Futures exchange support of spot trading

Patent metadata

Field	Value
Publication number	US-11164252-B2
Application number	US-201916541884-A
Country	US
Kind code	B2
Filing date	Aug 15, 2019
Priority date	Sep 13, 2012
Publication date	Nov 2, 2021
Grant date	Nov 2, 2021

Abstract

A computer system associated with spot market trading in a particular subject matter may communicate with a computer system associated with trading in futures contracts or options in futures contracts for the subject matter. The communications may include pricing data for at least one of futures contracts or options in futures contracts for the subject matter, which pricing data may be used for spot market pricing. The communications may also include communications regarding futures hedging of spot trading in the subject matter.

First claim

What is claimed is:

1. A method of distributing operations for a plurality of instruments using threading, the method comprising:
receiving, at an exchange computer system data indicating a pending spot market transaction for a respective instrument of the plurality of instruments;
accessing, by the exchange computer system, for each instrument of the plurality of instruments, using a respective thread of a plurality of threads, data identifying a limit associated with spot trading in each instrument;
determining, by the exchange computer system using the respective thread for the respective instrument, whether completion of the pending spot market transaction would exceed the limit for the respective instrument;
accessing, by the exchange computer system, data identifying a futures position corresponding to the limit;
as a result of determining that the limit would be exceeded, identifying one or more futures transactions that will create the futures position;
as a result of determining that the limit would be exceeded, generating and transmitting one or more orders associated with the identified one or more futures transactions;
determining, by the exchange computer system, that the transmitted one or more orders have created the futures position; and
as a result of determining that the transmitted one or more orders have created the futures position, transmitting, by the exchange computer system, data to a spot trading computer system authorizing completion of the pending spot market transaction.

2. The method of claim 1 , wherein the exchange computer system is configured to perform operations of an exchange for trading in the plurality of instruments, the plurality of instruments comprising futures contracts, options in the futures contracts, or both the futures contracts and the options in the futures contracts.

3. The method of claim 1 , wherein the limit comprises:
a first size limit for individual transactions; and
a second size limit associated with at least one of a net long or net short position in the spot market for the respective instrument.

4. The method of claim 1 , wherein the data indicating the pending spot market transaction is received from a spot trading computer system external to the exchange computer system.

5. The method of claim 4 , further comprising transmitting, by the exchange computer system to the spot trading computer system, and at repeated intervals, pricing data for the plurality of instruments.

6. The method of claim 1 , further comprising:
receiving, at the exchange computer system, data indicating a second pending spot market transaction for the respective instrument of the plurality of instruments;
determining, by the exchange computer system that the limit for the respective instrument would not be exceeded by completion of the second pending spot market transaction; and
as a result of determining that the limit would not be exceeded, transmitting, by the exchange computer system, data authorizing completion of the second pending spot market transaction.

7. One or more non-transitory computer-readable media storing computer executable instructions that, when executed, cause an exchange computer system to perform operations for a plurality of instruments that include:
receiving data indicating a pending spot market transaction for a respective instrument of the plurality of instruments;
accessing, for each instrument of the plurality of instruments, using a respective thread of a plurality of threads, data identifying a limit associated with spot trading in each instrument;
determining, using the respective thread for the respective instrument, whether completion of the pending spot market transaction would exceed the limit for the respective instrument;
accessing data identifying a futures position corresponding to the limit;
as a result of determining that the limit would be exceeded, identifying one or more futures transactions that will create the futures position;
as a result of determining that the limit would be exceeded, generating and transmitting one or more orders associated with the identified one or more futures transactions;
determining that the transmitted one or more orders have created the futures position; and
as a result of determining that the transmitted one or more orders have created the futures position, transmitting data to a spot trading computer system authorizing completion of the pending spot market transaction.

8. The one or more non-transitory computer-readable media of claim 7 , wherein the exchange computer system is configured to perform operations of an exchange for trading in the plurality of instruments, the plurality of instruments comprising futures contracts, options in the futures contracts, or both the futures contracts and the options in the futures contracts.

9. The one or more non-transitory computer-readable media of claim 7 , wherein the limit comprises:
a first size limit for individual transactions; and
a second size limit associated with at least one of a net long or net short position in the spot market for the respective instrument.

10. The one or more non-transitory computer-readable media of claim 7 , wherein the data indicating the pending spot market transaction is received from a spot trading computer system external to the exchange computer system.

11. The one or more non-transitory computer-readable media of claim 7 , wherein the stored instructions further comprise instructions that, when executed, cause the exchange computer system to perform operations that include transmitting, at repeated intervals, pricing data for the plurality of instruments.

12. The one or more non-transitory computer-readable media of claim 7 , wherein the stored instructions further comprise instructions that, when executed, cause the exchange computer system to perform operations that include:
receiving data indicating a second pending spot market transaction for the respective instrument of the plurality of instruments;
determining that the limit for the respective instrument would not be exceeded by completion of the second pending spot market transaction; and
as a result of determining that the limit would not be exceeded, transmitting data authorizing completion of the second pending spot market transaction.

13. An exchange computer system configured to distribute operations for a plurality of instruments using threading, the exchange computer system comprising:
at least one processor; and
at least one non-transitory memory, wherein the exchange computer system is configured to perform operations of an exchange for the plurality of instruments, and wherein the at least one non-transitory memory stores instructions that, when executed by the at least one processor, cause the at least one processor to perform operations that include—
receiving, from a spot trading computer system external to the exchange computer system, data indicating a pending spot market transaction for a respective instrument of the plurality of instruments,
accessing, for each instrument of the plurality of instruments, using a respective thread of a plurality of threads, data identifying a limit associated with spot trading in each instrument,
determining, using the respective thread for the respective instrument, whether completion of the pending spot market transaction would exceed the limit for the respective instrument,
accessing data identifying a futures position corresponding to the limit,
as a result of determining that the limit would be exceeded, identifying one or more futures transactions that will create the futures position,
as a result of determining

Assignees

• Chicago Mercantile Exchange Inc

Inventors

• Emerick David
• Labuszewski John
• Patrick Will
• Ro Sandra
• Rutherford Roger
• Youngren Steve

Classifications

• G06Q40/04 Primary

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