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`E 'me term{tt rhls patent
`subs6quent to
`has been dlsclaimed.
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`ttre tErm ot thls patent shall
`not extend beyond the expiratlon Cate
`of U.S Patent. No,
`
`SheetsrDrwO.
`
`b
`
`DRAWINGS
`
`'*'f*n Print Fio.r1
`J
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`(Aseistant Examinor)
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`cuniEhr-LowED
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`NOTICE OF A].LOWANCE il'AiI.ED
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`WARNING:
`The Informatlon dlsclosed hereln rnay'be r.e8trlct€d. Unhqthorlzed dlsclosuro may be prchlblted by the United Stiatos Code Title 3Q;. Sectlons 122, 181 ant 368.
`to authorlzed€mployoes and contractors only.
`Possqsslon outsldo tho U;S. Patent & Trademarl(:Offle,e ls reslrlc{€d
`i,
`F|LED wrrH: I OrSr (CRfl [ nCnr ! co-nou
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`Form FTO.436A
`(Rev.6/99)
`
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`(FACE)
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`CQG EXHIBIT 1002
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`

`SEARCHED
`
`Class
`
`Sub.
`
`Date
`
`Exrnr.
`
`'l 'J-
`
`l5
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`

`(12) United States Patent
`Kemp,II et al.
`
`(54)
`
`(7s)
`
`(73)
`
`(.)
`
`(2r)
`(n)
`(6s)
`
`(62)
`
`(60)
`
`(s1)
`(s2)
`(s8)
`
`(s6)
`
`CLICK BASED TRADING WIIII INTT'IIIVE
`GRID DISPIAY OT I\{ARIG'T DEPTH
`
`Inventors: Gary Allan Kemp, II, Winnetka, IL
`(US); Jens'Uwe Schluetter, Evanston,
`IL (US); Harrls Brumfield, Chicago,
`IL (US)
`
`Assignee: l):adinC Technologies International,
`Inc, Chicago, IL (US)
`Notice: Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.s.C. 1540) by 544 days.
`
`Appl. No.:09189+637
`Filed: Jun.27,2001
`Prior Publication Data
`
`VS 2W21m59129 A.1 May 16, 20f]/ 2
`
`Related U.S. Appllcatlon Dats
`
`Division of application No. 09/590,692, filed on Jun, 9,
`2000.
`Provisional application No. 6UL86,322, filed on Mar, 2,
`2000.
`Int. Cl.7
`G06F 17160
`U.S. Cf.
`......705137;70586;705135
`Fiefd of Search ...........
`705f,5,36,37:'
`345t8r4
`
`References Cited
`
`U.S. PAtrENT DOCUMENTS
`6/1987 lGlmus et al. ............. 3il140E
`4,674,044 A
`43fr,r3s A
`6/1988 Boilen ........................ 3&15L4
`s,on2$ A
`&1991 Kramer
`1?1991 Silverrnn et al. .......... 3&lM
`5,0T1,665 A
`8/199 Silverman et al. .,......., 364140E
`5,136501 A
`s27o9n A
`1?1993 Higgim .......i.............. 364/408
`s2n,B1 A
`3/1994 Gutterman et al.
`52np32 A
`3/1994 Trojan er al.
`lLlL9Vl l,ozman
`5,689F51 A
`
`| ilffi ffiilt il lllil lllll llill lilll lllll llll lllll illll llllllllll llll fill
`us00676630482
`1ro; Patent No.: US 6,766 304 Bz
`1+s1 Date of Patent:
`Jul. 20,20M
`
`s774p77 A
`sJ%3or A
`
`6/1998 Patterson, Jr. et al.
`V1998 Patterson, Jr. et al.
`
`(List continued on next page.)
`
`FOREIGN PATENT DOCUMENTS
`wo
`wo 9ry49639 rLlL998
`wo wo99n982r 4L999
`wo wo99Bm59 64999
`wo
`wo 99t53424 L0lL999
`wo
`wo 00/52619 92m0
`wo wow62t87 Loncfo
`wo
`wo 00/65510 trt2c0o
`wo
`wo 01/16830 3nffil
`wo
`wo 0u16852 3amr
`wo wooLt?,3ts 3n;mr
`wo
`wo 01/88$8 llpml
`OTHER PTJBUCAIIONS
`
`Patsystems News Release, Patsystems Iaunches J Tradcr,
`Nov. 6, 2001.t
`www.hadingtechnologies.com,/productVxtrade-firll.html
`(viewed Mzy 22,2001) dun. 9, 2000.
`Kharouf,Atrading room with a view, Fufutes,2f ,ll-Nov,
`1998.
`USPTO Presentation, NASDAQ, Nov. 8,2001, enclosed pp.
`1-13.
`
`Prtmory Examirer--Richard Weisberger
`Q4) Attomey, Agent, or Firm-{oley & t ardner
`(s7)
`ABSTIIACT
`A method and system for reducing the time it takes for a
`trader to place a trade when electronically trading on an
`exchange, thus increasing the likelihood that the trader will
`have orders filled at desirable prices and quantities. The
`"Mercurf display xsd hading method of the present inven-
`tion ensuro fast and accurate execution of rades by display-
`ing market depth on a vertical or horizontal plane, which
`fluctuates logically up or dowq left or right across the plane
`as thc market prices fluctuates. Tbis allows the trader to trade
`quicHy and efrciently.
`
`40 Clatms, 6 Drawing Sheets
`
`0005
`
`

`

`(12) United States Patent
`Kemp, II et al.
`
`illlll llllllll lll lllll lllll lllll lllll lllll lllll lllll lllll llllll llll llll llll
`us006766304B2
`us 6,766,304 82
`Jul.20,2004
`
`(ro) Patent No.:
`(+s) Date of Patent:
`
`(54) CLICK BASED TRADING WMII INTUITWE
`GRID DISPLAY OT'MARKET DEP/TH
`(75) Inventors: Gary Allan KemP, II, Winnetka' IL
`(US); Jens-Uwe Schluetter, Evanston,
`L (US); Ilarris Brumfield, Chicago'
`IL (US)
`
`(73) Assignee:
`
`Trading Technologies International'
`Inc., Chicago, IL (US)
`
`( * ) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 544 daYs.
`
`(21) Appl. No.: 091E94,637
`(22) Filed:
`Jun.27' 2001
`Prior Publication Data
`(65)
`US 2002/0059129 Al MaY 16'2002
`
`Related U.S. APPlication Data
`
`Division of application No. 09/590,692, filed on Jun' 9'
`2000.
`Provisional application No. 60/186,322, filed on Mar' 2'
`2000.
`Int. CL7
`U.S. Cl.
`Field of Search
`
`. G06F 17160
`.......705137;705136;705135
`...". 705135,36,37:
`3451814
`
`References Cited
`
`(62)
`
`(60)
`
`(sl)
`(s2)
`(58)
`
`(56)
`
`U.S. PATENT DOCUMENTS
`Kalmus et d. .........'... 3641408
`Boilen ............. .........'. 3$l5l4
`Kramer
`Silverman et al. ...'....'. 3641408
`Silverman et al. .......... 36U408
`Higgins ..................'.'. 364/408
`Gutterman et al.
`Trojan et al.
`Lozman
`
`6t1987
`6/1988
`at99r
`LU199r
`at992
`rut993
`311994
`311994
`rvt99'1
`
`4,674,M4 A
`4,750,135 A
`5,038,284 A
`5,077,665 A
`5,136,501 A
`5,n0,922 A
`5,297,03r A
`5,297,032 A
`5,689,651 A
`
`5,774,877 A
`5,793,301 A
`(List continued on next Page.)
`
`6/1998 Patterson, Jr. et aI.
`8/1998 Patterson, Jr' et al.
`
`wo
`wo
`wo
`wo
`wo
`wo
`wo
`wo
`wo
`wo
`wo
`
`FOREIGN PATENT DOCUMENTS
`wo 98/49639 11/1998
`wo 99/19821 411999
`wo 99130259 611999
`wo 99t53424 1011999
`wo 00/52619 912000
`wo 00/62187 10/2000
`wo 00/65510 rrl2000
`wo 01/16830 31200r
`wo 0l/16852 3D001
`wo 0r223r5 3t200r
`wo 0l/88808 11/2001
`OTHER PUBLICATIONS
`Patsystems News Release, Patsystems Launches J Trader'
`Nov. 6,2001.*
`wwwtradingtechnologies. com/productVxtrade-fu ll' html
`(viewed May 22,2001) <Jun. 9, 2000.
`Kharoui Atrading room with a view, Fututes, 27' ll-Nov'
`1998.
`USPTO Presentation, NASDAQ, Nov' 8, 2001' enclosed pp'
`l-13.
`
`P rilnary Exatnine r-Richard Weisberger
`(74) Anomey, Agent, or Firnt-Foley & Lardner
`(s7)
`ABSTRACT
`A method and system for reducing the time it takes for a
`trader to place a trade when electronically trading- on an
`exchange, thus increasing the likelihood that the trader will
`have oiders filled at desirable prices and quantities' The
`"Mercury" display and trading method of the present inven-
`tion ensure fast and accurate execution of trades by display-
`ing market depth on a vertical or horizontal plane, which
`flulctuates logiially up or down, Ieft or right across the plane
`as the market prices fluctuates. This allows the trader to trade
`quickly and efficiently.
`
`40 Claims, 6 Drawing Sheets
`
`0006
`
`

`

`us 6,766,304B'2
`Page 2
`
`U.S. PATENT DOCUMENTS
`5:t97,m2 A
`5.845,266 A
`5,915,245 A
`5,924,082 A
`5,924,083 A
`5,963,923 A
`6,012,046 A
`6,014,643 A
`6.098,051 A
`
`Patterson, Jr. et al.
`Lupien et al.
`Patterson, Jr. et al.
`Silverman et al.
`Silverman et al. ............ 705137
`Garber ........................ 70587
`Lupien et al.
`Minton .............,.,,......, 705137
`Lupien et al.
`
`8/1998
`1U1998
`611999
`711999
`711999
`10/1999
`112000
`l/2000
`8/2000
`
`1012000
`1012000
`
`6,131,087 A
`6.134,535 A
`6,195,647 81 2n00r
`6,272,474 Br 812001
`6,278,982 Bl
`812001
`6,282,521 Bl
`8n001
`6,408,282 Bl
`6n002
`2002/0023038 Al
`2D002
`2002/0055899 A1 5D002
`* cited by examiner
`
`Luke et al.
`Belzberg
`Martyn et al.
`Garcia
`Korhammer et al.
`Howorka
`Buist
`Fritsch et al.
`Williams
`
`0007
`
`

`

`fl.S. Patent
`
`Jul.20,2004
`
`Sheet 1 of 6
`
`us 6,766,304 82
`
`FIG. 1
`
`101
`
`CONNECTION TO MULTIPLE EXCHANGES
`
`HOST EXCHANGE
`C FACILITIES
`
`HOST EXCHANGE
`
`Iii$ ji
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`GAT,EWAY
`
`EM CTIENT CLIENT CLIENT CLIENT CLIENT CLIENT
`'113 114 115
`10 111 112
`
`116
`
`0008
`
`

`

`fI.S. Patent
`
`JuL.20,2004
`
`Sheet 2 of 6
`
`us 6,766,304 82
`
`CDoc\l
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`
`

`

`fJ.S. Patent JuL 2o,2oo4
`
`Sheet 3 of 6
`
`us 6,766,304 82
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`5
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`94
`
`93
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`91
`
`90
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`89
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`88
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`86
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`85
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`84
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`83
`
`82
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`1002
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`

`

`I.J.S. Patent Jur.2o,?;ool
`
`Sheet 4 of 6
`
`us 6,766,304 82
`
`FIG. 4
`FYCOITI FGBL DEC99
`10:48:44
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`1101
`
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`
`

`

`{J.S. Patent
`
`Jul.20,2004
`
`Sheet 5 of 6
`
`us 6,766,304 82
`
`FIG, 5
`ffiMFGBLDECgg EtrE
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`

`

`fJ.S. Patent
`
`Ja1.20,2004 Sheet 6 of6
`
`us 6,766,304 82
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`us 6,766,304 92
`
`2
`CLICK BASED TRADING WITH INTUITM
`screens varies according to th9 specific so-ftwar9 application
`GRID DISpLAy OpMARKET DEp,IH
`being run. The installation of open interfaces in the devel-
`opment of an exchange's electronic strategy means users can
`This application is a divisional application of Ser. No. choose, depending on their trading style and internal
`the means bv which thev will access the
`0gts9o,6g2 filed Jun. 09, 2000 which claims bm;;;';i r 1:-1Ylt:1t"ts,
`6un6:322, fi1ed Mar' 2,2000'
`pRroRrry
`"-ilTtt;no', stock, bond, tutures and oprions exchanges
`il#,I;h:[ *?i::::Jlt J*::;#1,T?J:J:[1I;J?
`The present application claims priority to a U.S. Provi- ,n i skilled trader with the quickest.software, the fastest
`sional iatent epplication entitled "Maricet Depth Display '" communications, and the most soPhisticated analytics can
`Click Based fraOing and Mercury Display" filed Mar. j,
`significantly impr,ove his own or his firm's bottom line. The
`2000, the contents-of *n.n a." in.orporuted herein by
`sllghtestspeedadvantlgecangeneratesignificantretumsin
`reference.
`a fast moving market. In today's securities markets, a trader
`.- lacking a technologically advanced interface is at 4 severe
`r) competitive disadvantage'
`FIELD OF INVENTION
`lrresoective of what interface a trader uses to enter orders
`The present invention is directed to the electronic trading in the market, each market supplies and requires the same
`of commodities. Specifically, the invention provides a trader information to and from every trader. The bids and asks in
`with a versatile and efficient tool for executing trades. It
`the market make up the market data and everyone logged on
`facilitates the display of and the rapid placement of trade 20 to trade can receive this information if the exchange pro-
`orders within the market trading depth of a commodity, vides it. Similarly, every exchange requires that certain
`where a commodity includes anything that can be traded information be included in each order. For example, traders
`with quantities and/or prices.
`must supply information like the name of the commodity'
`quantity, restrictions, price and multiple other variables.
`BACKGROUND OF THE II.IVENTION zs Without all of this information, the market will not accept
`input and output of information the same for
`At least 60 exchanges throughour the world urilize elec- :lt$tfifft
`tronic trading in varying degrees to trade stocks, bonds, With th"." variables being constant, a competitive speed
`futures, options and other products. These _electronic advantage must come from other aspects of the trading
`exchanges are based on-three components: mainframe-com- lo cycle. When analyzing the time it takes to place a trade order
`puters (host), communications seryers, and the exchange for a given commodity, various steps contribute in different
`participants' computers (client). The host forms the elec- u-ou-ntrtothetotaltimerequired.Approximately SVoof the
`tronic heart of the fully computerized electronic trading total time it takes to entei an order elapses between the
`system. The system's operations cover order-matching' moment the host generates the price for the commodity and
`maintaining order books and positions, price information, 35 themomenttheclientreceivestheprice.Thetimeittakesfor
`and managing and updating the database for the online --
`the client application to display the price to the trader
`trading day as well as nightly batch runs. The host is also amounts to ipproximately 47i."I1'rc timC it takes for a trade
`equipped with extemal interfaces that maintain uninter- order to be transmitted to the host amounts to approximately
`rupted online contact to quote vendors and other price 8To,Theremainderofthetotaltimeittakestoplaceanorder,
`information systems.
`ao approximately 80Vo, is attributable to the time required for
`Traden can link to the host through three types of
`the trader to read the prices displayed and to enter a trade
`structures: high speed data lines, high speed communica- order. The present invention provides a significant advan-
`tions servers and the Internet. High speed data lines establish tage during the slowest portion of the trading cycle-while
`direct connections between the client and the host. Another the trader manually enters his order. Traders recognize that
`connection can be established by configuring high speed +s the value of time savings in this portion may amount to
`networks or communications servers at strategic access millions of dollars annually.
`points worldwide in locations where traders physically are
`In existing systems, multiple elements of an order must be
`located. Data is transmitted in both directions between entered prior to an order being sent to market, which is time
`traders and exchanges via dedicated high speed communi- consumi'ng for the trader. Such elements include the com-
`cation lines. Most exchange participants install two lines 5s modity symbol, the desired price, the quantity and whether
`between the exchange and the client site or between the a buy or i sell order is desired. The more time a trader takes
`communication server and the client site as a safety measure entering an order, the more likely the price on which he
`against potential failures. An exchange's intemal computer wanted to bid or offer will change or not be available in the
`system is AIso often installed with backups as a redundant' market. The market is fluid as many traders are sending
`measure to secure system availability. The third connection 55 orders to the market simultaneously. It fact, successful
`utilizes the Intemet. Here, the exchange and the traders markets strive to have such a high volume of trading that any
`comnunicate back and forth through high speed data lines, hader who wishes to enter an order will find a match and
`which are connected to the Intemet. This allows traden to be have the order filled quickly, if not immediately. In such
`located anywhere they can establish a connection to the fquid markets, the prices of the commodities fluctuate
`Internet.
`oo rapidly. On a trading screen, this results in rapid changes in
`Inespective of the way in which a connection is
`the price and quantity fields within the market grid. If a
`estabhs|ed, the exchange participants' computers allow trader intends to enter an order at a particular price, but
`traders to participate in the market. They use software that misses the price because the market prices moved before he
`creates specialized interactive trading screens on the traders' could enter the order, he may lose hundreds, thousands, even
`desktops. The trading ssreens enable traders to enter and os millions of dollars. The faster a trader can trade, the less
`executi orders, obtain market quotes, and monitor positions. likely it will be that he will miss his price and the more likely
`The range and quality of features available to traders on their he will make money.
`
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`3
`SI.JMMARY OF THE INVENTION
`
`The inventors have 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 tum, increases the likelihood that the trader will
`have orders fllled at desirable prices and quantities.
`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
`plane as the market prices fluctuates. This allows the trader
`to trade quickly and efficiently.
`Specifically, the present invention is directed to a graphi-
`cal 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 correspond-
`ing to the plurality of bids and asks. In this embodiment the
`pluralities of bids and asks are dynamically displayed in
`alignment with the prices corresponding thereto. 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 efrciency and
`versatility in placing, and thus executing, trade orders for
`commodities in an electronic exchange. Other features and
`advantages of the present invention will become apparent to
`those skilled in the art from the following detailed descrip-
`tion. It should be understood, however, that the detailed
`description and specific examplesn while indicating pre-
`ferred embodiments of the present invention, are given by
`way of illustration and not limitation. Many changes and
`modifications within the scope of the present invention may
`be made without departing from the spirit thereof, and the
`invention includes all such modifications.
`
`BRIEF DESCRIPTION OF TI{E DRAWINGS
`
`FIG. 1 illustrates the network connections between mul-
`tiple exchanges and client sites;
`FIG. 2 illustrates screen display showing the inside mar-
`ket and the market depth of a given commodity being traded;
`FIG. 3 illustrates the Mercury display of the present
`invention:
`FIG. 4 illustrales the Mercury display at a later time
`showing the movement of values when compared to FIG. 3;
`FIG. 5 illustrates a Mercury display with parameters set in
`order to exemplify the Mercury trading method; and
`FIG. 6 is a flowchart illustrating the process for Mercury.
`display and trading.
`
`DETAILED DESCRIPTION OF TFIE
`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 fluc-
`tuates 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 efrciently. 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
`orders at desirable prices and quantities.
`
`4
`In the prefened embodiment, the present invention is
`implemented on a computer or electronic lerminal. The
`computer is able to communicate either directly or indirectly
`(using intermediate devices) with the exchange to receive
`5 and transmit market, commodity, and trading order infor-
`mation. 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
`, n 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 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
`29 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.
`The system can be configured to allow for trading in a
`25 single or in multiple exchanges simultaneously. Connection
`of the system of the present invention with multiple
`exchanges is illustrated in FIG. 1. This figure shows multiple
`host exchanges 101-103 connected through routers 104-106
`to gateways 107-109. Multiple client terminals 110'-116 for
`39 uso 8s 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
`35 format. This. "translation" function is described below with
`reference to FIG. 1. An applications program interface ('TI
`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
`a6 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 extemal storage cache historical data such as
`order books which list the client's active orders in the
`a5 nuuketl 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
`59 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 rading terminal.
`The preferred embodiments of the present invention
`ss include the display of "Market Depth" and allow trader to
`view the market depth of a commodity and to execute trades
`within the market depth with a single click of a computer
`mouse button. Market Depth represents the order book with
`the current bid and ask prices and quantities in the market.
`oo In other words, Market Depth is each bid and ask that was
`entered into the market, subject to the limits noted beloq in
`addition to the inside market. For a commodity being traded,
`the "inside market" is the highest bid price and the lowest
`ask price.
`65 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
`
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`us 6,766,304 B2
`
`t
`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 such
`information to a screen grid can be done by any technique
`known to those skilled in the art. 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 mar-
`ket 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. FIG. 2 illustrates a screen
`display of an invention described in a commonly owned
`co-pending application entitled "Click Based Trading with
`Market Depth Display" Ser. No. 09/589,751, filed on Jun. 9,
`2000, 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
`prefened embodiment ofthe present invention, the display
`of market depth (rows 2-5) lists the available next-best bids,
`in column 203, and asks, in column 204.T\e working bid
`and ask quantity for each price level is also displayed in
`columns 202 and 205 respectively (inside market-row l).
`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.
`In the screen display shown in FIG. 2, the commodity
`(contract) being traded is represented in row I by the
`character string "CDHO". The Depth column 20E 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
`
`t5
`
`6
`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. 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
`ask, AskQty (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 added at the last price. Total repre-
`sents 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 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 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 enler orders near the inside market.
`Without seeing the market depth, no such stategies 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 more easily identifiable by the user through the use ofthe
`present invention.
`
`J:
`
`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 corlmon abbreviations and their meanings is
`provided in Table l.
`
`TABLE I
`
`Abbreviations.
`
`COLUMN
`
`DESCRIPTION
`
`COLI.JMN
`
`DESCRIPTION
`
`Month
`Bid Mbr(l)
`WrkBuys(2)
`
`Expiration Month/Year
`Bid Member ID
`Working Buys for entire Group ID
`
`TheoBid
`TheoAsk
`Qact
`
`BidQty
`ThnhBid(6)
`BidPrc
`Bid Qty Accurn
`BidPrc Avg
`
`Bid Quantity
`Tbreshold Bid Price
`Bid Price
`Accumulated Bid Quantity
`Bid Price Average
`
`BQQ
`BQP
`Mf:t BQQ
`Mh BQP
`Quote
`
`AskPrc Avg
`AskQty Accum
`AskPrc
`ThnMsk(6)
`AskQty
`WrkSells(2)
`Ask Mb(l)
`NetPos
`FFNetPos
`
`Ask Price Average
`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
`
`MltAQQ
`MId AQP
`AQP
`AQQ
`rmp BidQty(s)
`Lnp BidPrc(s)
`Imp AskQty(S)
`knp AskPrc(5)
`Garnma(3)
`
`IastPrc
`
`LastQty
`Total
`
`High
`
`Last Price
`
`Last Quantity
`Total Traded Quantity
`
`High Price
`
`Delta (3)
`
`Vola (3)
`Vega (3)
`
`Rhop (3)
`
`Theoretical Bid Price
`Theoretical Ask Price
`Quote Action (Sends
`individual quotes)
`Test Bid Quote Quantity
`Test Bid Quote Price
`Market Bid Quote Quantity
`Market Bid Quote Price
`Checkbox activates/
`deactivates contact for quoting
`Market Ask Quote Quantity
`Market Ask Quote Price
`Ask Quote Price
`Ask Quote Quantity
`Implied Bid Quantity
`Implied Bid Price
`lmplied Ask Quantity
`Irplied Ask Price
`Change in Delta given I pt
`change in underllng
`Change in price given I pt
`change in underlying
`Percent volatility
`Price cbange given I%
`change in Vola
`Price change givenl%
`change in inlercst rate
`
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`7
`
`TABLE I-continued
`
`Abbreviations.
`
`COLIJMN
`
`DESCRIPTION
`
`COLI,JMN DESCRIPTION
`
`I-ow
`
`Open
`
`Close
`
`chg
`TheoPrc
`
`Low Price
`
`Opening Price
`
`Closing Price
`
`Last Price-I -st Close
`Theorctical Price
`
`Theta(3)
`
`Click Trd
`
`S (Status)
`
`Expuy
`
`Price charge for every day
`that elapses
`Activate/deactivate ctck
`trading by contract
`Auction" Oosed, FastMkt, Not
`Tradable, Pre-rading,
`Tradable, S = post-trading
`Exoiration Molth/Year
`
`l5
`
`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 FIG. 2, is used. The Mercury display and rrading 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 plane as the market prices fluctuates. This
`allows the trader to trade quickly and efficiently. An example
`of such a Mercury display is illustrated in the screen display
`of FIG. 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 traders
`may find the display of market depth to be difrcult to follow.
`In the display shown in FIG. 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 consid-
`ered counterintuitive and difficult to follow by some traden.
`The Mercury display overcomes this problem in an inno-
`vative and logical manner. Mercury also provides an order
`entry system, market grid, fill window and sumrnary of
`market orders in one simple window Such a condensed
`display materially simplifies the trading system by enteriDg
`and tracking nades in an extremely efficient manner. Mer-
`cury displays market depth in a logical, vertical fashion or
`horizontally or at some other convenient angle or configu-
`ration. 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 oftrading
`and the likelihood of entering orders at desired prices with
`desired quantities. In the preferred embodiment of the
`invention, the Mercury di