limits when one or more orders in the exchange order book are moved from one price to another. The system and method assist in reducing the number of orders that are entered into the system which can lead to reduced exchange transaction fees, lost queue position, and reduce network bandwidth consumption.
150 Citations
52 Claims
-
1. A computer based method for variably regulating order entry in an electronic trading application, the method comprising:
-
placing a first order having an order parameter via a computing device, the order parameter associated with a desired spread order parameter; automatically calculating an effective order parameter in response to a command via the computing device; retrieving a range from a plurality of ranges to obtain at least one tolerance parameter associated with the retrieved range via the computing device; determining whether the effective order parameter remains within a plurality of values determined by the desired spread order parameter and the at least one tolerance parameter associated with the retrieved range via the computing device; and
if so,refraining from replacing the first order with a second order having a different order parameter from the first order via the computing device. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 38, 39, 45, 46)
-
-
19. A computer based method for variably regulating order entry in an electronic trading application, the method comprising:
-
placing a first order having an order parameter via a computing device, the order parameter associated with a desired spread order parameter; automatically calculating an effective order parameter in response to a command via the computing device; retrieving a range from a plurality of ranges to obtain at least one tolerance parameter associated with the retrieved range via the computing device; determining whether the effective order parameter remains within a plurality of values determined by the desired spread order parameter and the at least one tolerance parameter associated with the retrieved range via the computing device; and
if not,automatically replacing the first order with a second order having a different order parameter from the first order via the computing device. - View Dependent Claims (20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 40, 41, 47, 48)
-
-
37. A computer based method for variably regulating order entry in an electronic trading application, the method comprising:
-
entering an order into a leg of a spread to achieve a desired spread price via a computing device; calculating an effective spread price in response to a market change in at least one leg of the spread via the computing device; retrieving a range associated with the leg of the spread in which the order was entered to obtain a tolerance parameter associated with the range via the computing device; comparing the change between the effective spread price and the desired spread price with the tolerance parameter of the retrieved range via the computing device; and in response to comparing, determining whether to re-price the order in the leg of the spread via the computing device to maintain the desired spread price based at least on the tolerance parameter. - View Dependent Claims (49, 50)
-
-
42. A computer based method for variably regulating order entry in an electronic trading application, the method comprising:
-
entering an order at a price to buy or sell a first leg of a spread via a computing device, the price is computed based on a desired spread price and market conditions in a second leg of the spread; calculating an effective order price based on the desired spread price and more recent market conditions in the second leg of the spread via the computing device; retrieving a tolerance parameter associated with a particular range from a plurality of ranges via the computing device, wherein each range of the plurality of ranges has an associated tolerance parameter; and determining whether to re-price the order in the first leg of the spread via the computing device to maintain the desired spread price based on whether the effective order price falls within a range of values determined by the price of the order to buy or sell the first leg of the spread and the tolerance parameter. - View Dependent Claims (43, 44, 51, 52)
-
Specification