TDA 1001
`CBM of U.S. Pat. No. 7,533,056
`
`0001
`
`

`
`US 7,533,056 B2
`Page 2
`
`US. PATENT DOCUMENTS
`
`OTHER PUBLICATIONS
`
`.. 3951237
`
`3451440
`
`611988 Boilcn
`1.11989 Shavitetal.
`4.11989 .\1e1son
`2-11990 Wagner
`8.11991 Kramer
`1211991 Silvemran eta].
`311992 Lupien eta].
`1211993 Higgins
`311994 Guttermanetal.
`. 364.1408
`. 3641408
`
`311994 Trojanetal.
`1211994 Toghcr etal.
`4.11992 Schott
`ll-"1997 Lo’/man
`6.11998 Patterson. Jr. etal.
`811998 Patterson. Jr. eta].
`81998 Patterson. Jr. eta].
`12.11998 Lupienetal.
`6.11999 Patterson. Jr. et al.
`'1-"E1999 Silverrnanetal.
`‘H1999 Sitverman eta].
`811999 Tull. .lr.etal.
`1011999 Garbcr
`10.11999 Anupametal.
`112000 Lupienetal.
`1.12000 Minion
`3-"2000 Stallaert eta].
`82000 Lupieneta].
`10.12000 Luke ct al.
`1012000 Belzberg
`2.12001 Sacedotieta].
`2.1200] Martyn clal.
`4.12001 Moyer
`81200]
`I-Ioworka
`6.12002 Buist
`712002 Nieboeretal.
`712004 Kemp
`8-12004 Kemp
`112006 Friesen
`5.12007 Friesen
`10.1200] Mcintyre
`ll-1200] Qrdish eta].
`2-12002 Fritsch etal.
`9.12002 Smith
`1112002 Marshall
`1.12003 Ramcta].
`5.12004 Kimura
`6.12005 Schluelter
`1112005 Warsawetal.
`112006 Rosonthaletal.
`1.12006 Ram
`3.12006 Friescn
`11.12006 Friescn
`1112006 Friesen
`11.12006 Friesen
`1112006 Friesen
`11.12006 Friesen
`
`36-4.1401
`
`4 . T 50. 1 3 5
`4.199. 1 56
`4.323 .255
`4.903 .20 1
`5.033.234
`5.0315 55
`5. 1 0 I .3 5 3
`5.2 70 .9 2 2
`5293.03 1
`5.293.032
`5.375.055
`5.6 19.6 3 1
`5.68965 1
`5.’! 74.3 7'?
`5.3 93 .301
`5.7 93.002
`5.845 .266
`5.915.245
`5,924.0 82
`5924.0 83
`5945.5 53
`5.953.923
`5.966.139
`6.0 1 2.046
`5.0 14.543
`6.0352 87
`6.098.051
`6.131 .0 87
`6. 134.535
`6.188.403
`5. I 95.547
`5.2 1 1 .333
`6,282.52 1
`63308.2 82
`6.4 I 8.4 19
`6.266.304
`5.332. 1 32
`5.993.504
`7.2 12.999
`200 1.1003 4696
`2001.»-0039523
`200210023038
`200210130868
`2002..-0173095
`200 3.100 0941 1
`2004.-"0099933
`2005.101 253 23
`200 5.10256'r'9'9
`2006.100 10066
`2006.-"0020538
`2006100590 83
`2006.102 59405
`2005..-02 594 10
`2005102594 13
`200610265315
`200610265319
`
`A
`A
`A
`A
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`A
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`B1
`B1
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`B2
`Bl
`131
`B2
`Al
`Al
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`A1
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`
`1-‘ORl£l(':‘rN PA'l’l3N'l' I)OCUMliN’l'S
`
`W0
`W0
`W0
`W0
`
`W0 92.112488
`W0 95.-126005 A]
`WO 00152619 A]
`W0 01.-"T5'.r'33
`
`T.’ 1992
`9-’ 1995
`912000
`1 112001
`
`Market Watch. Trading Screen. date not available.
`Java Island. copyright 1999 (printed from http:.1.-’www.isld.corn on
`Jun. 1]. 1999].
`Search Report for PCT.1US 00.109369.
`Kharouf. Jim and Carla Cavalctti: “A Trading Room With A View":
`Futures; Nov. 1998; 6 pages. www.l'uturesmag.eom.
`USPTO Presentation regarding The Nasdaq Stock Market. Inc.;
`dated Nov. 8. 2001; 15 pages.
`Yahoo! Finance—Option Chain SUNW; 2 pages.
`APT Brochure. LIFI-"E Exchange. circa 1990*.
`Trading Screen. INTEX of Bermuda. circa 1984".
`Weber. Information Technology in the .\1Iajor International Financial
`Markets. Apr. ".1. 1993.
`Trading Screen. T11" 1113 Exchange. circa 1989-1990*.
`Trading Screen. MEFF Exchange. circa 1990*.
`Cavaletti. Order Routing Article. Futures Magazine. Feb. 19971‘.
`Aurora Article. C BOT. circa 1989*.
`One Click Trading Options. Trading Technologies. circa 1998.
`Trading Screen. SWX Exchange. circa 1990*.
`Expanding futures and options trading around I.he world. around the
`clock. Globex. circa 1989*.
`Hanscll. The computer that ate Chicago. Institutional Investor. Feb.
`1989.
`
`Globex Report: An update on the (‘ME Global electmnic exchange.
`Feb. 10. I989.
`NYMEX Access Documents. New York Mercantile Exchange. Feb.
`28. 1992.
`Grurnrner. Peake. Sellers. Preliminary Feasibility Study. Bermudex
`l,td.. Nov. 1980.
`l-‘cake. Mendcllson. The ABC's of trading on a national market sys-
`tem. Appendix (I of Preliminary Feasibility Study. Bcrmudex Lld..
`Sep. 1997.
`Peake. The last 15 meters. Appendix E of Preliminary Feasibility
`Study. Bermudex l.ld.. .lun. 15. 199?.
`Declaration of Brendan Bradley in Case No. 04 C 5312. Nov. 18.
`2004.
`Memorandum Opinion Pnblisl-ted Feb. 9. 2005. of Judge James B.
`Moran in Case No. 04 C 5312.
`Wright. William. Research Report Information Animation Applica-
`tions in the Capital Markets. IEEE 1995.
`“How the Future Market Works“. Jake Bernstein. 1989 New York
`Institute of Finance. pp. 62-67.
`Dictionary of Finance and investment Terms. John Downcs and
`Jordan Elliott Goodman. 1998. Barrens Education Services. 1nc.. p.
`329.
`Tokyo Stock Exchange (“’TSE"). Publication 1. Sep. 199?.
`'l‘SE-I. “Publication 2". Aug. 1998.
`TSE. “l’ub|icntion 3'‘. .1111. 3]. 2000.
`TSE. Document 1. Jan. 2000.
`English Translation o1'TSE “Publication 1".
`English Translation of TSE “Publication 2".
`English 'l'ranslation of TSE “Publication 3".
`English Translation of T81.-I Document 1.
`REFCO English Translation of TSE "Publication 1".
`REFCO English Translation ot'TSE "Publication 2".
`REFCO English Translation of TSE "Publication 3".
`GL Trade. LIFF E Connect tor Futures User Guide V4.50. (alleged)
`Feb. 1999.
`G1. Trade. 1.IFFF. Connect for Futures User Guide V4.50. (alleged)
`Mar. 1999.
`(EL Trade. L11-‘F13 Connect for Futures User Guide V4.51. (alleged)
`Jun. 1999.
`GL Trade. LIFFF. Connect for Futures User Guide V4.50 Beta.
`(alleged}Jan. 1999.
`(EL Trade. CAC and STOXX Futures on MAATIF NSC VF. (alleged)
`Launch: Mar. 15. 1999 pp. 1-14.
`
`* cited by examiner
`
`0002
`
`0002
`
`

`
`US. Patent
`
`May 12, 2009
`
`Sheetl of 11
`
`US 7,533,056 B2
`
`100
`
`‘I08
`
`TRANSACTION
`MANAG ER
`
`
`
`DATABASE
`
`--
`
`FIG. 1
`
`
`
`-‘-
`
`CLIENT
`
`CLIENT
`
`000
`
`CLIENT
`
`10
`
`
`
`‘I04
`
`104
`
`
`
`
`
`DISPLAY BID ICON
`
`CORRESPONDING TO
`
`QUANTITY AND
`
`VALUE OF BID
`
`
`
`
` FIG. 5
`
`
`
`DISPLAY OFFER ICON
`
`CORRESPONDING TO
`
`
`
`QUANTITY AND
`VALUE OF OFFER
`
`504
`
`800
`
`RECEIVE A VALUE FOR
`REQUESTED ORDER
`
`804
`
`RECEIVE A QUANTITY FOR
`
`RECEIVE ORDER TYPE
`
`807
`
`DISPLAY CONFIRMATION
`MESSAGE WINDOW
`
`REQUESTED ORDER 306
`
`DISPLAY ORDER ICON ALONG
`
`A VALUE QUANTITY AXES AT A
`LOCATION CORRESPONDING
`TO THE PRICE AND QUANTITY
`OP THE ORDER
`
`FIG. 8
`
`303
`
`0003
`
`0003
`
`

`
`US. Patent
`
`May 12, 2009
`
`Sheet 2 of 11
`
`US 7,533,056 B2
`
`I'“2mI“e"mT“TIE;I;E"“‘““I
`SE VE
`220,1}V:
`SUMMARY
`R
`R
`INFORMATION
`AGENT
`
`I
`I
`
`I I
`
`100
`
`REGISTRATION
`SERVER
`
`212(1)
`
`
`
`215(2)
`224
`SUMMARY
`LOGIN
`CLIENT MANAGER INFORMATION
`E
`AGENT
`
`1 04
`
`04
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`i
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`
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`
`4
`
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`
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`
`216(3)
`224
`SUMMARY
`INFORMATION
`AGENT
`
`MESSAGE
`SERVER
`
`:
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`
`DATABASE
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`
`
`0004
`
`0004
`
`

`
`US. Patent
`
`May 12, 2009
`
`Sheet 3 of 11
`
`US 7,533,056 B2
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`US. Patent
`
`May 12, 2009
`
`Sheet 4 of 11
`
`US 7,533,056 B2
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`U.S. Patent
`
`May 12, 2009
`
`Sheet 5 of 11
`
`US 7,533,056 B2
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`
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` 6.85
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`

`
`US. Patent
`
`May 12, 2009
`
`Sheet 6 of 11
`
`US 7,533,056 B2
`
`
`
`$1436.00
`
`I End oftrading day
`
`
`
`
`
`Expires:
`
`
`I ll
`
`$2505.00
`
` FEG. 3E Value:
`
`E><r>ires=E
`
`
`
`
`FIG. 9
`
`0008
`
`0008
`
`

`
`US. Patent
`
`May 12, 2009
`
`Sheet 7 of 11
`
`US 7,533,056 B2
`
`FIG.4
`
`0009
`
`0009
`
`

`
`US. Patent
`
`May 12, 2009
`
`Sheet 8 of 11
`
`US 7,533,056 B2
`
`RECEIVE AN
`
`ORDER TYPE
`
`
`
`
`
`
`PLACE ICON AT
`
`DETERMINED
`
`SLOT
`
`
`
`DOES SLOT
`
`CONTAIN AN
`
`EXISTING BED?
`
`
`RECEIVE A
`
`
`
`
`
`
`QUANTITY
`SPECIFIED FOR
`ORDER
`
`
`
`
`
`
`
`
`
`SI--IIFT ALL
`
`LOWER PRICED
`BIDS OVER ONE
`SLOT
`
` HAVE A PRICE
`LESS THAN
`
`REQUESTED
`BID?
`
`GENERATE AN
`ORDER ICON
`
`WHOSE
`
`VERTICAL SIZE
`
`MATCHES THE
`
`QUANTITY
`
`RECEIVE A
`PRICE FOR THE
`
`
`
`ORDER
`
`
`
`DISPLAY
`
`ORDER
`CONFIRMATION
`WINDOW
`
`
`
`B14
`
`
`
`
`
`
`
`
`DETERMINE
`
`NEW SLOT FOR
`
`REQUESTED
`BID
`
`FIG. 6
`
`0010
`
`
`
`
`
`
`
`
`
`
`
`
`
` STACK
`REQUESTED
`
`
`
`
`BID BELOW
`EXISTING
`
`
`
`
`
`1310(3)
`
`HAVE A PRICE
`
`EQUAL TO
`
`REQUESTED
`BID’?
`
` TRANSMIT
`ORDER
`INFORMATION
`
`
`0010
`
`

`
`US. Patent
`
`May 12, 2009
`
`Sheet 9 of 11
`
`US 7,533,056 B2
`
`
`
`
` IS
`
`TRANSIT NEW
`THERE AN
`N
`XISTING OFFER LES '
`ORDER
`
`
`
`INFORMATION TO
`THAN OR EQUAL TO
`
`
`
`PRICE
`CLIENT TERMINALS
`
`
`OF BID?
`
`
`
`702
`
`
`
`DOES OFFER
`HAVE A QUALITY
`ESS THAN BID’?
`
`
`
`"5
`MODIFY OFFER
`
`INFORMATION
`TO REFLEC T A
`
`YES
`—
`
`
`
`
`
`
`
`
`
`
`
`REMOVE OFFER FROM
`QUANTITY
`ORDER TABLE AND ADD
`CORRESPONDING
`TO DIFFERENCE IN
`BID TO ORDER TABLE
`QUANTITIES
`WITH QUANTITY REDUCED
`
`
`
`
`
`
`
`REMOVE
`OFFER
`FROM TABLE
`
`SEND UPDATED
`OFFER
`INFORMATION FOR
`DISPLAY
`
`
`
` RECORD
`
`TRADE
`
`
`
`FIG. 7
`
`0011
`
`
`
`0011
`
`

`
`US. Patent
`
`May 12, 2009
`
`Sheet 10 ofll
`
`US 7,533,056 B2
`
`’1 024
`
`
`
`
`
`ARE THERE
`
` YSTANDERS’?
`
`ES
`
`N
`
`
`
`
`
`SELECT
`BYSTANDER
`ICON
`
`1023
`
`DISPLAY
`A TRADING -r
` 1000
`
`PIT
`
`
`
`
`HAS A
`
`PREDETERMINED
`
`
`
`TIME PERIOD
`EXPIRED?
`
`
`
`SELECTTRADER
`ICON
`
`1003
`
` ‘
`
`IS BYSTANDER
`CONNECTED?
`
`
`
`104“
`
`REMOVE
`BYSTANDER
`ICON
`
`YES
`
`1035
`
`ARE TH ERE
`MORE
`BYSTANDERS?
`
`
`
`
`
`
`
`
`REMOVE
`- ORDER
`ICON
`
`IS TRADER
`STILL
`ONNECTED?
`
`
`
`YES
`-
`
`DETERMINE
`
`ACTIVITY LEVEL
`
`
`
`
`
`
`
`DISPLAY TRADER ICON AT 1015
`A LOCATION
`CORRESPONDING TO
`ACTIVITY LEVEL
`
`
`
`
`N0
`
`FIG. 10
`
`0012
`
`1020
`
`
`
`ARE THERE
`ORE TRADERS’?
`
`
`
`0012
`
`

`
`US. Patent
`
`May 12, 2009
`
`Sheet 11 ofll
`
`US 7,533,056 B2
`
`COMMUNICATIONS WINDOW
`
`INSTANT
`
`EMAIL
`
`MESSAGE
`
`MESSAGE
`
`_C_2ONNECT|ON
`
`FIG. 11
`
`0013
`
`0013
`
`

`
`US 7,533,056 B2
`
`1
`USER [NTERFAC E FOR AN ELECTRONIC
`TRADING SYSTEM
`
`CROSS REFERENCE TO RELATED
`APPIJCATION
`
`2
`
`needed which provides contextual infonnation about the item
`or the market to the trader while the trader is trading on a
`specific item in a manner which allows the trader to quickly
`interpret the information and then act accordingly.
`
`SUMMARY OF INVF.NTION
`
`ll]
`
`1:-
`
`The present invention is a user interface for an electronic
`trading system that allows a remote trader to view trends in
`the orders for an item, and provides the trading information in
`an easy to see and interpret graphical fonnat. The user inter-
`lace ofthe present invention operates in a system in which
`individual traders place orders including bids and offers, on
`remote client tenninals. and this information is routed to a
`transaction server. The transaction server receives order
`information from the remote terminals. matches a bid for an
`item to an offer for an item responsive to the bid correspond-
`ing with the offer, and conununicates outstanding bid and
`oilier information back to the client tenninals. Thus. in accor-
`dance with the present invention. each client terminal dis-
`plays all of the outstanding bids and offers for an iten1_. in
`contrast to the conventional systems and methods in which
`only the highest bid and lowest offer were known to the
`individual trader. This allows the trader to view trends in
`orders for an item. and thus better enables the trader to antici-
`pate demand for the item.
`For example. in one embodiment. a graph is formed with a
`value axis. Bid icons and offer icons for all outstanding bids
`and offers are displayed on the graph at locations correspond-
`ing to the values of the bids and offers. When an item is being
`“bid up." i.e.. the demand for the item is growing. all of the
`new bids are displayed to the remote trader. Tl1etraderinnne-
`diately sees the increasing demand liar the item as it occurs.
`and thus may infer that the item may rise in value. and can
`enter an order to buy for the item immediately white the valtte
`for the item still appears low. In contrast. in conventional
`systems, the trader only knew of the existence of the highest
`bid. and therefore would not know that demand for the item
`was increasing. However. by “opening the book." all of the
`outstanding orders are displayed to all of the remote traders
`and each trader is able to irruncdiately see the growing
`demand and maximize his or her position in the market
`accordingly.
`The user interface of the present invention presents this
`information in an intuitive forn1at_. allowing the trader to make
`informed decisions quickly. In a priority view embodiment.
`bid and offer icons are displayed corresponding to an axis of
`values. This results in the bid icons being displayed on the
`lower portion ofthe screen and the offer icons being displayed
`on the upper portion ofthe screen. The trader is able to discern
`immediately the number and volume of bids and offers out-
`standing for the item and their difference in value. The bids
`and offers are preferably displayed in different colors. shapes.
`or other visual characteristics. further enhancing the trader's
`ability to quickly ascertain the current state ofthe market. The
`screen is updated frequently to display the most recent bids
`and offers. In one embodintent, the icons are formed having
`an edge which is angled toward the axis of values. When all
`outstanding offers and bids are displayed. the arrangement of
`icons naturally forms the edges ofa triangle that points to the
`value differential at the axis ofvalues. In yet another embodi-
`ment. the trader’s own bids and offers are displayed in a first
`color or other visual characteristic. and the bids and offers of
`other traders are displayed in a second color or visual char-
`acteristic. This allows the trader to quickly detennine his or
`her relative position in the tltarketplace. l"'inally. in at preferred
`embodiment. a size of the icons represents the quantity ofthe
`0014
`
`This application is a continuation of US. patent applica-
`tion Ser. No. 09t'289_.550 filed Apr. 9, 1999 now U.S. Pat. No.
`7.212.999, entitled “User Interface for an Electronic Trading
`System" the contents of which are fully incorporated herein
`by reference.
`
`'l'l'i(.'I INl(.7!\l, FIIil..l)
`
`invention relates generally to the field of
`The present
`graphical user interfaces and more particularly to the field of
`graphical user interfaces for electronic trading. systems.
`
`BACKGROUND Of’ 'lT-lli lNV’l?N'l‘lON
`
`Trading pits are the lifeblood of a market economy. Quan-
`tities of goods and shares in companies are bought and sold by
`millions of investors through trading pits on exchanges every-
`day. When a particular trading product or item is more valued.
`the value ofthe item is driven up as a result ofmore aggressive
`bidding by the buyers. When an item is less valued. the value
`ofthe itetn is driven down as a result of more aggressive o tfers
`to sell the item. The successful trader anticipates the rise or
`fall of the value of an item and performs his or her own
`transaction before the rest ofthe market is aware of the item's
`
`potential gain or loss in value. 'l"hus. anticipation of the 1nar-
`ket and specifically of the future demand for an item of
`interest is critical to the success of a trader.
`
`The transactions for each item occur in a trading pit for that
`item. The trading pit is a designated area in an exchange in
`which the customers submit their orders. either bids or offers.
`for the item to a broker in the pit. The exchange records all
`transactions and relays or posts to the individual traders the
`outstanding bid having the highest value and the outstanding
`offer having the lowest value for the item. along with the
`quantity specified in the order. The exchange does not release
`information on all outstanding offers and bids to the traders
`because. in part, this information is what gives the market
`makers an advantage over the traders and enables the market
`makers to change their own trading directions quickly, step in
`front of customer orders. and use customer limit orders to
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`protect the market makers from losses. However. for an indi-
`vidual trader. having only the latest order information for an
`item complicates the trader’s task ofa scertaining trends in the
`orders for an item because the trader has very little informa-
`tion about the volume of offers and bids or the rate at which
`these volumes are changing.
`Other information is also used by the trader to anticipate
`the market, including current exchange performances. his-
`torical transaction data for the item. the number o f traders at
`the pit. and the trader's sense of the activity of the pit. How-
`ever, it is often diflicult for a trader to quickly assemble this
`information from diverse and ollen unrelated sources or even
`
`effectively process all of this information in order to make an
`informed transaction decision. From this information. and
`other external infonnation. the trader must attempt to deter-
`mine trends in the buying or selling for the item in order to
`anticipate the market and the demand for a particuiar item.
`Thus, a system is needed in which trend information of
`market demand for an individual item is provided to traders in
`an intuitive format which allows traders to quickly interpret
`how market demand is changing to an item. A system is also
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`bid or oifer. allowing zut easy visual means ofdetemtining the
`relative quantities each bid and offer represent.
`In a valuelquantity view embodiment_. an axis ofvalues and
`an axis of quantities are used to determine the location of the
`bid and offer icons. The icons in this embodiment are markers
`or tokens and provide a different look and feel to the trader.
`Providing alternate views allow a trader to select a view with
`which the trader is most comfortable trading.
`A value quantifying analytic is displayed in a further
`embodiment with respect‘ to the value axis at a location cor-
`responding to the current value which the analytic represents.
`The analytic is preferably displayed as a marker called an
`action line, in a color or other visual characteristic different
`front the other characteristics used to represent other objects
`being displayed. The action line is selected by each individual
`trader and can reflect value-to-earning ratio, volatility. vol-
`ume of sales. or any other metric the trader designs. or can be
`selected from a listed of predetermined metrics. The action
`line responds to changes in the data it measures. updating in
`essentially real time.
`The action line allows the trader to immediately determine
`the current valuation of the item relative to the trader's own
`valuation of the item. As the offers or bids approach the action
`line. the trader is prepared to complete a transaction in accor-
`dance with the trader’s own valuation.
`
`In another aspect ol‘ the invention. market data and other
`contextual data is displayed while the trader is viewing one of
`the aforementioned user interfaces. A historical chart is dis-
`
`played in the background ofa user interface to provide addi-
`tional information to the trader who is detennining the state of
`the market and how it may affect the value of the item. lior
`example. the historical chart may represent the various mar-
`ket indices. historical values of the item or others, and any
`other historical value. quantity. or volume trend. The histori-
`cal chart can represent the average value of the item over a
`period of time. or may represent a value or values for any
`other item or group of items. The historical chart is displayed
`with respect to a vertical axis of values. and is displayed
`horizontally responsive to time. The historical chart
`is
`updated to provide the latest information to the trader while
`the trader is trading. Thus. in accordance with the present
`invention. the trader is able to make instantaneous decisions
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`FIG. 2 is a block diagratn ofa preferred embodiment ofthe
`transaction manager of the present invention.
`FIGS. 3a-3c are screen shots illustrating an embodiment of
`a Priority View itt accordance with the present invention.
`FIG. 3a’ illustrates a buy order pop-up window.
`FIG. 32 illustrates a sell order pop-up window.
`FIG. 4 is a screen shot illustrating an embodiment of a
`ValtIefQt1at1tity View in accordance with the present invert-
`tion.
`
`FIG. Sis a flow chart illustrating a preferred embodiment of
`a method of displaying bid and offer icons in accordance with
`the present invention.
`I-‘IG. 6 is a flow chart illustrating a preferred embodirnent of
`a method ofgenerating a bid order icon in accordance with the
`present invention.
`[-‘IG. 7 is a flow chart illustrating a preferred embodiment of
`a method of generating a offer order icon in accordance with
`the present invention.
`FIG. 8 is a How chart illustrating an alternate embodiment
`of generating an order icon.
`FIG. 9 is a screen shot illustrating a Pit Panel view in
`accordance with the present invention.
`FIG. 10 is a flow chart illustrating a preferred embodiment
`ofgenerating and placing a trader icon in accordance with the
`present invention.
`FIG. 11 is a screen shot illustrating a communication win-
`dow in accordance with the present invention.
`
`DETAILED DESCRIPTION OF THE PREFERRED
`[£MI3()DIMliN‘[‘
`
`1 illustrates the electronic trading system in accor-
`FIG.
`dance with the present invention. Client temtinals 104 are
`coupled to a transaction manager 100. The client terminals
`104 are personal computers. tenninals as part ofa network. or
`any other computing device. Traders use the client temtinals
`104 to interact with trading pits that are managed by the
`transaction manager 100. The transaction manager 100 man-
`ages transaction requests generated by the client terminals
`104. routes information to. from. and between the tertninals
`
`I04 and the transaction manager 100. and stores and retrieves
`inforntation from a database 108 or databases 108.
`
`regarding an item while receiving critical information about
`other items or the past performance of the current itetn and
`other indices. This is a major advantage over conventional
`methods of trading in which this information is not provided
`concurrently. and if presented at all, is diflicult to process
`quickly.
`An alternate embodiment provides a trading pit view that
`displays trader icons for each trader and positions the trader
`icons reflective ofthe activity level ofthe trader. Floor brokers
`and other bystanders are also displayed and identified to allow
`the trader to understand at a glance the respective positions
`and activity of all users currently connected to the transaction
`server for that trading pit. Selecting a trader icon provides
`information regarding the trader and can open up a window to
`allow the traders to communicate with each other using one or
`more methods including electronic tnail. text chat or commu-
`nication by voice over a network connection. The trading pit
`view allows the remote trader to immediately ascertain whom
`the trader is trading against. how active they are. and allows
`the trader to better anticipate the market.
`
`BRlEF DESCRIPTION OF THE DRAWINGS
`
`l"I('i. l is a block diagram ofa preferred embodiment of the
`electronic trading system of the present invention.
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`FIG. 2 illustrates a more specific embodiment of the trans-
`action manager 100. The clients 104 are coupled to log-in
`manager 204 to provide to each client access to the transac-
`tion manager I00. and to allow each client 104 to designate
`one or more trading pits 220 to which to be connected. The
`transaction manager 100 hosts one or more l'l'd11SaCliDl1 serv-
`ers 20!}. Each transaction server 200 is responsible for the
`trading of a specified item, essentially supporting a specific
`trading pit. The sttmmary ittformation agents 224 for each
`transaction server 200 provide a current status of the activity
`of each pit 220 to a trader connected to the log-in manager
`204. The trader can select a pit 220 to which to be connected
`based upon the summary information. Once the log-in pro-
`cess is complete. the clients 104 are coupled to a registration
`server 212 for the specified trading pit 220. Registration for
`each pit 220 requires the client 104 to provide an access key
`that it received from the login manager 204 during log in.
`After registering for a pit 220. the trader is able to add.
`modify or delete orders for the item being traded in the trading
`pit 220. One type of an order called a “bid” is an order to buy
`up to a specific quantity of an item at or below a specific value.
`Another type ofan order called an “offer" is an order to sell up
`to a specific quantity of an item at or above a specific value.
`Other types of orders are possible depending on the type of
`item being traded in the trading pit 220.
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`Each pit 220 includes a transaction server 200. The trans-
`action server 200 receives orders. matches bids and offers
`(when a bid and otfer are matched it is called a trade or
`execution) and routes information to both the database 208
`and the client terminals 104 connected to the trading pit 220.
`The client terminals 104 generate icons for bid and offer
`orders (called bid and olTer icons). liistorical charts and trader
`icons. and determine the placement ofbid and offer icons and
`trader icons responsive to the information received from the
`transaction server 200. The database 208 to wl1icl1 the trans-
`action server 200 is coupled stores the infonnation corre-
`sponding to each trader. information on every order submitted
`over a period (such as start of trading days). information on
`every trade over a period (such as last 180 days) and the
`information corresponding to the item being traded. Each
`trader may have information associated with the trader's
`account stored. including a name. e-mail account. address.
`phone number. persona] value quantifying metric or analytic
`activity level history, and various other information which is
`unique to the individual trader and which may be used by the
`present invention to create a virtual trading en'viron.ment.
`The information corresponding to every order includes
`whether the order was a new order. modifications to an exist-
`ing order or deletion of a previously submitted order. the type
`oforder (for example. bid or offer), the value. the quantity. the
`time and date the order was submitted. and any other infor-
`mation specific to the order. The information corresponding
`to every trade includes the value. quantity, buyer and seller.
`The information corresponding to the item being traded
`includes the highest outstanding bid value and the lowest
`outstanding offer value for the item. as well as a list of the
`values ofall open orders for the item. The item information is
`stored on the database 208 in a data structure such as an order
`
`table. The server 200 updates the information in the order
`table responsive to receiving inforniation from the client ter-
`minals 104. The updated information is then u-ansrnitted back
`to the client terminals 104. Other information. such as infor-
`mation used in creating historical charts. may also be stored
`on database 208. Information which may be global to more
`than one pit 220, for example. trader personal irifonnation, is
`also stored on the system database 108. to allow the informa-
`tion to be accessed by each trading pit 220.
`For traders registered to the same trading pit 220. all of
`their orders (i.e. bids or offers specifying a value and quantity)
`are transmitted to the transaction server 200 for that pit 220.
`The server 200 analyzes the orders for matches with outstand-
`ing. or open, orders. If there is a match between orders of
`different types. for example. between a bid and an ofl'er. then
`a transaction is enacted and the client terminals 104 are noti-
`
`fied to remove the matched icons. All outstanding orders are
`transmitted to each client terminal. allowing a trader to view
`all of the outstanding orders iron: all traders for an item on a
`trading pit at any given time. The client displays are updated
`continuously or at specific intervals to provide updated infor-
`mation regarding which orders are outstanding and the state
`of the market in the pit 220. As shown in FIG. 2, multiple
`trading pits 220 are provided in the electronic trading system.
`and a single trader may be connected to many pits 220 at the
`same time as desired. The number of trading pits 220 which
`may be maintained in accordance with the present invention
`is scalable responsive to the number of servers which are
`provided in the system The items of trade include any pos-
`sible cominodity. for example. minerals. littures. or shares in
`a corporation. Other network configurations can be used to
`implement the electronic trading system as is known to those
`ofordinary skill in the art.
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`tenninals 104 provide the interactive link
`The client
`between the traders and the trading pits 220. and display the
`various user interfaces of the present invention. FIG. 3a illus-
`trates a priority view 312 which is designed to allow traders to
`intuitively place orders 300. 304 and view markers 336 rep-
`resenting value qua tttifyiltg metrics. and contextual trend data
`316 in accordance with the present invention. In the priority
`view embodiment. orders 300. 304 are displayed at a location
`corresponding to their value with respect to the value axis
`332. Values may represent price. interest rate. or any other
`metric by which an item may be valued. For example. offer
`304(1) has a value of $28.45. and the lowest point of the
`bottom edge 308 of the icon 304(1) is aligned with the valttc
`28.45 on the value axis 332. I11 this embodiment. the top edges
`309 of the bids and bottom edges 308 of the offer icons are
`angled. The rightmost bid is the bid having the highest value.
`and the rightmost offer is the offer having the lowest value.
`This allows the edges 308, 309 of the icons 300. 304 to form
`a triangle which points to the separation in value between the
`last lowest offer and the last highest bid. The quantity of each
`order is represented by a size of the icon such as its length or
`height. Icons having a larger size represent orders having a
`greater quantity. ‘the specific quantity and other information
`ofan order displayed on the screen may be known by select-
`ing that order. which invokes a pop-up window to display the
`precise value and quantity ofthe selected order. In an alternate
`embodiment, the specific order information is displayed in
`the order task bar 328. in response to a trader selecting a bid
`or ofler icon provided the order was submitted by the trader
`selecting the order. Alternatively. if space permits. the quan-
`tity and value may displayed in the icon itself.
`If there are several orders with equal value. the orders are
`stacked or placed adjacent to each other responsive to the time
`at which the order was placed. For example. bids 300(5).
`300(6), 300(7) have equal values at $29.50. Therefore. all
`three bid icons 300 are vertically stacked. A preferred method
`of stacking places the oldest orders closest to the horizontal
`space which naturally occttrs and separates the bids and the
`offers. The horizontal separation between the bids and the
`ollers occurs naturally because all of the bids displayed are
`always at a lower value then the displayed offers. lfa bid is
`placed at a value equal to or exceeding an ofier value. a
`transaction will be made immediately and the icons removed.
`For example. in the stack containing orders 300(7). 300(6).
`and 300(5) in FIG. 3a, the first and therefore the oldest bid in
`time was 300(7). and is placed at the top of the stack. closest
`to the horizontal separation between the displayed bids and
`ollers. The other two stacked bids 300(6). 300(5) are posi-
`tioned below the oldest bid 3 00(7). corresponding to the time
`at which they were submitted. and sorted in order of oldest to
`newest. In the stack containing offers 304(2). 304(3). and
`304(4). the oldest offer 304(2) is positioned on the bottom 6f
`the stack closest to the horizontal separation. and the newest
`ofler 304(4) is positioned on the top of the stack. The above
`method of ordering bids and olfers is a preferred method.
`however other ordering schemes could be used within the
`scope of the present invention.
`The trader using the client terminal 104 in accordance with
`the present invention. is shown all of the outstanding orders
`300. 304 for the item being traded. This is one significant
`diftiarence between the present invention and conventional
`systems because a trader using a system in accordance with
`the present invention is able to view trends in the bids and
`offers in addition to the buying and selling ofthe item being
`traded. For example, in FIG. 3A. a trader can quickly analyze
`the outstanding orders 300. 304. and determine that there are
`an almost equal number of bids 3 00(8) as offers 304(8). Thus,
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`thetrader may infer that the market is stable, and the value for
`the item will not be dramatically driven up or d