Decision table for order handling

• US 7,496,533 B1
• Filed: 03/08/2001
• Issued: 02/24/2009
• Est. Priority Date: 04/10/2000
• Status: Expired due to Term

• Current Assignee: Xylon LLC (Intellectual Ventures LLC)
• Original Assignee: Stikine Technology LLC (Intellectual Ventures LLC)
• Inventors: Keith, Christopher
• Primary Examiner(s): Abdi; Kambiz
• Assistant Examiner(s): LIVERSEDGE, JENNIFER L
• Application Number:
  US09/801,583
• Time in Patent Office: 2,910 Days
• Field of Search: 705/37, 705/35, 705/36.R
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Trading processes and market processes interact with each other on a platform. Each of the trading processes has a trading strategy embodied in a decision table. Each of the market processes has a market methodology that may employ a decision table in like manner as the trading processes. Accordingly, the trading processes and market processes are easy to configure. The decision table comprises rules having conditions and actions that are to be performed when the conditions are true.

Claims

1. A method of facilitating trading among a set of processes having respective owners, comprising:

automatically, via a computer, operating at least one of the processes according to an order processing methodology by

retrieving a decision table having at least two rules specifying at least one of a discovery strategy and an order handling strategy, each rule having at least one condition and at least one action to be taken when the condition is satisfied, wherein the decision table further includes a holding tank storing a plurality of unrelated orders that have been generated but not yet submitted for execution at a market, and

automatically evaluating whether the at least one condition for each of the rules is satisfied, and

for each of the rules having a satisfied condition, automatically, via a computer, configuring the at least one process to act on the at least one action,

wherein at least one action of at least one rule in the decision table is to store an order in the holding tank, the holding tank having one or more market-related conditions associated therewith that are applicable to the holding tank as a whole, the method further comprising monitoring the one or more conditions of the holding tank and when the one or more conditions are met, removing all of the plurality of unrelated orders from the holding tank and taking at least one specified trading-related action with respect to each of the removed orders.

2. The method of claim 1, wherein the at least one process is a trading process.

3. The method of claim 1, wherein the at least one process is a market process.

4. The method of claim 1, wherein the at least one condition is based on order characteristics.

5. The method of claim 1, wherein the at least one condition is based on market characteristics.

6. The method of claim 1, wherein the at least one action that the at least one process is configured to act upon includes assigning a value to a parameter.

7. The method of claim 1, wherein the at least one action that the at least one process is configured to act upon includes transferring to another rule.

8. The method of claim 1, wherein at least one of the rules also specifies a time for acting on its at least one action.

9. The method of claim 1, wherein the at least one action in at least one of the rules is a wait operation.

10. The method of claim 1, wherein the set of processes includes at least two market processes and at least two trading processes and is operative on a platform that enables the trading processes to communicate in a standardized manner.

11. The method of claim 1, wherein the at least one action is selected by the owner of the process from the group comprising (i) generating an order, (ii) obtaining more information, and (iii) evaluating another rule in the decision table.

12. The method of claim 1, wherein the decision table includes a plurality of holding tanks.

13. The method of claim 12, wherein the one or more market-related conditions associated with each holding tank are separate from the one or more market-related conditions associated with other holding tanks in the plurality of holding tanks.

14. A method of facilitating trading, comprising:

automatically, via a computer, retrieving, at an order handling process operated on behalf of a process owner that is one of a plurality of process owners, a decision table representing an order processing methodology, the decision table having at least two rules specifying at least one of a discovery strategy and an order handling strategy, each rule having at least one condition and at least one action to be taken when the condition is satisfied, wherein the decision table further includes a holding tank storing a plurality of unrelated orders that have been generated but not yet submitted for execution at a market, and

automatically, via a computer, applying, at the order handling process, the decision table to process an order when a specified event occurs,

wherein at least one action of at least one rule in the decision table is to store an order in the holding tank, the holding tank having one or more market-related conditions associated therewith that are applicable to the holding tank as a whole, the method further comprising monitoring the one or more conditions of the holding tank and when the one or more conditions are met, removing all of the plurality of unrelated orders from the holding tank and taking at least one specified trading-related action with respect to each of the removed orders.

15. The method of claim 14, wherein the order handling process is a trading process.

16. The method of claim 14, wherein the order handling process is a market process.

17. The method of claim 14, wherein the at least one condition is based on order characteristics.

18. The method of claim 14, wherein the at least one condition is based on market characteristics.

19. The method of claim 14, wherein the decision table includes, in at least one of a condition and an action of at least one of the rules, a nested decision table.

20. The method of claim 14, wherein the rules define a sequence of actions to be taken using explicit control instructions.

21. The method of claim 14, wherein the at least one action is to request information from an order room.

22. The method of claim 14, wherein the at least one action is to transfer to another rule.

23. The method of claim 14, wherein the specified event is receiving of an order.

24. The method of claim 14, wherein the specified event is completing price discovery.

25. The method of claim 14, wherein the specified event is receiving a bid or offer relating to an order handled by the order handling process.

26. The method of claim 14, wherein the specified event is receiving notice of a price improvement opportunity.

27. The method of claim 14, wherein the specified event is reporting execution of an order.

28. The method of claim 14, wherein the at least one action is selected by the owner of the process from the group comprising (i) generating an order, (ii) obtaining more information, and (iii) evaluating another rule in the decision table.

29. The method of claim 14, wherein the decision table includes a plurality of holding tanks.

30. The method of claim 29, wherein the one or more market-related conditions associated with each holding tank are separate from the one or more market-related conditions associated with other holding tanks in the plurality of holding tanks.

31. A system for facilitating trading, comprising:

a computer having a processing component, wherein the processing component is configured to process an order by retrieving a decision table having rules that specify at least one condition and at least one action to be taken when the at least one condition is satisfied, wherein the decision table further includes a holding tank storing a plurality of unrelated orders that have been generated but not yet submitted for execution at a market, and

wherein at least one action of at least one rule in the decision table is to store an order in the holding tank, the holding tank having one or more market-related conditions associated therewith that are applicable to the holding tank as a whole, the processing component being further configured to monitor the one or more conditions of the holding tank and when the one or more conditions are met, to remove all of the plurality of unrelated orders from the holding tank and take at least one specified trading-related action with respect to each of the removed orders.

32. The system of claim 31, wherein the one or more conditions of the holding tank further includes a period of time, and wherein the holding tank is configured to store the orders until the period of time has elapsed.

33. The system of claim 31, wherein the processing component provides a market for trading between two or more processes operating via the computer, and the one or more conditions of the holding tank is a condition internal to the market.

34. The system of claim 31, wherein the processing component provides a market for trading between two or more processes operating via the computer, and the one or more conditions of the holding tank is a condition external to the market.

35. The system of claim 31, wherein the decision table includes a plurality of holding tanks.

36. The system of claim 35, wherein the one or more market-related conditions associated with each holding tank are separate from the one or more market-related conditions associated with other holding tanks in the plurality of holding tanks.

37. A computer-accessible medium having executable instructions stored thereon for facilitating trading, wherein the instructions, when executed, cause a computer to:

process an order in accordance with a decision table, wherein the decision table has rules that specify at least one condition and at least one action to be taken when the at least one condition is satisfied, wherein the decision table further includes a holding tank storing a plurality of unrelated orders that have been generated but not yet submitted for execution at a market, and wherein at least one action of at least one rule in the decision table is to store an order in the holding tank, and

wherein the instructions, when executed, further cause the computer to monitor one or more market-related conditions associated with the holding tank as a whole and when the one or more market-related conditions are met, to remove all of the plurality of unrelated orders from the holding tank and take at least one specified trading-related action with respect to each of the removed orders.

38. The computer-accessible medium of claim 37, wherein the one or more conditions of the holding tank further includes a period of time, and wherein the instructions cause the computer to store the orders in the holding tank until the period of time has elapsed.

39. The computer-accessible medium of claim 37, wherein the instructions cause the computer to provide a market for trading between two or more processes, and wherein the one or more conditions of the holding tank is a condition internal to the market.

40. The computer-accessible medium of claim 37, wherein the instructions cause the computer to provide a market for trading between two or more processes, and the one or more conditions of the holding tank is a condition external to the market.

41. The computer-accessible medium of claim 37, wherein the decision table includes a plurality of holding tanks.

42. The computer-accessible medium of claim 41, wherein the one or more market-related conditions associated with each holding tank are separate from the one or more market-related conditions associated with other holding tanks in the plurality of holding tanks.

43. A computer system for facilitating trading, comprising:

means for retrieving a decision table having at least two rules specifying at least one of a discovery strategy and an order handling strategy, each rule having at least one condition and at least one action to be taken when the condition is satisfied, wherein the decision table further includes a holding tank storing a plurality of unrelated orders that have been generated but not yet submitted for execution at a market,

means for evaluating whether the at least one condition for each of the rules is satisfied, and for each of the rules having a satisfied condition, acting on the at least one action, wherein at least one action of at least one rule in the decision table is to store an order in the holding tank, the holding tank having one or more market-related conditions associated therewith that are applicable to the holding tank as a whole, and

means for monitoring the one or more conditions of the holding tank and when the one or more conditions are met, removing all of the plurality of unrelated orders from the holding tank and taking at least one specified trading-related action with respect to each of the removed orders.

44. A method of trading, comprising:

using a computer to operate an order handling process which retrieves from a memory a decision table representing an order processing methodology, the decision table having at least two rules specifying at least one of a discovery strategy and an order handling strategy, each rule having at least one condition and at least one action to be taken when the condition is satisfied, wherein the decision table further includes a holding tank storing a plurality of unrelated orders that have been generated but not yet submitted for execution at a market,

applying, at the order handling process, the decision table to process an order when a specified event occurs, wherein at least one action of at least one rule in the decision table is to store an order in the holding tank, the holding tank having one or more market-related conditions associated therewith that are applicable to the holding tank as a whole, and

using the computer to monitor the one or more conditions of the holding tank and when the one or more conditions are met, removing all of the plurality of unrelated orders from the holding tank and taking at least one specified trading-related action with respect to each of the removed orders.