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`6766304
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`U.S. UTILITY Patent Application
`PATENT DATE
`IJUL 2 0 2004
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`APPLICATION NO.
`09/894637
`
`CONT/PRIOR CLASS.
`705
`D
`
`SUBCLASS
`
`"
`
`'
`
`ART UNIT
`'
`2,J .. 64--~·
`'~''.(.it,,//
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`EXAMINER (J
`\.IS i,>• ~I
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`Gi ""'· 1··· y
`Jens-Uwe Schluetter
`! .. 1<:~1·- r· is B1··um f :i . .;::! 1 d
`
`Utllt!l&JJOQ JO
`tOOZ 9 I AON
`Click based trading with intuitive grid i:::1 i ~::; i:~\lib!fli1 S!~:r k ·::id::.
`
`PT0-2040
`12199
`
`ISSUING CLASSIFICATION
`CROSS REFERENCE(S)
`
`CLASS -
`
`/; ')
`
`JG
`
`SUBCLASS (ONE SUBCLASS PER BLOCK)
`
`>r
`
`ORIGINAL
`
`I
`
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`
`SUBCLASS
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`INTERNATIONAL CLASjSIFICATl.ON
`\1//tJ
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`I
`
`DTERMINAL
`DISCLAIMER
`
`D The term of this patent
`subsequent to
`has been disclaimed.
`D
`The term of this patent shall -
`not extend beyond the expiration date
`of U.S Patent. No.
`
`(date)
`
`, ,
`
`-·
`
`D The terminal
`_months of
`this patent r'lve been disclaimed.
`
`D Continued on Issue Slip Inside File Jacket
`
`CLAIMS ALLOWED
`
`Print Fig.
`
`DRAWINGS
`
`Flgrrwg.
`
`sheetrrwg.
`
`Print Claim for O.G. ~ F'?
`c? ~
`----- ___..,---
`
`(Assistant Examiner}
`
`(Date}
`
`f1J We1)(,tcr-
`A HARD WEISBERGER
`.
`A Uv 1{<.'t:
`·· :flBIM/\~V ~MINER
`~~ 1/~
`
`/
`
`(Primary Examiner)
`
`'
`
`(Date}
`
`(Legal Instruments Examiner}
`
`(Date)
`
`NOTICE OF ALLOWANCE MAILED
`
`)-/Q-DC/
`
`ISSUE FEE
`
`Date Paid
`
`~ Amount Due
`
`/330
`
`ISSUE BATCH NUMBER
`
`WARNING:
`The information disclosed herein may be restricted. Unauthorized disclosure may be prohibited by the United States Code Title 35, Sections 122, 181 ana 368.
`;
`·
`,Possession outside the U.S. Patent & Trademark Office is restricted to authorized employees and contractors only.
`FILED WITH: D DISK (CRF) D FICHE D CD-ROM
`
`Form PT0-436A
`(Rev. 6/99)
`
`(Attached In pocket on right Inside flap}
`
`(FACE
`
`0001
`
`TDA 1022
`CBM of U.S. Patent No. 6,766,304
`
`

`
`. '""-.IW~~<OC»<OO
`
`11111111111111111111111111111111111111111111111111
`09894637/
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`: i1017 u;s. PTO
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`09 /894637
`: 11111111111111111111~ 111111111111111111
`
`06/27 /01
`
`I
`
`CONTENTS
`
`42.
`
`43.
`
`44.
`
`45.
`
`46.
`
`47.
`
`48.
`
`49.
`
`.
`, r~lf
`INITIAL,) (J
`---,,-. - -
`
`Date Received
`(Incl. C. of M.)
`or
`Date Mailed
`
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`
`28. ----'----~---- - - - - 69. - - - - - - - - - - - - - -
`29. _________ - - - - 70. ______ ~--- - - - - -
`30. _________ - - - - 71. __ ,_..__... ______ - - - -
`31. _________ - - - - 72. _________ - - - -
`32. _________ - - - - 73. _________ - - - -
`33. _________ - - - - 74. _________ - - - -
`34. _________ - - - - 75. _________ - - - -
`35.
`76. _________ - - - -
`36. - - - - - ' - - - - - - - - - - 77. _________ - - - -
`37. _________ - - - - 78. _________ - - - -
`38. _________ - - - - 79. _________ - - - -
`39. - - - - - - - - - - - - - 80. _________ - - - -
`40.
`81. _________ - - - -
`,\ 41. _________ -~-- 82. - - - - - - - - - - - - - - ' -
`,.·\,:.
`(LEFT OUTSIDE)
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`55. - - - - - - - - - - - - -
`56. - - - - - - - - - ___ _
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`61. _________ - - - -
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`22. _________ - - - - 63. - - " ' - - - - - - - - - - - - - -
`,,
`23. _________ - - - -
`64. _________ - - - -
`24. _________ - - - - 65. _________ - - - -
`25. _________ - - - - 66. _________ - - - -
`
`0002
`
`

`
`cJ.cJ
`PATENT APPLlCXTION SERIAL NO. {)f'ff </03 7
`
`U.S. DEPARTMENT OF COMMERCE
`PATENT AND TRADEMARK OFFICE
`FEE RECORD SHEET
`
`i)//\i:)/l'\iOi BRIWfifllt 00000033 0'38<14637
`;·n. llj£":\:J.
`i·;~·: fC ~ 2VJ
`
`3~fi, 00 OP
`9.00 OP
`
`PT0-1556
`(5/87)
`·u.s. GPO: 2000-468-987/39595
`
`0003
`
`

`
`Page 1of1
`
`COMMISSIONER FOR PATENTS
`UNITED STATES PATENT AND TRADEMARK OFFICE
`WASHINGlON, D.C. 20231
`www.uspto.gov
`
`\
`
`CONFIRMATION NO. 1527
`
`CLASS
`705
`
`GROUP ART UNIT
`2164
`
`ATTORNEY
`DOCKET NO.
`024051-·0155
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`11111111 ~Ill lllll lllll lllll llllll llll 11111111111111111111111111111111
`Bib Data Sheet
`
`SERIAL NUMBER
`09/894,637
`
`FILING DATE
`06/27/2001
`RULE
`
`APPLICANTS
`Gary Allan Kemp II, Winnetka, IL;
`Jens-Uwe Schluetter, Evanston, IL;
`Harris Brumfield, Chicago, IL;
`
`** CONTINUING DATA*************************
`THIS APPLICATION IS A DIV OF 09/590,692 06/09/2000
`WHICH CLAIMS BENEFIT OF 60/186,322 03/02/2000
`
`** FOREIGN APPLICATIONS ********************
`
`IF REQUIRED, FOREIGN FILING LICENSE GRANTED •• SMALL ENTITY**
`'** 07/25/2001
`/
`i:J ,,es jZl no
`Foreign Priority claimed
`35 USC 119 (a-d) conditions W ·y~L,s'~·~o i:J Met after
`met
`Allowa ce
`Verified and
`Acknowledged
`ADDRESS
`Robert C. Klinger
`Jackson Walker L.L.P.
`'suite 600
`. 2435 North Central Expressway
`Richardson , TX i5080
`
`STATE OR
`COUNTRY
`IL
`
`SHEETS
`DRAWING
`6
`
`Examiner's Signature
`
`Initials
`
`TOTAL
`CLAIMS
`21
`
`INDEPENDENT
`CLAIMS
`3
`
`TITLE
`
`Click based trading with intuitive grid display of market depth
`
`FILING FEE FEES: Authority has been given in Paper
`RECEIVED No.
`to charge/credit DEPOSIT ACCOUNT
`364
`No.
`for following:
`
`\9 All Fees
`]
`::=======-1
`ji:J 1.16 Fees (Filing)
`_
`Cl 1 .17 Fees ( Processing Ext. of
`time)
`~ 1.18 Fees (Issue)
`ji:J Other
`ji:J Credit
`
`0004
`
`

`
`Please type a plus sign(+) i~sid.•
`
`.Jx ~ [±]
`
`.,
`
`~I
`
`•
`(
`
`PTO/SB/05 (11-00)
`Approveo, .. Jse through 10/31/2002. OMB 0651-0032
`U.S. Patent and Trademark Office: U.S. DEPARTMENT OF COMMERCE 0
`:;::
`Under the Paperwork Reduction Ad of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number.
`Attorney Docket No. I 120046-00003
`I:--
`1~
`UTILITY
`. ........
`I Gary Allan Kemp II, et al
`PATENT APPLICATION
`::J ~ r---...._
`c:g;
`TRANSMITTAL
`
`.-i
`
`2. 181
`
`3.181
`
`\... (Only for new non provisional applications under 37 C.F.R. 1. 53(b)}
`APPLICATION ELEMENTS
`See MPEP chapter 600 concerning utility patent application contents.
`Fee Transmittal Form (e.g., PTO/SB/17)
`1.·181
`(Submit an original and a duplicate for fee processing)
`Applicant claims small entity status.
`See 37 CFR 1.27.
`[Total Pages ~ I
`Specification
`(preferred arrangement set forth below)
`- Descriptive title of the Invention
`- Cross References to Related Applications
`- Statement Regarding Fed sponsored R & D
`- Reference to sequence listing, a table,
`or a computer program listing appendix
`- Background of the Invention
`- Brief Summary of the Invention
`- Brief Description of the Drawings (if filed)
`- Detailed Description
`-Claim(s)
`- Abstract of the Disclosure
`
`ADDRESS TO:
`
`11. 0
`
`First Inventor
`CLICK BASED TF~ADING WITH INTUITIVE GRID DISPLAY OF
`Title
`MARKET DEPTH
`"
`Express Mall Label No. I EL 840961286US
`Assistant Commissioner for Patents
`Box Patent Application
`. Washington, DC 20231
`7. 0 CD-ROM or CD-R in duplicate, large table or
`Computer Program (Appendix)
`8. Nucleotide and/or Amino Acid Sequence Submission
`(if applicable, all necessary)
`a. 0 Computer Readable Form (CRF)
`b. Specification Sequence Listing on:
`i. 0 CD-ROM or CD-R (2 copies); or
`ii. D paper
`c. n Statements verifvina identity of above copies
`ACCOMPANYING APPLICATIONS PARTS
`9.0 Assignment Papers (cover sheet & document(s))
`0 Powerof
`37 C.F.R.§3.73(b) Statement
`10. 0
`(when there is an assignee)
`Attorney
`English Translation Document (if applicable)
`0 Copies of IDS
`Citations
`
`I
`I
`
`[Total,Sheets[Ll
`
`[Total Pages· D
`
`4.~ Drawing(s) (35 U.S.C.113)
`5. Oath or Declaration
`a. 0 Newly executed (original or copy)
`b. 181 Copy from a prior application (37 CFR 1.63 (d))
`(for a continuation/divisional with Box 18 completed)
`i. 0 DELETION OF INVENTOR(S}
`Signed statement attached deleting inventor(s}
`named in the prior application, see 37 CFR
`1.63(d)(2) and 1.33(b).
`6.0 Application Data Sheet. See 37 CFR 1. 76
`
`12.0
`
`13.181
`14. 0
`
`Information Disclosure
`Statement (IDS)/PT0-1449
`Preliminary Amendment
`Return Receipt Postcard (MPEP 503)
`(Should be specifically itemized)
`15.0 Certified Copy of Priority Document(s)
`(if foreign priority is claimed)
`16.0 Request and Certification under 35 U.S.C. 122
`(b)(2)(B)(i). Applicant must attach form PTO/SB/35
`or its equivalent.
`17.0 Other:
`
`18. If a CONTINUING APPLICATION, check appropriate box, and supply the requisite information below and in a preliminary amendment,
`or in an Application Data Sheet under 37 CFR 1. 76:
`of prior application No: 09 / 590,692
`D Continuation-in-part (CIP)
`181 Divisional
`D Continuation
`Group! Art Unit: 2164
`Examiner Rich Weisberger
`Prior application information:
`For CONTINUATION or DIVISIONAL APPS only: The entire dlsclosure of the 1>rlor application, from which an oath or declaration is supplied
`under Box 5b, Is considered a part of the disclosure of the accompanying or dlvlslonal appllcatlon and Is hereby Incorporated by reference.
`The Incorporation~ be relied upon when a portion has been Inadvertently omitted from the submitted appllcatlon parts.
`17. CORRESPONDENCE ADDRESS
`
`181 Customer Number or Bar Code Label
`
`l;·••·rth~~tt·dJ~t~at~~~[~:~~:~;!·;~~~:·;~:~ he~)._] or D Correspondence· address below
`
`Name
`
`Address
`
`City
`
`Country
`
`I State
`I Telephone
`
`I Zip Code
`I Fax
`
`Name (Print/Type)
`
`Robert C. Klinger
`__.--,_/ .
`Signature c~~~~ I Date
`
`Registration No. (Attorney/Agent)
`
`./ .//"} A
`
`34,365
`
`June 27, 2001
`
`.J
`
`Burden Hour Statement: This i~ is estimated to t~~~ hout:o complete. Time will vary depending upon the needs of the individual case. Any
`comments on the amount of ti e you are required to mplete his form should be sent to the Chief Information Officer, U.S. Patent and Trademark
`Office, Washington, DC 20231. DO NOT SEND FEES OR COMPLETED FORMS TO THIS ADDRESS. SEND TO: Assistant Commissioner for
`Patents, Box Patent Application, Washington, DC 20231.
`
`JWDOCS 2678917vl
`
`0005
`
`

`
`NON-PROVISIONAL APPLICATION FOR U.S. PATENT UNDER 37CFR1.53(b)
`TRANSMITTAL FORM
`
`Attorney Docket No. 120046-00003
`
`Assistant Commissioner for Patents
`Washington, D. C. 20231
`
`Sir:
`
`Transmitted herewith for filing is the
`patent application of:
`
`lnventor(s): Gary Allan Kemp II, et al
`
`Label No.
`"EXPRESS MAILING" Mailing
`I
`EL840961286US. Date of Deposit: June 27, 2001.
`hereby certify that this paper is being deposited with the
`U.S. Postal Service Express Mail Post Office to Addressee
`Service under 37 CFR 1.10 on the date shown above and is
`addressed to the Assistant Commissioner for Patents,
`w.._~
`~··~
`
`For: CLICK BASED TRADING WITH INTUITIVE GRID DISPLAY OF MARKET DEPTH
`
`Enclosed are:
`
`__ 6_ sheets of informal drawings and 32 pages of Specification (including Abstract)
`_ _ A Declaration/Power of Attorney
`X Small Entity Sta~ claimed under 37 CFR 1.27
`This application is a Divisional of Serial No. 09/590,692 entitled CLICK BASED TRADING WITH INTUITIVE
`GRID DISPLAY OF MARKET DEPTH, filed June 09, 2000.
`
`FEE CALCULATION
`
`FEE
`
`NUMBER
`
`NUMBER
`EXTRA
`
`RATE
`
`BASIC FEE
`$ 355.00
`
`Total Claims
`
`Independent Claims
`
`21
`
`3
`
`20=
`
`l
`
`X$9=
`
`$ 9.00
`
`- 3 =
`
`X$40=
`
`Total Filing Fee
`
`$364.00
`
`A check in the amount of$ 364.00 is enclosed.
`All correspondence related to this application may be addressed to the undersigned at Jackson Walker LLP, 2435
`North Central Expressway, Suite 600, Richardson, Texas 75080.
`
`June 27, 2001
`Date
`
`0006
`
`

`
`CLICK BASED TRADING WITH INTUITIVE
`
`GRID DISPLAY OF MARKET DEPTH
`
`Priority
`
`5
`
`The present application claims priority to a U.S. 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.
`
`Field of Invention
`
`-~:,
`o:~
`.J·:: The present invention is directed to the electronic trading of commodities. Specifically,
`'1''
`;~:;
`iA,~
`
`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 prices.
`
`Background Of The Invention
`
`....
`
`At least 60 exchanges throughout the world utilize electronic trading in varying
`degrees to trade stocks, b~nds, 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 computerized electronic trading system. The
`
`25
`
`system's operations cover order-matching, maintaining order books and positions, price
`
`information, and·manag.ing and updating the database 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.
`
`1
`
`101997-00003
`
`0007
`
`

`
`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. 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 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 ~nd forth through high speed data lines, which are
`connected to the Internet. This allows traders to be located anywhere they can establish
`a connection to the Internet.
`
`5
`
`1! :'::q:
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`Irrespective of the way in which a connection is established, the 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. 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
`25 means by which they will access the exchange.
`
`2
`
`101997-00003
`
`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.
`5 · 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
`4 severe competitive disadvantage.
`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 fhe 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 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 80%, 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
`
`25
`
`.
`
`3
`
`101997-00003
`
`0009
`
`

`
`cycle -- while the trader manually enters his order. Traders recognize that the value of
`time savings in this portion may amount to millions of dollars annually.
`
`5
`
`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 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 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.
`
`Summary Of The Invention
`
`The inventor~ !lave developed the present invention which overcomes the
`drawbacks of the existing trading systems and dramatically reduces the time 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.
`
`25
`
`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
`
`4
`
`101997-00003
`
`0010
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`

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`plane, which fluctuates logically up or down, left or right 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
`
`s
`
`displaying the market depth of a commodity traded in a market, including a dynamic
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`display for a plurality of bids and for a plurality of asks in the market for the commodity
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`and a static display of prices corresponding to the plurality of bids and asks. In this
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`embodiment the pluralities of bids and asks are dynamically displayed in alignment with
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`the prices corresponding thereto. Also described herein is a method and system for
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`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
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`orders for commodities in an electronic exchange. Other features and advantages of
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`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
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`specific examples, while indicating preferred embodiments of the present invention, are
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`given by way of illustration and not limitation. Many changes and modifications within
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`the scope of the present invention may be made without departing from the spirit
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`thereof, and the invention includes all such modifications.
`
`Brief.Description Of The Drawings
`
`Figure 1 illustrates the network connections between multiple exchanges and
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`25
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`client sites;
`Figure 2 illustrates screen display showing the inside market and the market
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`depth of a given commodity being traded;
`Figure 3 illustrates the Mercury display of the present invention;
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`5
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`101997-00003
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`0011
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`

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`Figure 4 illustrates the Mercury display at a later time showing the movement of
`values when compared to Figure 3;
`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.
`
`s
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`Detailed Description Of The Preferred Embodiments
`
`As described with reference to the accompanying figures, the present invention
`provides a display and trading method to 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 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 display and trading
`method of the invention increase the likelihood that the trader will be able to execute
`m . orders at desirable prices and quantities.
`
`i.
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`::;•\I
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`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 anq 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
`6n 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
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`.,
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`6
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`101997-00003
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`0012
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`

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`scope of the present invention is not limited to the use of a mouse as the input device
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`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
`mouse button or other input device, is considered a single action of the user for the
`purposes of the present invention.
`
`s
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`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 multiple host exchanges
`101-103 connected through routers 104-106 to gateways 107-109. Multiple client
`terminals 110-116 for use as trading stations can then trade in the multiple exchanges
`through their connection to the 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 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 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 clien.t 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 trade, in
`accordance with the trading methods described herein, in multiple exchanges using a
`single trading terminal.
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`\1
`•'"if
`~ )..
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`The preferred embodiments of the present invention include the display of
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`"Market Depth" and allow trader to view the market depth of a commodity and to
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`execute trades within the market depth with a single click of a computer mouse button.
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`Market Depth represents the order book with the current bid and ask prices and
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`5
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`quantities in the market. In other words, Market Depth is each
`bid and ask that was entered into the market, subject to the limits noted below, in
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`addition to the inside market. For a commodity being traded, the "inside market" is the
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`highest bid price and the lowest ask price.
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`The exchange sends the price, order and fill information to each trader on the
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`exchange. The present invention processes this information and maps it through simple
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`algorithms and mapping tables to positions in a theoretical grid program or any other
`comparable mapping technique for mapping data to a screen. The physical mapping of
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`such information to a screen grid can be done by any technique known to those skilled
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`in the art. The present invention is not limited by the method used to map the data to
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`the screen display.
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`How far into the market depth the present invention can display depends on how
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`much of the market depth the exchange provides. Some exchanges supply an infinite
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`market depth, while others provide no market depth or only a few orders away from the
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`!nside market. The user of the present invention can also chose how far into the market
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`depth to display on his screen.
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`~-:---+-----rigure 2 illustrates a screen display of an in ntion described in a commonly
`ow ed co-pending application entitled "Click B ed Trading with Market Depth Display"
`___ the conte s of which are incorporated herein by
`
`reference. This display shows the insid
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`arket and the market depth of a given
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`commodity being traded. Row 1 repr sents the "inside market" for the commodity b'eing
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`8
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`101997-00003
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`0014
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`traded which is the best (highest) bid price and quantity an he best (lowest) ask price
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`J{ and quantity. Rows 2-5 represent the "market depth" for. e commodity being traded. In
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`'
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`'the preferred embodiment of the present invention, t e display of market depth (rows
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`·
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`2-5) lists the available next-best bids, in column
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`working bid and ask quantity for each price lev
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`3, and asks, in column 204. The
`is also displayed in columns 202 and
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`205 respectively (inside market - row 1 ). Prf s and quantities for the inside market and
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`market depth update dynamically on a re
`"'::Gr. I the ffl8FIEot.
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`time basis as such information is relayed
`
`In the screen display shown in Figure 2, the commodity (contract) being traded is
`• The.Depth column 208 will inform
`represented in row 1 by the character string 11CDH0 11
`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. 11 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. BidQty (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
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`ask, AskQty (Ask Quantity): the quantity for each working ask, LastPrc (Last Price): the
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`price for the last bid and ask that were matched in the market and LastQty (~ast
`Quantity): the quantity added at the last price. Total represents the total quantity traded
`
`of the given commodity.
`
`The configuration of the screen display itself informs the user in a more
`
`convenient and efficient manner than existing systems. Traders gain a significant
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`25
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`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 the market has in a
`given commodity at different price levels. If a large amount
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`9
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`101997-00003
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`0015
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`

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`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
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`below the inside market might prompt a trader to enter orders near the inside market.
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`Without seeing the market depth, no such strategies could be utilized. Having the
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`5
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`dynamic market depth, including the bid and ask quantities and prices of a traded
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`commodity aligned with and displayed below the current inside market of the
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`commodity conveys the information to the user in a more intuitive and easily
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`understandable manner. Trends in the trading of, the commodity and other relevant
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`characteristics are mc;>re easily identifiable by the user through the use of the present
`
`invention .
`
`. 1.:;,
`i(;;>1
`:1;t;j
`i; j~'. ¥
`;!~i
`l~'!
`IM
`111:'1
`
`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.
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`'l'f,~~
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`. ?
`----·----------~:.~
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`

`
`Table I - Abbreviations.
`
`COLUMN
`
`Month
`Bid Mbr(1)
`WrkBuys(2}
`
`Bid Qty
`ThrshBid(6)
`BidPrc
`Bid Qty Accurn
`BidPrc Avg
`
`AskPrcAva
`AskQty Accurn
`f\skPrc
`ThrshAsk(6)
`Ask Qty
`WrkSells(2)
`~sk Mbr(1)
`NetPos
`FFNetPos
`
`LastPrc
`
`LastQty
`Total
`
`High
`
`Low
`
`Open
`
`Close
`
`Chng
`rrheoPrc
`
`DESCRIPTION
`Theo Bid
`Expiration Month/Year
`TheoAsk
`·Bid Member ID
`Working Buys for entire Group ID Qact
`
`COLUMN
`
`Bid Quantity
`!Threshold Bid Price
`Bid Price
`f\ccumulated Bid Quantity
`Bid Price Average
`
`BQQ
`BQP
`Mkt BQQ
`Mkt BQP
`:::luote
`
`f\sk Price Averaae
`Accumulated Ask Quantity
`Ask Price
`Threshold Ask Price
`Ask Quantity
`Working Sells for entire Group ID
`Ask Member ID
`· Net Position
`Fast Fill Net Position
`
`MktAQQ
`MktAQP
`~QP
`AQQ
`Imp BidQty(5)
`Imo BidPrc(5)
`Imo AskQty(5)
`Imo AskPrc(5)
`Gamma(3}
`
`Last Price
`
`Last Quantity
`iTotal Traded Quantity
`
`High Price
`
`Low Price
`
`-Opening Price
`
`Closing Price
`
`Last Price-Last Close
`Theoretical Price
`
`Delta (3)
`
`Vola (3)
`Vega (3)
`
`Rhop (3)
`
`Theta(3}
`
`Click Trd
`
`S (Status}
`
`Expiry
`
`DESCRIPTION
`Theoretical Bid Price
`Theoretical Ask Price
`Quote Action (Sends
`individual Quote