System and method for event-based trading

• US 8,738,504 B2
• Filed: 05/15/2012
• Issued: 05/27/2014
• Est. Priority Date: 12/12/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: O'Connor, Gerald J., Murphy, Stephen J.
• Primary Examiner(s): Vezeris, James A
• Application Number:
  US13/471,564
• Publication Number:
  US 20120233054A1
• Time in Patent Office: 742 Days
• Field of Search: 705/35
• 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 method for news-based trading are developed. According to one method, a trader can pre-define a trading strategy including a number of trading rules to be applied based on a comparison of one or more estimated event values to the respective actual event values to be released at some later time. The example method further includes, upon receiving one or more actual event values via a user input or directly from outside sources, executing one or more predefined trading rules selected based on the comparison of the received actual event values to the respective estimated indicator values.

Claims

1. A method comprising:

receiving, by a computer device, an actual event value for a news-based event from a source other than an electronic exchange;

comparing, by the computer device, the actual event value to an estimated event value for the news-based event, wherein the estimated event value is defined prior to receiving the actual event value;

selecting, by the computer device, a trading rule of a plurality of trading rules based on the comparison; and

generating, by the computer device, a trade order message associated with a tradeable object based on the selected trading rule, wherein the trade order message is to be sent to the electronic exchange.

2. The method of claim 1, further comprising:

defining, by the computer device, the plurality of trading rules, wherein selection of each of the plurality of trading rules is based on a comparison of a corresponding estimated event value to the actual event value.

3. The method of claim 1, wherein the actual event value and the estimated event value are received in a data feed from a news source.

4. The method of claim 1, further comprising:

sending, by the computer device, the trade order message to the electronic exchange.

5. The method of claim 1, wherein the trade order message comprises a trade order message to buy or sell the tradeable object at the electronic exchange.

6. The method of claim 1, wherein an order price and an order quantity for the trade order message are determined based on the trading rule.

7. The method of claim 1, wherein the trade order message comprises a trade order message to cancel a pending order to buy or sell the tradeable object at the electronic exchange.

8. The method of claim 1, wherein the trade order message comprises a trade order message to change a pending order to buy or sell the tradeable object at the electronic exchange.

9. The method of claim 1, wherein the news-based event is associated with an economic indicator.

10. A non-transitory computer readable medium having stored therein instructions executable by a processor, wherein the instructions are executable to:

receive an actual event value for a news-based event from a source other than an electronic exchange;

compare the actual event value to an estimated event value for the news-based event, wherein the estimated event value is defined prior to receiving the actual event value;

select a trading rule of a plurality of trading rules based on the comparison; and

generate a trade order message associated with a tradeable object based on the selected trading rule, wherein the trade order message is to be sent to an electronic exchange.

11. The computer readable medium of claim 10, wherein the instructions are further executable to:

define the plurality of trading rules, wherein selection of each of the plurality of trading rules is based on a comparison of a corresponding estimated event value to the actual event value.

12. The computer readable medium of claim 10, wherein the actual event value and the estimated event value are received in a data feed from a news source.

13. The computer readable medium of claim 10, wherein the instructions are further executable to:

send the trade order message to the electronic exchange.

14. The computer readable medium of claim 10, wherein the trade order message comprises a trade order message to buy or sell the tradeable object at the electronic exchange.

15. The computer readable medium of claim 10, wherein an order price and an order quantity for the trade order message are determined based on the trading rule.

16. The computer readable medium of claim 10, wherein the trade order message comprises a trade order message to cancel a pending order to buy or sell the tradeable object at the electronic exchange.

17. The computer readable medium of claim 10, wherein the trade order message comprises a trade order message to change a pending order to buy or sell the tradeable object at the electronic exchange.

18. The computer readable medium of claim 10, wherein the news-based event is associated with an economic indicator.