Systems and methods for protecting against erroneous price entries in the electronic trading of financial and other instruments

• US 8,219,480 B2
• Filed: 08/30/2005
• Issued: 07/10/2012
• Est. Priority Date: 03/24/2005
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Noviello, Joseph, Steger, Lon, Lutnick, Howard W, Sweeting, Michael, Claus, Matt, Foley, Kevin M
• Primary Examiner(s): Shrestha, Bijendra K
• Application Number:
  US11/215,236
• Publication Number:
  US 20060218072A1
• Time in Patent Office: 2,506 Days
• Field of Search: 705/36, 705/36.R, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• 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 invention relates to systems and methods that provide a user interface for use with an electronic trading system. The interface notifies the user that the price at which he or she may have attempted to trade has changed and presents the user with the opportunity to submit, modify or cancel the trade command. The user may configure the trading system to enable such a notification based on the time span for the price change, the number of increments of the price change, a combination thereof or any other appropriate consideration for protecting against the occurrence of erroneous price entries. Subsequent trade commands, such as those entered by third parties, may be used to validate prices and execute trades at these prices.

Claims

1. A method, comprising:

displaying by a workstation on a user interface to a user a plurality of bid and ask prices;

receiving by the workstation a trade command from the user to hit or lift at least one price from the plurality of bid and ask prices;

in response to receiving the trade command, determining by the workstation that the at least one price has changed from a first price to a second price within a predetermined period of time from a receipt of the trade command and that the change from the first price to the second price is by at least a predetermined number of increments; and

based at least in part on determining that the at least one price has changed within the predetermined period of time and that the change is by at least the predetermined number of increments, presenting by the workstation to the user an opportunity to submit at least a portion of the trade command at the second price or cancel the trade command;

wherein the method further comprises determining by the workstation that the change from the first price to the second price is unfavorable to the user; and

wherein presenting to the user the opportunity to submit or cancel the trade command further comprises presenting to the user the opportunity to submit or cancel the trade command based at least in part on determining that the change from the first price to the second price is unfavorable to the user.

2. The method of claim 1, wherein presenting to the user the opportunity to submit or cancel the trade command further comprises presenting to the user an opportunity to modify the trade command.

3. The method of claim 1, wherein presenting to the user the opportunity to submit or cancel the trade command comprises displaying to the user a window indicating the second price and requesting that the user confirm the trade command.

4. The method of claim 1, further comprising the workstation notifying the user that the at least one price has changed through a sound.

5. The method of claim 1, wherein the user is presented with the opportunity to submit at least a portion of the trade command at the second price for select bid and ask prices.

6. The method of claim 1, further comprising displaying by the workstation to the user a window, wherein the window includes a field that is selectable by the user, and wherein a selection of the field by the user disables the feature of presenting to the user the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.

7. The method of claim 1, wherein the predetermined number of increments is selected by the user.

8. The method of claim 1, wherein the predetermined period of time is selected by the user.

9. The method of claim 1, wherein the trade command comprises one of:

a sell all order,

a buy all order,

a market sell order, and

a market buy order.

10. A method, comprising:

displaying by at least one server on a user interface of a workstation in use by a user a plurality of bid and ask prices;

receiving by the at least one server a trade command from the user to hit or lift at least one price from the plurality of bid and ask prices;

in response to receiving the trade command, determining by the at least one server that the at least one price has changed from a first price to a second price within a predetermined period of time from a receipt of the trade command and that the change from the first price to the second price is by at least a predetermined number of increments; and

based at least in part on determining that the at least one price has changed within the predetermined period of time and that the change is by at least the predetermined number of increments, presenting by the at least one server to the user via the workstation an opportunity to submit at least a portion of the trade command at the second price or cancel the trade command;

wherein the method further comprises determining by the at least one server that the change from the first price to the second price is unfavorable to the user; and

wherein presenting to the user the opportunity to submit or cancel the trade command further comprises presenting to the user the opportunity to submit or cancel the trade command based at least in part on determining that the change from the first price to the second price is unfavorable to the user.

11. The method of claim 10, wherein presenting to the user the opportunity to submit or cancel the trade command further comprises presenting to the user an opportunity to modify the trade command.

12. The method of claim 10, wherein presenting to the user the opportunity to submit or cancel the trade command comprises displaying to the user via the workstation a window indicating the second price and requesting that the user confirm the trade command.

13. The method of claim 10, further comprising the at least one server causing the workstation to notify the user that the at least one price has changed through a sound.

14. The method of claim 10, wherein the user is presented with the opportunity to submit at least a portion of the trade command at the second price for select bid and ask prices.

15. The method of claim 10, further comprising displaying by the at least one server to the user via the workstation a window, wherein the window includes a field that is selectable by the user, and wherein a selection of the field by the user disables the feature of presenting to the user the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command.

16. The method of claim 10, wherein the predetermined period of time is selected by the user.

17. The method of claim 10, wherein the predetermined number of increments is selected by the user.

18. The method of claim 10, further comprising:

withdrawing by the at least one server the opportunity to submit at least a portion of the trade command at the second price or cancel the trade command; and

executing by the at least one server the trade command at the second price.

19. The method of claim 18,

wherein the method further comprises receiving by the at least one server a cancellation command for an order associated with the second price;

wherein the cancellation command is received after the trade command; and

wherein withdrawing the opportunity and executing the trade command is in response to receiving the cancellation command.

20. The method of claim 18,

wherein the method further comprises receiving by the at least one server a second trade command to hit or lift an order associated with the second price;

wherein the second trade command is received after the trade command; and

wherein withdrawing the opportunity and executing the trade command is in response to receiving the second trade command.

21. The method of claim 10, wherein the method further comprises:

receiving by the at least one server a second trade command providing a price that is the same as the first price, wherein the second trade command is received after the trade command; and

in response to receiving the second trade command;

withdrawing by the at least one server the opportunity to submit at least a portion of the trade command or cancel the trade command; and

executing by the at least one server the trade command at the first price.

22. The method of claim 10, wherein the method further comprises:

receiving by the at least one server a second trade command providing a price that is better than the first price, wherein the second trade command is received after the trade command; and

in response to receiving the second trade command;

withdrawing by the at least one server the opportunity to submit at least a portion of the trade command or cancel the trade command; and

executing by the at least one server the trade command at a price that includes one of;

the first price, and

the better price.

23. The method of claim 10, wherein the trade command comprises one of:

a sell all order,

a buy all order,

a market sell order, and

a market buy order.

24. A system comprising a workstation having software stored thereon that when executed, directs the workstation to:

display on a user interface to a user a plurality of bid and ask prices;

receive a trade command from the user to hit or lift at least one price from the plurality of bid and ask prices;

in response to receiving the trade command, determine that the at least one price has changed from a first price to a second price within a predetermined period of time from a receipt of the trade command and that the change from the first price to the second price is by at least a predetermined number of increments; and

based at least in part on determining that the at least one price has changed within the predetermined period of time and that the change is by at least the predetermined number of increments, present to the user an opportunity to submit at least a portion of the trade command at the second price or cancel the trade command;

wherein the software, when executed, further directs the workstation to determine that the change from the first price to the second price is unfavorable to the user; and

wherein presenting to the user the opportunity to submit or cancel the trade command further comprises presenting to the user the opportunity to submit or cancel the trade command based at least in part on determining that the change from the first price to the second price is unfavorable to the user.

25. A system comprising at least one server having software stored thereon that when executed, directs the at least one server to:

display on a user interface of a workstation in use by a user a plurality of bid and ask prices;

receive a trade command from the user to hit or lift at least one price from the plurality of bid and ask prices;

in response to receiving the trade command, determine that the at least one price has changed from a first price to a second price within a predetermined period of time from a receipt of the trade command and that the change from the first price to the second price is by at least a predetermined number of increments; and

based at least in part on determining that the at least one price has changed within the predetermined period of time and that the change is by at least the predetermined number of increments, present to the user via the workstation an opportunity to submit at least a portion of the trade command at the second price or cancel the trade command;

wherein the software, when executed, further directs the at least one server to determine that the change from the first price to the second price is unfavorable to the user; and

wherein presenting to the user the opportunity to submit or cancel the trade command further comprises presenting to the user the opportunity to submit or cancel the trade command based at least in part on determining that the change from the first price to the second price is unfavorable to the user.