System and Method for Variably Regulating Order Entry in an Electronic Trading System

Abstract

A system and method are provided to intelligently limit the frequency at which automated or semi-automated trading tools move or re-price orders in an exchange order book. A tolerance may be input that limits when one or more orders in the exchange order book are moved from one price to another. The system and method assist in reducing the number of orders that are entered into the system which can lead to reduced exchange transaction fees, lost queue position, and reduce network bandwidth consumption.

1 . (canceled) 
     
     
         2 . A method for comprising:
 dynamically determining, via a computing device, an effective price for a spread between a plurality of tradeable objects, the effective price based on a generated price for a first order for at least one tradeable object of the spread and a change in an inside market for at least one other tradeable object of the spread; and   comparing, via the computing device, the effective price for the spread and a range of price levels according to a value of a selected range and a received target price for the spread, the selected range being selected from a plurality of ranges based on the received target price for the spread.   
     
     
         3 . The method of  claim 2  further comprising receiving, via a user input device for the computing device, the received target price for the spread. 
     
     
         4 . The method of  claim 3  further comprising generating, via the computing device, the first order at a price based on the received target price for the spread and a current inside market for the at least one other tradeable object when the received target price for the spread is received. 
     
     
         5 . The method of  claim 3  where the effective price is dynamically determined in response to the change in the inside market received at the computing device. 
     
     
         6 . The method of  claim 3  where the range of a plurality of ranges is automatically selected in response to receiving the target price for the spread. 
     
     
         7 . The method of  claim 2  further comprising:
 determining a price for a second order for the at least one tradeable object based on the received target price and the change in the inside market in response to the effective price for the spread being outside the range of price levels; 
 transmitting the second order to an electronic exchange associated with the at least one tradeable object; and 
 cancelling the first order. 
 
     
     
         8 . The method of  claim 2  further comprising:
 transmitting, via a computing device, an order for the at least one other tradeable object of the plurality of tradeable objects of the spread at a price based on the target price of the spread and an inside market for the at least one tradeable object of the spread. 
 
     
     
         9 . The method of  claim 2  where the selected range is selected according to determining whether the target price of the spread is within the selected range of the plurality of ranges. 
     
     
         10 . The method of  claim 2  where the price of the first order is based on a highest bid price of the inside market. 
     
     
         11 . The method of  claim 2  where the price of the first order is based on the lowest ask price of the inside market. 
     
     
         12 . A non-transitory computer readable medium having instructions stored thereon which when executed by a processor cause the processor to carry out acts comprising:
 dynamically determining, via a computing device, an effective price for a spread between a plurality of tradeable objects, the effective price based on a generated price for a first order for at least one tradeable object of the spread and a change in an inside market for at least one other tradeable object of the spread; and   comparing, via the computing device, the effective price for the spread and a range of price levels according to a value of a selected range and a received target price for the spread, the selected range being selected from a plurality of ranges based on the received target price for the spread.   
     
     
         13 . The non-transitory computer readable medium of  claim 12  where the acts further comprise receiving, via a user input device for the computing device, the received target price for the spread. 
     
     
         14 . The non-transitory computer readable medium of  claim 13  where the acts further comprise generating, via the computing device, the first order at a price based on the received target price for the spread and a current inside market for the at least one other tradeable object when the received target price for the spread is received. 
     
     
         15 . The non-transitory computer readable medium of  claim 13  where the effective price is dynamically determined in response to the change in the inside market received at the computing device. 
     
     
         16 . The non-transitory computer readable medium of  claim 13  where the range of a plurality of ranges is automatically selected in response to receiving the target price for the spread. 
     
     
         17 . The non-transitory computer readable medium of  claim 12  where the acts further comprise:
 determining a price for a second order for the at least one tradeable object based on the received target price and the change in the inside market in response to the effective price for the spread being outside the range of price levels; 
 transmitting the second order to an electronic exchange associated with the at least one tradeable object; and 
 cancelling the first order. 
 
     
     
         18 . The non-transitory computer readable medium of  claim 12  where the acts further comprise:
 transmitting, via a computing device, an order for the at least one other tradeable object of the plurality of tradeable objects of the spread at a price based on the target price of the spread and an inside market for the at least one tradeable object of the spread. 
 
     
     
         19 . The non-transitory computer readable medium of  claim 12  where the selected range is selected according to determining whether the target price of the spread is within the selected range of the plurality of ranges. 
     
     
         20 . The non-transitory computer readable medium of  claim 12  where the price of the first order is based on a highest bid price of the inside market. 
     
     
         21 . The non-transitory computer readable medium of  claim 12  where the price of the first order is based on the lowest ask price of the inside market.