System and method for order placement in an electronic trading environment

• US 8,311,932 B2
• Filed: 10/17/2011
• Issued: 11/13/2012
• Est. Priority Date: 09/30/2005
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Burns, Michael J., Herz, Eric M., Mintz, Sagy P., Dietz, Alexander D.
• Primary Examiner(s): Lemieux, Jessica
• Application Number:
  US13/275,009
• Publication Number:
  US 20120036061A1
• Time in Patent Office: 393 Days
• Field of Search: 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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 associated methods are provided for intelligent placement and movement of orders in an electronic trading environment. According to one example method, in addition to submitting a leg order at a calculated price level, additional orders, queue holder orders, are submitted for the leg order at prices either below or above the calculated price level. Based on this configuration, if the conditions change such that it is necessary to re-price the leg order, there will be already an order resting in the exchange order book at the re-calculated price that can be used in the strategy. Upon re-pricing the leg order, one or more additional queue holder orders will be placed in the market. Other tools are provided as well.

Claims

1. A computer readable medium having stored therein instructions for execution executable by a processor, wherein the instructions are executable to:

compute by a computing device a first price for a first order to buy or sell a first tradeable object, wherein the first price is computed based on market conditions corresponding to at least one second tradeable object and further based on a desired spread price for a spread strategy comprising the first tradeable object and the at least one second tradeable object;

send by the computing device the first order to buy or sell the first tradeable object at the first price to be placed in an order book of a computerized matching process, wherein the first order satisfies the desired spread price of the spread strategy;

send by the computing device a second order to buy or sell the first tradeable object at a second price to be placed in the order book of the computerized matching process, wherein the second order does not satisfy the desired spread price for the spread strategy;

determine by the computing device that the first order at the first price no longer satisfies the desired spread price of the spread strategy subsequent to the placement of the first and second orders at the computerized matching process; and

use by the computing device the second order at the second price for the spread strategy instead of the first order when the second price satisfies the desired spread price.

2. The computer readable medium of claim 1, wherein the instructions are further executable to:

in response to using the second order at the second price for the spread strategy, automatically send a third order at a third price to be placed in the order book of the computerized matching process.

3. The computer readable medium of claim 1, wherein the first price and the second price for the first and second orders are consecutive prices corresponding to the first tradeable object.

4. The computer readable medium of claim 1, wherein the first price for the first order and the second price for the second order are not consecutive prices corresponding to the first tradeable object.

5. The computer readable medium of claim 1, wherein the instructions are further executable to:

cancel the second order upon detecting a user configurable event.

6. The computer readable medium of claim 5, wherein the user configurable event is based on market conditions corresponding to the first tradeable object or the at least one second tradeable object.