Implied market trading system

• US 8,165,951 B2
• Filed: 03/06/2006
• Issued: 04/24/2012
• Est. Priority Date: 10/04/2001
• Status: Active Grant

• Current Assignee: ICE Futures Europe (Intercontinental Exchange, Inc.)
• Original Assignee: New York Mercantile Exchange Incorporated (CME Group Incorporated), ICE Futures Europe (Intercontinental Exchange, Inc.)
• Inventors: Morano, Matt N., West, Ian, Neumann, Kai
• Primary Examiner(s): Subramanian, Narayanswamy
• Application Number:
  US11/368,966
• Publication Number:
  US 20060149660A1
• Time in Patent Office: 2,241 Days
• Field of Search: 705 35- 37
• 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
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

A computer based trading system implies spread markets from multiple real or implied spread markets. In particular, one aspect of the invention permits implication of a spread market from a combination of inter-commodity and inter-calendar spread orders. Furthermore, another aspect of the invention allows use of nontradeable implied or bridge markets to combine with other implied or real markets to create further tradeable implied markets. The method described herein thereby permits the creation of all implied markets that are inherent in the combination of futures, calendar spread and inter-commodity spread real orders.

Claims

1. A computer implemented method for trading real and implied orders, the method comprising the steps of:

storing at least one real order in a computerized trading system;

generating an implied order in a computerized trading system from a first implied spread order and a second spread order;

storing the implied order in the computerized trading system;

prioritizing the stored implied order and the stored real order in the computerized trading system, wherein the stored implied order and the stored real order are prioritized on an equal basis;

comparing the stored orders in the computerized trading system based on order priority;

matching the implied order with another order in the computerized trading system, thereby creating a matched trade,

wherein the prioritization of the stored orders is according to a time priority.

2. A computer implemented method for trading real and implied orders, the method comprising the steps of:

storing at least one real order in a computerized trading system;

generating an implied order in a computerized trading system from a first implied spread order and a second spread order;

storing the implied order in the computerized trading system;

prioritizing the stored implied order and the stored real order in the computerized trading system, wherein the stored implied order and the stored real order are prioritized on an equal basis;

comparing the stored orders in the computerized trading system based on order priority; and

matching the implied order with another order in the computerized trading system, thereby creating a matched trade,

wherein the prioritization of the stored orders is according to a plurality of priority bases.

3. A computer implemented method for trading real and implied orders, the method comprising the steps of:

storing at least one real order in a computerized trading system;

generating an implied order in a computerized trading system from a first implied spread order and a second spread order;

storing the implied order in the computerized trading system;

prioritizing the stored implied order and the stored real order in the computerized trading system, wherein the stored implied order and the stored real order are prioritized on an equal basis;

comparing the stored orders in the computerized trading system based on order priority; and

matching the implied order with another order in the computerized trading system, thereby creating a matched trade,

wherein the implied order is an implied spread order.

4. A computer implemented method for trading real and implied orders, the method comprising the steps of:

storing at least one real order in a computerized trading system;

generating an implied order in a computerized trading system from a first implied spread order and a second spread order;

storing the implied order in the computerized trading system;

prioritizing the stored implied order and the stored real order in the computerized trading system, wherein the stored implied order and the stored real order are prioritized on an equal basis;

comparing the stored orders in the computerized trading system based on order priority; and

matching the implied order with another order in the computerized trading system, thereby creating a matched trade,

wherein the implied order is a futures order.

5. A computer implemented method for trading real and implied orders, the method comprising the steps of:

storing at least one real order in a computerized trading system;

generating an implied order in a computerized trading system from a first implied spread order and a second spread order;

storing the implied order in the computerized trading system;

prioritizing the stored implied order and the stored real order in the computerized trading system, wherein the stored implied order and the stored real order are prioritized on an equal basis;

comparing the stored orders in the computerized trading system based on order priority; and

matching the implied order with another order in the computerized trading system, thereby creating a matched trade,

wherein the stored orders match in price.

6. A computer implemented method for trading real and implied orders, the method comprising the steps of:

storing at least one real order in a computerized trading system;

generating an implied order in a computerized trading system from a first implied spread order and a second spread order;

storing the implied order in the computerized trading system;

prioritizing the stored implied order and the stored real order in the computerized trading system, wherein the stored implied order and the stored real order are prioritized on an equal basis;

comparing the stored orders in the computerized trading system based on order priority;

matching the implied order with another order in the computerized trading system, thereby creating a matched trade; and

generating matched trade information for the matched trade.

7. A computer implemented method for trading real and implied orders, the method comprising the steps of:

storing at least one real order in a computerized trading system;

generating an implied order in a computerized trading system from a first implied spread order and a second spread order;

storing the implied order in the computerized trading system;

prioritizing the stored implied order and the stored real order in the computerized trading system, wherein the stored implied order and the stored real order are prioritized on an equal basis;

comparing the stored orders in the computerized trading system based on order priority;

matching the implied order with another order in the computerized trading system, thereby creating a matched trade; and

executing the matched trade.

8. A computer implemented method for trading real and implied orders, the method comprising the steps of:

storing at least one real order in a computerized trading system;

generating an implied order in a computerized trading system from a first implied spread order and a second spread order;

storing the implied order in the computerized trading system;

prioritizing the stored implied order and the stored real order in the computerized trading system, wherein the stored implied order and the stored real order are prioritized on an equal basis;

comparing the stored orders in the computerized trading system based on order priority;

matching the implied order with another order in the computerized trading system, thereby creating a matched trade; and

displaying the matched trade.

9. A computer implemented method for trading real and implied orders, the method comprising the steps of:

generating at least one implied order from a first spread order and a second spread order in a computerized trading system, the first spread order and the second spread order having a common and offsetting leg;

storing at least one real order in the computerized trading system;

storing the at least one implied order in the computerized trading system;

prioritizing the stored orders in the computerized trading system;

comparing the stored orders in the computerized trading system based on order priority; and

matching at least two of the orders in the computerized trading system based on the comparison, thereby creating a matched trade,

wherein the first spread order is an implied spread order.

10. A computer implemented method for trading real and implied orders, the method comprising the steps of:

generating all possible implied orders from pre-existing real and implied orders in a computerized trading system;

storing the all possible implied orders in the computerized trading system;

entering a new order into the computerized trading system; and

generating a new implied order in the computerized trading system from the new order and at least one of the stored all possible implied orders.

11. A computer implemented method for trading real and implied orders, the method comprising the steps of:

generating a first implied order in a computerized trading system from at least two orders, wherein the first implied order is not tradable in the computerized trading system; and

generating a tradable implied order from the first implied order and another order,

wherein the first implied order is a first implied spread order.

12. A computer implemented method for trading real and implied orders, the method comprising the steps of:

generating a second implied order in a computerized trading system from a first implied order and another order; and

storing the second implied order in the computerized trading system,

wherein the first implied order is a implied spread order.

13. A computer implemented method for trading real and implied orders, the method comprising the steps of:

generating a second implied order in a computerized trading system from a first implied order and another order; and

storing the second implied order in the computerized trading system,

wherein the another order is a real spread order.