System and method for order placement in an electronic trading environment

• US 20070078752A1
• Filed: 05/02/2006
• Published: 04/05/2007
• Est. Priority Date: 09/30/2005
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Mintz, Sagy, Burns, Michael, Deitz, Alexander, Herz, Eric
• Granted Patent: US 7,644,030 B2
• Time in Patent Office: Days
• 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 associated methods are provided for intelligent placement and movement of orders in an electronic trading environment. According to one example method, in addition to submitting a leg order at a calculated price level, additional orders, queue holder orders, are submitted for the leg order at prices either below or above the calculated price level. Based on this configuration, if the conditions change such that it is necessary to re-price the leg order, there will be already an order resting in the exchange order book at the re-calculated price that can be used in the strategy. Upon re-pricing the leg order, one or more additional queue holder orders will be placed in the market. Other tools are provided as well.

Claims

1. A method for trading in an electronic trading environment comprising:

computing a first price to buy or sell a first tradeable object wherein the first price is computed based on market conditions corresponding to at least one second tradeable object and further based on a desired spread price for a spread strategy comprising the first tradeable object and the at least second tradeable object;

sending an order to buy or sell the first tradeable object at the first price to be placed in an order book of a computerized matching process, wherein the order is part of the spread strategy;

automatically sending a plurality of queue holder orders to buy or sell the first tradeable object at a plurality of prices to be placed in the order book of the computerized matching process, wherein the plurality of prices are based on the first price, and wherein the plurality of queue holder orders are placed in an attempt to provide a better queue position for the order if the order is re-priced to one of the plurality of prices based on the spread strategy;

computing a second price for the order wherein the second price is computed based on updated market conditions corresponding to the at least one second tradeable object and further based on the desired spread price; and

using a queue holder order at the second price of the plurality of queue holder orders for the order.

2-21. -21. (canceled)