System and method for linking and managing linked orders in an electronic trading environment

• US 8,694,411 B2
• Filed: 10/22/2010
• Issued: 04/08/2014
• Est. Priority Date: 01/31/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Andrews, Ryan, Mintz, Sagy P., Chawla, Jyoti, Garrison, David W.
• Primary Examiner(s): Lemieux, Jessica
• Application Number:
  US12/910,557
• Publication Number:
  US 20110040675A1
• Time in Patent Office: 1,264 Days
• Field of Search: 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system and method for linking and managing linked orders are described. According to one method, a trader may first link two or more orders into a linked order, and then one or more parameters associated with one of the orders may be dynamically changed based on user inputs or information being received from an exchange. For example, a trader may link any two orders as an order cancel order, and each linked order may be associated with the same or different tradable objects, order quantities, and may be submitted to one or more exchanges. The order quantities may be then dynamically updated based on updates being received from the one or more exchanges and further based on a quantity ratio between the two orders. Further, the linked order may be submitted upon detecting a fill for another order.

Claims

1. A method for managing orders in an electronic trading environment comprising:

submitting a first order to trade a first quantity of a first tradeable object at a first price to a first electronic exchange from a client computing device, the submitted first order pending in a first order book at the first electronic exchange for the first tradeable object;

in response to submitting the first order, submitting a second order to trade a second quantity of a second tradeable object at a second price, the second quantity being set according to a predetermined quantity relationship between the second quantity and the first quantity, the second order being submitted from the client computing device to a second electronic exchange substantially simultaneously as submitting the first order, the submitted second order pending in a second order book at the second electronic exchange for the second tradeable object;

receiving, at the client computing device, a user input changing at least one order parameter associated with the first order pending at the first electronic exchange;

in response to receiving the user input, submitting, from the computing device, a first update to the first exchange to change the at least one order parameter of the first order pending at the first electronic exchange; and

in response to submitting the first update message to the first exchange, submitting, from the computing device, a second update to the second electronic exchange to change at least one order parameter of the second order in the second order book.

2. The method of claim 1, where the at least one order parameter of the second order comprises any of:

the second quantity, the second price, or a combination thereof.

3. The method of claim 1, where the first and second orders together comprise an order cancel order pair.

4. The method of claim 1, where the first tradeable object and the second tradeable object comprise different tradeable objects.

5. The method of claim 1, where tradeable objects traded at the first electronic exchange are different than tradeable objects traded at the second electronic exchange.

6. The method of claim 1, further comprising:

subsequent to steps of submitting the first and second orders, decreasing the second quantity according to a fill update from the first exchange for the first order.

7. The method of claim 6, further comprising:

subsequent to steps of submitting the first and second orders, decreasing the second quantity according to an order quantity ratio between the first order and the second order.

8. The method of claim 1, further comprising:

receiving a command, via a user input device associated with the client computing device, to delete the submitted first order; and

deleting the submitted second order from the second order book at the second electronic exchange.