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`6' Applicant:
`
`Title:
`
`Atty. Dkt. No. 024051-0223
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`Gary Allan KENIP et 3.].
`
`CLICK BASED TRADING WITH INTUITIVE GRID
`DISPLAY OF MARKET DEPTH
`
`E
`:§ 2 ‘
`as gr?
`
`E52 ;g
`03‘— E1-
`3 E
`
`Prior App}. No.:
`
`11/415,163
`
`Prior Appl. Filing Date:
`
`May 2, 2006
`
`Examiner:
`
`Unassigned
`
`Art Unit:
`
`Unassigned
`
`CONTINUING PATENT APPLICATION
`TRANSMITTAL LETTER
`
`Commissioner for Patents
`P.O. Bax 1450
`
`Alexandria, VA 22313-1450
`
`Sir:
`
`Transmitted herewith for filing under 37 CPR. § 1.53(b) is a:
`
`E Continuation
`
`CI Division
`
`C] ContinuatiOn-[n-Part (CIP)
`
`of the above-identified copending prior application in which no patenting, abandonment, or
`
`termination of proceedings has occurred. Priority to the above-identified prior application is
`
`hereby claimed under 35 U.S.C. § 120 for this continuing application. The entire disclosure
`
`of the above—identified prior application is considered as being part of the disclosure of the
`
`accompanying continuing application and is hereby incorporated by reference therein.
`
`1:]
`
`Applicant claims Small entity status under 37 C.F.R. § 1.27.
`
`ENCLOSED ARE:
`
`E
`
`8
`
`H
`
`Description, C_laim(s), and Abstract (22 pages).
`
`Informal drawings (6 Sheets, Figures 1-6).
`
`Declaration and Power of Attorney (4 pages).
`
`wASI-Lniasrsn
`
`0001
`0001
`
`TDA 1002
`TDA 1002
`CBM of U.S. Pat. No. 7,676,411
`CBM of US. Pat. No. 7,676,411
`
`

`

`Atty. Dkt. No. 024051—0228
`
`Assignment of the invention to Trading Technologies International, 1110..
`
`Assignment Recordation Cover Sheet.
`
`Small Entity statement.
`
`Request for application not to be published with certification under 35 U.S.C.
`§ 122(b)(2)(B)(i)-
`
`Information Disclosure Statement.
`
`Form SB/08 with copies of
`
`listed reference(s).
`
`Preliminary Amendment.
`
`Application Data Sheet (37 C.F.R. § 1.76).
`
`EICICICI
`
`EICI
`
`v AH
`
`r13
`
`The filing fee is calculated below:
`
`
`;'
`f'
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`NUMBER .
`FILED
`.
`
`‘
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`,
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`INCLUDED IN
`BASIC FEE
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`Fee
`
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`
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`Fee
`
`Size Fee
`
`Total Claims:
`
`Independents:
`
`$300.00 =
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`$500.00
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`x
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`x
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`$200.00
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`If any Multiple Dependent Claim(s) present:
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`$500.00
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`$200.00
`
`$0.00
`
`$0.00
`
`$0.00
`
`$0.00
`
`Surcharge under 37 CFR 1.16(e) for late filing of Executed
`Declaration or late payment of filing fee
`
`+ $130.00 =
`
`$0.00
`
`SUBTOTAL: =
`
`$1000.00
`
`D
`
`Small Entity Fees Apply (subtract 1/2 of above): =
`
`0
`
`TOTAL FILING FEE: =
`
`$1000.00
`
`Assignment Recordation Fee:
`
`Processing Fee under 37 CFR l.17(i) for Late Filing of
`English Translation of Application:
`
`TOTAL FEE
`
`WASH_1712679.1
`
`+
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`
`$40.00 =
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`$130.00 =
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`
`=
`
`$1000.00
`
`0002
`
`0002
`
`

`

`Atty. Dkt. No. 024051-0228
`
`A credit card payment form in the amount of $1000.00 to cover the filing fee is
`
`enclosed.
`
`The Commissioner is hereby authorized to charge any additional fees which may be
`
`required regarding this application under 37 CPR. §§ 1.16-1.17, or credit any overpayment,
`
`to Deposit Account No. 19—0741. Should no proper payment be enclosed herewith, as by the
`
`credit card payment form being unsigned, providing incorrect information resulting in a
`
`rejected credit card transaction, or even entirely missing, the Commissioner is authorized to
`
`charge the unpaid amount to Deposit Account No. 19-0741.
`
`Please direct all correspondence to the undersigned attorney or agent at the address
`
`indicated below.
`
`Respectfully submitted,
`
`Date
`
`101 ¢1~leé
`
`FOLEY & LARDNER LLP
`
`Customer Number: 22428
`Telephone:
`(202) 945-6002
`Facsimile:
`(202) 672-5399
`
`Marc K. Weinstein
`
`Attorney 'for Applicants
`Reglstratlon NO- 43,250
`
`WASH_171 2679.1
`
`0003
`
`0003
`
`

`

`l
`
`_L=
`
`-——L
`
`Atty. Dkt. No. 024051-0228
`
` Gary Allan KEMP et al.
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`Title:
`‘
`
`CLICK BASED TRADING WITH INTUITIVE GRID
`DISPLAY OF MARKET DEPTH
`
`113013us.PTO11/585907
`
`Prior Appl. No.:
`
`11/415,163
`
`Prior Appl. Filing Date:
`
`May 2, 2006
`
`Examiner:
`
`Unassigned
`
`Art Unit:
`
`Unassigned
`
`CONTINUING PATENT APPLICATION
`TRANSMITTAL LETTER
`
`Commissioner for Patents
`PO. Box 1450
`
`Alexandria, VA 22313—1450
`
`Sir:
`
`Transmitted herewith for filing under 37 CPR. § 1.53(b) is a:
`
`Continuation
`
`III Division
`
`[:1 Continuation-In—Part (CIP)
`
`of the above-identified copending prior application in which no patenting, abandonment, or
`
`termination of proceedings has occurred. Priority to the above-identified prior application is
`
`hereby claimed under 35 U.S.C. § 120 for this continuing application. The entire disclosure
`
`of the above-identified prior application is considered as being part of the disclosure of the
`
`accompanying continuing application and is hereby incorporated by reference therein.
`
`Cl
`
`Applicant claims small entity status under 37 C.F.R. § 1.27.
`
`ENCLOSED ARE:
`-~<
`
`m
`’v‘
`
`m
`
`8
`
`Description, Claim(s), and Abstract (22 pages).
`
`Informal drawings (6 sheets, Figures 1-6).
`
`Declaration and Power of Attorney (4 pages).
`
`WASH_1712679.1
`
`0004
`
`0004
`
`

`

`Atty. Dkt. No. 024051—0228
`
`Assignment of the invention to Trading Technologies International, 1110..
`
`Assignment Recordation Cover Sheet.
`
`Small Entity statement.
`
`Request for application not to be published with certification under 35 U.S.C.
`§ 122(b)(2)(B)(i)-
`
`Information Disclosure Statement.
`
`Form SB/08 with copies of
`
`listed reference(s).
`
`Preliminary Amendment.
`
`Application Data Sheet (37 C.F.R. § 1.76).
`
`EICICICI
`
`EICI
`
`v AH
`
`r13
`
`The filing fee is calculated below:
`
`
`;'
`f'
`
`NUMBER .
`FILED
`.
`
`‘
`
`,
`
`INCLUDED IN
`BASIC FEE
`
`‘
`
`7
`1 EXTRA ‘
`
`.
`
`'
`
`.
`- RATE
`
`.
`
`.
`
`.
`
`, FEE
`.
`. TOTALS
`
`_
`
`.
`
`Basic Filing
`Fee
`
`Search Fee
`
`Examination
`
`Fee
`
`Size Fee
`
`Total Claims:
`
`Independents:
`
`$300.00 =
`
`$500.00
`
`x
`
`x
`
`$200.00
`
`$250.00
`
`$50.00 =
`
`$200.00 =
`
`28
`
`1
`
`1
`
`-
`
`—
`
`—
`
`100
`
`20
`
`3
`
`=
`
`=
`
`=
`
`0
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`O
`
`0
`
`If any Multiple Dependent Claim(s) present:
`
`+ $360.00 =
`
`$300.00
`
`$500.00
`
`$200.00
`
`$0.00
`
`$0.00
`
`$0.00
`
`$0.00
`
`Surcharge under 37 CFR 1.16(e) for late filing of Executed
`Declaration or late payment of filing fee
`
`+ $130.00 =
`
`$0.00
`
`SUBTOTAL: =
`
`$1000.00
`
`D
`
`Small Entity Fees Apply (subtract 1/2 of above): =
`
`0
`
`TOTAL FILING FEE: =
`
`$1000.00
`
`Assignment Recordation Fee:
`
`Processing Fee under 37 CFR l.17(i) for Late Filing of
`English Translation of Application:
`
`TOTAL FEE
`
`WASH_1712679.1
`
`+
`
`+
`
`$40.00 =
`
`$0.00
`
`$130.00 =
`
`$0.00
`
`=
`
`$1000.00
`
`0005
`
`0005
`
`

`

`Atty. Dkt. No. 024051-0228
`
`A credit card payment form in the amount of $1000.00 to cover the filing fee is
`
`enclosed.
`
`The Commissioner is hereby authorized to charge any additional fees which may be
`
`required regarding this application under 37 CPR. §§ 1.16-1.17, or credit any overpayment,
`
`to Deposit Account No. 19—0741. Should no proper payment be enclosed herewith, as by the
`
`credit card payment form being unsigned, providing incorrect information resulting in a
`
`rejected credit card transaction, or even entirely missing, the Commissioner is authorized to
`
`charge the unpaid amount to Deposit Account No. 19-0741.
`
`Please direct all correspondence to the undersigned attorney or agent at the address
`
`indicated below.
`
`Respectfully submitted,
`
`Date
`
`101 ¢1~leé
`
`FOLEY & LARDNER LLP
`
`Customer Number: 22428
`Telephone:
`(202) 945-6002
`Facsimile:
`(202) 672-5399
`
`Marc K. Weinstein
`
`Attorney 'for Applicants
`Reglstratlon NO- 43,250
`
`WASH_171 2679.1
`
`0006
`
`0006
`
`

`

`.0
`
`*,
`
`.0
`
`.-
`
`CLICK BASED TRADING WITH INTUITIVE
`
`GRID DISPLAY OF MARKET DEPTH
`
`Bring!
`
`v The present application claims priority to a US. Provisional Patent
`
`Application entitled “Market Depth Display Click Based Trading and Mercury
`Display” filed March 2, 2000, the contents of which are incorporated herein'by-
`
`reference.
`
`10
`
`Field of Invention
`
`The present
`
`invention is directed to
`
`the
`
`electronic trading of
`
`commodities. Specifically, the invention provides a trader with a versatile and
`
`_ efficient tool. for executing trades.
`
`It facilitates the display of and the rapid
`
`placement of trade orders within the -market trading depth of a commodity,
`where a commodity includes anything that can be traded with quantities and/or
`
`15
`
`prices,
`
`I
`
`Background Of The Invention
`
`20
`
`At least 60 exchanges throughout the world utilize electronic trading in
`
`varying degrees to trade stocks, bonds, futures, options and other products.
`These electronic exchanges are based on three components: mainframe
`computers (host), communications servers, and the exchange participants’
`computers
`(client).
`The host
`forms
`the electronic heart of
`the fully
`
`25
`
`computerized electronic trading system. The system’s operations cover order-
`
`matching, maintaining order books and positions, price information, and
`
`ooo;1'
`
`BEST AVAILABLE copy
`
`0007
`
`

`

`0.0
`
`0.-
`
`managing and updating the databasa for the online trading day as well as nightly ,
`
`batch runs. The host is also equipped with external interfaces that maintain
`uninterrupted online contact
`to quote vendors and other price information
`
`. systems.
`
`"Traders can link to the host through three types of structures:_ high
`
`speed data lines, high speed communications servers and the Internet. High
`
`speed data lines establish direct connections between the client and the host.
`
`10
`
`Another connection can be established by configuring high speed networks or
`communications servers at strategic access points worldwide in locations where
`traders physically are located. - Data is transmitted in both directions between
`
`traders and exchanges via dedicated high speed communication lines. Most
`exchange participants install two lines between the exchange and the client site
`or between the communication server and the client site as a safety measure
`
`‘15
`
`‘ against potential failures; An exchange’s internal computer system is also often
`
`installed with backups as a redundant measure to secure system availability.
`
`The third connection utilizes the Internet. Here, the exchange and the traders
`communicate back and forth through high speed data lines, which are connected
`
`to the Internet. This allows traders to be located anywhere they can establish a
`
`2O
`
`connection to the Internet. '
`
`Irrespective of the way in which a connection is established,
`
`the
`
`25.
`
`exchange participants’ computers allow traders to participate in the market.
`They use software that creates specialized interactive trading screens on the
`traders’ desktops. The trading screens enable traders to enter and execute
`orders, obtain market quotes, and monitor positions. V The range and quality of
`features available to traders on their screens varies according to the specific
`
`software application being run. The installation of open interfaces in the
`development of an exchange’s electronic strategy means users can choose,
`depending on their trading style and internal requirements, the means by which
`
`30_
`
`they will access the exchange.
`
`0008
`
`0008
`
`

`

`The world’s stock, bond, futures and, Options exchanges have volatile
`products with prices that move rapidly. To profit in these markets, traders
`must be able to. react quickly. A skilled trader with the quickest software, the
`
`fastest communications, and the most sophisticated analytics can significantly
`improve his own or his firm’s bottom line. The slightest speed advantage can
`generate significant returns in a fast moving market. In today’s securities
`markets, a trader lacking a technologically advanced interface is at a severe
`
`competitive disadvantage.
`
`10
`
`Irrespective of what interface a trader uses to enter orders in the market,
`
`each market supplies and requires the same information to and from every
`trader. The bids and asks in the market make up the market data and everyone
`logged on to trade can receive this information if the exchange provides it.
`Similarly, every exchange requires that certain information be included in each
`order. For example, traders must supply information like the name of the
`commodity, quantity, restrictions, price and multiple other 'variables. Without
`all of this information,
`the market will not accept the order. This input and
`
`output of information is the same for every trader.
`
`With these variables being constant, a competitive speed advantage must
`
`come from other aspects of the trading cycle. When analyzing the time it takes
`to place a trade order for a given commodity, various steps contribute - in
`different amounts to the total time required. Approximately 8% of the total
`time it takes to enter an order elapses between the moment the host generates
`the price for the commodity and the moment the client receives the price. The
`time it takes for the client application to display the price-to the trader amounts ‘
`
`‘to approximately 4%. The time it takes for a trade order to be transmitted to
`the host amounts to approximately 8%. The remainder of the total time it takes
`to place an order, approximately 86%,
`is attributable to the time required for
`the trader to read the prices displayed and to enter a trade order. The present
`
`invention provides a significant advantage during the slowest portion of the
`trading cycle — while the trader manually enters his order. Traders recognize
`
`15
`
`20
`
`25
`
`30
`
`-3-
`0009
`
`0009
`
`

`

`that the value of time savings in this portion may amount to millions of dollars
`
`annually.
`
`In existing systems, multiple elements of an order must be entered prior
`to an order being sent to market, which is time consuming for the trader. Such
`elements include the commodity symbol,
`the desired price, the quantity and
`
`whether a buy or a sell Order is desired. The more time a trader takes entering
`
`10
`
`an order, the more likely the price on which he wanted to bid or offer will
`change or not be available in the market. The market is fluid as many traders
`are sending orders to the market simultaneously.
`It fact, successful markets
`strive to have such a high volume of trading that any trader who wishes to enter
`an order will find a match and have the order filled quickly, if not. immediately.
`
`In such liquid markets, the prices of the commodities fluctuate rapidly. On a
`
`trading screen,
`
`this results in rapid changes in the price and quantity fields
`
`15
`
`within the market grid.
`
`If a trader intends to enter an order at a‘ particular
`
`price, but misses the price because the market'prices moved before he could
`enter the order, he may lose hundreds, thousands, even millions of dollars. The
`
`faster a trader can trade, the less likely it will be that he will miss his price and
`
`the more likely he will make money.
`
`20
`
`Summgugy Of The Invention
`
`The inventors have developed the present invention which overcomes
`
`the drawbacks of the existing trading systems and dramatically reduces the time
`
`25
`
`it takes for a trader to place a trade when electronically trading on an- exchange.
`
`This, in turn, increases the likelihood that the trader will have orders filled at
`
`desirable prices and quantities.
`
`The “Mercury” display and trading, method of the present invention
`
`30
`
`ensure fast and accurate execution of trades by displaying market depth on a
`
`vertical or horizontal plane, which fluctuates logically up or down, left or right
`
`_4-
`0010
`
`0010
`
`

`

`O“
`
`‘
`
`0..
`
`across the plane as the market prices fluctuates. This allows the trader to trade
`
`quickly and efficiently.
`
`Specifically,
`
`the» present
`
`invention is directed to a graphical user
`
`_
`
`interface for displaying the market depth of a commodity traded in a market,
`
`including a dynamic display for a plurality of bids and for a plurality of asks in
`the market for the commodity and a static display of prices corresponding to the
`
`In this embodiment the pluralities of bids and asks
`plurality of bids and asks.
`are dynamically displayed in alignment with the prices corresponding thereto.
`
`10
`
`Also described herein-is a method and system for placing trade orders using
`
`such displays.
`
`These embodiments, and others described in greater detail herein,
`
`provide the trader with improved efficiency and versatility in placing, and thus
`executing,” trade orders for commodities in an electronic exchange. Other
`
`15-
`
`-
`
`features and advantages of the present invention will become apparent to those
`
`skilled in, the art from the following detailed description.
`
`It should be
`
`understood, however, that the detailed description and specific examples, while
`indicating preferred embodiments of the present invention, are given by way of
`illustration and not limitation. Many changes and modifications within the
`
`20
`
`scope of the present invention may be made without departing fromthe spirit
`
`thereof, and the invention includes all such modifications.
`
`Brief Description Of The Drawings
`
`’25
`
`30
`
`Figure 1 illustrates the network connections between multiple exchanges
`
`and client sites;
`.
`Figure ‘2 illustrates screen display showing the inside market and the
`market depth of a given commodity being traded;
`Figure 3 illustrates the Mercury display of the present invention;
`
`‘Figure 4 illustrates the Mercury display at a later time showing the
`
`movement of values when compared to Figure 3;
`
`0011
`
`0011
`
`

`

`Figure 5 illustrates a Mercury display with parameters set in 'order to
`
`‘
`exemplify the Mercury trading method; and
`Figure 6 is a flowchart illustrating the process for Mercury disPlay and
`
`trading.
`
`Detailed Description Of The Preferred Embodiments
`
`the present
`As described with reference to the accompanying figures,
`invention provides a display and trading method to ensure fast and accurate
`execution oftrades by displaying market depth on a vertical or horizontal plane,
`which fluctuates logically up or down,
`left or right across the plane as the
`market prices fluctuates. This allows the trader to place trade orders quickly
`and efficiently. A commodity’s market depth is the current bid and ask prices
`and quantities in the market. The di5play and trading method of the invention
`increase the likelihood that the trader will be able to execute orders at desirable
`
`prices and quantities.
`
`In the preferred embodiment, the present invention is implemented on a
`computer or electronic terminal. The computer is able to communicate either
`directly or indirectly (using intermediate devices) With the exchange to receive
`and transmit market, commodity, and trading order information.
`It is able to
`
`interact with the trader and to generate contents and characteristics of a trade
`
`order to be sent to the exchange.
`
`It is envisioned that the system of the present
`
`invention can be implemented on any existing or future terminal or device with
`the processing capability to perform the functions described herein. The scope
`of the present invention is not limited by the type of terminal or device used.
`Further, the specification refers to a single click of a mouse as a means for user
`input and interaction with the terminal display as an example of a single action
`of the user. While this describes a preferred mode of interaction, the scope of
`
`.
`
`10
`
`15
`
`20
`
`25
`
`30
`
`the present invention is not limited to the use of a mouse as the input device or
`to the click of a mouse button as the user’s single action. Rather, any action by
`
`a user within a short period of time, whether comprising one or more clicks of a
`
`0012
`
`0012
`
`

`

`mouse button or other input device, is considered a single action of the user for
`
`.
`
`the purposes of the present invention.
`
`The system can be configured to allow for trading in a single or in
`
`multiple exchanges simultaneously. Connection of the system of the present
`invention with multiple exchanges is illustrated in Figure 1. This figure shows
`
`l01-103 connected through routers 104-106 to
`multiple host exchanges
`gateways 107—109. Multiple client terminals 110-1'16 for use as trading stations
`can then trade in the multiple exchanges through their connection to the
`
`10
`
`gateways 107-109. When the system is configured to receive data from
`multiple exchanges, then the preferred implementation is to translate the ‘data
`frOm various exchanges into a simple format. This “translation” function is
`
`described below with reference to Figure 1. An applications program interface
`
`(“TT API” as depicted in the figure) translates the incoming data formats from
`the different exchanges to a simple preferred data format. This translation
`
`15
`
`function may be disposed anywhere in the network, for example, at the gateway
`
`server, at the individual workstations or at both.
`
`In addition, the storage at
`
`gateway servers and at the client workstations, and/or other external storage
`cache historical data such as order books which list the client’s active orders in
`
`20
`
`the market; that is, those orders that have neither been. filled nor cancelled.
`
`Information from different exchanges can be displayed at one or in multiple
`
`windows at
`
`the client workstation. Accordingly, while reference is made
`
`through the remainder of the specification to a single exchange to which a
`
`trading terminal is connected, the scope of the invention includes the ability to
`
`25
`
`trade,
`
`in accordance with the trading methods described herein,
`
`in multiple
`
`exchanges using a single trading terminal.
`
`The preferred embodiments of the present invention include the display
`of “Market Depth” and allow traders to view the market depth of a Commodity
`and to execute trades within the market depth with a single click of a computer
`
`30
`
`' mouse button. Market Depth represents the order book with the current bid and
`ask prices and quantities in the market.
`In other wordS, Market Depth is each
`
`001-37-
`
`0013
`
`

`

`0.0
`
`- M
`
`bid and ask that was entered into the market, subject to the limits noted below,
`
`in addition to the inside market. For a commodity being traded, the “inside
`
`market” is the highest bid price and the lowest ask price.
`
`The exchange sends the price, order and fill information to each trader
`on the exchange. The present invention processes this information and maps it
`
`through simple algorithms and mapping tables to positions in a theoretical grid
`programor any other comparable mapping technique for mapping data to a
`screen. The physical mapping of such information to a screen grid can be done
`by any technique known to-those skilled in them. The present invention is not
`limited by the method used to map the data to the screen display.
`
`How far into the market depth the present invention can display depends
`on how much of the market depth the exchange provides. Some exchanges
`supply an infinite market depth, while others provide no market depth or only a
`few orders away from the inside market. The user of the present invention can
`also chose how far into the market depth to display on his screen.
`
`Figure 2 illustrates a screen display of an invention described in a
`commonly owned co-pending application entitled “Click Based Trading with
`Market Depth Display” serial no.
`, filed'on
`,, the contents of which
`are incorporated herein by reference. This display shows the inside market and
`the market depth of a given commodity being traded. Row 1 represents the
`“inside market” for the commodity being traded which is the best (highest) bid
`price and quantity and the best (lowest) ask price and quantity. Rows 2-5
`represent the “market depth” for the commodity being traded.
`In the preferred
`embodiment of the present invention, the display of market depth (rows 2-5) ’
`lists the available next-best bids, in column 203, and ask8, in column 204. The
`working bid and ask quantity for each price level is also displayed in columns
`202 and 205 respectively (inside market - row 1). Prices and quantities for the
`inside market and market depth update dynamically on a real time basis as such
`
`information is relayed from the market.
`
`10
`
`15
`
`20
`
`25
`
`'30
`
`0014
`
`0014
`
`

`

`ofi.‘
`
`6.0
`
`In the screen display shown in Figure 2, the commodity (contract) being
`
`traded is represented in row 1 by the character string “CDHO”. The Depth
`
`column 208 will inform the trader of a status by displaying different colors.
`Yellow indicates that the program application is waiting for data. Red indicates ‘
`
`that the Market Depth has failed to receive the data from the server and has
`“timed. out.” Green indicates that the data has just been updated. The other
`
`column headings in this and all of the other figures, are defined as follows.
`
`Bithy (Bid Quantity): the quantity for each working bid, BidPrc (Bid Price):
`the price for each working bid, AskPrc (Ask Price): the price for each working
`ask, Astty (Ask Quantity): the quantity for each working ask, LastPrc (Last
`Price): the price for the last bid and ask that were matched in the market and
`LastQty (Last Quantity): the quantity traded at the last price. Total represents
`the total quantity traded of‘ the given commodity.
`
`10
`
`15
`
`The configuration of the screen display itself informs the user in a more
`
`convenient and efficient manner than existing systems.
`
`Traders gain a
`
`significant advantage by seeing the market depth because they can see trends in
`the orders in the market. The market depth display shows the trader the interest .
`
`20
`
`the market has in agiven commodity at different price levels. If a large amount
`of bids or asks are in the market near the trader’s position, he may feel he
`
`should sell or buy before the inside market reaches the morass of orders. A
`
`lack of orders above or below the inside market might prompt a trader to enter
`
`orders near the inside market. Without seeing the market depth, no such
`
`-‘25
`
`strategies could be utilized. Having the dynamic market depth, including the
`
`bid and ask quantities and prices of a traded commodity aligned with and
`- displayed below the current
`inside market of the commodity conveys the
`information to the user in a more intuitive and easily understandable manner.
`
`Trends in the trading of the commodity and other relevant characteristics are
`
`30
`
`more easily identifiable by the user through the use of the present invention.
`
`001'?
`
`0015
`
`

`

`Various abbreviations are used in the screen displays, and specifically,
`
`in the column headings of the screen displays reproduced herein.
`
`Some
`
`abbreviations have been discussed above. A list of common abbreviations and
`
`their meanings is provided in Table 1.
`
`001610'
`
`0016
`
`

`

`Table I - Abbreviations
`
`
`
`
`
`Indrvrdual quotes)
`
`Bid Member ID
`
`TheoAsk
`
`‘ Threshold Bid Price
`
`‘ BQP
`
`it
`
`28
`
`3a
`93o.
`a: a D-2 >oOr:3
`
`.
`
`Bid Price
`
`Accumulated Bid Quantity
`
`Quote
`
`Chedrbox activates I deactivates
`contract for quoting
`'
`
`.
`
`
`
`BidPrc Avg
`
`Bid Price Average
`
`AskPrc Avg
`
`Ask Price Average
`
`Astty Accum Accumulated Ask Quantity
`
`Ask Price
`
`.4:rR 3'>lo I3
`
`Threshold Ask Price
`
`Ask Quantity
`Working Sells for entire Group
`
`i 1: E’
`«mm
`
`a3
`
`(It
`
`Ask Member ID
`
`mm
`
`
`II
`
`
`—Working Buys for entire Group
`erBuysrz)
`
`
`
`
`
`
`
`
`
`
`
`
`
`z5.||||||||ii|||i||ii||
`
`
`
`
`
`
`82
`
`FFNetPos r
`
`‘ LastPrc
`
`LastQty
`
`Total
`
`Net Position
`
`Fast Fill Net Position
`
`‘
`
`Last Price
`
`Last Quantity
`
`TotaLTracled Quantity
`
`Change in Delta given 1 pt
`change in underlying
`Change in price given 1 pt
`changetn underlying
`
`Percent volatility
`Price change given 1%
`change in Vola
`Price change given 1%
`change in Interest rate
`
`Price change for every day
`that elapses
`Activate / deactivate click
`trading by contract
`Auction. Closed. Fastht. Not
`Tradable. Pre-uadtng. Tradabla. 8 R
`post-trading
`
`Expiration Month/Year
`
`
`
`Volara)
`
`<m
`
`gap)
`
`Thetara)
`
`Click Trd
`
`5'a”
`
`
`
`Low
`
`High Price
`
`Low Price
`
`Open
`
`_Closing Price
`_Last Price-Last Close
` Theoretical Price
`
`
`
`
`ooiil'
`
`0017
`
`

`

`00.._'
`
`06.
`
`As described herein,
`
`the display and trading method of the present
`
`invention provide the user with certain advantages over systems in which a
`display of market depth, as shown in Figure 2, is used. The Mercury display
`and trading method of the present invention ensure fast and accurate execution
`of trades by displaying market depth on a vertical or horizontal plane, which
`fluctuates logically up or down,
`left or right across the planeras the market
`prices fluctuates. This allows the trader to trade quicklyand efficiently. . An
`_ example of such a Mercury display is illustrated in the screen display of Figure
`
`10
`
`3.
`
`The display of market depth and the manner in which traders trade
`within the market depth can be effected in different manners, which many
`traders will find materially better, faster and more accurate.
`In addition, some
`
`15-
`
`In the
`traders may find the display of market depth to be difficult to follow.
`display shown in Figure 2, the market depth is displayed vertically so that both
`Bid and Ask prices descend the grid. The Bid prices descend the market grid as
`the prices decrease. Ask prices also descend the market grid as these prices
`actually increase.
`This combination may be considered counterintuitive and
`
`20
`
`difficult to follow by some traders.
`
`The Mercury display overcomes this problem in an innovative and
`
`logical manner. Mercury also provides an order entry system, market grid, fill
`window and summary of market orders in one simple window.
`.Such a
`condensed display materially simplifies the trading system lbyentering and
`tracking trades in an- extremely efficient manner. Mercury displays market
`depth in a logical, vertical fashion or horizontally or at some other convenient
`angle or configuration. A vertical field is shown in the figures and described
`for convenience, but the field could be horizontal or at an angle.
`In turn,
`
`Mercury further increases the speed of trading and the likelihood of entering
`orders at desired prices with desired quantities.
`In the preferred embodiment of
`the invention, the Mercury display is a static vertical column of prices with the
`
`25
`
`30
`
`-12-
`0018
`
`0018
`
`

`

`bid and ask quantities displayed in vertical columns to the side of the price
`
`column and aligned with the corresponding bid and ask prices. An example of
`
`this display is shown in Figure 3.
`
`Bid quantities are in the column 1003 labeled BidQ and ask quantities
`
`are in column 1004 labeled Ast. The representative ticks from prices for the
`
`given commodity are shown in column 1005. The column does not list the
`whole prices (e.g. 95.89), but rather,just the last two digits (e.g. 89).
`In the -
`example shown, the inside market, cells 1020, is 18 (best bid quantity) at 89
`(best bid price) and 20 (best ask quantity) at 90 (best ask price).
`In the
`
`The values in the price column are static; that is, they do not normally
`change positions unless a re-centering command is received (discussed in‘detail
`later). The values in the Bid and Ask columns however, are dynamic; that is,
`they move up and down (in the vertical example) to reflect the market depth for
`the given commodity- The LTQ commn 1006 shows the last traded quantity of
`the commodity. The relative position of the quantity value with respect to the
`Price values reflects the price at which that quantity was traded. Column 1001
`labeled E/W (entered/working) displays the current status of the trader’s orders.
`
`The status of each order is displayed in the price row where it was entered. For
`example,
`in cells 1007,
`the number next to S indicates the number of the
`trader’s ordered lots that have been sold at the price in the specific row. The
`
`number next to W indicates the number of the trader’s ordered lots that are in ~
`
`the market, but have not been filled—Le. the system is Working on filling the
`
`order. Blanks in this column indicate that orders are entered or working at that
`price.
`In cells 1008, the number next to B indicates the number of the trader’s
`ordered lots that have been bought at the price in the specific row. The number
`
`10
`
`15
`
`20
`
`.25
`
`30
`
`next to W indicates the number of the trader’s ordered lots that are in the
`market, but have not been filled—Le. the system is working on filling the order.
`
`001?;
`
`0019
`
`

`

`«P
`
`'
`
`«0-
`
`Various parameters are set and information is provided in column 1002.
`
`For example, “10:48:44” in cell 1009 shows the actual time of day. The L and
`
`R fields in cell 1010 indicate a quantity value, which may be added to the order
`
`quantity entered. This process is explained below with respect to trading under
`- Mercury. Below the L and R fields, in cell 1011, a number appears which '
`represents the current market volume. This is the number of lots that have been
`traded for the chosen contract. Cell 1012, “X '10”, displays the Net Quantity,
`
`10
`
`15
`
`20
`
`25
`
`the current position of the trader on the chosen contract. The number “10”
`represents the trader’s buys minus sells. Cell 1013 is the “Current Quantity”;
`this field represents the quantity for the next order that the trader will send to
`market. This can be adjusted with right and left clicks (up and down) or by-
`
`clicking the buttons which appear below the Current Quantity in cells 1014.‘
`These buttons increase th