United States Patent £191
`Gutterman et al.
`
`lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll
`US005297031A
`5,297,031
`[tl] Patent Number:
`[45] Date of Patent: Mar. 22, 1994
`
`[75]
`
`[54] METIIOD AND APPARATUS FOR ORDER
`MANAGEMENT BY MARKET BROKERS
`Inventors: Burton J . Gutterman, Glencoe; John
`J. Brogan, Palatine; Thomas Palea.ik,
`Oak Forest; Dolores Panek, St.
`Charles; Shirley Wu, Roselle, all of
`Ill.
`[73] Assignee: Olic:ago ~ard of Trade, Chicago, Dl.
`(21] Appl. No.: 489,196
`[22] Filed:
`Mar. 6, 1990
`IDt. CJ.s .............................................. G06F 15/20
`[51]
`[52] u.s. Cl ...................................... 364/408; 364/406
`[58] Field or Search ........................ 364/408, 412, 406
`[56]
`References Cited
`U.S. PATENT DOCUMENTS
`4,677,552 6/1987 Sibley, Jr . ........................... 364/408
`4,760,527 7/ 1988 Sidley .................................. 364/412
`4,903,201 2/1990 Wagner ............................... 364/408
`4,942,616 7/1990 Linstrotb et al .................... 364/ 408
`4,980,826 12/1990 Wagner ............................... 364/ 408
`5,038,284 8/1991 Kramer ............................... 364/ 408
`5,101,353 3/1992 Lupien et al ........................ 364/408
`
`OTHER PUBLICATIONS
`"Unisys introduces PC-based quotation system for
`stockbrokers at Securities Industry trade show in New
`York", Feb. 10, 1988, article from Dialog File 649-(cid:173)
`Newswire ASAP@.
`"GTE Telenet and Reveal Software Inc. have cooper(cid:173)
`ated in developing a complete broker's workstation
`software package", Jan. 22, 1985, article from Diaglog
`File 649-Newswire ASAP@.
`Bucken, M. "Stock traders ponder Make or Buy
`choice", Software Magazine, vol. 9, No. 15, Dec. 1989,
`75-77. (abstract of article).
`Mazzella, D. P. "Workstations for fmancial services
`professionals", Wall Street Computer Review, vol. 3, No.
`8, May 1986, 51-58 (abstract of article).
`Nathans, L. "Can computers help Merrill take posses(cid:173)
`sion of the field?", Wall Street Computer Review, vol. 3,
`No. 5, Feb. 1986, 35-39 (abstract of article).
`"Software alliance unveils system to help banks trade
`securities", American Banker, Nov. 17, 1987, 14 (ab(cid:173)
`stract of article).
`
`"StarLAN chosen to link Hutton branches", PC Week,
`May 12, 1987, c241, (abstract of article).
`"Unisys: Unisys broadens commitment to securities
`industry with snapnet back office administrative sys(cid:173)
`tem", Nov. 7, 1989, article from Diaglog File 610-Busi·
`ness wire.
`Lyons, D . J. "Brokers tuning in to intelligent worksta·
`tions", PC Week, vol. 4, Oct. 6, 1987, 187.
`"Stratus to use Apollo's network computing system to
`link workstations, OLTP computers••, Apr. 26, 1988,
`article from Diaglog File 610-Businesswire.
`"SAEF 2. Product Overview," (date unknown).
`I. Schmerken, "How Computer Assisted Trading is
`Making the Toronto Stock Exchange Purr," Wall Street
`Computer Review, (Dec. 1987) pp. 71-78,97.
`Anon., "SOFFEX Management Summary," Swiss Op(cid:173)
`tions and Financial Futures Exchange Ltd. (1987).
`Primary Examiner-Roy Envall
`Assistant Examiner-Frantzy Poinvil
`Attorney, Agent, or Firm-Kirkland & Ellis
`[57]
`ABSTRACI'
`There is provided a broker workstation for managing
`orders in a market for trading commodities, securities,
`securities options, futures contracts and futures options
`and other items including: a device for selectively dis(cid:173)
`playing order information; a computer for receiving the
`orders and for controlling the displaying device; and a
`device for entering the orders into the computer;
`wherein the displaying device comprises a device for
`displaying selected order information about each in(cid:173)
`coming order, a device for displaying a representation
`of an order deck and a device for displaying a total of
`market orders. In another aspect of the invention, there
`is provided in a workstation having a computer, a de(cid:173)
`vice for entering order information into the computer
`and a device for displaying the order information en(cid:173)
`tered, a method for managing orders in a market for
`trading commodities, securities, securities options, fu(cid:173)
`tures contracts and futures options and the like compris(cid:173)
`ing the steps of: selectively displaying order information
`incoming to the workstation; accepting or rejecting
`orders corresponding to the incoming order informa(cid:173)
`tion displayed; displaying accepted order information in
`a representation of a broker deck; and selectively dis·
`playing a total of orders at the market price.
`
`13 Claims, 8 Drawing Sheets
`
`0001
`
`IBG 1011
`CBM of U.S. Pat. No. 6,772,132
`
`

`
`U.S. Patent
`
`Mar. 22, 1994
`
`Sheet 1 of 8
`
`5,297,031
`
`Fl G. Ia
`
`MX TERMINAL
`
`28
`
`24 . - - - - - - - - - ,
`
`USER I/ F
`
`.---~ TRANSACTION
`PROCESSOR
`
`26
`
`30
`
`18
`
`SENDER
`
`RECEIVER
`
`0002
`
`

`
`U.S. Patent
`
`Mar. 22, 1994
`
`Sheet 2 of 8
`
`5,297,031
`
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`QTY
`PRICE
`F'IRM
`BRK
`l I
`I
`i I
`I I
`
`TIME
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`
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`
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`
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`
`File Edit Setup Uenu Windows Alert Help Heartbeat
`( Accept ) jtncoming Orders! ( Reject )
`
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`
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`
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`
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`
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`
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`
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`
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`
`

`
`U.S. Patent
`
`Mar. 22, 1994
`
`Sheet 7 of 8
`
`5,297,031
`
`40 0
`
`/
`
`r- 410
`
`START
`
`r-420
`
`LOG IN
`
`MENU t- 430
`
`lr
`
`~440
`
`CONFIGURATOR
`
`I-- 450
`
`INPUT
`SCREEN
`
`FIG. 3
`
`0008
`
`

`
`U.S. Patent
`
`Mar. 22, 1994
`
`Sheet 8 of 8
`
`5,297,031
`
`FIG. 3a
`
`START
`
`451 -- INCOMING
`ORDER PANE
`
`MARKET
`TOTAL
`WINDOWS f--'
`
`452
`
`l .
`
`457-
`
`BUTTONS ON
`SCREEN
`
`'
`DECK
`PANE
`
`l453
`
`1
`
`FILL
`PANE
`
`l l454
`
`+
`LOOK
`PANE
`
`L455
`
`TOTAL
`FILLED
`WINDOW r- 458
`
`t
`QUERY
`PANE
`
`l456
`
`0009
`
`

`
`1
`
`5,297,031
`
`METHOD AND APPARATUS FOR ORDER
`. MANAGEMENT BY MARKET BROKERS
`
`2
`Trading," John Wiley & Sons (1976); Johnson & Hazen,
`"Commodities Regulation," Little, Brown and Com(cid:173)
`pany, Boston (1989); R. Teweles et al., "The Commod(cid:173)
`ity Futures Game," McGraw-Hill, New York (1974); T.
`BACKGROUND OF THE INVENTION
`5 Hieronymus, "Economics of Futures Trading," Com-
`modity Research Bureau, Inc., New York (1971);
`The present invention relates to computer-based
`"Commodity Trading Manual," Chicago Board of
`techniques for managing orders placed in a physical
`Trade, Chicago (1989); and J. Schwager, "A Complete
`market for trading instruments such as stoclc.s, bonds,
`Guide to the Futures Markets," John Wiley & Sons,
`stock options, futures options and futures contracts on
`commodities including agricultural products, financial 10 New York (1984).
`instruments, stock market indices and the like.
`Floor traders are generally classified in two ways: (1)
`A futures contract is an agreement providing for the
`speculators, or "locals", buy and sell for their own
`future delivery of a fiXed quantity of a commodity
`accounts; and (2) floor brokers fill orders for commis-
`sion houses, producers and processors seeking to lock in
`under conditions specified by a federally designated
`exchange. In general, that contract is a fum legal agree- 15 a price for their products. Unless a trad:er is a member of
`ment between a buyer and seller to make or take deliv-
`an exchange, it is necessary for the trader to deal on the
`exchange through a member brokerage firm. Normally,
`ery of the underlying commodity and is cleared by a
`separate clearinghouse.
`firms that handle public business (the "commission
`The futures exchanges house centralized auction mar-
`houses") must be registered as "Futures Commission
`kets _(called designated contrac~ markets) w_here stan- 20 Merchants", or "FCMs." A "local" can take long-term
`positions (i.e., weeks or months) or "scalp" over very
`~a!d1zed contrac~s.for future dehvery of specified quan-
`tJttes of commodities art: bought and sol~ by ope~ ou~-
`short periods (liquidating positions within seconds or
`cr~. The ~pen outcry method of auct1on tr~dmg IS
`minutes of entering the transactions). He may trade in
`Wl~ely bel1eved to be the best method of buymg an~
`one or more pits. He benefits from the speed with which
`sellm.g goods because of ~he fast access ~0 ~he market It 25 he Call take or liquidate positions, but this is in itself no
`prov1des to all prospective traders. It 1s Important to
`assurance of a profit. Some floor traders specialize in
`note that the exchanges the~selves do ?ot trade futures
`spreads by taking opposite positions between future or
`contracts, nor do they set. pnces at wh1ch contracts are
`options when the price difference appears abnormal.
`traded. They merely funush a place where market par-
`.
`ticipants and their brokerage representatives can meet 30 Floor tra~ers have the advantage of lower transaction
`to trade futures contracts.
`costs available to all members of exchanges.
`Trading generally takes place in a pit or around the
`The floor traders who execute orders for others but
`seldom or nev7r _tra~e for themselves are the brokers
`outside of a ring. All orders received by exchange mem-
`who may. spec1ahze m orders from custo;~De~ s~ch. as
`ber firms are transmitted to the exchange floor for exe-
`cution and are filled according to bids and offers in the 35 commer~lal proc::essors, exporters, ~nancial mstJtut1on
`co;~Dmod1ty tradmg funds and the like. Th~Y. may r~-
`respective pits by open outcry to all members present at
`ce1ve only a small ~rcentag~ ~f the COm.mJSSions pa1d
`the time. Only one instrument or commodity is traded in
`b~ t~e customer to his comm1ssto~ house, bu~ the com-
`a pit or around a ring unless the volume is too small to
`justify so much space. Customarily, those trading the
`miSSIOn reven~es may be substantial depending on the
`same contract delivery month gather in the same area of 40 vol~e of b~smess. The orders held .b~.a floo.~ bro~er at
`the ring or on the same step of the pit so that a broker
`any giVen time are ~eferred to as h!s deck. He lS al-
`with an order can locate the particular market as
`lowed to trade for ~sown account tfhe 7hooses, bu! he
`quickly as possible.
`can not use the public orders to benefit his own tradmg.
`Transactions on the trading floor must be reported to
`When a .registered representative of the commission
`the membership and the general public. This is accom- 45 house rece1ves an order from a customer, the represen-
`tative sends the order to the commission house's order
`plished through a variety of communications systems
`desk on the trading floor, where it is usually handed to
`by the various exchanges. Transaction information is
`a messenger and taken directly to an appropriate broker
`typically entered by exchange-employed market report-
`ers in each trading pit and is accessible through com-
`in the trading pit or ring. Once the broker in the trading
`puter terminals and electronic wallboards on each trad- so pit bas the order, he typically uses voice and hand sig-
`nals to announce his bid or offer price, the delivery
`ing floor. At present the open outcry auction in the pit
`produces a large quantity of information which must be
`month, and the quantity to be bought or sold. Once the
`recorded accurately and quickly by hand.
`order has been executed, it is carried by messenger back
`At the end of each day the clearing house, which may
`to the commission bouse's order desk on the trading
`be a subsidiary of the exchange or an independent en- 5S floor, and the confirmation of the order is dispatched
`back to the office where it was initiated. The represen-
`tity, assumes one side of all open contracts: the clearing
`house becomes the buyer to each seller of a futures
`tative then usually telephones the confumation to the
`customer or hands him a confumatiolll slip if he is pres-
`contract, and a seller to each buyer. The clearing house
`guarantees its members the performance of both sides of
`ent in the office.
`.
`all open contracts.
`60 The communication of orders from the registered
`Other aspects of the commodity markets are treated
`representative to the order deslc.s on the trad.ing floor
`in the literature, which includes Kaufman, "Handbook
`takes place with great speed. All orders are time-
`of Futures Markets," John Wiley & Sons, New York
`stamped at various stages along the order route as a
`(1984); Rothstein, "The Handbook of Financial Fu-
`check that the order is being expedited in the best possi-
`tures," McGraw Hill Book Company, New York 65 ble fashion. Increasingly, this process is performed by
`(1984); Gould, "The Dow Jones-Irwin Guide to Com-
`computerized communications systems which start
`modities Trading," Dow Jones-Irwin, Homewood
`with a terminal used by the registered representative
`(1981); Goss & Yamey, "The Economics of Futures
`and end with a printer near the broker. Often the com-
`
`0010
`
`

`
`5,297,031
`
`3
`4
`Some customers will raise their stop prices as the
`puter simultaneously records the terms of the order for
`market price advances in an effon to gain as much as
`later use in preparing statements for the registered rep-
`possible from a major move, while making cenain that
`resentative and his customer.
`they can probably Jose back only a little of the gain.
`The floor brokers' stock in trade is their skill in exe-
`cuting the orders they receive and accept. They must 5 Such an order is frequently called a "trailing stop".
`decide, instantly, the tactics that will be most effective
`A somewhat more complex order is the "stop limit
`in filling a given order: whether to wait for bids or
`order". The customer might instruct his broker not to
`buy sugar until it rises to 5.53 cents per pound and not
`offers, or whether to hold with the current price, or to
`bid up or offer down promptly. To be effective, they
`to pay more than 5.55 cents. This is unlike the unlimited
`must know the pit: who will do how much at what 10 stop, which becomes a market order when the stop
`price has been touched. The limit price may be the same
`price. They must read the intentions of scalpers, locals
`or different from the specified stop.
`and other brokers while concealing their own inten-
`A "market-if-tou.cbed (M.I.T.) order" is like a limit
`tions.
`One of the s.kills of a broker is in knowing his deck.
`order, but the M.I.T. order is executed at the market
`As described above, the deck is a stack of orders that 15 when the market has traded at the price specified on the
`order, and so it may be ftlled either at that specified
`are to be executed by the broker. The orders are typi-
`caJly written on pieces of paper about five by seven
`price, above it, or below it. M.l.T. orders are sometimes
`called "board o~ders". ~e order may .be entered f~r
`inches which are then arranged by the broker in a se-
`quence for execution as the market price moves up or
`one day, a specified penod, or open (I.e., good until
`20 cancelled).
`Th
`cea1
`I
`down.
`e broker usually fo ds them for con ment
`S
`.
`t
`· h t
`tak
`pos1·u·on
`ill
`omettmes a cus omer may WIS o
`·
`·
`· hand
`e a
`f
`and puts them m his pocket ~0 that.his
`5 w be r7e
`within a shon time but would like the broker on the
`to st~at and to handle his tradmg car? and .penctl.
`floor of the exchange to use some of his personal judg-
`Occ~tonally, the decks a~e as much.~ an mch thic~ and
`ment in the timing of the fill. The broker could do this
`requtre great memory skill and anttctpator~ plan?:'ng. 25 if the order indicates that he is to ftll it at the market but
`Perhap~.t~e mos.t common type of order IS the mar-
`is to take his time and will not be responsible if by wait-
`ket order m :OVhtch t.he customer stat~s how many
`ing too long or not waiting long enough the price is
`contracts of a gtven d7hvery m?nth he ~shes to buy or
`unsatisfactory to the customer. Such orders may be
`~!1: He does not sp~ctfy the ~nee at whtch.he wants to
`marked "not held". Customers may also specify the
`m1t1ate the ~ransactton but stmJ;~lY w~nts 1t placed as 30 time at which they wish their orders ftlled, e.g., "on
`50?," as ~sstble at the ~.est posstble pn~.
`.
`opening," "on close," or at a panicular specified time.
`. .eo~tmgency orders are t.hose that ~pose cenam
`"Alternative orders" provide for one of two possible
`executions: a customer may order 5 000 bushels of com
`ltmttattons beyond the quanttty and deb very month,
`at $1.45 a bushel and s 000 bushels 1of wheat at $2.56 a
`such as limits in price or time, or both. A "price limit
`order" co~tains a price limitation that is spe?ified b~ the 35 bushel, but not want bo~h. A far more common example
`of the alternative order is the placing of an objective
`customer; 1t can be executed only at the pnce spectfied
`or at ~ better. price Ie--:eJ. A "fill or kill" order contains
`and a stop, with instructions to cancel<>ne if the other is
`~ ~pectfied. pnce ~t whtch the order must be executed or
`filled; for example, having bought one contract of soy-
`bean oil at 14.50 cents a pound, a customer may order
`It IS to be tmmedtately cancelled.
`"Stop orders" are sometimes confused with "limit 40 his broker to sell the oil either at 14.95 or 14.25 cents
`orders", but they are actually quite different. A "buy
`stop, whichever occurs first, and then immediately can-
`stop order" instructs a broker to execute the order when
`eel the remainder of the order to avoid inadvenently
`the price of a commodity rises to a specified level above
`reversing his position.
`the current market price. The "buy limit order" is usu-
`"Scale orders" are used to establish or liquidate posi-
`ally placed below the current market price and must be 45 tions as the market moves up or down. The sugar trader
`may instruct his broker to buy a contract of sugar at
`executed at the limit price or better. The difference
`between a buy limit order and a buy stop order is exem-
`5.45 cents and another contract each time the price
`plified as follows. A customer may be inclined to buy
`drops five points from that level until he has accumu-
`December sugar, which could be selling at a price of
`lated six contracts. When he sells out his position, he
`5.43 cents per pound. The customer could tell his bro- 50 may order the broker to sell one contract at 5.70 cents
`and another contract each time the price rises five
`ker to buy a contract at a price not to exceed 5.35 cents;
`this is a "buy limit order". Another customer under the
`points until his six contracts have been sold.
`same circumstances could tell his broker to buy a con-
`"Contingent orders" are ftlled by the broker after the
`tract of December sugar but not until the price rises to
`price of another contract or even another commodity
`at least 5.55 cents, at which point the order will be 55 reaches a specified level.
`"Spreads" may be established at a fued difference
`executed at the market; this is a "buy stop order". The
`buy stop order is placed above the current market and
`rather than at specified prices because the spreader is
`may be executed at the price specified on the stop,
`concerned· only with the difference rather than the
`above it, or below it because it is executed at the market
`level. He may therefore order his broker to "buy one
`price after the stop price is touched; at that point, the 60 July pork bellies and sell one February bellies at 80
`stop is said to be "elected".
`points difference or more, premium February." Such an
`order could be used to establish a new spread position,
`A "sell stop order" instructs a broker to execute an
`which the trader believes will narrow, or to take the
`order when the price falls to a given level, at which
`point it is to be executed at the market price. Unlike a
`profit in a position at a narrower difference and be
`typical "sell limit order", the sell stop order is below the 65 satisfied with the profit at 80 points difference.
`current market price and may be executed at a price at,
`Although the foregoing description has concentrated
`above, or below the specified stop price when it is
`on the commodity futures markets, it will be understood
`that the order management system of the present inven-
`elected.
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`tion is applicable to all markets, including those for means for displaying a representation of an order deck
`securities trading. Securities markets are usually based
`and means for displaying a total of market orders.
`on actions by specialists, each of whom is the market
`In another aspect of the invention, there is provided
`maker for one or more specific securities. In the New
`in a workstation having a computer, means for entering
`York Stock Exchange, for example, the ultimate deter- S order information into the computer and means for
`mination of price for any given transaction frequently is
`displaying the order information entered, a method for
`determined by a specialist who deals in a particular managing orders in a market for trading t:9mmodities,
`stock and who maintains a running list or "book" of
`securities, securities options, futures 'contracts and fu-
`offers to sell and orders to purchase that stock. The
`tures options and the like comprising the steps of: selec-
`specialist may complete a transaction in the stock when- 10 tively displaying order information incoming to the
`ever one or more purchase and sell orders can be
`workstation; accepting or rejecting orders correspond-
`matched with respect to price; on occasion, the same
`ing to the incoming order information displayed; dis-
`specialist purchases the particular stock in which he
`playing accepted order information in a representation
`specializes or sells the same stock in order to maintain a
`of a broker deck; and selectively displaying a total of
`market for the stock and prevent violent fluctuations in IS orders at the market price.
`its price. Similar functions, particularly with respect to
`BRIE.F DESCRIPTION OF THE ORA WINGS
`the matching of orders to purchase and to sell, must be
`carried out in all auction markets for the marketing of
`The features and advantages of the present invention
`fungible goods, including such commodities as wheat,
`will be better understood after a reading of the follow(cid:173)
`com, and the like as well as stocks and bonds.
`ing detailed description in conjunction with the draw(cid:173)
`A computation system f~r establishing prices in auc(cid:173)
`ings in which:
`tion trading for the securities market is described in U.S.
`FIG. 1a shows a block diagram of a portion of an
`Pat. No. 3,581,072 to Nymeyer. That computation sys(cid:173)
`apparatus in accordance with the present invention;
`tem comprises a main data store for recording encoded
`FIG. lb shows an embodiment of other portions of an
`data items representative of orders to buy and to sell the 2S
`apparatus in accordance with the present invention;
`goods, such orders including orders at specific prices
`FIGS. lo, lb, 2c and 2d show display partitions in
`and other orders "at the market." The system includes a
`accordance with present invention; and
`buy order sequencing device for arranging and record(cid:173)
`FIGS. 3 and 3a show functional block diagrams of
`ing purchase offers fll'St in desce.nding order by price
`the broker workstation instructions.
`and secondly by time of entry so that at each price level 30
`DETAILED DESCRIPTION OF THE
`the oldest orders are uppermost. A sell order sequenc(cid:173)
`INVENTION
`ing device is provided for arranging and recording all
`offers to sell first in ascending order t?Y price and se-
`The broker workstation in accordance with the pres-
`condly in descending order by time so that once again
`ent invention is an electronic replication of the broker's
`the oldest orders are the highest at each price level. A 35 management of the orders in his deck. The broker has
`closing price store is provided to record the last actual
`the ability to manage his deck just as he has today in the
`selling price for the goods. The closing price store and
`pits, but more effectively. The present invention facili-
`the main data store are coupled, by suitable control
`tates the rapid organization, presentation and exchange
`means, to the sequencing devices in order to transfer the
`of large amounts of order information to a broker with·
`recorded data items from the data store to the sequenc- 40 out requiring a physical order deck.
`ing devices with "at market" prices be.ing transferred at
`As described further below, orders can be entered
`the aforementioned last selling price. The two sequenc-
`into the workstation in two ways. The order may be
`ing devices are coupled to a comparator that compares
`entered directly to the workstation via an electronic
`the sell orders and the buy orders, when they have been
`order entry system, or it may be entered manually when
`arranged in sequence, to determine the lowest buy 45 brought to the pit by a messenger or other signalling.
`order price that is equal to or greater than a recorded
`For best utilization of an electronic mark.et trading sys-
`sell order and thus establish a new selling price for the
`tern such as that described in co-pending U.S. patent
`goods.
`application Ser. Nos. 07/322,985 and 07/329,866, the
`More than such a system for merely matching buy
`orders are preferably entered by way of the electronic
`and sell orders, the present invention provides a system SO order entry system.
`that allows brokers to manage their decks and to im-
`The broker workstation in accordance with the pres-
`prove the accuracy of communications between the
`ent invention allows the broker to manage the FCMs'
`trading floor and the customers. The present invention
`orders more efficiently and to handle order accep-
`can also reduce the back office costs to trading flrmS by
`tances, fill reports and cancel confi.J'Dlations more effec-
`reducing the volume of paperwork and consequent SS tively. When used with an electronic order entry sys(cid:173)
`errors.
`tern, the broker workstation enables the broker to com·
`municate information as to the status of the orders he is
`workmg. Therefore, the FCM can track the orders
`from the time they are entered into the electronic order
`entry system until the time the orders are returned. The
`broker workstation can also feed information directly to
`the customer and clearing house via the electronic
`order entry system of the exchange. The audit trail is
`thus enhanced for the FCMs, the broker and the ex(cid:173)
`change. From the improved procedures provided by
`the present invention, savings in the form of reduced
`staff and reduced errors due to manual handling of
`paper orders can also be expected.
`
`SUMMARY OF THE INVENTION
`In accordance with the present invention, there is
`provided a broker workstation for managing orders in a 60
`market for trading commodities, securities, securities
`options, futures contracts and futures options and other
`items comprising: means for selectively displaying
`order information; a computer for receiving the orders
`and for controlling the displaying means; and means for 6S
`entering the orders into the computer; wherein the
`displaying means comprises means for displaying se(cid:173)
`lected order information about each incoming order,
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`station 10 to send an acknowledgment of receipt to the
`The broker workstation in accordance with the pres-
`transmitting order entry system. In some situations, the
`ent invention is a deck management system that con tin-
`workstation receiver module 18 would cause the work-
`ues to permit the broker to use his expertise to execute
`station 10 to send a not-acknowledged message to the
`the order depending on the market situation. The bro-
`ker has indicated on his workstation the different types 5 order entry system so that the information could be
`of orders residing in his deck, including the total quan-
`retransmitted. Such situations would typically occur
`when the workstation-in queue 22 is temporarily full or
`tity at a price oflimit orders, stops, stop limits, M.I.T.s,
`and orders with special instructions. There is also an
`when an error in the format of the information occurs,
`such as might arise from a noisy communication. link.
`area indicating the total market orders to buy and sell.
`Just as in the present markets, the broker must judge 10
`The workstation receiver module 18 receives the
`how to get the best order execution, whether that is in
`information from the order entry system and places it in
`the physical pits or on an electronic trading system. The
`the workstation-in queue 22 in a predetermined time
`system of the present invention thus enables the broker
`sequence. The receiver module 18 thus could advanta-
`to better serve the needs of the market.
`geously arrange for processing of information from an
`Referring now to the Figures in which like reference 15 electronic order entry system before processing of in-
`numerals indicate like parts throughout, FIG. 1a shows
`formation entered by hand despite the earlier receipt of
`a block diagram of an apparatus in accordance with the
`the hand-input information. For example, orders from a
`trader in Japan could be presented to a Chicago-located
`present invention comprising a broker workstation 10.
`As described in more detail below, the broker worksta-
`broker workstation before orders flashed by hand from
`tion 10 may advantageously be a MICROEXPLORER 20 a Chicago trader to the broker are processed. In this
`processor, made by Texas Instruments Inc., that in-
`way, communications link delays could be compensated
`eludes a MACINTOSH II computer, manufactured by
`by the system so that the system access time is equal for
`all traders, but such access time equalization is not es-
`Apple Computer, Inc., having a high-resolution (e.g.,
`sential to the present invention. It will be appreciated
`350 dots per inch), color, touch-sensitive display screen.
`Suitable touch-sensitive screens are made by Apple 25 that such delay compensation would not be expected in
`Computer, Inc, and it will be appreciated that many
`applications in which the workstation 10 received or·
`other suitable devices are commercially available. One
`ders through a plurality of different electronic order
`embodiment of a broker workstation 10 is illustrated in
`entry systems used by different FCMs. In addition, the
`FIG. 1b which shows a high-resolution display screen
`receiver module 18 can implement the features of the
`12, a keyboard 14 and an auxiliary control device 16, 30 present invention for organizing information in price
`such as a trackball