`utility patent application of:
`
`Gary Aiian Kemp Ii
`Jens-Uwe Sohluetter
`Harris Brumfield
`
`Enoiosed are:
`
`[X]
`
`[X]
`
`[X]
`
`I]
`
`[
`
`]
`
`Specification, Clairrtisi, and Abstract (30 pages).
`
`informal drawings [6 sheets, Figures 1-6).
`
`Unsigned Declaration and Power of Attorney (4 pages].
`
`Information Disclosure Statement.
`
`Form PTO-1449 with copies of __ listed referenceisi.
`
`002349512
`
`0001
`0001
`
`(Part 1 of 2)
`IBG 1002
`IBG 1002 (Part 1 of 2)
`CBM of U.S. Pat. No. 6,772,132
`CBM of U.S. Pat. No. 6,772,132
`
`:_;g:._|::I
`no/so/90IllIllIIIIIIIIIIIIIIIIIIIIIIIIH
`0-LdS'Ii§ 5. ED‘.3 -I-
`
`Titiez
`
`App]. No.:
`
`Filing Date:
`
`Examiner:
`
`Art Unit:
`
`Atty. Dkt. No. o24o5Ho135
`
`IN THE UNITED STA TES PA TENT AND TRADEMARK OFFICE
`
`Gary Alan KEMP ll, et al.
`
`CLICK BASED TRADING WITH INTUITIVE GRID DISPLAY OF
`MARKET DEPTH
`
`Unknown
`
`June 9, 2000
`
`Unknown
`
`Unknown
`
`UTILITY PATENT APPLICATION
`TRANSMITTAL
`
`I/IIIIIIIIIIIIIIII
`U.S.PTO590592 III!‘
`C51109/IIIIIIIIIII
`
`Assistant Commissioner for Patents
`Box PATENT APPLICATION
`D.C. 20231
`
`Washington.
`
`Sir:
`
`
`
` '
`
`The filing fee is calculated below:
`
`Atty. Dkt. N0. 024051/0135
`
`
`Claims
`Included in
`Extra
`Fee
`
`as Filed
`Basic Fee
`Claims
`Totals
`$69000
`$36o_oo
`$234.00
`$000
`$1284.00
`
`Basic Fee
`=
`20
`—
`40
`Total claims;
`3—— =
`‘
`5
`Independents:
`If any Multiple Dependent C|aim(s) present:
`
`20
`3
`
`Rate
`$690.00
`$18.00
`378-00
`$260.00
`SUBTOTAL:
`
`x
`X
`+
`
`=
`=
`=
`=
`
`
`
`$642.00
`=
`Small Entity Fees Apply (subtract ‘/2 of above):
`[ X ]
`
` =TOTAL FILING FEE: $642.00
`
`
`[
`
`]
`
`A check in the amount of $642.00 to cover the filing fee is enclosed.
`
`[ X ] The required filing fees are not enclosed but will be submitted in response to the
`Notice to File Missing Parts of Application.
`
`[
`
`1
`
`The Assistant Commissioner is hereby authorized to charge any additional fees
`which may be required regarding this application under 37 C.F.R. §§ 1.16-1.17,
`or credit any overpayment, to Deposit Account No. 19-0741. Should no proper
`payment be enclosed herewith, as by a check being in the wrong amount,
`unsigned, post-dated, otherwise improper or informal or even entirely missing,
`the Assistant 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,
`
`flaw‘?-
`
`1223 No 415 /4'
`
`By
`
`William T. Ellis
`Attorney for Applicant
`Registration No. 26,874
`
`Date June 9, 2000
`
`FOLEY & LARDNER
`Washington Harbour
`3000 K Street, N.W., Suite 500
`Washington, D.C. 20007-5109
`Telephone:
`(202) 672-5485
`Facsimile:
`(202) 672-5399
`
`002349512
`
`-2-
`
`0002
`
`0002
`
`
`
`Gary Alan KEMP II
`Jens—Uwe SCHLUETTER
`Harris BRUMFIELD
`
`CLICK BASED TRADING WITH INTUITIVE
`
`GRID DISPLAY OF MARKET DEPTH
`
`Priorit_v_
`
` 10
`
`15
`
`20
`
`25
`
`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
`
`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
`
`prices .
`
`Background Of The Invention
`
`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
`
`computerized electronic trading system. The system’s operations cover order-
`
`matching, maintaining order books and positions, price information, and
`
`0003
`
`0003
`
`
`
`managing 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 .
`
`10
`
`15
`
`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 and forth through high speed data lines, which are connected
`
`to the Internet. This allows traders to be located anywhere they can establish a
`
`20
`
`connection to the Internet.
`
`
`
`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 means by which
`
`25
`
`30
`
`they will access the exchange.
`
`0004
`
`0004
`
`
`
`
`
`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
`
`15
`
`20
`
`25
`
`30
`
`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 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 cycle —— while the trader manually enters his order. Traders recognize
`
`0005
`
`0005
`
`
`
`
`
`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
`
`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.
`
`Summgg 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 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
`
`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
`
`10
`
`15
`
`20
`
`25
`
`30
`
`0006
`
`0006
`
`
`
`
`
`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
`
`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 efficiency 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 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
`
`scope of the present invention may be made without departing from the spirit
`
`thereof, and the invention includes all such modifications.
`
`Brief Description Of The Drawings
`
`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;
`
`10
`
`15
`
`20
`
`25
`
`30
`
`0007
`
`0007
`
`
`
`
`
`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
`
`As described with reference to the accompanying figures,
`
`the present
`
`invention provides a display and trading method to ensure fast and accurate
`
`10
`
`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
`
`15
`
`increase the likelihood that the trader will be able to execute orders at desirable
`
`prices and quantities.
`
`20
`
`25
`
`30
`
`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
`
`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
`
`0008
`
`0008
`
`
`
`
`
`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
`
`multiple host exchanges 101-103 connected through routers 104-106 to
`
`gateways 107-109. Multiple client terminals 110-116 for use as trading stations
`
`10
`
`15
`
`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 clie11t’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
`
`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
`
`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
`
`25
`
`30
`
`0009
`
`0009
`
`
`
`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
`
`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
`
`10
`
`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
`
`15
`
`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
`
`20
`
`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
`
`25
`
`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 asks, in column 204. The
`
`working bid and ask quantity for each price level is also displayed in columns
`
`30
`
`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.
`
`0010
`
`
`
`0010
`
`
`
`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.
`
`BidQty (Bid Quantity): the quantity for each working bid, BidPrc (Bid Price):
`
`10
`
`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 traded at the last price. Total represents
`
`the total quantity traded of the given commodity.
`
`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 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 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.
`
`
`
`0011
`
`0011
`
`
`
`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.
`
`
`
`-10-
`0012
`
`0012
`
`
`
`Table I — Abbreviations
`
`Expiration Month/Year
`
`TheoBid
`
`Theoretical Bid Price
`
`_Bid Member ID
`Working Buys for entire Group
`ll:)
`
`TheoAsk
`
`Theoretical Ask Price
`
`QAct
`
`Quote Action (Sends
`individual quotes)
`
`WrkBuys(2)
`
`BidQty
`
`Bid Quantity
`
`ThrshBid(s)
`
`Threshold Bid Price
`
`BQQ
`
`BQP
`
`*1
`
`Test Bid Quote Quantity
`
`Test Bid Quote Price
`
`BidPrc
`
`Bid Price
`
`Bid Qty Accum Accumulated Bid Quantity
`
`BidPrc Avg
`
`Bid Price Average
`
`AskPrc Avg
`
`Ask Price Average
`
`LMkt BQQ
`
`Mkt BQP
`
`Quote
`
`Mkt AQQ
`
`Market Bid Quote Quantity
`
`Market Bid Quote Price
`Checkbox activates I deactivates
`contract for quoting
`
`Market Ask Quote Quantity
`
`AskQty Accum
`
`Accumulated Ask Quantity
`
`Mkt AQP
`
`Market Ask Quote Price
`
`AskPrc
`
`Ask Price
`
`l Threshold Ask Price
`
`AQP
`
`AQQ
`
`Ask Quote Price
`
`Ask Quote Quantity
`
`implied Bid Quantity
`
`Implied Bid Price
`
`Ask Quantity
`Working Sells for entire Group
`lD
`
`pmp BidQty(s)
`Imp BidPrc(5)
`
`ThrshAsk(s)
`
`AskQty
`
`Wrksellsiz)
`
`Ask Mbr(1)
`
`NetPos
`
`Imp AskQty(5)
`
`Implied Ask Quantity
`
`implied Ask Price
`Change in Delta given 1 pt
`
`kchange in underlying
`Change in price given 1 pt
`change in underlying
`
`Percent volatility
`Price change given 1%
`change in Vola
`
`rPrice change given 1%
`change in interest rate
`
`Price change for every day
`that elapses
`Activate I deactivate click
`trading by contract
`Auction, Closed, FastMkt. Not
`Tradable, Pre-trading, Tradable, S =
`post-trading
`
`Expiration Month/Year
`
`i i
`
`Imp AskPrc(5)
`
`'l
`‘W
`
`Gammaia)
`
`De|ta(3)
`
`Vola(3)
`
`I’
`Vega(3)
`
`Rho(3)
`
`Thetaia)
`
`Click Trd
`
`LAsk Member ID
`
`Net Position
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`FFNetPos
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`Fast Fill Net Position
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`LastPrc
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`l.ast Price
`._l_
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`LastQty
`
`l_ast Quantity
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`Total
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`High
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`Total Traded Quantity
`T‘
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`High Price
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`l-ow Price
`
`Opening Price
`i
`Closing Price
`
`Last Price-Last Close
`
`Theoretical Price
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`-11-
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`0013
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`
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`0013
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`As described herein,
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`the display and trading method of the present
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`invention provide the user with certain advantages over systems in which a
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`display of market depth, as shown in Figure 2, is used. The Mercury display
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`and trading method of the present invention ensure fast and accurate execution
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`of trades by displaying; market depth on a vertical or horizontal plane, which
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`fluctuates logically up or down,
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`left or right across the plane as the market
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`prices fluctuates. This allows the trader to trade quickly and efficiently. An
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`example of such a Mercury display is illustrated in the screen display of Figure
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`10
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`3.
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`
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`The display of market depth and the manner in which traders trade
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`within the market depth can be effected in different manners, which many
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`traders will find materially better, faster and more accurate.
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`In addition, some
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`15
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`traders may find the display of market depth to be difficult to follow.
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`In the
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`display shown in Figure 2, the market depth is displayed vertically so that both
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`Bid and Ask prices descend the grid. The Bid prices descend the market grid as
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`the prices decrease. Ask prices also descend the market grid as these prices
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`actually increase.
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`This combination may be considered counterintuitive and
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`20
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`difficult to follow by some traders.
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`The Mercury display overcomes this problem in an innovative and
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`25
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`30
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`logical manner. Mercury also provides an order entry system, market grid, fill
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`window and summary of market orders in one simple window.
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`Such a
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`condensed display materially simplifies the trading system by entering and
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`tracking trades in an extremely efficient manner. Mercury displays market
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`depth 'm a logical, vertical fashion or horizontally or at some other convenient
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`angle or configuration. A vertical field is shown in the figures and described
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`for convenience, but the field could be horizontal or at an angle.
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`In turn,
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`Mercury further increases the speed of trading and the likelihood of entering
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`orders at desired prices with desired quantities.
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`In the preferred embodiment of
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`the invention, the Mercury display is a static vertical column of prices with the
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`-12-
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`0014
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`0014
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`
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`bid and ask quantities displayed in vertical columns to the side of the price
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`column and aligned with the corresponding bid and ask prices. An example of
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`this display is shown in Figure 3.
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`Bid quantities are in the column 1003 labeled BidQ and ask quantities
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`are in column 1004 labeled AskQ. The representative ticks from prices for the
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`given commodity are shown in colunm 1005. The column does not list the
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`whole prices (e. g. 95.89), but rather, just the last two digits (e. g. 89).
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`In the
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`example shown, the inside market, cells 1020, is 18 (best bid quantity) at 89
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`10
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`(best bid price) and 20 (best ask quantity) at 90 (best ask price).
`In the
`preferred embodiment of the invention,
`these three columns are shown in
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`different colors so that the trader can quickly distinguish between them.
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`The Values in the price column are static; that is, they do not normally
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`15
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`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,
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`they move up and down (in the vertical example) to reflect the market depth for
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`the given commodity. The LTQ column 1006 shows the last traded quantity of
`the commodity. The relative position of the quantity value with respect to the
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`20
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`Price values reflects the price at which that quantity was traded. Column 1001
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`labeled E/W (entered/working) displays the current status of the trader’s orders.
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`The status of each order is displayed in the price row where it was entered. For
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`example,
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`in cells 1007,
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`the number next to S indicates the number of the
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`trader’s ordered lots that have been sold at the price in the specific row. The
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`25
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`number next to W indicates the number of the trader’s ordered lots that are in
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`the market, but have not been fil1ed—i.e. the system is working on filling the
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`order. Blanks in this column indicate that orders are entered or working at that
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`price.
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`In cells 1008, the number next to B indicates the number of the trader’s
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`ordered lots that have been bought at the price in the specific row. The number
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`30
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`next to W indicates the number of the trader’s ordered lots that are in the
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`market, but have not been f11led—i.e. the system is working on filling the order.
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`-13-
`0015
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`0015
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`Various parameters are set and information is provided in column 1002.
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`For example, ‘‘10:48:44’’ in cell 1009 shows the actual time of day. The L and
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`R fields in cell 1010 indicate a quantity value, which may be added to the order
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`quantity entered. This process is explained below with respect to trading under
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`Mercury. Below the L and R fields, in cell 1011, a number appears which
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`represents the current market volume. This is the number of lots that have been
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`traded for the chosen contract. Cell 1012, “X 10”, displays the Net Quantity,
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`the current position of the trader on the chosen contract. The number “10”
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`represents the trader’s buys minus sells. Cell 1013 is the “Current Quantity”;
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`10
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`this field represents the quantity for the next order that the trader will send to
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`market. This can be adjusted with right and left clicks (up and down) or by
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`clicking the buttons which appear below the Current Quantity in cells 1014.
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`These buttons increase the current quantity by the indicated amount;
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`for
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`example, “10” will increase it by 10; “1H” will increase it by 100; “1K” will
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`15
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`increase it by 1000. Cell 1015 is the Clear button; clicking this button will
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`clear the Current Quantity field. Cell 1016 is the Quantity Description; this is a
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`pull down menu allowing the trader to chose from three Quantity Descriptions.
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`The pull down menu is displayed when the arrow button in the window is
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`clicked. The window includes NetPos, Offset and a field allowing the trader to
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`20
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`enter numbers. Placing a number in this field will set a default buy or sell
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`quantity. Choosing “Offset” in this field will enable the L/R buttons of cell
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`1010. Choosing “NetPos” in this field will set
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`the current Net Quantity
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`(trader’s net position) as the trader’s quantity for his next trade. Cell 1017 are
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`+/— buttons; these buttons will alter the size of the screen—either larger (+) or
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`25
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`smaller (-). Cell 10118 is used to invoke Net 0; clicking this button will reset
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`the Net Quantity (cell 1011) to zero. Cell 1019 is used to invoke Net Real;
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`clicking this button will reset the Net Quantity (cell 1011) to its actual position.
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`The inside market and market depth ascend and descend as prices in the
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`30
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`market
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`increase and decrease.
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`For example, Figure 4 shows a screen
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`displaying the same market as that of Figure 3 but at a later interval where the
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`inside market, cells 1101, has risen three ticks. Here, the inside market for the
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`.14.
`we
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`0016
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`
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`commodity is 43 (best bid quantity) at 92 (best bid price) and 63 (best ask
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`quantity) at 93 (best ask price).
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`In comparing Figures 3 and 4, it can be seen
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`that the price column remained static, but the corresponding bids and asks rose
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`up the price column. Market Depth similarly ascends and descends the price
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`column, leaving a vertical history of the market.
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`As the market ascends or descends the price colurrm, the inside market
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`might go above or below the price column displayed on a trader’s screen.
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`Usually a trader will want to be able to see the inside market to assess future
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`10
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`trades. The system of the present invention addresses this problem with a one
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`click centering feature. With a single click at any point within the gray area,
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`1021, below the “Net Real” button, the system will re-center the inside market
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`on the trader’s screen. Also, when using a three-button mouse, a click of the
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`middle mouse button, irrespective of the location of the mouse pointer, will re-
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`15
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`center the inside market on the trader’s screen.
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`The same information and features can be displayed and enabled in a
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`horizontal fashion.
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`Just as the market ascends and descends the vertical
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`Mercury display shown in Figures 3 and 4, the market will move left and right
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`20
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`in the horizontal Mercury display. The same data and the same information
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`gleaned from the dynamical display of the data is provided.
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`It is envisioned that
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`other orientations can be used to dynamically display the data and such
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`orientations are intended to come within the scope of the present invention.
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`25
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`Next,
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`trading commodities, and specifically,
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`the placement of trade
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`orders using the Mercury display is described. Using the Mercury display and
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`trading method, a trader would first designate the desired commodity and, if
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`applicable, the default quantities. Then he can trade with single clicks of the
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`right or left mouse button. The following equations are used by the system to
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`30
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`generate trade orders and to determine the quantity and price to be associated
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`with the trade order. The following abbreviations are used in these formulas: P
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`= Price value of row clicked, R = Value in R field, L = Value in L field, Q
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`-15-
`0017
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`
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`0017
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`= Current Quantity, Q3 = Total of all quantities in AskQ column at an equal or
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`better price than P, Qb = Total of all quantities in BidQ colurrm at an equal or
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`better price than P, N = Current Net Position, B0 = Buy order sent to market
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`and S0 = Sell o