System and method for randomizing orders in an electronic trading environment

Patent metadata

Field	Value
Publication number	US-10497056-B2
Application number	US-201113218533-A
Country	US
Kind code	B2
Filing date	Aug 26, 2011
Priority date	Nov 26, 2002
Publication date	Dec 3, 2019
Grant date	Dec 3, 2019

Abstract

When a trading application on a client terminal receives a trade order, a randomizer application may automatically randomize one or more order parameters to generate a randomized order. For example, an order quantity, a price level, and/or a time period between sending any two consecutive orders may be randomized. The randomized order is then automatically placed on the market.

First claim

What is claimed:

1. A method for automatically submitting an order from a client terminal to an electronic exchange in an electronic trading environment, the method comprising:
receiving from a user, via a graphical user interface of a client terminal, an order request to submit from the client terminal to an electronic exchange, an order to trade a quantity of a tradeable object at a price; and
prior to submitting the order request from the client terminal to the electronic exchange, analyzing, via the client terminal, the order request to determine whether the order request is to be randomized based on the order parameters,
wherein, in response to determining at the client terminal that the order request is not to be randomized, the client terminal submits the order request in an original format to the electronic exchange to trade the quantity of the tradeable object at the price, and
wherein, in response to determining at the client terminal that the order request is to be randomized, the client terminal:
selects at least one of a plurality of order randomization applications to be applied to the order request,
determines whether at least one predetermined randomization parameter applies to the at least one of a plurality of randomization application,
executes the at least one of the plurality of order randomization applications, the at least one of a plurality of order randomization applications being applied to the order request to generate a plurality of randomized orders, where the plurality of randomized orders is generated by applying at least one of a standard set of randomization parameters to the order request in response to determining that no predetermined randomization parameter applies to the order request and applying the at least one predetermined randomization parameter to the order request in response to determining that that the at least one predetermined randomization parameter applies to the order request, and
submits the plurality of randomized orders to the electronic exchange.

2. The method of claim 1 , further comprising selecting the at least one of the plurality of randomization applications according to a user-defined criteria.

3. The method of claim 2 where the at least one of the plurality of randomization applications is selected based on any of an order type, a time of day, and combinations thereof.

4. The method of claim 1 , further comprising receiving from the user the predetermined randomization parameter.

5. The method of claim 4 where the predetermined randomization parameter is configurable.

6. The method of claim 4 where the predetermined randomization parameter comprises at least one number.

7. The method of claim 4 where the predetermined randomization parameter comprises at least one percentage value.

8. The method of claim 4 where applying the at least one of the plurality of order randomization applications comprises applying the predetermined randomization parameter to at least one of the quantity and the price to generate the plurality of randomized orders.

9. The method of claim 1 where the order request comprises a plurality of orders.

10. The method of claim 1 where each of the plurality of randomized orders comprises a market order.

11. A non-transitory computer readable memory device having stored therein instructions for execution by a processor, which when executed by the processor cause the processor to perform acts comprising:
receiving from a user, via a graphical user interface of a client terminal, an order request to submit from the client terminal to an electronic exchange, an order to trade a quantity of a tradeable object at a price; and
prior to submitting the order request from the client terminal to the electronic exchange, analyzing, via the client terminal, the order request to determine whether the order request is to be randomized based on the order parameters,
wherein, in response to determining at the client terminal that the order request is not to be randomized, the client terminal submits the order request in an original format to the electronic exchange to trade the quantity of the tradeable object at the price, and
wherein, in response to determining at the client terminal that the order request is to be randomized, the client terminal:
selects at least one of a plurality of order randomization applications to be applied to the order request,
determines whether at least one predetermined randomization parameter applies to the at least one of a plurality of randomization application,
executes the at least one of the plurality of order randomization applications, the at least one of a plurality of order randomization application being applied to the order request to generate a plurality of randomized orders, where the plurality of randomized orders is generated by applying at least one of a standard set of randomization parameters to the order request in response to determining that no predetermined randomization parameter applies to the order request and applying the at least one predetermined randomization parameter to the order request in response to determining that that the at least one predetermined randomization parameter applies to the order request, and
submits the plurality of randomized orders from the client terminal to the electronic exchange.

12. The non-transitory computer readable memory device of claim 11 where the acts further comprise selecting the at least one of the plurality of randomization applications according to a user-defined criteria.

13. The non-transitory computer readable memory device of claim 12 where the at least one of the plurality of randomization applications is selected based on any of an order type, a time of day, and combinations thereof.

14. The non-transitory computer readable memory device of claim 11 where the acts further comprise receiving from the user the predetermined randomization parameter.

15. The non-transitory computer readable memory device of claim 14 where the predetermined randomization parameter is configurable.

16. The non-transitory computer readable memory device of claim 14 where the predetermined randomization parameter comprises at least one number.

17. The non-transitory computer readable memory device of claim 14 where the predetermined randomization parameter comprises at least one percentage value.

18. The non-transitory computer readable memory device of claim 14 where applying the at least one of the plurality of order randomization applications comprises applying the predetermined randomization parameter to at least one of the quantity and the price to generate the plurality of randomized orders.

19. The non-transitory computer readable memory device of claim 11 where the order request comprises a plurality of orders.

20. The non-transitory computer readable memory device of claim 11 where each of the plurality of randomized orders comprises a market order.

Assignees

• Schluetter Jens Uwe
• Brumfield Harris C
• West Robert A
• Mintz Sagy Pundak
• Trading Technologies Int Inc

Inventors

• Schluetter Jens-Uwe
• Brumfield Harris C
• West Robert A
• Mintz Sagy Pundak

Classifications

• G06Q40/00

  Finance; Insurance; Tax strategies; Processing of corporate or income taxes · CPC title

• G06Q40/04 Primary

  Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange · CPC title