Method and system for providing electronic option trading bandwidth reduction and electronic option risk management and assessment for multi-market electronic trading

• US 8,429,059 B2
• Filed: 05/25/2010
• Issued: 04/23/2013
• Est. Priority Date: 06/08/2004
• Status: Active Grant

• Current Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Original Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Inventors: Rosenthal, Leslie
• Primary Examiner(s): Holly, John H
• Application Number:
  US12/786,810
• Publication Number:
  US 20100268633A1
• Time in Patent Office: 1,064 Days
• Field of Search: 705/1.1, 705/37, 705/35, 705/36.R, 705/38, 705/26.3, 705/80, 705/50, 715/835, 709/232, 709/227
• 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 40/08 Insurance

Abstract

A method and system for providing electronic option trading bandwidth reduction and risk management and assessment for multi-market electronic trading. Data streams including electronic option trading information are split into plural individual data streams by a server network device and/or one or more network interface cards (NICs). The individual data streams are made available to target network devices using less network bandwidth and fewer processing cycles that would be required to process the whole data including the electronic option trading information. The option trading risk assessment and management information includes an “integrated viewpoint” that aggregates an option trader'"'"'s activities across all their electronic option trading accounts, their current and historical option trades and option trade locations on all option trading exchanges.

Claims

1. A method for processing electronic trading information for electronic trading and electronic option trading management, comprising:

receiving a first data stream including a plurality of different types of electronic options trading information from one or more electronic trading exchanges via a communications network on a server network device with one or more processors connected to a plurality of network interface cards (NICs), each with one or more processors, each of the plurality of NICs connected to a communications bus and to the communications network;

splitting in real-time the first data stream on the server network device and the plurality of NICs into a plurality of second data streams, wherein each of the plurality of second data streams includes one or more of the plurality of different types of electronic options trading information from the first data stream;

making available in real-time the plurality of second data streams to a plurality of target network devices each with one or more processors via the server network device and the plurality of NICs and the communications network, wherein the plurality of target network devices selectively request one or more of the plurality of second data streams from the server device or the plurality of NICs in real-time via the communications network;

extracting automatically via an application on an individual target device from selected ones of the plurality of second data streams one or more different types of electronic options trading information for trading risk assessment and management for one or more electronic option trading accounts being traded on the electronic trading exchanges;

providing automatically option trading risk assessment and management information faster and more efficiently than receiving and using the same electronic option trading information from the entire first data stream,

wherein the individual target device is able to receive the selected ones of the plurality of second data streams using less bandwidth than is required for receiving the entire first data stream from the server network device or the plurality of NICs and wherein processing the selected ones of the plurality of second data streams on the target device requires less processing cycles than processing the entire first data stream, and

wherein the option trading risk assessment and management information includes an “

integrated viewpoint”

that aggregates an option trader'"'"'s activities across all electronic option trading accounts and current and historical option trades on all option trading exchanges;

displaying automatically via the application on the individual target device the option trading risk assessment and management information in real-time for option trading positions for trading accounts being traded on the one or more electronic trading exchanges in one or more different types of specialized graphical windows on the individual target device; and

executing automatically via the application on the individual target device one or more electronic option trades on the one or more electronic trading exchanges using the option trading risk assessment and management information displayed in the one or more specialized graphical windows.

3. The method of claim 1, wherein the one or more different types of specialized graphical windows include an Aggregated Book View/Ask Bid Volume (ABV) window, an Order window, a Reports window or a Risk Assessment and Management graphical window.

4. The method of claim 3, wherein the ABV window includes:

displaying in real-time bid size and bid offer by price for a an electronic trading instrument or contract in a market depth format in the ABV window and displaying prices for the electronic trading instrument or contract in a dynamic price column; and

automatically and dynamically in real-time re-centering the dynamic price column in the ABV window upon a current last traded price that continuously and dynamically changes with price fluctuations in the current last traded price.

5. The method of claim 3 wherein the Risk Assessment and Management graphical window includes a Risk Display window including a risk bar graph, line graph or graphical meter displaying current trading risk levels.

6. The method of claim 1 further comprising:

receiving a first data stream including a plurality of different types of electronic trading information including other than electronic options trading information from one or more electronic trading exchanges via a communications network on a server network device with one or more processors connected to a plurality of NICs each with one or more processors, each of the plurality of NICs connected to a communications bus and to the communications network;

splitting in real-time the first data stream on the server network device and the plurality of NICs into a plurality of second data streams, wherein each of the plurality of second data streams includes one or more of the plurality of different types of electronic options trading information from the first data stream; and

providing trading risk assessment and management information faster and more efficiently than receiving and using the same electronic option trading information from the entire first data stream for electronic trading including other than electronic option trading.

7. The method of claim 6 wherein the trading risk assessment and management information includes an “

integrated viewpoint”

that aggregates an electronic trader'"'"'s activities across all electronic trading accounts, current and historical option trades and trade locations on all trading exchanges.

8. The method of claim 1 wherein the step making available in real-time the plurality of second data streams to a plurality of target network devices each with one or more processors via the server network device and the plurality of NICs and the communications network includes making a first portion of an individual second data stream available from the server network device and a second portion of the individual second data stream available from a selected NIC.

9. The method of claim 1 wherein the NICs include 4^th Generation (4G) NICs including Internet Protocol (IP) packet-switched NICs, wired and wireless ultra-broadband access NICs, Worldwide Interoperability for Microwave Access (WiMAX) NICs and multi-carrier transmission NICs.

2. A system comprising:

one or more network devices with one or more processors; and

a non-transitory computer readable medium storing a plurality of instructions that are executed by the one or more processors to perform the steps of;

receiving a first data stream including a plurality of different types of electronic options trading information from one or more electronic trading exchanges via a communications network on a server network device with one or more processors connected to a plurality of network interface cards (NICs), each with one or more processors, each of the plurality of NICs connected to a communications bus and to the communications network;

splitting in real-time the first data stream on the server network device and the plurality of NICs into a plurality of second data streams, wherein each of the plurality of second data streams includes one or more of the plurality of different types of electronic options trading information from the first data stream;

making available in real-time the plurality of second data streams to a plurality of target network devices each with one or more processors via the server network device and the plurality of NICs and the communications network,

thereby allowing the plurality of target network devices to selectively request one or more of the plurality of second data streams from the server device or the plurality of NICs in real-time via the communications network;

extracting automatically via an application on an individual target device from selected ones of the plurality of second data streams one or more different types of electronic options trading information for trading risk assessment and management for one or more electronic option trading accounts being traded on the electronic trading exchanges;

providing automatically option trading risk assessment and management information faster and more efficiently than receiving and using the same electronic option trading information from the entire first data stream,

wherein the individual target device is able to receive the selected ones of the plurality of second data streams using less bandwidth than is required for receiving the entire first data stream from the server network device or the plurality of NICs and wherein processing the selected ones of the plurality of second data streams on the target device requires less processing cycles than processing the entire first data stream, and

wherein the option trading risk assessment and management information includes an “

integrated viewpoint”

that aggregates an option trader'"'"'s activities across all electronic option trading accounts and current and historical option trades on all option trading exchanges;

displaying automatically via the application on the individual target device the option trading risk assessment and management information in real-time for option trading positions for trading accounts being traded on the one or more electronic trading exchanges in one or more different types of specialized graphical windows on the individual target device; and

executing automatically via the application on the individual target device one or more electronic option trades on the one or more electronic trading exchanges using the option trading risk assessment and management information displayed in the one or more specialized graphical windows.