Method and system for providing automatic execution of trading strategies for electronic trading

• US 20060080223A1
• Filed: 09/08/2005
• Published: 04/13/2006
• Est. Priority Date: 09/08/2004
• Status: Active Grant

• Current Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Original Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Inventors: Rosenthal, Leslie, Collins, J. Robert
• Granted Patent: US 7,620,586 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and system for providing automatic execution of trading strategies for electronic trading. A synthetic trading entity is created from two or more actual trading entities. Two or more sets of electronic trading information are received from one or more electronic trading exchanges including trading information for the two or more actual trading entities for the created synthetic trading entity. Two or more electronic trades for the synthetic trading entity are automatically and electronically executed from on the one or more electronic trading exchanges to execute the synthetic trading entity.

Claims

1. A method for automatically executing a synthetic trading entity, comprising:

creating a synthetic trading entity from two or more actual trading entities;

receiving two or more sets of electronic trading information from one or more electronic trading exchanges on an application on a target device including electronic trading information for the two or more actual trading entities for the created synthetic trading entity;

automatically and electronically executing two or more electronic trades for the synthetic trading entity via the application on the target device on the one or more electronic trading exchanges.

2. The method of claim 1 further comprising a computer readable medium have stored therein instructions for allowing one or more processors to execute the steps of the method.

3. The method of claim 1 wherein the synthetic trading entity includes a synthetic contract or a synthetic financial instrument.

4. The method of claim 1 wherein the synthetic contract includes a synthetic futures contract, a synthetic financial instrument contract or a synthetic cash instrument contract.

5. The method of claim 1 wherein the application includes a multi-windowed application with a graphical user interface displaying an Aggregated Book View window for one or more synthetic trading entities.

6. The method of claim 1 wherein the receiving step further comprises:

combining the two or more sets of electronic information for the synthetic trading entity;

displaying the combined two or more sets of electronic trading information for the synthetic trading entity on an Aggregated Book View window.

7. The method of claim 1 further comprising:

displaying automatic electronic trading results for the synthetic trading entity via the application.

8. The method of claim 1 further comprising:

displaying automatic electronic trading results for the synthetic trading entity via the application on an Aggregated Book View window or an Order Ticket window.

9. The method of claim 1 wherein the step of creating a synthetic trading entity includes creating a synthetic trading entity including a pre-determined electronic trading strategy, an If-Then trading strategy, a one-cancels-other (OCO) trading strategies or a trading strategy based on previously executed electronic trades.

10. The method of claim 1 wherein the step of creating a synthetic trading entity includes an If-Then electronic trading strategy information that comprises upon receiving of an acknowledgement of an order fill:

creating a profit/loss bracket around a fill price for a filled quantity;

creating a stop or stop limit order at an offset from a fill price for the quantity of a fill;

creating a trailing stop order at an offset from a fill price for a quantity of the fill;

creating a limit order at an offset from a fill price for a quantity of the fill;

or creating one or more one-cancels-other (OCO) order pairs.

11. The method of claim 1 wherein the step of creating a synthetic trading entity includes creating a synthetic trading entity via a Synthetic Trading Entity window.

12. A method for automatically displaying a synthetic trading entity, comprising:

creating a synthetic trading entity from two or more actual trading entities;

displaying the created synthetic trading entity with a first color on an application on a target device; and

displaying the two or more actual trading entities in colors other than the first color via the application on the target device.

13. The method of claim 12 further comprising a computer readable medium have stored therein instructions for allowing one or more processors to execute the steps of the method.

14. The method of claim 12 wherein the synthetic trading entity includes a synthetic contract.

15. The method of claim 12 wherein the synthetic contract includes a synthetic futures contract, a synthetic financial instrument contract or a synthetic cash instrument contract.

16. The method of claim 12 wherein the step of displaying the created synthetic trading entity with a first color includes displaying the synthetic trading entity with the first color via the application on an Aggregated Book View window or an Order Ticket window.

17. The method of claim 12 wherein the step of displaying the created synthetic trading entity with a first color further includes:

receiving a selection input for the created synthetic trading entity; and

displaying the two or more actual trading entities used to create the synthetic trading entity via the application.

18. The method of claim 12 wherein the step of creating a synthetic trading entity includes creating a synthetic trading entity including a pre-determined electronic trading strategy, an If-Then trading strategy, a one-cancels-other (OCO) trading strategies or a trading strategy based on previously executed electronic trades

19. A synthetic trading entity system, comprising in combination:

means for creating a synthetic trading entity from two or more actual trading entities;

means for receiving two or more sets of electronic trading information from one or more electronic trading exchanges on an application on a target device including trading information for the two or more actual trading entities for the created synthetic trading entity;

means for automatically and electronically executing two or more electronic trades for the synthetic trading entity via the application on the target device on the one or more electronic trading exchanges.

20. The synthetic trading entity system of claim 19 further comprising:

means for displaying the created synthetic trading entity with the first color via the application on the target device; and

means displaying the two or more actual trading entities in colors other than the first color via the application on the target device.