System and method for performing automatic spread trading

• US 8,768,806 B2
• Filed: 03/09/2012
• Issued: 07/01/2014
• Est. Priority Date: 03/05/2002
• Status: Expired due to Term

• Current Assignee: Pablo, LLC
• Original Assignee: Pablo, LLC
• Inventors: Kemp, Gary Allan II, Schluetter, Jens-Uwe, Burns, Mike, Singer, Scott, Monroe, Fred, Babulak, David, Brumfield, Harris
• Primary Examiner(s): Liu, Marissa
• Application Number:
  US13/416,011
• Publication Number:
  US 20120166330A1
• Time in Patent Office: 844 Days
• Field of Search: 705 1- 90, 709 1- 30, 238 1- 99
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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 present embodiments are provided to facilitate the automatic trading of spreads in a fast and accurate manner. One or more market data feeds that contain market information for tradeable objects are received at an exchange. A spread data feed is generated in response to the market data feeds and from one or more spread setting parameters, which can be entered by a user. The spread data feed is preferably displayed in a spread window as bid and ask quantities associated with an axis or scale of prices. The user can enter orders in the spread window and the legs will be automatically worked to achieve, or attempt to achieve, the spread. In addition, other tools disclosed herein may be utilized to assist the user in making such trades.

Claims

1. A method comprising:

receiving, via a computing device, a request to trade a spread between a plurality of tradeable objects at a spread price, the spread comprising a first leg for a first tradeable object and a second leg for a second tradeable object;

submitting, via the computing device to an electronic exchange, a first order for the first tradeable object at a price, where the price is determined based on the spread price for the spread and market information for the second tradeable object;

comparing, via the computing device, a price condition for a working price for the spread to a spread limit; and

in response to comparing the price condition for the working price for the spread to the spread limit, submitting, via the computing device, a new order for the first tradeable object to the electronic exchange at a new price.

2. The method of claim 1 where the spread price comprises the working price.

3. The method of claim 1 where the price is determined via the computing device based on the spread price and market information for the second tradeable object at a first time.

4. The method of claim 3 where the working price is determined via the computing device based on market information for the second tradeable object of the plurality of tradeable objects at a second time.

5. The method of claim 4 where the new price is determined based on the spread price and market information for the second tradeable object at a third time.

6. The method of claim 1 further comprising receiving via a user input for the computing device a selection for the spread price of the spread.

7. The method of claim 1 further comprising cancelling the first order in response to submitting the new order.

8. The method of claim 1 where the spread limit comprises at least one of an inside price limit, and an outside price limit.

9. The method of claim 1 further comprising submitting a second order for the second tradeable object to an exchange associated with the second tradeable object in response to execution of the first order.

10. The method of claim 1 where comparing the price condition for the working price for the spread to the spread limit comprises determining whether the working price is outside the spread limit.

11. The method of claim 1 where comparing the price condition for the working price for the spread to the spread limit comprises determining whether the working price is within the spread limit.

12. A non-transitory computer readable medium having instructions stored thereon which when executed by a processor cause the processor to execute acts comprising:

receiving, via a computing device, a request to trade a spread between a plurality of tradeable objects at a spread price, the spread comprising a first leg for a first tradeable object and a second leg for a second tradeable object;

submitting, via the computing device to an electronic exchange, a first order for the first tradeable object at a price, where the price is determined based on the spread price for the spread and market information for the second tradeable object;

comparing, via the computing device, a price condition for a working price for the spread to a spread limit; and

in response to comparing the price condition for the working price for the spread to the spread limit, submitting, via the computing device, a new order for the first tradeable object to the electronic exchange at a new price.

13. The non-transitory computer readable medium of claim 12 where the spread price comprises the working price.

14. The non-transitory computer readable medium of claim 12 where the price is determined via the computing device based on the spread price and market information for the second tradeable object at a first time.

15. The non-transitory computer readable medium of claim 14 where the working price is determined via the computing device based on market information for the second tradeable object of the plurality of tradeable objects at a second time.

16. The non-transitory computer readable medium of claim 15 where the new price is determined based on the spread price and market information for the second tradeable object at a third time.

17. The non-transitory computer readable medium of claim 12 where the acts further comprise receiving via a user input for the computing device a selection for the spread price of the spread.

18. The non-transitory computer readable medium of claim 12 where the acts further comprise cancelling the first order in response to submitting the new order.

19. The non-transitory computer readable medium of claim 12 where the spread limit comprises at least one of an inside price limit, and an outside price limit.

20. The non-transitory computer readable medium of claim 12 where the acts further comprise submitting a second order for the second tradeable object to an exchange associated with the second tradeable object in response to execution of the first order.

21. The non-transitory computer readable medium of claim 12 where comparing the price condition for the working price for the spread to the spread limit comprises determining whether the working price is outside the spread limit.

22. The non-transitory computer readable medium of claim 12 where comparing the price condition for the working price for the spread to the spread limit comprises determining whether the working price is within the spread limit.