Distributed server side device architecture

• US 8,781,946 B2
• Filed: 07/14/2010
• Issued: 07/15/2014
• Est. Priority Date: 07/14/2010
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mintz, Sagy Pundak, Burns, Michael J.
• Primary Examiner(s): Apple, Kirsten
• Assistant Examiner(s): GOODBODY, JOAN T
• Application Number:
  US12/836,490
• Publication Number:
  US 20120016786A1
• Time in Patent Office: 1,462 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An electronic trading method is provided. The method includes receiving a trading strategy order having a parent trading strategy including multiple quoting legs; splitting the trading strategy order into multiple child orders; and submitting each of the multiple child orders to exchange systems adapted to fill the quoting legs in the child orders. Each child order includes a child trading strategy having a single quoting leg or a reduced number of quoting legs relative to the parent trading strategy. The child trading strategies are the same as the parent trading strategy except for the number of legs marked as quoting legs. The method may be performed by a trading strategy device disposed between a client device and multiple server side devices.

Claims

1. A method comprising:

receiving, by a computing device, a trading strategy order having a plurality of quoting legs and at least one hedge leg;

determining, by the computing device, that the trading strategy order includes the plurality of quoting legs;

in response to determining that the trading strategy order includes the plurality of quoting legs, generating, by the computing device, a plurality of child orders, each child order of the plurality of child orders including at least one child quoting leg and at least one child hedge leg, where each child order includes a number of child quoting legs less than a number of the plurality of quoting legs of the trading strategy order, and where a number of the plurality of child orders and the number of child quoting legs for each child order are determined based on any one of latency, physical location of a server side device, physical location of an exchange system, trader preference, and exchange capabilities; and

submitting, by the computing device, the plurality of child orders for matching.

2. The method of claim 1, wherein the plurality of child orders include a first child order and a second child order, the first child order being submitted to a first exchange system for matching and the second child order being submitted to a second exchange system for matching, wherein the first exchange system is different than the second exchange system.

3. The method of claim 2, wherein the first child order and the second child order each comprise one quoting leg.

4. The method of claim 2, further comprising matching the trading strategy order including matching either the first child order or the second child order.

5. The method of claim 2, wherein submitting the plurality of child orders for matching includes transmitting the first child order to a first server side device physically located at, near, or in the first exchange system and transmitting the second child order to a second server side device physically located at, near, or in the second exchange system, wherein the first server side device is different than the second server side device.

6. The method of claim 5, wherein the first server side device works the first child order at the first exchange system and the second server side device works the second child orders at the second exchange system.

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

receive a trading strategy order having a plurality of quoting legs and at least one hedge leg;

determine that the trading strategy order includes the plurality of quoting legs;

generate a plurality of child orders when the trading strategy order includes a plurality of quoting legs, wherein each child order of the plurality of child orders includes at least one child quoting leg and at least one child hedge leg, where each child order includes a number of child quoting legs less than a number of the plurality of quoting legs of the trading strategy order, and where a number of the plurality of child orders and the number of child quoting legs for each child order are determined based on any one of latency, physical location of a server side device, physical location of an exchange system, trader preference, and exchange capabilities; and

submit the plurality of child orders for matching.

8. The non-transitory computer readable medium of claim 7, wherein the plurality of child orders include a first child order and a second child order, the first child order being submitted to a first exchange system for matching and the second child order being submitted to a second exchange system for matching, wherein the first exchange system is different than the second exchange system.

9. The non-transitory computer readable medium of claim 8, wherein the instructions executable to generate the plurality of child orders includes instructions executable to generate the first child order and the second child order with one quoting leg each.

10. The non-transitory computer readable medium of claim 8, wherein the instructions are further executable to match the trading strategy order including matching either the first child order or the second child order.

11. The non-transitory computer readable medium of claim 7, wherein the instructions executable to submit the plurality of child orders for matching includes instructions executable to transmit the first child order to a first server side device physically located at, near, or in the first exchange system and transmit the second child order to a second server side device physically located at, near, or in the second exchange system, wherein the first server side device is different than the second server side device.

12. The non-transitory computer readable medium of claim 11, wherein the first server side device works the first child order at the first exchange system and the second server side device works the second child orders at the second exchange system.

13. A method comprising:

receiving, by a trading strategy device, a parent trading strategy including a plurality of quoting legs and at least one hedge leg;

splitting, by the trading strategy device, the parent trading strategy order into a plurality of child orders, wherein each child order of the plurality of child orders includes a child trading strategy having a child quoting leg and at least one child hedge leg, each child trading strategy of the plurality of child trading strategies having a different number of legs marked as child quoting legs than a number of parent quoting legs of the parent trading strategy, and where a number of the plurality of child orders and the number of child quoting legs for each child order are determined based on any one of latency, physical location of a server side device, physical location of an exchange system, trader preference, and exchange capabilities; and

submitting, by the trading strategy device, each of the plurality of child orders to one or more exchange systems adapted to fill the child quoting legs in the child orders.

14. The method of claim 13, wherein splitting includes determining whether the parent trading strategy order includes the plurality of quoting legs.

15. The method of claim 14, wherein splitting includes defining child trading strategies and generating the plurality of child orders, wherein the child orders are for one or more of the child trading strategies.

16. The method of claim 13, wherein the one or more exchange systems include a first exchange system and a second exchange system.

17. The method of claim 13, wherein splitting the parent trading strategy occurs prior to the parent trading strategy being transmitted to a first exchange system in the one or more exchange systems.