(12) United States Patent
`Friesen et a].
`
`(10) Patent N0.:
`(45) Date of Patent:
`
`US 7,412,416 B2
`Aug. 12, 2008
`
`(54) USER INTERFACE FOR AN ELECTRONIC
`TRADING SYSTEM
`
`(75) Inventors: Richard W. Friesen, Fairfax, CA (US);
`Peter C. Hart, San Rafael, CA (US)
`
`(73) Assignee: Trading Technologies International,
`1116-, 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 0 days.
`
`OTHER PUBLICATIONS
`
`Yahoo! Finance, p. l, 1995.
`
`-
`(Commued)
`Primary Examinerilames A Kramer
`Assiszanz Examinerijason Borlinghaus
`(74) Attorney, A gent, 0r FirmiMcDonnell Boehnen Hulbert
`& Berghoff LLP
`
`(57)
`
`ABSTRACT
`
`(21) Appl_ No; 11/417,522
`
`(22) Filed;
`
`May 3, 2006
`
`(65)
`
`Prior Publication Data
`
`Us 2006/0259405 A1
`
`NOV‘ 16’ 2006
`.
`.
`Related U's' Apphcatlon Data
`(63) Continuation of application No. 09/289,550, ?led on
`Apr. 9, 1999, noW Pat. No. 7,212,999.
`(51) Int CL
`
`G06Q 40/00 (52) U 5 Cl
`(200601)
`
`I.
`.
`.
`...... .... ...... ... ..................................... ..
`(58) Field of~Class1?cat1on Search ............. ..: ..... .. None
`See apphcanon ?le for Complete Search hlstory'
`References Cited
`
`705/37
`
`(56)
`
`us PATENT DOCUMENTS
`4,674,044 A
`6/1987 Kalmus et a1.
`(cominued)
`
`EP
`
`FOREIGN PATENT DOCUMENTS
`0 388 I62
`3/1990
`(Continued)
`
`= IBC — Order Book — Price! Quality View Q
`File
`
`A user interface for an electronic trading exchange is pro
`vided Which alloWs a remote trader to vieW in real time bid
`orders, offer orders, and trades for an item, and optionally one
`or more sources of contextual data. Individual traders place
`orders on remote client terminals, and this information is
`routed to a transaction server. The transaction server receives
`order information from the remote terminals, matches a bid
`for an item to an offer for an item res onsive to the bid
`corresponding With the offer, and commurriicates outstanding
`bid and offer information, and additional information (such as
`trades and contextual data) back to the client terminals. Each
`client terminal displays all of the outstanding bids and offers
`
`for an item, allowing the trader to vieW trends in orders for item. A pr1or1ty v1eW is provided in Wh1ch orders are d1s
`
`played as tokens at locations Corresponding to the Values of
`the Orders‘ The Size Ofthe tokens re?ects the quantity Ofthe
`orders. An alternate vieW positions order icons at a location
`Which re?ects the value and quantity of the order. Addition
`ally, contextual data for the item is also displayed to alloW the
`trader to consider as much information as possible While
`making transaction decisions. A pit panel vieW is also pro
`vided in Which traders connected to the pit are represented by
`icons, and are displayed corresponding to an activity level of
`the trader.
`
`24 Claims, 11 Drawing Sheets
`
`n?'lil
`
`P, 414
`
`33.01
`300
`g 30.61
`
`28.06
`408
`[V
`25.66
`
`|
`
`l
`
`|
`[i lb
`ill
`I
`I
`%
`‘5’
`
`“H”
`
`416
`412% O”
`
`\illllil
`
`Mill
`mm mm m
`
`23.11
`
`340
`
`0001
`
`IBG 1001
`CBM of U.S. Patent No. 7,412,416 B2
`
`

`
`US 7,412,416 B2
`Page 2
`
`US. PATENT DOCUMENTS
`
`W0
`
`WO 01/75733
`
`11/2001
`
`6/1988 Boilen
`4,750,135 A
`V1989 Shavlt et a1‘
`4’799’l56 A
`@1989 Nelson
`4’823’265 A
`2 1990 Wagner
`4903201 A
`8/1991 Kramer
`5,038,284 A
`5’077’665 A 12/1991 silverman et 31'
`5,136,501 A *
`8/1992 S1-lve-rman et al. ........... .. 705/37
`5’270’922 A 12/1993 Hlgglns
`5,297,031 A
`3/1994 Gutterman et al.
`5’297’032 A
`3;l994 Trojan et a1‘
`5’347’452 A
`9 1994 Bay’ Jr‘
`5’375’055 A l2;l994 To?her et a1‘
`5’6l9’63l A
`4 1997 SC on
`5’675’746 A 10/1997 Marshall
`5,689,651 A 11/1997 LoZman
`5’774’877 A
`6/1998 Patterson’ Jr‘ et a1‘
`5’793’30l A
`8ZI998 Patterson’ Jr‘ et a1‘
`5’797’002 A
`8 1998 Patterson’ Jr‘ et a '
`5,844,572 A 12/1998 Scho“
`5,845,266 A 12/1998 Lupien et al.
`5,915,245 A
`@1999 Patterson, Jr‘ et a1‘
`
`7/1999 silverman et a1‘
`5’924’082 A
`7/1999 S1lverman et al.
`5,924,083 A
`8/1999 Nevo et a1‘
`5’946’666 A
`8/1999 Tull, Jr. et al.
`5,946,667 A
`5963923 A “Z1999 Garber
`l
`g’gig’
`: 1(1)
`etla '
`’
`’
`uPlen et a '
`6,014,643 A
`1/2000 M1nton
`6’035’287 A
`3/2000 stallflen et 31'
`6’098’05l A
`8/2000 Luplen et a1‘
`6,101,484 A
`8/2000 Halbert et al.
`6’l3l’087 A 10/2000 Luke et a1‘
`31
`6’134’5 35 A IOZZOOO Belzl’erg
`6’l6l’099 A 12 2000 Hamngt‘?“ et
`'
`6,188,403 B1
`2/2001 Sacerdot1 et al.
`6,211,873 B1* 4/2001 Moyer ...................... .. 715/764
`6,272,474 B1
`8/2001 Garcia
`6,282,521 B1
`8/2001 Howorka
`6,408,282 B1
`6/2002 Buist
`6,418,419 B1
`7/2002 Nieboer
`6,766,304 B2
`7/2004 Kemp et al.
`6,772,132 B1
`8/2004 Kemp et al.
`6,993,504 B1
`1/2006 Friesen
`7,212,999 B2
`5/2007 Friesen
`10/2001 McIntyre
`2001/0034696 A1
`11/2001 Ordish
`2001/0039527 A1
`2002/0023038 A1
`2/ 2002 Fritsch et al.
`9/2002 Smith
`2002/0130868 A1
`11/2002 Marshall
`2002/0178096 A1
`2003/0009411 A1
`1/2003 Ram et a1.
`5/ 2004 Kimura
`2004/0099933 A1
`6/ 2005 Schluetter
`2005/0125328 A1
`2005/0256799 A1
`11/2005 Warsaw et al.
`2006/0010066 A1
`1/ 2006 Rosenthal et al.
`2006/0020538 A1
`1/2006 Ram
`3/ 2006 Friesen
`2006/0059083 A1
`11/2006 Friesen
`2006/0259410 A1
`11/2006 Friesen
`2006/0259413 A1
`11/2006 Friesen
`2006/0265315 A1
`11/2006 Friesen
`2006/0265318 A1
`11/2006 Friesen
`2006/0265319 A1
`
`FOREIGN PATENT DOCUMENTS
`
`JP
`W0
`W0
`W0
`
`2004287819
`WO 92/12488
`WO 95/26005
`WO 00/52619
`
`10/2004
`7/1992
`9/1995
`9/2000
`
`OTHER PUBLICATIONS
`APT Brochure, LIFFE Exchange, circa 1990*.
`Trading Screen, INTEX of Bermuda, circa 1984*.
`Weber, Information Technology in the Maj or International Financial
`Markets Apr‘ 7 1993‘
`Trading Screen, TIFFE Exchange, circa 1989-1990*.
`Trading Screen, MEFF Exchange, Circa 1990*‘
`Cavaletti, Order Routing Article, Futures Magazine, Feb. 1997.
`Aurora Amcle CBOT circa 1989*
`Wright, William Research Report Information Animation Applica
`tions in the Capital Markets, IEEE 1995.
`Kharouf, Jim and Carla Cavaletti; “A Trading Room with a View”,
`Futures, Nov. 1989, 6 pages, www.futuresmag.com.
`USPTO Presentation regarding The NASDAQ Stock Market, Inc.,
`dated NOV‘ 8 2001, 15 pages‘
`One Click Trading Options, Trading Technologies, circa 1998.
`Trading Screen, SWX Exchange, circa 1990.
`Expanding futures and options trading around the world, around the
`clock GLOBEX circa 1989
`’
`’
`'
`-
`-
`-
`lllgaglgsell, The Computer that ate Chicago, Inst1tut1onal Investor, Feb.
`
`Globex Report: An Update on the CME Global electronic exchange,
`Feb 10 1989
`NYMEX Access Documents, New York Mercantile Exchange, Feb.
`28 1992
`CATS Trader’s Manual, Toronto Stock Exchange, Sep. 30, 1977.
`Market Watch, Trading Screen, date not available.
`Grummer, Peake, Sellers, Preliminary Feasibility Study, Bermudex
`Ltd‘ NOV‘ 1980‘
`Peake, Mendellson, The ABC’s of trading on a market system,
`Appendix C of the Preliminary Feasibility Study, Bermudex Ltd.,
`Sep 1977
`Peake, The last 15 meters, Appendix E of the Preliminary Feasibility
`Study, Bermudex Ltd ., Jun. 15, 1997.
`Declaration of Brendan Bradley in Case No. 04 C 5312, Nov. 18,
`2004.
`Memorandum Opinion Published Feb. 9, 2005, of Judge James B,
`Moran in Case No.04 C 5312.
`“How the Futures Market Works”, Jake Bernstein, 1989 New York
`Institute of Finance, pp. 62-67.
`Dictionary of Finance and Investment Terms, John Downes and
`Jordan Elliot Goodman, 1998. Barrons Education Services, Inc., p.
`329.
`Java Island, copyright 1999 (printed from http://www.isld.com on
`Jun. 11, 1999).
`International Search Report for PCT/US00/09369.
`Tokyo Stock Exchange (“TSE”), Publication 1, Sep. 1997.
`TSE, “Publication 2”, Aug. 1998.
`TSE, “Publications 3”, Jul. 31, 2000.
`TSE, Document 1, Jan. 2000.
`English Translation of TSE “Publication 1”.
`English Translation of TSE “Publication 2”.
`English Translation of TSE “Publication 3”.
`English Translation of TSE Document 1.
`REFCO English Translation of TSE “Publication 1”.
`REFCO English Translation of TSE “Publication 2”.
`REFCO English Translation of TSE “Publication 3”.
`GL Trade, LIFFE Connect for Futures User Guide V4.50, (alleged)
`Feb. 1999.
`GL Trade, LIFFE Connect for Futures User Guide V4.50, (alleged)
`Mar. 1999.
`GL Trade, LIFFE Connect for Futures User Guide V4.51, (alleged)
`Jun. 1999.
`GL Trade, LIFFE Connect for Futures User Guide V4.50 Beta,
`(alleged) Jan. 1999.
`GL Trade, CAC and STOXX Futures on MAATIF NSCVF, (alleged)
`Launch: Mar. 15, 1999 pp. 1-14.
`
`* cited by examiner
`
`0002
`
`

`
`US. Patent
`
`Aug. 12,2008
`
`Sheet 1 or 11
`
`US 7,412,416 B2
`
`1D4—\, CLIENT
`
`100
`
`108
`
`104w CLIENT <---> TRANSACT'ON A DATABASE
`MANAGER
`
`I
`
`2
`
`104m CLIENT
`
`FIG. 1
`
`DISPLAY BID ICON
`500 CORRESPONDING TO
`\’
`QUANTITY AND
`vALUE OF BID
`1.
`DISPLAY OFFER ICON
`504 CORRESPONDING TO
`N QUANTITY AND
`vALUE OF OFFER
`
`FIG. 5
`
`RECEIvE A vALUE FOR
`800
`N REQUESTED ORDER
`
`801k) RECEIvE A QUANTITY FOR
`REQUESTED ORDER
`
`806\/
`
`RECEIVE ORDER TYPE
`
`807
`\’
`
`DISPLAY CONFIRMATION
`MESSAGE WINDOW
`
`DISPLAY ORDER ICON ALONG
`A VALUE QUANTITY AXES AT A
`808w LOCATION CORRESPONDING
`TO THE PRICE AND QUANTITY
`OF THE ORDER
`
`FIG. 8
`
`0003
`
`

`
`U.S. Patent
`
`Aug. 12, 2008
`
`Sheet 2 of 11
`
`US 7,412,416 B2
`
`_.———..——-—_—__.._.-._..—.-—._.::—_.—:.._
`
`100
`
`SUMMARY
`INFORMATION
`
`MESSAGE -_
`SERVER
`
`CLIENT
`
`>
`
`SUMMARY
`INFORMATION
`
`MESSAGE '
`
`SERVER
`
`‘I18
`
`REGISTRATION »
`SERVER
`'
`
`TRANSACTION _b
`SERVER
`
`DATABASE
`
`~ DATABASE '
`
`SERVER
`
`
`
`SUMMARY
`INFORMATION
`
`AGENT
`
`REGISTRATION
`
`TRANSACTION
`
`SERVER
`
`SERVER
`
`- DATABASE V
`
`r I I I I I I I I
`
`\’I
`
`I I IL
`
`FIG. 2
`
`0004
`
`REGISTRATION
`
`TRANSACTION _
`SERVER
`
`
`
`I
`DATABASE —
`
`—._——.——._-—___.—._.——.._.-—.—.—__——.—._. 104
`
`0004
`
`

`
`US. Patent
`
`Aug. 12,2008
`
`Sheet 3 or 11
`
`US 7,412,416 B2
`
`Nmw Mugs
`mQNm EH
`
`W51 09 T
`
`
`.MH 95mm; w=0=o< 22> 2E
`
`Emu E
`
`wmm
`
`0mm
`
`0005
`
`

`
`U.S. Patent
`
`UA
`
`8002n0...
`
`Qu
`
`1
`
`US 7,412,416 B2
`
`
`
`
`
`mm.0_..._:58asoom8:08@50832002958
`
`h\
`
`m..w\\i\...W_..\N4.x.\5
`
`oofimmaIIIE
`EglanufiEE3EIEIEIEEE3
`
`
`mg.._OOO._U__>_E
`
`0006
`
`0006
`
`

`
`US. Patent
`
`Aug. 12,2008
`
`Sheet 5 or 11
`
`US 7,412,416 B2
`
`0007
`
`

`
`US. Patent
`
`Aug. 12,2008
`
`Sheet60f11
`
`US 7,412,416 B2
`
`E1
`
`Price:
`
`BUY
`$35.90
`
`40
`
`:
`Q t'
`“am”
`Value: $1436.00
`
`@1550
`
`FIG. 30
`
`Expires: End of trading day E
`
`SELL
`Price:
`$50.10
`Quantity: I 50
`
`FIG. 3E
`
`Value: $2505.00
`
`
`
`Expires: 1 Week E
`
`QILIJIXJIBOO
`
`354
`
`,J
`
`904
`J
`
`FIG. 9
`
`0008
`
`

`
`US. Patent
`
`Aug. 12,2008
`
`Sheet 7 or 11
`
`US 7,412,416 B2
`
`5:. .2 ___
`
`_______ __ ___ ___ _
`
`own
`
`w;
`
`
`
`dlmnm >>m_> >Em50 $25 I xoom EEO I 09 __u
`
`
`
`
`
`2E
`
`0009
`
`

`
`US. Patent
`
`Aug. 12, 2008
`
`Sheet 8 0f 11
`
`US 7,412,416 B2
`
`600
`
`RECEIVE AN
`ORDER TYPE
`I
`RECEIVE A
`QUANTITY
`604
`SPECIFIED FOR ”
`ORDER
`I
`GENERATE AN
`ORDER ICON
`WHOSE
`VERTICAL SIZE
`MATCHES THE
`QUANTITY
`
`608
`
`RECEIVE A
`PRICE FOR THE
`ORDER
`I
`DISPLAY
`ORDER
`CONFIRMATION
`WINDOW
`I
`TRANSMIT
`ORDER
`INFORMATION
`
`612
`
`614
`
`616
`
`FIG. 6
`
`618
`
`DOES SLOT
`CONTAIN AN
`EXISTING BID?
`
`636
`,J
`PLACE ICON AT
`NO—> DETERMINED
`SLOT
`
`640
`,)
`
`SHIFT ALL
`LOWER PRICED
`YES’
`BIDS OVER ONE
`SLOT
`
`HAVE A PRICE
`LESS THAN
`REQUESTED
`BID?
`
`NO
`
`632
`
`STACK
`REQUESTED
`BID ‘BELOW
`EXISTING
`BID(S)
`
`HAVE A PRICE
`EQUAL TO
`REQUESTED
`BID?
`
`YES>
`
`NO
`W
`DETERMINE
`NEW SLOT FOR
`REQUESTED
`BID
`
`628
`
`0010
`
`

`
`US. Patent
`
`Aug. 12, 2008
`
`Sheet 9 0f 11
`
`US 7,412,416 B2
`
`702
`,J
`TRANSIT NEW
`ORDER
`INFORMATION TO
`CLIENT TERMINALS
`
`716
`
`YE
`
`,JIT
`
`MODIFY OFFER
`INFORMATION
`TO REFLECT A
`QUANTITY
`CORRESPONDING
`TO DIFFERENCE IN
`QUANTITIES
`
`SEND UPDATED
`OFFER
`INFORMATION FOR
`DISPLAY
`
`NO I
`
`712
`REMOVE
`OFFER 'J
`FROM TABLE
`
`V
`
`720
`A
`RECORD 4
`TRADE
`
`IS
`THERE AN
`ISTING OFFER LES
`THAN OR EQUAL TO
`PRICE
`OF BID?
`
`YES
`
`704
`
`DOES OFFER
`HAVE A QUALITY
`ESS THAN BID‘?
`
`706
`YS 5
`A
`REMOVE OFFER FROM
`ORDER TABLE AND ADD
`BID TO ORDER TABLE
`WITH QUANTITY REDUCED
`
`FIG. 7
`
`0011
`
`

`
`US. Patent
`
`Aug. 12, 2008
`
`Sheet 10 0f 11
`
`US 7,412,416 B2
`
`1000
`
`DISPLAY
`A TRADING 4
`PIT
`
`1 004
`
`HAS A
`PREDETERMINED
`TIME PERIOD
`EXPIRED?
`
`ES
`+
`1008
`SELECT TRADER
`,J
`ICON
`
`1010
`
`1011
`‘J
`REMOVE
`ORDER
`NO>
`ICON
`
`IS TRADER
`STILL
`ONNECTED?
`
`YES
`Y
`DETERMINE
`ACTIVITY LEVEL
`
`1012
`
`7
`DISPLAY TRADER ICON AT
`1016
`A LOCATION
`,J
`CORRESPONDING TO
`ACTIVITY LEVEL
`
`1 024
`
`ARE THERE
`YSTANDERS'7
`
`YES
`V
`1°28
`SELECT
`BYSTANDER /’
`ICON
`
`IS BYSTANDER
`CONNECTED?
`
`1040
`,J
`REMOVE
`BYSTANDER
`ICON
`
`YES
`
`ARE THERE
`MORE
`BYSTANDERS?
`
`ARE THERE
`‘ ORE TRADERS’?
`
`NO
`
`NO
`
`FIG. 10
`
`0012
`
`

`
`US. Patent
`
`Aug. 12,2008
`
`Sheet 11 0111
`
`US 7,412,416 B2
`
`COMMUNICATIONS WINDOW
`
`1104
`,J
`
`1108
`,J
`
`INSTANT
`MESSAGE
`
`EMAIL
`MESSAGE
`
`CONNECTION
`
`FIG. 11
`
`0013
`
`

`
`US 7,412,416 B2
`
`1
`USER INTERFACE FOR AN ELECTRONIC
`TRADING SYSTEM
`
`CROSS REFERENCE TO RELATED
`APPLICATION
`
`This application is a continuation of US. patent applica
`tion Ser. No. 09/289,550 ?ledApr. 9, 1999, now US. Pat. No.
`7,212,999 entitled “User Interface for an Electronic Trading
`System” the contents of Which are fully incorporated herein
`by reference.
`
`TECHNICAL FIELD
`
`The present invention relates generally to the ?eld of
`graphical user interfaces and more particularly to the ?eld of
`graphical user interfaces for electronic trading systems.
`
`BACKGROUND OF THE INVENTION
`
`Trading pits are the lifeblood of a market economy. Quan
`tities of goods and shares in companies are bought and sold by
`millions of investors through trading pits on exchanges every
`day. When a particular trading product or item is more valued,
`the value of the item is driven up as a result of more aggressive
`bidding by the buyers. When an item is less valued, the value
`of the item is driven doWn as a result of more aggressive offers
`to sell the item. The successful trader anticipates the rise or
`fall of the value of an item and performs his or her oWn
`transaction before the rest of the market is aWare of the item’ s
`potential gain or loss in value. Thus, anticipation of the mar
`ket and speci?cally of the future demand for an item of
`interest is critical to the success of a trader.
`The transactions for each item occur in a trading pit for that
`item. The trading pit is a designated area in an exchange in
`Which the customers submit their orders, either bids or offers,
`for the item to a broker in the pit. The exchange records all
`transactions and relays or posts to the individual traders the
`outstanding bid having the highest value and the outstanding
`offer having the loWest value for the item, along With the
`quantity speci?ed in the order. The exchange does not release
`information on all outstanding offers and bids to the traders
`because, in part, this information is What gives the market
`makers an advantage over the traders and enables the market
`makers to change their oWn trading directions quickly, step in
`front of customer orders, and use customer limit orders to
`protect the market makers from losses. HoWever, for an indi
`vidual trader, having only the latest order information for an
`item complicates the trader’ s task of ascertaining trends in the
`orders for an item because the trader has very little informa
`tion about the volume of offers and bids or the rate at Which
`these volumes are changing.
`Other information is also used by the trader to anticipate
`the market, including current exchange performances, his
`torical transaction data for the item, the number of traders at
`the pit, and the trader’s sense of the activity of the pit. HoW
`ever, it is often dif?cult for a trader to quickly assemble this
`information from diverse and often unrelated sources or even
`effectively process all of this information in order to make an
`informed transaction decision. From this information, and
`other external information, the trader must attempt to deter
`mine trends in the buying or selling for the item in order to
`anticipate the market and the demand for a particular item.
`Thus, a system is needed in Which trend information of
`market demand for an individual item is provided to traders in
`an intuitive format Which alloWs traders to quickly interpret
`hoW market demand is changing to an item. A system is also
`
`20
`
`25
`
`30
`
`35
`
`40
`
`45
`
`50
`
`55
`
`60
`
`65
`
`2
`needed Which provides contextual information about the item
`or the market to the trader While the trader is trading on a
`speci?c item in a manner Which alloWs the trader to quickly
`interpret the information and then act accordingly.
`
`SUMMARY OF INVENTION
`
`The present invention is a user interface for an electronic
`trading system that alloWs a remote trader to vieW trends in
`the orders for an item, and provides the trading information in
`an easy to see and interpret graphical format. The user inter
`face of the present invention operates in a system in Which
`individual traders place orders including bids and offers, on
`remote client terminals, and this information is routed to a
`transaction server. The transaction server receives order
`information from the remote terminals, matches a bid for an
`item to an offer for an item responsive to the bid correspond
`ing With the offer, and communicates outstanding bid and
`offer information back to the client terminals. Thus, in accor
`dance With the present invention, each client terminal dis
`plays all of the outstanding bids and offers for an item, in
`contrast to the conventional systems and methods in Which
`only the highest bid and loWest offer Were knoWn to the
`individual trader. This alloWs the trader to vieW trends in
`orders for an item, and thus better enables the trader to antici
`pate demand for the item.
`For example, in one embodiment, a graph is formed With a
`value axis. Bid icons and offer icons for all outstanding bids
`and offers are displayed on the graph at locations correspond
`ing to the values of the bids and offers. When an item is being
`“bid up,” i.e., the demand for the item is groWing, all of the
`neW bids are displayed to the remote trader. The trader imme
`diately sees the increasing demand for the item as it occurs,
`and thus may infer that the item may rise in value, and can
`enter an order to buy for the item immediately While the value
`for the item still appears loW. In contrast, in conventional
`systems, the trader only kneW of the existence of the highest
`bid, and therefore Would not knoW that demand for the item
`Was increasing. HoWever, by “opening the book,” all of the
`outstanding orders are displayed to all of the remote traders
`and each trader is able to immediately see the groWing
`demand and maximiZe his or her position in the market
`accordingly.
`The user interface of the present invention presents this
`information in an intuitive format, alloWing the trader to make
`informed decisions quickly. In a priority vieW embodiment,
`bid and offer icons are displayed corresponding to an axis of
`values. This results in the bid icons being displayed on the
`loWerportion of the screen and the offer icons being displayed
`on the upperportion of the screen. The trader is able to discern
`immediately the number and volume of bids and offers out
`standing for the item and their difference in value. The bids
`and offers are preferably displayed in different colors, shapes,
`or other visual characteristics, further enhancing the trader’ s
`ability to quickly ascertain the current state of the market. The
`screen is updated frequently to display the most recent bids
`and offers. In one embodiment, the icons are formed having
`an edge Which is angled toWard the axis of values. When all
`outstanding offers and bids are displayed, the arrangement of
`icons naturally forms the edges of a triangle that points to the
`value differential at the axis of values. In yet another embodi
`ment, the trader’s oWn bids and offers are displayed in a ?rst
`color or other visual characteristic, and the bids and offers of
`other traders are displayed in a second color or visual char
`acteristic. This alloWs the trader to quickly determine his or
`her relative position in the marketplace. Finally, in a preferred
`embodiment, a siZe of the icons represents the quantity of the
`
`0014
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`US 7,412,416 B2
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`3
`bid or offer, allowing an easy visual means of determining the
`relative quantities each bid and offer represent.
`In a value/ quantity vieW embodiment, an axis of values and
`an axis of quantities are used to determine the location of the
`bid and offer icons. The icons in this embodiment are markers
`or tokens and provide a different look and feel to the trader.
`Providing alternate vieWs alloW a trader to select a vieW With
`Which the trader is most comfortable trading.
`A value quantifying analytic is displayed in a further
`embodiment With respect to the value axis at a location cor
`responding to the current value Which the analytic represents.
`The analytic is preferably displayed as a marker called an
`action line, in a color or other visual characteristic different
`from the other characteristics used to represent other objects
`being displayed. The action line is selected by each individual
`trader and can re?ect value-to-eaming ratio, volatility, vol
`ume of sales, or any other metric the trader designs, or can be
`selected from a listed of predetermined metrics. The action
`line responds to changes in the data it measures, updating in
`essentially real time. The action line alloWs the trader to
`immediately determine the current valuation of the item rela
`tive to the trader’ s oWn valuation of the item. As the offers or
`bids approach the action line, the trader is prepared to com
`plete a transaction in accordance With the trader’s oWn valu
`ation.
`In another aspect of the invention, market data and other
`contextual data is displayed While the trader is vieWing one of
`the aforementioned user interfaces. A historical chart is dis
`played in the background of a user interface to provide addi
`tional information to the trader Who is determining the state of
`the market and hoW it may affect the value of the item. For
`example, the historical chart may represent the various mar
`ket indices, historical values of the item or others, and any
`other historical value, quantity, or volume trend. The histori
`cal chart can represent the average value of the item over a
`period of time, or may represent a value or values for any
`other item or group of items. The historical chart is displayed
`With respect to a vertical axis of values, and is displayed
`horizontally responsive to time. The historical chart is
`updated to provide the latest information to the trader While
`the trader is trading. Thus, in accordance With the present
`invention, the trader is able to make instantaneous decisions
`regarding an item While receiving critical information about
`other items or the past performance of the current item and
`other indices. This is a major advantage over conventional
`methods of trading in Which this information is not provided
`concurrently, and if presented at all, is dif?cult to process
`quickly.
`An alternate embodiment provides a trading pit vieW that
`displays trader icons for each trader and positions the trader
`icons re?ective of the activity level of the trader. Floor brokers
`and other bystanders are also displayed and identi?ed to alloW
`the trader to understand at a glance the respective positions
`and activity of all users currently connected to the transaction
`server for that trading pit. Selecting a trader icon provides
`information regarding the trader and can open up a WindoW to
`alloW the traders to communicate With each other using one or
`more methods including electronic mail, text chat or commu
`nication by voice over a netWork connection. The trading pit
`vieW alloWs the remote trader to immediately ascertain Whom
`the trader is trading against, hoW active they are, and alloWs
`the trader to better anticipate the market.
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`BRIEF DESCRIPTION OF THE DRAWINGS
`
`FIG. 1 is a block diagram of a preferred embodiment of the
`electronic trading system of the present invention.
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`FIG. 2 is a block diagram of a preferred embodiment of the
`transaction manager of the present invention.
`FIGS. 3a-3c are screen shots illustrating an embodiment of
`a Priority VieW in accordance With the present invention.
`FIG. 3d illustrates a buy order pop-up WindoW.
`FIG. 3e illustrates a sell order pop-up WindoW.
`FIG. 4 is a screen shot illustrating an embodiment of a
`Value/ Quantity View in accordance With the present inven
`tion.
`FIG. 5 is a How chart illustrating a preferred embodiment of
`a method of displaying bid and offer icons in accordance With
`the present invention.
`FIG. 6 is a How chart illustrating a preferred embodiment of
`a method of generating a bid order icon in accordance With the
`present invention.
`FIG. 7 is a How chart illustrating a preferred embodiment of
`a method of generating a offer order icon in accordance With
`the present invention.
`FIG. 8 is a How chart illustrating an alternate embodiment
`of generating an order icon.
`FIG. 9 is a screen shot illustrating a Pit Panel vieW in
`accordance With the present invention.
`FIG. 10 is a How chart illustrating a preferred embodiment
`of generating and placing a trader icon in accordance With the
`present invention.
`FIG. 11 is a screen shot illustrating a communication Win
`doW in accordance With the present invention.
`
`DETAILED DESCRIPTION OF THE PREFERRED
`EMBODIMENT
`
`FIG. 1 illustrates the electronic trading system in accor
`dance With the present invention. Client terminals 104 are
`coupled to a transaction manager 100. The client terminals
`104 are personal computers, terminals as part of a netWork, or
`any other computing device. Traders use the client terminals
`104 to interact With trading pits that are managed by the
`transaction manager 100. The transaction manager 100 man
`ages transaction requests generated by the client terminals
`104, routes information to, from, and betWeen the terminals
`104 and the transaction manager 100, and stores and retrieves
`information from a database 108 or databases 108.
`FIG. 2 illustrates a more speci?c embodiment of the trans
`action manager 100. The clients 104 are coupled to log-in
`manager 204 to provide to each client access to the transac
`tion manager 100, and to alloW each client 104 to designate
`one or more trading pits 220 to Which to be connected. The
`transaction manager 100 hosts one or more transaction serv
`ers 200. Each transaction server 200 is responsible for the
`trading of a speci?ed item, essentially supporting a speci?c
`trading pit. The summary information agents 224 for each
`transaction server 200 provide a current status of the activity
`of each pit 220 to a trader connected to the log-in manager
`204. The trader can select a pit 220 to Which to be connected
`based upon the summary information. Once the log-in pro
`cess is complete, the clients 104 are coupled to a registration
`server 212 for the speci?ed trading pit 220. Registration for
`each pit 220 requires the client 104 to provide an access key
`that it received from the login manager 204 during log in.
`After registering for a pit 220, the trader is able to add,
`modify or delete orders for the item being traded in the trading
`pit 220. One type of an order called a “bid” is an order to buy
`up to a speci?c quantity of an item at or beloW a speci?c value.
`Another type of an order called an “offer” is an order to sell up
`to a speci?c quantity of an item at or above a speci?c value.
`Other types of orders are possible depending on the type of
`item being traded in the trading pit 220.
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`US 7,412,416 B2
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`5
`Each pit 220 includes a transaction server 200. The trans
`action server 200 receives orders, matches bids and offers
`(When a bid and offer are matched it is called a trade or
`execution) and routes information to both the database 208
`and the client terminals 104 connected to the trading pit 220.
`The client terminals 104 generate icons for bid and offer
`orders (called bid and offer icons), historical charts and trader
`icons, and determine the placement of bid and offer icons and
`trader icons responsive to the information received from the
`transaction server 200. The database 208 to Which the trans
`action server 200 is coupled stores the information corre
`sponding to each trader, information on every order submitted
`over a period (such as start of trading days), information on
`every trade over a period (such as last 180 days) and the
`information corresponding to the item being traded. Each
`trader may have information associated With the trader’s
`account stored, including a name, e-mail account, address,
`phone number, personal value quantifying metric or analytic
`activity level history, and various other information Which is
`unique to the individual trader and Which may be used by the
`present invention to create a virtual trading environment.
`The information corresponding to every order includes
`Whether the order Was a neW order, modi?cations to an exist
`ing order or deletion of a previously submitted order, the type
`of order (for example, bid or offer), the value, the quantity, the
`time and date the order Was submitted, and any other infor
`mation speci?c to the order. The information corresponding
`to every trade includes the value, quantity, buyer and seller.
`The information corresponding to the item being traded
`includes the highest outstanding bid value and the loWest
`outstanding offer value for the item, as Well as a list of the
`values of all open orders for the item. The item information is
`stored on the database 208 in a data structure such as an order
`table. The server 200 updates the information in the order
`table responsive to receiving information from the client ter
`minals 104. The updated information is then transmitted back
`to the client terminals 104. Other information, such as infor
`mation used in creating historical charts, may also be stored
`on database 208. Information Which may be global to more
`than one pit 220, for example, trader personal information, is
`also stored on the system database 108, to alloW the informa
`tion to be accessed by each trading pit 220.
`For traders registered to the same trading pit 220, all of
`their orders (i.e. bids or offers specifying a value and quantity)
`are transmitted to the transaction server 200 for that pit 220.
`The server 200 analyZes the orders for matches With outstand
`ing, or open, orders. If there is a match betWeen orders of
`different types, for example, betWeen a bid and an offer, then
`a transaction is enacted and the client terminals 104 are noti
`?ed to remove the matched icons. All outstanding orders are
`transmitted to each client terminal, alloWing a trader to vieW
`all of the outstanding orders from all traders for an item on a
`trading pit at any given time. The client displays are updated
`continuously or at speci?c intervals to provide updated infor
`mation regarding Which orders are outstanding and the state
`of the market in the pit 220. As shoWn in FIG. 2, multiple
`trading pits 220 are provided in the electronic trading system,
`and a single trader may be connected to as many pits 220 at the
`same time as desired. The number of trading pits 220 Which
`may be maintained in accordance With the present invention
`is scalable responsive to the number of servers Which are
`provided in the system. The items of trade include any pos
`sible commodity, for example, minerals, futures, or shares in
`a corporation. Other netWork con?gurations can be used to
`implement the electronic trading system as is knoWn to those
`of ordinary skill in the art.
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`The client terminals 104 provide the interactive link
`betWeen the traders and the trading pits 220, and display the
`various user interfaces of the present invention. FIG. 3a illus
`trates a priority vieW 312 Which is designed to alloW traders to
`intuitively place orders 300, 304 and vieW markers 336 rep
`resenting value quantifying metrics, and contextual trend data
`316 in accordance With the present invention. In the priority
`vieW embodiment, orders 300, 304 are displayed at a location
`corresponding to their value With respect to the value axis
`332. Values may represent price, interest rate, or any other
`metric by Which an item may be valued. For example, offer
`304(1) has a value of $28.45, and the loWest point of the
`bottom edge 308 of the icon 304(1) is aligned With the value
`28.45 on the value axis 332. In this embodiment, the top edges
`309 of the bids and bottom edges 308 of the offer icons are
`angled. The rightmost bid