System and method for performing automatic spread trading

• US 8,180,692 B2
• Filed: 06/30/2008
• Issued: 05/15/2012
• Est. Priority Date: 03/05/2002
• Status: Expired due to Term

• Current Assignee: Pablo, LLC
• Original Assignee: Pablo, LLC
• Inventors: Kemp, Gary Allan II, Schluetter, Jens-Uwe, Burns, Mike, Singer, Scott, Monroe, Fred, Babulak, David, Brumfield, Harris
• Primary Examiner(s): Liu, Marissa
• Application Number:
  US12/164,859
• Publication Number:
  US 20090006244A1
• Time in Patent Office: 1,415 Days
• Field of Search: 705 1- 80, 235 1- 50, 382 1-205, 713 1-188
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• 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

The present embodiments are provided to facilitate the automatic trading of spreads in a fast and accurate manner. One or more market data feeds that contain market information for tradeable objects are received at an exchange. A spread data feed is generated in response to the market data feeds and from one or more spread setting parameters, which can be entered by a user. The spread data feed is preferably displayed in a spread window as bid and ask quantities associated with an axis or scale of prices. The user can enter orders in the spread window and the legs will be automatically worked to achieve, or attempt to achieve, the spread. In addition, other tools disclosed herein may be utilized to assist the user in making such trades.

Claims

1. A method for electronic trading, the method comprising:

receiving a selection for a price of a spread trade via a user input for a computing device, the spread trade including a trade for a plurality of tradeable objects;

determining a first price for a first tradeable object of the plurality of tradeable objects via the computing device, the first price being determined based on the price of the spread trade and market information for a second tradeable object of the plurality of tradeable objects at a first time;

submitting a first order to an electronic exchange via the computing device, the first order including the first price for the first tradeable object of the plurality of tradeable objects;

determining, via the computing device, a working price for the spread trade based on market information for the second tradeable object of the plurality of tradeable objects at a second time; and

determining whether a price condition is satisfied based on comparing the working price for the spread trade to a spread limit via the computing device; and

in response to the price condition being satisfied, submitting a new order to the electronic exchange via the computing device, the new order including a new price for the first tradeable object determined based on the price of the spread trade and market information for the second tradeable object of the plurality of tradeable objects at a third time.

2. The method of claim 1 further comprising cancelling the first order and displaying the new price for the new order in response to submitting the new order.

3. The method of claim 1 where the spread limit comprises any of an inside price limit, an outside price limit and a combination thereof.

4. The method of claim 1 further comprising submitting a second order for the second tradeable object of the plurality of tradeable objects, the second order being submitted to an exchange associated with the second tradeable object of the plurality of tradeable objects in response to execution of the first order.

5. The method of claim 4 where the second order comprises a second price determined according to the working price.

6. The method of claim 4 where the electronic exchange comprises the exchange associated with the second tradeable object.

7. The method of claim 1 where the market information for the second tradeable object of the plurality of tradeable objects at the second time comprises any of a highest bid price for the second tradeable object, a lowest ask price for at least the second tradeable object, a last trade price for the second tradeable object and combinations thereof.

8. The method of claim 1 where determining whether a price condition is satisfied comprises determining whether the working price is outside the spread limit.

9. The method of claim 1 where determining whether a price condition is satisfied comprises determining whether the working price is within the spread limit.

10. The method of claim 1 where the market information for the second tradeable object of the plurality of tradeable objects at the second time comprises the market information for the second tradeable object of the plurality of tradeable objects at the third time.

11. A computer readable medium having instruction stored thereon which when executed by a processor cause the processor to execute acts comprising:

receiving a selection for a price of a spread trade, the spread trade including a trade for a plurality of tradeable objects;

determining a first price for a first tradeable object of the plurality of tradeable objects, the first price being determined based on the price of the spread trade and market information for a second tradeable object of the plurality of tradeable objects at a first time;

submitting a first order to an electronic exchange, the first order including the first price for the first tradeable object of the plurality of tradeable objects;

determining a working price for the spread trade based on market information for the second tradeable object of the plurality of tradeable objects at a second time; and

determining whether a price condition is satisfied based on comparing the working price for the spread trade to a spread limit; and

in response to the price condition being satisfied, submitting a new order to the electronic exchange, the new order including a new price for the first tradeable object determined based on the price of the spread trade and market information for the second tradeable object of the plurality of tradeable objects at a third time.

12. The computer readable medium of claim 11 where the acts further comprise cancelling the first order and displaying the new price for the new order in response to submitting the new order.

13. The computer readable medium of claim 11 where the spread limit comprises any of an inside price limit, an outside price limit and a combination thereof.

14. The computer readable medium of claim 11 where the acts further comprise submitting a second order for the second tradeable object of the plurality of tradeable objects, the second order being submitted to an exchange associated with the second tradeable object of the plurality of tradeable objects in response to execution of the first order.

15. The computer readable medium of claim 14 where the second order comprises a second price determined according to the working price.

16. The computer readable medium of claim 14 where the electronic exchange comprises the exchange associated with the second tradeable object.

17. The computer readable medium of claim 11 where the market information for the second tradeable object of the plurality of tradeable objects at the second time comprises any of a highest bid price for the second tradeable object, a lowest ask price for at least the second tradeable object, a last trade price for the second tradeable object and combinations thereof.

18. The computer readable medium of claim 11 where determining whether a price condition is satisfied comprises determining whether the working price is outside the spread limit.

19. The computer readable medium of claim 11 where determining whether a price condition is satisfied comprises determining whether the working price is within the spread limit.

20. The computer readable medium of claim 11 where the market information for the second tradeable object of the plurality of tradeable objects at the second time comprises the market information for the second tradeable object of the plurality of tradeable objects at the third time.

21. A trading device comprising:

a processor configured to;

receive a selection for a price of a spread trade, the spread trade including a trade for a plurality of tradeable objects;

determine a first price for a first tradeable object of the plurality of tradeable objects, the first price being determined based on the price of the spread trade and market information for a second tradeable object of the plurality of tradeable objects at a first time;

submit a first order to an electronic exchange, the first order including the first price for the first tradeable object of the plurality of tradeable objects;

determine a working price for the spread trade based on market information for the second tradeable object of the plurality of tradeable objects at a second time; and

determine whether a price condition is satisfied based on comparing the working price for the spread trade to a spread limit; and

submit a new order to the electronic exchange in response to the price condition being satisfied, the new order including a new price for the first tradeable object determined based on the price of the spread trade and market information for the second tradeable object of the plurality of tradeable objects at a third time.

22. The trading device of claim 21 where the spread limit comprises any of an inside price limit, an outside price limit and a combination thereof.