Patent Application
20050283415
The present invention relates to systems, methods and user interfaces that are utilized in connection with the trading of financial instruments. More particularly, the invention provides mechanisms for distributing and displaying snapshots of market data and trade data representing trades that have occurred since the last snapshot.
It is common for exchanges to allow traders to conduct transactions with handheld devices and larger computer devices. Attempts have been made to present rapidly changing information to traders in a form that allows the traders to quickly absorb and act on the information. Conventionally, snapshots of market depth data are periodically transmitted from an exchange to handheld devices and larger computer devices.
One drawback associated with this conventional approach to distributing market depth data is that it is common for market depth data to change at times in between the transmission of the periodic snapshots. This results in users not having accurate market depth information. Without accurate information, traders may make trading decisions that cannot be fulfilled, because the market has moved since the transmission of the last snapshot. The lack of accurate information may also result in traders making trading decisions that they would not otherwise make. Making decisions based on inaccurate market depth information can be frustrating and costly for traders.
Therefore, there is a need in the art for systems, methods and user interfaces that utilize mechanisms for providing more accurate market depth information.
The present invention overcomes at least some of the problems and limitations of the prior art by providing systems, methods and user interfaces that augment snapshots of market depth information with data representing trades that have occurred since the last snapshot of market depth information. A snapshot of market depth information includes data representing at least some orders that were or are pending at a given point in time. The augmentation may include an icon, background coloring of cells, columns or rows or other mechanisms that are visually or audibly perceptible to traders.
In various embodiments, the present invention can be partially or wholly implemented on a computer-readable medium, for example, by storing computer-executable instructions or modules, or by utilizing computer-readable data structures.
Of course, the methods and systems disclosed herein may also include other additional elements, steps, computer-executable instructions, or computer-readable data structures.
The details of these and other embodiments of the present invention are set forth in the accompanying drawings and the description below. Other features and advantages of the invention will be apparent from the description and drawings, and from the claims.
The present invention may take physical form in certain parts and steps, embodiments of which will be described in detail in the following description and illustrated in the accompanying drawings that form a part hereof, wherein:
Exemplary Operating Environment
Aspects of the present invention are preferably implemented with computer devices and computer networks that allow users to exchange trading information. An exemplary trading network environment for implementing trading systems and methods is shown in
An exchange computer system 100 receives orders and transmits market data related to orders and trades to users. Exchange computer system 100 may be implemented with one or more mainframe, desktop or other computers. A user database 102 includes information identifying traders and other users of exchange computer system 100. Data may include user names and passwords. An account data module 104 may process account information that may be used during trades. A match engine module 106 is included to match bid and offer prices. Match engine module 106 may be implemented with software that executes one or more algorithms for matching bids and offers. A trade database 108 may be included to store information identifying trades and descriptions of trades. In particular, a trade database may store information identifying the time that a trade took place and the contract price. An order book module 110 may be included to compute or otherwise determine current bid and offer prices. A market data module 112 may be included to collect market data and prepare the data for transmission to users. A risk management module 134 may be included to compute and determine a user's risk utilization in relation to the user's defined risk thresholds. An order processing module 136 may be included to decompose delta based and bulk order types for processing by order book module 110 and match engine module 106.
The trading network environment shown in
Computer device 114 is shown directly connected to exchange computer system 100.
Exchange computer system 100 and computer device 114 may be connected via a T1 line, a common local area network (LAN) or other mechanism for connecting computer devices. Computer device 114 is shown connected to a radio 132. The user of radio 132 may be a trader or exchange employee. The radio user may transmit orders or other information to a user of computer device 114. The user of computer device 114 may then transmit the trade or other information to exchange computer system 100.
Computer devices 116 and 118 are coupled to a LAN 124. LAN 124 may have one or more of the well-known LAN topologies and may use a variety of different protocols, such as Ethernet. Computers 116 and 118 may communicate with each other and other computers and devices connected to LAN 124. Computers and other devices may be connected to LAN 124 via twisted pair wires, coaxial cable, fiber optics or other media. Alternatively, a wireless personal digital assistant device (PDA) 122 may communicate with LAN 124 or the Internet 126 via radio waves. PDA 122 may also communicate with exchange computer system 100 via a conventional wireless hub 128. As used herein, a PDA includes mobile telephones and other wireless devices that communicate with a network via radio waves.
One or more market makers 130 may maintain a market by providing constant bid and offer prices for a derivative or security to exchange computer system 100. Exchange computer system 100 may also exchange information with other trade engines, such as trade engine 138. One skilled in the art will appreciate that numerous additional computers and systems may be coupled to exchange computer system 100. Such computers and systems may include clearing, regulatory and fee systems.
The operations of computer devices and systems shown in
Of course, numerous additional servers, computers, handheld devices, personal digital assistants, telephones and other devices may also be connected to exchange computer system 100. Moreover, one skilled in the art will appreciate that the topology shown in
After the first snapshot of market depth information is displayed in step 204 it is determined whether additional trade data is received. The trade data is for one or more trades that have occurred after an exchange or other source of market data transmits the first snapshot of market depth information identified in step 202 and before the exchange or other source of market data transmits another snapshot of market depth information. When such data is received, in step 208 a representation of the trade data is displayed on the graphical user interface.
There are many visually perceptible mechanisms that may be used to represent the trade data received. For example,
Returning to
In alternative embodiments of the invention, audible signals may be used instead of, or in addition to, the visually perceptible mechanisms described above. For example, tones may be used to represent trade data. Tones having higher frequencies or reproduced at higher volumes may correspond to larger numbers of contracts. In another example, a first tone may represent a trade “at the bid price,” a second tone may represent a trade “at the ask price,” a third tone may represent a trade “above the ask price” and a fourth tone may represent a trade “below the bid price.” Additional, tones could be added for “out of display range high/low.”
Aspects of the present invention may be used in connection with the graphical user interfaces disclosed in commonly assigned U.S. patent application (docket number 006119.00014) entitled “Trader Station User Interface” and filed May 3, 2004. The entire disclosure of this commonly assigned application is hereby incorporated by reference.
The present invention has been described herein with reference to specific exemplary embodiments thereof. It will be apparent to those skilled in the art that a person understanding this invention may conceive of changes or other embodiments or variations, which utilize the principles of this invention without departing from the broader spirit and scope of the invention as set forth in the appended claims. All are considered within the sphere, spirit, and scope of the invention.
