System and method for management and analysis of electronic trade orders

• US 9,117,244 B2
• Filed: 11/13/2013
• Issued: 08/25/2015
• Est. Priority Date: 03/21/2007
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Deitz, Alexander D., Mintz, Sagy P.
• Primary Examiner(s): Niquette, Robert R
• Application Number:
  US14/078,583
• Publication Number:
  US 20140156490A1
• Time in Patent Office: 650 Days
• Field of Search: None
• US Class Current: 1/1
• 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

A system and methods are provided for using order descriptor identifiers in relation to orders being used in trading strategies. According to one example method, when a hedge order is submitted upon detecting a fill of another order, the hedge order includes one or more order descriptor identifiers conveying a purpose of the hedge order to a user. The order descriptor identifiers can be used to search for desired orders and perform more effective order management and post trade analysis.

Claims

1. A system for trade order management in an electronic trading environment, comprising:

a computing device,

wherein the computing device is configured to detect a predefined event that triggers generation of a trade order to buy or sell a tradeable object at an electronic exchange based on a trading strategy, wherein the electronic exchange comprises a matching process for matching incoming trade orders,

wherein the computing device is configured to generate an order message for the trade order to buy or sell a tradeable object at the electronic exchange, the trade order having an order quantity and an order price,

wherein the computing device is configured to insert an order descriptor identifier into the generated order message, wherein the order descriptor identifier comprises information that links the trade order to the trading strategy that generated the trade order upon detecting the predefined event,

wherein the computing device is configured to send the order message with the order descriptor identifier to the electronic exchange, wherein the order descriptor identifier is accessible by a software application that generated the trade order and other software applications that did not generate the trade order,

wherein the computing device is configured to receive an order update related to the trade order from the electronic exchange, wherein the order update comprises the order descriptor identifier, and

wherein the computing device is configured to link the order update to the trading strategy based on the order descriptor identifier in the order update.

2. The system of claim 1, wherein the order descriptor identifier comprises information that identifies the trade order as a timed order that was entered upon detecting a time related event.

3. The system of claim 1, wherein the order descriptor identifier comprises information that identifies that the trade order was entered upon detecting a fill of another order associated with the tradeable object or another tradeable object.

4. The system of claim 1, wherein the order descriptor identifier comprises information that identifies a news event that relates to the predefined event.

5. The system of claim 1, wherein the order descriptor identifier comprises information that identifies a condition satisfied by market data provided by the electronic exchange.

6. The system of claim 1, wherein the order descriptor identifier comprises information that identifies the trade order as a hedge trade order.

7. The system of claim 6, wherein the order descriptor identifier comprises information that identifies a fill of another trade order that triggered the step of generating the hedge trade order.

8. The system of claim 1, wherein the order descriptor identifier comprises information that identifies the trading strategy as an automated trading strategy.

9. The system of claim 1, wherein the order descriptor identifier comprises information that identifies the trading strategy as a manual trading strategy.

10. The system of claim 1, wherein the computing device is further configured to monitor the trade order at the electronic exchange using the order descriptor identifier.

11. The system of claim 10, wherein the computing device is further configured to change an order parameter of the trade order pending at the electronic exchange upon detecting another predefined event.

12. The system of claim 11, wherein the order parameter comprises an order price or an order quantity.

13. The system of claim 10, wherein the computing device is further configured to delete the trade order from a matching engine at the electronic exchange upon detecting a predetermined event.

14. The system of claim 1, wherein the computing device is further configured to remove the order descriptor identifier from the order message at an intermediary device before sending the order message from the intermediary device to the electronic exchange.

15. The system of claim 1, wherein the computing device is further configured to use the order descriptor identifier for post trade analysis.

16. The system of claim 15, wherein the trade order comprises a hedge order configured to use a pay-up tick, and wherein the post trade analysis comprises determining a price level at which the hedge order was filled.

17. A system for trade order management in an electronic trading environment, comprising:

a computing device,

wherein the computing device is configured to generate an order message via a first software application for a first trade order to buy or sell a tradeable object at an electronic exchange in response to detecting a fill of a second trade order, the first trade order having an order quantity and an order price,

wherein the computing device is configured to insert an order descriptor identifier into the generated order message, wherein the order descriptor identifier comprises information that links the first trade order to the fill of the second trade order, and

wherein the computing device is configured to use the order descriptor identifier to create an association between the first trade order and the fill of the second trade order, wherein the order descriptor identifier is accessible by a second software application that is different from the first software application.

18. The system of claim 17, wherein the first trade order and the second trade order are generated based on a trading strategy.

19. The system of claim 18, wherein the computing device is further configured to receive a definition of the trading strategy.

20. The system of claim 18, wherein the order descriptor identifier further comprises information that identifies the trading strategy.

21. The system of claim 20, wherein the order descriptor identifier further comprises information that identifies the trading strategy as an automated trading strategy.

22. The system of claim 20, wherein the order descriptor identifier further comprises information that identifies the trading strategy as a manual trading strategy.

23. The system of claim 18, wherein the trading strategy comprises a spread trading strategy.

24. The system of claim 17, wherein the order descriptor identifier comprises information identifying the first trade order as a hedge order.

25. The system of claim 17, wherein the second trade order is to buy or sell the tradeable object.

26. The system of claim 17, wherein the second trade order is to buy or sell a second tradeable object that is different than the tradeable object.

27. The system of claim 17, wherein the order descriptor identifier is accessible by the first software application.

28. The system of claim 17, wherein the computing device is further configured to send the order message comprising the order descriptor identifier to an electronic exchange.