System And Method For Physicals Commodity Trading

Abstract

A method and system for an electronic commodities trading marketplace along with ancillary tools provide an electronic trading center for world market commodity importers, exporters, and the intermediaries and processors between them. This trading center is offered through its website centered around a 24-hour exchange that provides trading markets for commodities such as coffee, sugar, cocoa and cotton. The scalable system provides aggregated third party services linked to both front and back office operations. These services can include items such as live futures quotes and real-time news, futures brokerage, banking and finance links and resources, and a suite of applications tailored to members' specific risk-management and end-to-end contract execution needs. The system also provides access to shipping related services such as freight brokerage, direct booking for liner transport, load and discharge supervision and laboratory testing.

1 . A computerized method of trading physical commodities comprising:
 receiving, from a user computing device, a threshold of at least one differential relating to a physical commodity;   monitoring, by a computing system, information relating to the physical commodity;   calculating, by the computing system, the at least one differential based on the information to determine whether the at least one differential has reached the threshold; and   executing, by the computing system, at least two orders relating to the physical commodity when the at least one differential reaches the threshold.   
     
     
         2 . The computerized method of  claim 1 , wherein the at least one differential includes a differential between a first price of a first aspect of the physical commodity and a second price of a second aspect of the physical commodity. 
     
     
         3 . The computerized method of  claim 2 , wherein the aspect is one negotiable field of a market order, and wherein monitoring, by the computing system, the information includes monitoring the first price of the first aspect of the physical commodity and the second price of the second aspect of the physical commodity. 
     
     
         4 . The computerized method of  claim 1 , wherein the at least one differential includes a differential between a first contract delivery period for the physical commodity and a second contract delivery period for the physical commodity. 
     
     
         5 . The computerized method of  claim 1 , wherein the at least one differential includes a differential between a first price of a first quality of the physical commodity and a second price of a second quality of the physical commodity and a differential between a first contract delivery period for the physical commodity and a second contract delivery period for the physical commodity. 
     
     
         6 . The computerized method of  claim 2 , further comprising:
 alerting, via the user computing device, a user when the first price of the first aspect of the physical commodity and the second price of the second aspect of the physical commodity exceed the threshold.   
     
     
         7 . The computerized method of  claim 1 , further comprising:
 tagging each order of the at least two orders with a unique identifier, wherein the unique identifier is used to track actions or correspondence related to the at least two orders.   
     
     
         8 . The computerized method of  claim 1 , further comprising:
 generating, by a profit and loss wizard, a position value of the physical commodity based on intra-day futures values.   
     
     
         9 . The computerized method of  claim 8 , further comprising:
 receiving the position value of the physical commodity; and   monitoring the information for spread or arbitrage opportunities relating to the physical commodity.   
     
     
         10 . The computerized method of  claim 8 , further comprising:
 receiving a hypothetical trade of the physical commodity; and   calculating hypothetical effects that the hypothetical trade would have on a total value of the position value.   
     
     
         11 . The computerized method of  claim 9 , further comprising:
 detecting an opportunity to roll a hedge on the physical commodity to a deferred position or to a position that is closer in time; and   sending an alert to a user.   
     
     
         12 . The computerized method of  claim 1 , wherein the at least two orders each comprise a bid and an offer, wherein the method further comprises:
 receiving, by the computing device, the bid or the offer relating to the physical commodity;   receiving, by the computing device, a selection of at least one response to a counter-offer to the bid or the offer;   receiving, from a third party, the counter-offer; and   responding, by the computing device with no user interaction, to the counter-offer with the at least one response in accordance with the selection of the at least one response to the counter-offer to the bid or the offer.   
     
     
         13 . The computerized method of  claim 12 , wherein the at least one response includes one of removing the bid or the offer, freezing the bid or the offer, changing the bid or the offer, or accepting the counter-offer. 
     
     
         14 . The computerized method of  claim 12 , wherein receiving the selection of the at least one response to the counter-offer to the bid or the offer includes:
 receiving a selection of at least one variable for each negotiable field of the at least two orders at a same price or at an amended price;   wherein responding, with no user interaction, to the counter-offer with the at least one response comprises determining whether the counter-offer satisfies at least one of the selected at least one variable at the selected same price or the amended price;   accepting the counter-offer when the counter-offer satisfies the selected at least one variable at the selected same price or the amended price; and   removing the bid or the offer, freezing the bid or the offer, or changing the bid or the offer when the counter-offer does not satisfy the selected at least one variable at the selected same price or the amended price.   
     
     
         15 . A system comprising:
 an arbitrage watchdog configured to:
 receive, from a computing device, a threshold of at least one differential relating to a physical commodity, 
 monitor information relating to the physical commodity, 
 calculate the at least one differential based on the information to determine whether the at least one differential has reached the threshold, and 
 execute at least two orders relating to the physical commodity when the at least one differential reaches the threshold; and 
   a tagging device configured to tag each order of the at least two orders with a unique identifier, wherein the unique identifier is used to track actions or correspondence related to the at least two orders.   
     
     
         16 . The system of  claim 15 , wherein the at least one differential includes a differential between a first price of a first aspect of the physical commodity and a second price of a second aspect of the physical commodity. 
     
     
         17 . The system of  claim 15 , wherein the at least one differential includes a differential between a first contract delivery period for the physical commodity and a second contract delivery period for the physical commodity. 
     
     
         18 . The system of  claim 15 , wherein the at least one differential includes a differential between a first price of a first quality of the physical commodity and a second price of a second quality of the physical commodity and a differential between a first contract delivery period for the physical commodity and a second contract delivery period for the physical commodity. 
     
     
         19 . The system of  claim 16 , wherein the aspect is a negotiable field of a market order, and wherein the arbitrage watchdog is further configured to alert the user computing device when the first price of the first aspect of the physical commodity and the second price of the second aspect of the physical commodity exceed a threshold. 
     
     
         20 . The system of  claim 15 , further comprising a profit and loss wizard configured to generate a position value of the physical commodity based on intra-day futures values, and wherein the arbitrage watchdog is further configured to:
 receive the position value of the physical commodity,   monitor the information for spread or arbitrage opportunities relating to the physical commodity, and   send an alert to the user computing device when the spread or the arbitrage opportunity relating to the physical commodity is detected.   
     
     
         21 . The system of  claim 20 , wherein the profit and loss wizard is further configured to:
 receive a hypothetical trade of the physical commodity; and   calculate hypothetical effects that the hypothetical trade would have on a total value of the position value.   
     
     
         22 . The system of  claim 15  further comprising an autotrade wizard operable to:
 receive the bid or the offer relating to the physical commodity; 
 receive a selection of at least one response to a counter-offer to the bid or the offer; 
 receive, from a third party, the counter-offer; and 
 respond, with no user interaction, to the counter-offer with the at least one response in accordance with the selection of the at least one response to the counter-offer to the bid or the offer. 
 
     
     
         23 . A non-transitory, computer-readable storage medium containing a set of instructions that, when executed by one or more processors, cause a machine to:
 receive, from a user computing device, a threshold of at least one differential relating to a physical commodity;   monitor information relating to the physical commodity;   calculate the at least one differential based on the information to determine whether the at least one differential has reached the threshold; and   execute at least two orders relating to the physical commodity when the at least one differential reaches the threshold.   
     
     
         24 . The non-transitory, computer-readable storage medium of  claim 23 , wherein the at least one differential includes a differential between a first price of a first aspect of the physical commodity and a second price of a second aspect of the physical commodity.