Systems and methods for maintaining the viability of a good-until-bettered order type in electronic trading systems

Abstract

Systems and methods of trading items on an electronic trading system according to the invention are provided. The embodiments of the invention are based at least in part on a new order type. The new order type is a modification of a conventional good-until-bettered order type. A good-until-bettered bid/offer is received along with instructions that specify a good-until-bettered increment value and/or duration. The good-until-bettered order is maintained in the electronic trading system until a bid/offer that is better by the specified plurality of standard trading increments is received by the electronic trading system and/or remains in the system for the good-until-bettered duration.

What is claimed is: 
     
         1 . A method of trading items on an electronic trading system, the method comprising:
 receiving a good-until-bettered bid;   receiving instructions that specify a good-until-bettered increment value, the good-until-bettered increment value that further specifies an amount of standard trading increments for the bid;   maintaining the good-until-bettered bid in the electronic trading system until a bid that tops the good-until-bettered bid by the specified amount of standard trading increments is received by the electronic trading system; and   when the bid that tops the good-until-bettered bid by the specified amount of standard trading increments is received by the electronic trading system, canceling the good-until-bettered bid.   
     
     
         2 . The method of  claim 1  further comprising requiring the bid that tops the good-until-bettered bid to remain in the system for a predetermined amount of time before canceling the good-until-bettered bid. 
     
     
         3 . The method of  claim 1  further comprising receiving user instructions that specify the good-until-bettered increment value. 
     
     
         4 . The method of  claim 1  further comprising receiving instructions from the electronic trading system that specify the good-until-bettered increment value. 
     
     
         5 . The method of  claim 1  further comprising, following the canceling of the good-until-bettered bid, generating a new bid on behalf of a trading participant associated with the good-until-bettered bid. 
     
     
         6 . The method of  claim 5  wherein the new bid differs from a current best bid by a predetermined plurality of increments. 
     
     
         7 . The method of  claim 1  wherein the maintaining the good-until-bettered bid comprises maintaining the good-until-bettered bid until a bid having a price that is higher than that of the good-until-bettered bid by the specified amount of standard trading increments is received by the electronic trading system. 
     
     
         8 . The method of  claim 1  wherein the maintaining the good-until-bettered bid comprises maintaining the good-until-bettered bid until a bid having a price that is lower than that of the good-until-bettered bid by the specified amount of standard trading increments is received by the electronic trading system. 
     
     
         9 . The method of  claim 1  wherein the bid that tops the good-until-bettered bid is received from a trading participant associated with the good-until-bettered bid. 
     
     
         10 . A method of trading items on an electronic trading system, the method comprising:
 receiving a good-until-bettered offer;   receiving instructions that specify a good-until-bettered increment value, the good-until-bettered increment value that further specifies an amount of standard trading increments for the offer;   maintaining the good-until-bettered offer in the electronic trading system until an offer that cuts the good-until-bettered offer by the specified amount of standard trading increments is received by the electronic trading system; and   when the offer that cuts the good-until-bettered offer by the specified amount of standard trading increments is received by the electronic trading system, canceling the good-until-bettered offer.   
     
     
         11 . The method of  claim 10  further comprising requiring the offer that cuts the good-until-bettered offer to remain in the system for a predetermined amount of time before canceling the good-until-bettered offer. 
     
     
         12 . The method of  claim 10  further comprising receiving user instructions that specify the good-until-bettered increment value. 
     
     
         13 . The method of  claim 10  further comprising receiving instructions from the electronic trading system that specify the good-until-bettered increment value. 
     
     
         14 . The method of  claim 10  further comprising, following the canceling of the good-until-bettered offer, generating a new offer on behalf of a trading participant associated with the good-until-bettered offer. 
     
     
         15 . The method of  claim 14  wherein the new offer differs from a current best offer by a predetermined plurality of increments. 
     
     
         16 . The method of  claim 10  wherein the maintaining the good-until-bettered offer comprises maintaining the good-until-bettered offer until an offer having a price that is lower than that of the good-until-bettered offer by the specified amount of standard trading increments is received by the electronic trading system. 
     
     
         17 . The method of  claim 10  wherein the maintaining the good-until-bettered offer comprises maintaining the good-until-bettered offer until an offer having a price that is higher than that of the good-until-bettered offer by the specified amount of standard trading increments is received by the electronic trading system. 
     
     
         18 . The method of  claim 10  wherein the offer that cuts the good-until-bettered offer is received from a trading participant associated with the good-until-bettered offer. 
     
     
         19 . An order type for trading on an electronic trading system, the order type comprising:
 a good-until-bettered order comprising:   a configurable increment component that deactivates the good-until-bettered order when a respective bid or offer that is entered into the trading system differs from the good-until-bettered order by a predetermined number of trading increments.   
     
     
         20 . The order type of  claim 19  wherein:
 the good-until-bettered order is a good-until-bettered bid; and 
 the good-until-bettered bid is deactivated when a bid is entered into the trading system at a predetermined number of trading increments higher than the good-until-bettered bid. 
 
     
     
         21 . The order type of  claim 19  wherein:
 the good-until-bettered order is a good-until-bettered bid; and 
 the good-until-bettered bid is deactivated when a bid is entered into the trading system at a predetermined number of trading increments lower than the good-until-bettered bid. 
 
     
     
         22 . The order type of  claim 19  wherein:
 the good-until-bettered order is a good-until-bettered offer; and 
 the good-until-bettered offer is deactivated when an offer is entered into the trading system at a predetermined number of trading increments lower than the good-until-bettered bid. 
 
     
     
         23 . The order type of  claim 19  wherein:
 the good-until-bettered bid or offer is a good-until-bettered offer; and 
 the good-until-bettered offer is deactivated when an offer is entered into the trading system at a predetermined number of trading increments higher than the good-until-bettered bid. 
 
     
     
         24 . A method of trading items on an electronic trading system, the method comprising:
 receiving a good-until-bettered bid;   receiving instructions that specify a good-until-bettered duration setting, the good-until-bettered duration setting that further specifies a good-until-bettered duration for the bid;   maintaining the good-until-bettered bid in the electronic trading system until a bid that tops the good-until-bettered bid is received by the electronic trading system and remains in the system for the good-until-bettered duration; and   when the bid that tops the good-until-bettered bid remains in the system for the good-until-bettered duration, canceling the good-until-bettered bid.   
     
     
         25 . The method of  claim 24  further comprising requiring the bid that tops the good-until-bettered bid to be different by a predetermined amount than the good-until-bettered bid before canceling the good-until-bettered bid. 
     
     
         26 . The method of  claim 24  further comprising receiving user instructions that specify the good-until-bettered duration setting. 
     
     
         27 . The method of  claim 24  further comprising receiving instructions from the electronic trading system that specify the good-until-bettered duration setting. 
     
     
         28 . The method of  claim 24  further comprising, following the canceling of the good-until-bettered bid, generating a new bid on behalf of a trading participant associated with the good-until-bettered bid. 
     
     
         29 . The method of  claim 28  wherein the new bid differs from a current best bid by a predetermined plurality of increments. 
     
     
         30 . A method of trading items on an electronic trading system, the method comprising:
 receiving a good-until-bettered offer;   receiving instructions that specify a good-until-bettered duration setting, the good-until-bettered duration setting that further specifies a good-until-bettered duration for the offer;   maintaining the good-until-bettered offer in the electronic trading system until an offer that cuts the good-until-bettered offer is received by the electronic trading system and maintained in the electronic trading system for the good-until-bettered duration; and   when the offer that cuts the good-until-bettered offer remains in the system for the good-until-bettered duration, canceling the good-until-bettered offer.   
     
     
         31 . The method of  claim 30  further comprising requiring the offer that cuts the good-until-bettered offer to be different by a predetermined amount than the good-until-bettered offer before canceling the good-until-bettered offer. 
     
     
         32 . The method of  claim 30  further comprising receiving user instructions that specify the good-until-bettered duration setting. 
     
     
         33 . The method of  claim 30  further comprising receiving instructions from the electronic trading system that specify the good-until-bettered duration setting. 
     
     
         34 . The method of  claim 30  further comprising, following the canceling of the good-until-bettered offer, generating a new offer on behalf of a trading participant associated with the good-until-bettered offer. 
     
     
         35 . The method of  claim 34  wherein the new offer differs from a current best offer by a predetermined plurality of increments. 
     
     
         36 . An order type for trading on an electronic trading system, the order type comprising:
 a good-until-bettered order comprising:   a configurable duration component that deactivates the good-until-bettered order when a respective bid or offer that is entered into the trading system differs from the good-until-bettered order and remains in the trading system for a predetermined duration.   
     
     
         37 . The order type of  claim 36  wherein:
 the good-until-bettered order is a good-until-bettered bid; and 
 the good-until-bettered bid is deactivated when a bid is entered into the trading system higher than the good-until-bettered bid. 
 
     
     
         38 . The order type of  claim 36  wherein:
 the good-until-bettered order is a good-until-bettered bid; and 
 the good-until-bettered bid is deactivated when a bid is entered into the trading system lower than the good-until-bettered bid. 
 
     
     
         39 . The order type of  claim 36  wherein:
 the good-until-bettered order is a good-until-bettered offer; and 
 the good-until-bettered offer is deactivated when an offer is entered into the trading system lower than the good-until-bettered offer. 
 
     
     
         40 . The order type of  claim 36  wherein:
 the good-until-bettered order is a good-until-bettered offer; and 
 the good-until-bettered offer is deactivated when an offer is entered into the trading system higher than the good-until-bettered offer. 
 
     
     
         41 . An electronic trading system comprising:
 a workstation for:
 receiving a good-until-bettered order; and 
 receiving instructions that specify a good-until-bettered increment value, the good-until-bettered increment value that further specifies an amount of standard trading increments for the order; and 
   a server for:
 maintaining the good-until-bettered order in the electronic trading system until a bid or offer that is better than the good-until-bettered order by the specified amount of standard trading increments is received by the electronic trading system; and 
 when the bid or offer that is better than the good-until-bettered order by the specified amount of standard trading increments is received by the electronic trading system, canceling the good-until-bettered order. 
   
     
     
         42 . An electronic trading system comprising:
 a workstation for:
 receiving a good-until-bettered order; and 
 receiving instructions that specify a good-until-bettered duration setting, the good-until-bettered duration setting that further specifies a good-until-bettered duration for the order; and 
   a server for:
 maintaining the good-until-bettered order in the electronic trading system until a bid or offer that is better than the good-until-bettered order is received by the electronic trading system and remains in the system for the good-until-bettered duration; and 
 when the bid or offer that is better than the good-until-bettered order remains in the system for the good-until-bettered duration, canceling the good-until-bettered order.