An electronic exchange system network includes a trader site having an automated trading system capable of submitting orders and/or quotes to an exchange site. The automated trading system determines whether an order or quote should be submitted based on, for example, the current market price of an option and theoretical buy and sell prices. The theoretical buy and sell prices are derived from, among other things, the current market price of the security underlying the option. The theoretical buy and sell prices are calculated when underlying factors that contribute to the theoretical prices change. Computation times of the theoretical prices may be reduced by using precalculated values and/or using interpolation and extrapolation. Other techniques may be used in addition or in the alternative to speed automatic decision-making. In addition, a system of checks may be conducted to ensure accurate and safe automated trading. The automated trading system may be capable of automatically submitting orders in connection with the underlying security in order to hedge part of the delta risk associated with the automated option trades.

Automated Trading System in an Electronic Trading Exchange

A method for facilitating trading of securities over a computer system comprises electronically receiving a buy or sell order for a security from a first user; determining that the order is reasonably priced; transmitting to a second user an electronic notification that a reasonably priced order for the security is present, but without notifying the second user of the side of the first user’s order, receiving an order from the second user, wherein the second user’s order is a contra to the first user’s order and sufficiently aggressive in price to cross the first user’s order; and executing a trade comprising the first user’s order and the second user’s order at the limit price of the first user’s order. Also described is an electronic system for facilitating securities trading that comprises a facilitator module, a financial information exchange server (110), a transactional database (150), and an analytics server (160).

Confidential block trading system and method

The present embodiments are provided to facilitate the automatic trading of spreads in a fast and accurate manner. One or more market data feeds that contain market information for tradeable objects are received at an exchange. A spread data feed is generated in response to the market data feeds and from one or more spread setting parameters, which can be entered by a user. The spread data feed is preferably displayed in a spread window as bid and ask quantities associated with an axis or scale of prices. The user can enter orders in the spread window and the legs will be automatically worked to achieve, or attempt to achieve, the spread. In addition, other tools disclosed herein may be utilized to assist the user in making such trades.

System and method for performing automatic spread trading

An automated trader facilitates automatic trading of tradeable objects over one or more electronic exchanges. According to one embodiment, an automated trader utilizes a user programmable interface. The user programmable interface allows the user to simply develop a program that is based on a set of specifications and relationships given by the user and input into a profile, or if desired, input directly into the programmable interface referred to as direct entry. For each tradeable object, a profile may be selected, and then an automated trader can execute the program to perform a series of actions according to that selected profile and directed order entry, if any. An automated trader may also be used at a communication level to create an intelligent interface between third-party trading-related applications and exchanges.

System and method for automated trading

Systems and methods for linking orders in electronic trading systems are provided. These systems and methods enable a trader to select two or more items that are to be linked and specify linking parameters for those items. Any desired set of items may be linked, and the linking parameters may include price adjustments, order sequencing instructions, automatic/manual execution controls, execution delays commands, and update frequency limits. Upon detecting a bid or offer for a linked item, the systems and methods may then determine a size and a price for each linked item based upon the size and the price of the bid or offer for the first linked item. In this way, the sizes and the prices for the other linked items may be propagated from the size and the price for the first item. Once the size and the price for each item is determined, the systems and methods may submit orders for the items in accordance with the linking parameters. In the case where orders for linked items may only be submitted in designated lot sizes, the systems and methods may round the sizes of the orders to the designated lot sizes, and then submit remainder orders to make up for the rounding.

Systems and methods for linking orders in electronic trading systems

A trading process having a trading methodology selected by a user is operative to interact with market processes having respective market methodologies. The trading process and the market processes are supported on a platform that also supports platform processes for providing services to the trading processes and market processes. The trading processes interact with each other and with external markets through the market processes.

Christopher Keith

Papers

Trading program for interacting with market programs on a platform