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 electronic trading, comprising:
 receiving, via a user input device, a target spread price for a spread between a first tradeable object of a first exchange and a second tradeable object of a second exchange;   transmitting a first order for the first tradeable object to the first exchange via a computing device, the first order having a price based on inside market information for the second tradeable object received from the second exchange and the target spread price;   determining an effective spread price for the spread via the computing device, the effective spread price based on the price of the first order and an update to the inside market information for the second tradeable object;   comparing the target spread price to an inside market for the spread;   determining a price limit for the target spread price according to the comparison of the target spread price and the inside market for the spread; and   updating the first order via the computing device according to the effective spread price being beyond the price limit.   
     
     
         3 . The method of  claim 2  where updating the first order comprises:
 transmitting a second order for the first tradeable object to the first exchange via the computing device, the second order having a price based on the update to the inside market information for the second tradeable object; and 
 cancelling the first order. 
 
     
     
         4 . The method of  claim 3  where the computing device comprises a network of distributed components. 
     
     
         5 . The method of  claim 2  further comprising transmitting an order for the second tradeable object to the second exchange via the computing device in response to execution of the first order. 
     
     
         6 . The method of  claim 5  where the order for the second tradeable object comprises a price based on at least an execution price of the first order. 
     
     
         7 . The method of  claim 5  where tradeable objects of the first exchange comprise different tradeable objects of the second exchange. 
     
     
         8 . A method for electronic trading, comprising:
 displaying an order for a first tradeable object of a spread on a man-machine interface via a display of a computing device, the order having a price based on market information for a second tradeable object of the spread;   processing, via the computing device, updates to the market information to determine an effective price for a spread between the first tradeable object and the second tradeable object; and   determining, via the computing device, a new order for the first tradeable object in response to the effective price being outside a price threshold beyond a target price for the spread and being identified according to the target price.   
     
     
         9 . The method of  claim 8 , further comprising transmitting the new order for the first tradeable object to a first exchange associated with the first tradeable object. 
     
     
         10 . The method of  claim 9 , further comprising transmitting an order for the second tradeable object in response to execution of any one of the order of the new order. 
     
     
         11 . The method of  claim 8 , where the updates to the market information for the second tradeable object comprise a current highest bid price, a current ask price, a last trade quantity, a last traded price or combinations thereof 
     
     
         12 . A non-transient computer readable medium having instructions stored thereon which when executed by a processor cause the processor to carry out acts comprising:
 receiving, via a user input device, a target spread price for a spread between a first tradeable object of a first exchange and a second tradeable object of a second exchange;   transmitting a first order for the first tradeable object to the first exchange via a computing device, the first order having a price based on inside market information for the second tradeable object received from the second exchange and the target spread price;   determining an effective spread price for the spread via the computing device, the effective spread price based on the price of the first order and an update to the inside market information for the second tradeable object;   comparing the target spread price to an inside market for the spread;   determining a price limit for the target spread price according to the comparison of the target spread price and the inside market for the spread; and   updating the first order via the computing device according to the effective spread price being beyond the price limit.   
     
     
         13 . The non-transient computer readable medium of  claim 12  where updating the first order comprises:
 transmitting a second order for the first tradeable object to the first exchange via the computing device, the second order having a price based on the update to the inside market information for the second tradeable object; and 
 cancelling the first order. 
 
     
     
         14 . The non-transient computer readable medium of  claim 13  where the computing device comprises a network of distributed components. 
     
     
         15 . The non-transient computer readable medium of  claim 12  further comprising transmitting an order for the second tradeable object to the second exchange via the computing device in response to execution of the first order. 
     
     
         16 . The non-transient computer readable medium of  claim 15  where the order for the second tradeable object comprises a price based on at least an execution price of the first order. 
     
     
         17 . The non-transient computer readable medium of  claim 15  where tradeable objects of the first exchange comprise different tradeable objects of the second exchange.