System and method for prioritized automated trading in an electronic trading environment

• US 7,933,830 B1
• Filed: 05/01/2006
• Issued: 04/26/2011
• Est. Priority Date: 09/27/2004
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Buck, Brian J.
• Primary Examiner(s): Colbert; Ella
• Application Number:
  US11/415,405
• Time in Patent Office: 1,821 Days
• Field of Search: 705/1, 705/35, 705/36, 705/36.R, 705/37, 705/1.1
• US Class Current: 705/37
• 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 are provided for prioritized automated trading. One example method may include receiving a plurality of parameters, where each parameter has an order-related action associated with a trading strategy, and then detecting one or more events that trigger a plurality of order related actions. The method then includes determining priority levels in relation to a plurality of triggered order-related actions using at least one priority rule, and processing the plurality of triggered order-related action in an order associated with the determined priority levels.

Claims

1. A computer-based method for prioritized automated trading in an electronic trading environment, the method comprising:

storing a plurality of order requests at a computing device that is in communication with at least one electronic exchange, wherein the plurality of order requests are generated using a trading profile and represent a plurality of orders to be sent to the at least one electronic exchange upon detection of at least one triggering event;

defining at the computer device a plurality of priority levels using a priority rule, wherein the plurality of priority levels are to be used to determine priority when the plurality of orders are to be executed at substantially the same time;

detecting by the computing device the at least one triggering event and that the plurality of orders are to be sent substantially at the same time to the electronic exchange; and

sending the plurality of orders to the electronic exchange from the computing device responsive to detecting the at least one triggering event, wherein the plurality of orders are sent to the electronic exchange in a sequence according to the plurality of priority levels that are given to the plurality of orders.

2. The method of claim 1, further comprising:

establishing network communications between the computing device and at least one remote client device, wherein the plurality of order requests are stored at the computing device on behalf of the at least one remote client device.

3. The method of claim 1, further comprising:

receiving the trading profile from a client device that is in remote communication with the computing device prior to the step of storing the plurality of order requests;

storing the trading profile at the computing device; and

using the profile to generate the plurality of order requests at the computing device.

4. The method of claim 3, wherein the trading profile defines a trading strategy.

5. The method of claim 1, further comprising:

receiving a plurality of trading profiles from a plurality of client devices that are in remote communication with the computing device prior to the step of storing the plurality of order requests;

storing the plurality of trading profiles at the computing device; and

using the plurality of trading profiles to generate the plurality of order requests at the computing device.

6. The method of claim 5, wherein the plurality of trading profiles define a plurality of trading strategies.

7. The method of claim 1, further comprising:

generating a plurality of order related requests using the trading profile at the computing device that is in communication with at least one electronic exchange, wherein the plurality of order related requests represent actions to be taken on orders based on at least one trading strategy upon detection of the at least one triggering event;

defining at the computer device a second plurality of priority levels using the priority rule, wherein the second plurality of priority levels are to be used to determine priority when the plurality of order related requests are to be executed at substantially the same time;

detecting by the computing device the at least one triggering event and that the plurality of order related requests are to be sent substantially at the same time to the electronic exchange; and

sending the plurality of order related requests to the electronic exchange from the computing device responsive to detecting the at least one triggering event, wherein the plurality of order related requests are sent to the electronic exchange in a sequence according to the second plurality of priority levels that are given to the plurality of order related requests.

8. The method of claim 7, wherein the plurality of orders and the plurality of order related requests are sent to the electronic exchange in a sequence according to a priority level that is given to each of the plurality of orders and the plurality of order related requests based on the plurality of priority levels and the second plurality of priority levels.

9. The method of claim 7, further comprising:

establishing network communications between the computing device and a plurality of remote client devices, wherein the plurality of order related requests are stored at the computing device on behalf of the plurality of remote client devices.

10. The method of claim 7, further comprising:

receiving a plurality of trading profiles from a plurality of client devices that are in remote communication with the computing device prior to the step of storing the plurality of order related requests;

storing the plurality of trading profiles at the computing device; and

using the plurality of trading profiles to generate the plurality of order related requests at the computing device.

11. The method of claim 1, wherein the triggering event is defined by a user.

12. A computer readable storage medium having computer-executable instructions stored therein, which when executed by a processor cause the processor to carry out a method comprising:

storing a plurality of order requests at a computing device that is in communication with at least one electronic exchange, wherein the plurality of order requests are generated using a trading profile and represent a plurality of orders to be sent to the at least one electronic exchange upon detection of at least one triggering event;

defining at the computer device a plurality of priority levels using a priority rule, wherein the plurality of priority levels are to be used to determine priority when the plurality of orders are to be executed at substantially the same time;

detecting by the computing device the at least one triggering event and that the plurality of orders are to be sent substantially at the same time to the electronic exchange; and

sending the plurality of orders to the electronic exchange from the computing device responsive to detecting the at least one triggering event, wherein the plurality of orders are sent to the electronic exchange in a sequence according to the plurality of priority levels that are given to the plurality of orders.

13. The computer readable storage medium of claim 12, further comprising computer-executable instructions stored therein for:

establishing network communications between the computing device and at least one remote client device, wherein the plurality of order requests are stored at the computing device on behalf of the at least one remote client device.

14. The computer readable storage medium of claim 12, further comprising computer-executable instructions stored therein for:

receiving the trading profile from a client device that is in remote communication with the computing device prior to the step of storing the plurality of order requests;

storing the trading profile at the computing device; and

using the trading profile to generate the plurality of order requests at the computing device.

15. The computer readable storage medium of claim 14, wherein the trading profile defines a trading strategy.

16. The computer readable storage medium of claim 12, further comprising computer-executable instructions stored therein for:

establishing network communications between the computing device and a plurality of remote client devices, wherein the plurality of order requests are stored at the computing device on behalf of the plurality of remote client devices.

17. The computer readable storage medium of claim 12, further comprising computer-executable instructions stored therein for:

receiving a plurality of trading profiles from a plurality of client devices that are in remote communication with the computing device prior to the step of storing the plurality of order requests;

storing the plurality of trading profiles at the computing device; and

using the plurality of trading profiles to generate the plurality of order requests at the computing device.

18. The computer readable storage medium of claim 17, wherein the plurality of trading profiles define a plurality of trading strategies.

19. The computer readable storage medium of claim 12, further comprising computer-executable instructions stored therein for:

storing a plurality of order related requests at the computing device that is in communication with the at least one electronic exchange, wherein the plurality of order related requests represent actions to be taken on orders based on at least one trading strategy upon detection of the at least one triggering event;

defining at the computer device a second plurality of priority levels using the priority rule, wherein the second plurality of priority levels are to be used to determine priority when the plurality of order related requests are to be executed at substantially the same time;

detecting by the computing device the at least one triggering event and that the plurality of order related requests are to be sent substantially at the same time to the electronic exchange; and

sending the plurality of order related requests to the electronic exchange from the computing device responsive to detecting the at least one triggering event, wherein the plurality of order related requests are sent to the electronic exchange in a sequence according to the second plurality of priority levels that are given to the plurality of order related requests.