HK40013736B - Trading circles - Google Patents

Description

Trading Circle

This application is a divisional application of the invention patent application with application number 201380076453.6, application date of April 8, 2013, and invention title "Trading Circle".

Technical Field

This application relates to electronic trading systems and methods.

Background Technology

Electronic trading systems typically include trading devices that communicate with an electronic exchange. The electronic exchange transmits market data to the trading devices. Market data includes, for example, price data, market depth data, last traded volume data, and/or other data related to the market conditions of a trading instrument. In some electronic trading systems, the trading devices send trading orders to the electronic exchange. Trading orders may include, for example, price, quantity, one or more thresholds or limits, and/or other data sent to the electronic exchange that is related to the trading of one or more trading instruments. Upon receiving trading orders, the electronic exchange may enter the trading orders into its order book and attempt to match the quantity of the trading orders with the quantity of one or more opposing trading orders.

Summary of the Invention

According to one aspect of this disclosure, a computer-implemented method is provided, which may include: defining a group having multiple members; sending a trading order from a first member of the group to a first exchange; receiving a response to the trading order from the first exchange; and, based on the response to the trading order, transmitting information not transmitted by the exchange to at least a second member of the group.

According to another aspect of this disclosure, an apparatus for managing transactions is provided. This apparatus may include: a definer that defines a group having multiple members; a communicator that sends a transaction order from a first member of the group to a first exchange, receives a response to the transaction order from the first exchange, and, based on the response to the transaction order, transmits information not transmitted by the exchange to at least a second member of the group.

According to another aspect of this disclosure, a computer-implemented method is provided, which may include: defining a group having multiple members, wherein one of the multiple members interacts with an exchange that transmits data relating to a range of price levels; collecting data relating to operating orders of a first group of members at a first price level outside the range of transmission; and transmitting the collected data to a second group of members.

According to another aspect of this disclosure, an apparatus for managing transactions is provided, the apparatus comprising: a definer for defining a group having multiple members, wherein one of the multiple members interacts with an exchange that transmits data relating to a range of price levels; an expander for collecting data relating to operating orders of a first group of members at a first price level outside the range of transmission; and a communicator for transmitting the collected data to a second group of members.

According to another aspect of this disclosure, a trading device is provided, which may include: a trading circle manager comprising multiple modules, the multiple modules configuring the trading device to share trading information among members of the trading circle, so as to provide members of the trading circle with trading information about the exchange that is currently not available from the exchange.

According to another aspect of this disclosure, an apparatus for managing transactions is provided, the apparatus comprising: a transaction circle manager for receiving definitions of transaction groups, wherein the transaction groups include a first transaction application and a second transaction application as members, wherein the first and second transaction applications are transaction applications running on a computing device including a processor, wherein the first transaction application operates a first transaction strategy including a first transaction object and a second transaction object, wherein the second transaction application operates a second transaction strategy including the second transaction object and a third transaction object, wherein the first transaction strategy quotes the first transaction object and favors the second transaction object, and wherein the second transaction strategy quotes the third transaction object and favors the second transaction object. The second trading object, the trading circle manager includes: a circle data manager for tracking members of the trading group, wherein the circle data manager associates a first trading application with a first trading object and a second trading object, and associates a second trading application with a second trading object and a third trading object; an order status monitor for detecting that a hedging order has been sent from the first trading application of the second trading object for the first trading strategy to the electronic exchange, wherein the hedging order is for a quantity at a price, wherein the market impact of the hedging order will be determined by the second trading application after the electronic exchange receives and processes the hedging order and sends a market update message reflecting the market impact of the processing of the hedging order. The exchange analysis module, before the second trading application receives the market impact of the hedging order from the electronic exchange, determines the expected impact in response to the order status monitor detecting that the hedging order has been sent from the first trading application. The expected impact represents the available quantity at the electronic exchange at the price level corresponding to the price of the hedging order, reduced by the quantity of the hedging order for the second trading object. Furthermore, before the second trading application receives the market impact of the hedging order from the electronic exchange, in response to the exchange analysis module determining the expected impact, the circle data manager determines, based on the tracked members and the expected impact from the exchange analysis module, the expected impact. Which members of the trading group are affected by the expected impact, wherein the tracked second trading application is determined to be affected based on the association between the second trading application and the second trading object; and a communication module, configured to generate a first message including the determined expected impact from the exchange analysis module in response to determining that the second trading application is affected, before the second trading application receives the market impact of the hedging order from the electronic exchange, and configured to send the generated first message including the determined expected impact to the second trading application in response to generating the first message including the determined expected impact, before the second trading application receives the market impact of the hedging order from the electronic exchange. Before the second trading application receives the market impact of the hedging order from the electronic exchange, in response to receiving the generated first message, the second trading application determines a new trend price for the second trading strategy based on the reduced available quantity at the electronic exchange indicated by the expected impact in the generated first message, and before the second trading application receives the market impact of the hedging order from the electronic exchange, the second trading application sends a command to change the quoted order for the third trading object of the second trading strategy based on the new trend price.

Attached Figure Description

Specific embodiments are disclosed with reference to the accompanying drawings.

Figure 1 shows a block diagram of a typical electronic trading system that can employ the embodiments disclosed herein.

Figure 2 shows a block diagram of a typical computing device that can be used to implement the disclosed embodiments.

Figure 3 shows a block diagram of a typical device that can be used to implement a typical trading circle manager.

Figures 4A to 4C illustrate several typical trading circle constructions defined in the typical trading circle manager of Figure 3.

Figure 5 shows a screenshot associated with the typical price data expander in Figure 3.

Figure 6 is a first flowchart illustrating the machine-readable instructions that can be executed to implement the typical circle definer of Figure 3.

Figure 7 is a second flowchart illustrating the machine-readable instructions that can be executed to implement the typical trading circle manager of Figure 3.

Figure 8 is a third flowchart illustrating the machine-readable instructions that can be executed to implement the typical price data expander of Figure 3.

A particular embodiment will be better understood when read in conjunction with the accompanying drawings, which illustrate examples. However, it should be understood that the embodiments are not limited to the arrangements and means shown in the drawings.

Detailed Implementation

Although embodiments including software and other components executing on hardware are disclosed below, it should be understood that the embodiments are illustrative only and should not be construed as limiting. For example, any or all of this hardware and software may be implemented in hardware only, software only, firmware only, or any combination of hardware, software, and/or firmware. Therefore, the disclosed embodiments may be implemented in other ways.

The disclosed embodiments provide mechanisms and processes for defining and establishing transaction circles that link or organize two or more users. Transaction circles (also referred to as "circles") can be defined and established using one or more common characteristics or parameters, thus treating each individual user as a member of the circle. For example, users within a company can be aggregated to define a circle; users trading common transaction objects can be linked to define a circle; married individuals communicating through a public communication network can define a circle; users trading one or more related transaction objects can define a circle; and users trading with a specific frequency or amount can define a circle. Alternatively, users can choose to join one or more existing circles and/or establish new circles based on, for example, specific preferences, requirements, and/or characteristics shared with members of new circles.

Once a trading circle is established, the disclosed embodiments facilitate communication with other members of the circle regarding circle data associated with the first member. For example, when members of the circle communicate trading orders with an electronic exchange, the disclosed embodiments facilitate communication with some or all members of the trading circle regarding circle data related to trading order data. Circle data may include trading order data, such as selling price, buying price, quantity data, order thresholds or limits, and/or any data sent to the electronic exchange and related to the purchase or sale of a trading object. Circle data may also include: price data, market depth data, last traded volume data, and/or other data related to the market conditions of a trading object. In some examples, circle data may include information related to the conditions and/or operation of the market to be traded. For example, circle data may include wait time information based on the calculated round-trip time between the trading device and the exchange. Shared wait time information in the circle data can be used to estimate network performance and attempt to deliver orders to limit air latency. Similarly, circle data may include rejection information and/or throttling information specific to a given exchange. Thus, circle data can be used to share market performance information and/or market characteristics with members of the circle.

Circle data representing potential market changes can be transmitted to members of the trading circle to allow them to act based on and consider these potential changes before most non-members receive updated market data from the electronic exchange. This allows members of the trading circle to act immediately based on the information contained within and communicated in the circle data, while delaying the actions of non-members until they receive updated market data from the electronic exchange. For example, when a first-circle member sends twenty (20) batch orders for a specific trading instrument, the available quantity of that instrument is likely to be rapidly reduced by at least twenty (20) batch orders submitted by the first-circle member. Furthermore, when a first-circle member receives an exchange notification such as a rejection notification or a fill notification, this notification is also sent to the members. Additional or alternative examples will be described in detail below.

Peer-to-peer connections between members of the trading circle can facilitate communication of circle data, which can also be controlled or guided by one or more centralized hubs such as gateways or other appropriate network devices.

The disclosed embodiments relate to establishing one or more trading circles and facilitating the communication of circle data among members of one or more trading circles. Using the disclosed embodiments, trading circles can be formed to include trading entity members such as a group of brokers, independent traders, members of a social network group, or any other type of user. When a member of a trading circle performs a trading operation and/or receives a notification from an exchange (e.g., via a trading device or application), the disclosed embodiments transmit circle data related to the performed operation and/or notification to other members of the circle. For example, when a first member of a trading circle sends an order to the exchange or interacts with the exchange, one or more of the disclosed embodiments are constructed to send circle data containing at least one indication of the order or interaction to a second member of the trading circle along with the order being sent to the electronic exchange (e.g., simultaneously). Members of other circles, non-affiliated individuals of the trading circle, and any impact of the sent order, interaction with the exchange, or execution of market activities on the exchange are not notified until the exchange has processed the order. Therefore, circle data related to interactions between the trading circle and other members of the trading circle and the exchange is provided to senior members of the trading circle before non-members of the trading circle. Therefore, the disclosed embodiments enable members of the same trading circle to receive information relating to the future market activities of any member within that circle, without having to wait for the exchange to process and execute the activity. The improved transaction data communication between circle members achieved by the disclosed embodiments will be described in more detail below.

Furthermore, the disclosed embodiments provide mechanisms and processes for developing and/or sharing market data that electronic exchanges may not provide or obtain from. For example, exchanges typically limit the number of price levels beyond the best quote and best price that they transmit. In some examples, an exchange transmits quantity data for four price levels away from the best quote/price in one direction and four price levels away from the best quote/price in the opposite direction. In this example, an incomplete view of the market is provided to users interacting with the exchange because the exchange does not transmit price information for more than a limited number of price levels (e.g., eight price levels). The disclosed embodiments facilitate the transmission of price information beyond the exchange's limits among members of the trading circle. As described in detail below, the disclosed embodiments utilize price information associated with the operating orders of one or more independent members of the trading circle to provide a more complete view of the market to other members of the circle. For example, while the exchange only transmits quantity information for the eight price levels closest to the best quote/price, the disclosed embodiments can develop quantity information and/or transmit quantity information among members of the trading circle that is associated with 20 (or more) price levels closest to the best quote/price or with all price levels. In this example, compared to the exchange providing information only to non-circle members, the disclosed embodiment provides a more complete view of the market to all members of the trading circle. Furthermore, or alternatively, the disclosed embodiment utilizes price information associated with one or more individual members of the trading circle, as well as price information transmitted by the exchange, to generate extrapolated price information for market segments that the exchange does not currently transmit. In this example, the disclosed embodiment provides an approximately complete view of the market to each member of the trading circle. The price information extension provided by the disclosed embodiment will be described in more detail below.

Furthermore, based on the market activities of other members of the trading circle, the disclosed embodiments provide members of the trading circle with indications that their trading orders, or at least some of their trading orders, are likely to be executed. In a more detailed description below, the disclosed embodiments analyze the trading circle members' trading orders to identify, for example, situations where one or more other members of the trading circle have trading orders with the same trading object. When the identified trading orders are complementary orders (one order is a buy order and the other is a sell order), the disclosed embodiments determine whether the complementary orders are likely to result in one or more executions. The likely executions identified by the disclosed embodiments are sometimes referred to herein as theoretical executions. The disclosed embodiments notify members of the trading circle of theoretical executions, without the members of the trading circle having to wait for the exchange to process these orders. Therefore, members of the trading circle who receive the theoretical execution indications are more quickly informed of the possible market conditions or positions derived from the theoretical executions, without having to wait for the exchange to process market data. The possible order completion indications provided by the disclosed embodiments will be described in more detail below.

A specific embodiment provides a method for defining a group with multiple members, wherein one or more of the members interact with an exchange that facilitates market transactions; detecting a first interaction between the first group members and the exchange; and, in response to detecting the first interaction, transmitting data related to the first interaction to a second group of members before the first group members receive confirmation of the first interaction from the exchange.

A particular embodiment provides a tangible computer-readable storage medium comprising, when executed, instructions that cause a computing device to define a group having multiple members, wherein one or more of the multiple members interact with an exchange facilitating market transactions; detecting a first interaction between a first group member and the exchange; and, in response to detecting the first interaction, transmitting data relating to the first interaction to a second group member before the first group member receives confirmation of the first interaction from the exchange.

A particular embodiment provides an apparatus comprising: a definer for defining a group having multiple members, wherein one or more of the members interact with an exchange that facilitates market transactions; a detector for detecting a first interaction between a first group of members and the exchange; and a communicator that, in response to the detector detecting the first interaction, transmits data relating to the first interaction to a second group of members before the first group of members receive confirmation of the first interaction from the exchange.

A specific embodiment provides a method comprising: defining a group having multiple members, wherein one or more of the multiple members interact with an exchange to transmit data relating to a range of price levels; collecting data relating to the operating orders of a first group of members at a first price level outside the transmission range; and transmitting the collected data to a second group of members.

A particular embodiment provides a tangible computer-readable storage medium comprising, when executed, instructions that cause a computing device to define a group having multiple members, wherein one or more of the multiple members interact with a transaction related to the transmission of data relating to a range of price levels; collect data relating to operating orders of a first group of members at a first price level outside the transmission range; and transmit the collected data to a second group of members.

A particular embodiment provides an apparatus comprising: a definer that defines a group having multiple members, wherein one or more of the multiple members are involved in exchange interactions relating to the transmission of data related to a range of price levels; an expander that collects data relating to operating orders of a first group of members at a first price level outside the transmission range; and a communicator for transmitting the collected data to a second group of members.

I. Typical Electronic Trading Systems

Figure 1 shows a block diagram of a typical electronic trading system 100 that may employ a specific embodiment. System 100 includes: a trading device 110, a gateway 120, and an electronic exchange 130. The trading device 110 communicates with the gateway 120. The gateway 120 communicates with the exchange 130.

As used herein, the term "communicate with" can include direct communication and indirect communication through one or more intermediary components.

During operation, trading device 110 can send orders to buy or sell trading objects on the exchange. For example, a user can use trading device 110 to send an order. The order is sent to exchange 130 via gateway 120. Furthermore, market data is sent from exchange 130 to trading device 110 via gateway 120. The user can also use trading device 110 to monitor this market data and/or determine which trading objects to send based on the market data.

A trading object is anything that can be traded in a certain quantity and/or at a certain price. Examples include stocks, options, bonds, futures, currencies, warrants, fund derivatives, securities, commodities, swaps, interest rate products, index-based products, traded events, commodities, and sets and/or combinations thereof. A trading object can be "real" or "virtual." Real trading objects include products listed and/or managed by the exchange. Virtual trading objects include user-defined products. For example, a virtual trading object can include a combination of real (or other virtual) products, such as a virtual synthetic spread created by a user using trading device 110. There can exist real trading objects that correspond to and/or are identical to virtual trading objects.

For example, trading device 110 may include one or more electronic computing platforms, such as handheld devices, laptop computers, desktop computers, workstations with single-core or multi-core processors, servers with multi-processors, and/or computer clusters. For example, although logically represented as a single device, trading device 110 may include a trading terminal that communicates with a server, wherein the trading terminal and the server together constitute trading device 110. The trading terminal may provide a trading screen to the user and may provide the trading screen to transmit commands to the server for further processing of the user's earnings, such as placing orders.

Trading device 110 is typically owned, operated, controlled, programmed, configured, or used by a user. As used herein, the term "user" can include, but is not limited to, a person (e.g., a trader) or an electronic trading device (e.g., an algorithmic trading system or trading application). For example, one or more users can be involved in owning, operating, controlling, programming, configuring, or otherwise using the device.

Trading device 110 may include one or more trading applications. Each trading application can process market data, for example, by arranging and displaying it in a trading dialog window. For instance, it may receive market data from exchange 130. As another example, it may receive market data from a simulated environment that provides historical data and/or simulated trading without executing real trades. For example, this processing may be based on user preferences. For example, each trading application may include automated trading tools, such as automated inter-period trading tools. One or more trading applications may be distributed across one or more computing devices of trading device 110. For example, specific components of a trading application may be executed on a trading workbench, while other components of the trading application may be executed on a server communicating with the workbench.

For example, trading device 110 may include: an electronic trading desk, a portable trading device, an algorithmic trading system such as a "black box" or "grey box" system, an embedded trading system, and/or automated trading tools. For instance, trading device 110 may be a computing system running a replica of an electronic trading platform provided by Trading Technologies International, Inc., Chicago, Illinois. As another example, trading device 110 may be a computing device running automated trading tools such as AUTOTRADER ^™ , still provided by Trading Technologies International, Inc.

As another example, trading device 110 may include a trading application that processes market data using algorithms, and includes a user interface for processing manually placed orders or automatically placed orders according to the algorithms. An algorithmic trading application is a trading application that includes automated processing algorithms to perform specific operations. That is, the trading application includes a series of automated instructions to perform defined operations. For example, these operations may include: processing market data in a specific manner, placing an order, modifying an existing order, deleting an order, stopping an order, selecting the trading instrument(s) to be traded, determining the order price or modifying the order price, determining the order quantity or modifying the order quantity, determining whether the order is a buy or sell, and delaying the operation for a certain period of time.

The algorithm used herein (also referred to as a trading algorithm) is defined by a logical expression and parameters that describe the algorithm to be used in trading. The logical expression defines the relationships between the parameters and can generate further parameters. Parameters may include, for example, inputs to the logical expression of the algorithm. The definition of the algorithm can be defined at least in part by the algorithmic trading application. For example, an algorithmic trading application may allow a user to specify only the parameters to be used in a predefined logical expression. As another example, an algorithmic trading application may allow a user to specify some or all of the logical expressions and some or all of the parameters. A trading algorithm in which the user specifies the logical expression is a user-defined trading algorithm.

The trading application may be stored on a computer-readable medium of the trading device 110. In a particular embodiment, one or more components of the trading application may be stored on a trading workstation, and other components of the trading application may be stored on a server communicating with the workstation. In a particular embodiment, one or more components of the trading application may be loaded from another computer-readable medium onto the computer-readable medium of the trading device 110. For example, the trading application (or an update to the trading application) may be stored by a manufacturer, developer, or publisher on one or more CDs or DVDs, which are then provided to a person responsible for loading the application onto the trading device 110, or to a server from which the trading device 110 retrieves the trading application. As another example, the trading device 110 may receive the trading application (or an update to the trading application) from a server, for example, via the Internet or an internal network. The trading device 110 may receive the trading application or update when requested (“pull distribution”) and/or when not requested (“push distribution”).

Configuring trading device 110 to send orders for trading objects. For example, orders can be sent as one or more messages or data packets, or via a shared storage system. Trading device 110 can also be configured to cancel orders, modify orders, and/or query exchanges. As another example, trading device 110 can be configured to send orders to a simulated exchange in a simulated environment where no real trades are executed.

For example, orders sent by trading device 110 can be sent automatically upon user request. For instance, a trader can use an electronic trading workstation to place an order for a specific trading instrument, manually providing one or more parameters for the order, such as the order price and/or quantity. As another example, automated trading tools can calculate one or more parameters for an order and send it automatically. In some cases, automated trading tools can prepare orders to be sent but not actually sent, without user confirmation.

In a particular embodiment, the trading device 110 includes a user interface. For example, the user interface may include one or more display devices for displaying a text-based and/or graphical interface of the trading application to the user. For example, the display devices may include: a computer monitor, a handheld device display, a projector, and/or a television. Using the trading application, parameters of an order can be specified or reviewed using the user interface. For example, the user interface may include one or more input devices for receiving input. For example, input devices may include: a keyboard, a trackball, a two-button or three-button mouse, and/or a touchscreen. The user interface may include other devices for interacting with the user. For example, information may be provided to the user audio-wise via a speaker and/or received audio-wise via a microphone.

In a particular embodiment, the trading application includes one or more trading screens to enable users to interact with one or more markets. For example, the trading screens may allow users to access and view market information, set order entry parameters, enter and cancel orders, and/or monitor positions while executing various trading strategies. For instance, the trading application may receive information from exchange 130 (such as bids, bids, asks, asks, sells, past selling prices and quantities, and/or other market-related information) and may display some or all of these using the user interface of trading device 110. Based on the received information, the trading screens may display a range of price levels for a trading object and the corresponding number of bids and sells at that price level. To provide users with trading information, the trading screens may display a price range within the market (and the corresponding number of bids and sells). Information may be continuously or periodically sent to the trading application, allowing the application to update the trading screens with current market information. For example, users may use the trading screens to place buy and sell orders for a trading object, or trade the trading object based on the displayed information.

A trading screen may display one or more trading instruments. A trading instrument is an electronic tool that allows, supports, and/or facilitates electronic trading. Exemplary trading instruments include, but are not limited to: charts, trading ladders, order entry tools, automated trading tools, automated inter-period tools, risk management tools, order parameter tools, order entry systems, market grids, trade windows, and market order windows, combinations thereof, and other electronic tools used for trading, preparing for trades, managing trades, or analyzing markets.

In a particular embodiment, orders from trading device 110 are sent to exchange 130 via gateway 120. For example, trading device 110 can communicate with gateway 120 using a local area network, wide area network, wireless network, virtual private network, T1 line, T3 line, integrated services digital network (“ISDN”) line, point-of-presence, Internet, and/or shared storage system.

Gateway 120 is configured to communicate with trading device 110 and exchange 130. Gateway 120 facilitates communication between trading device 110 and exchange 130. For example, gateway 120 can receive orders from trading device 110 and can transmit orders to the exchange. As another example, gateway 120 can receive market data from exchange 130 and can transmit market data to trading device 110.

In a particular embodiment, gateway 120 processes data communicated between trading device 110 and exchange 130. For example, gateway 120 can process orders received from trading device 110 into a data format understood by exchange 130. Similarly, gateway 120 can convert exchange-specific market data received from exchange 130 into a format understood by trading device 110. For example, the processing of gateway 120 may also include tracking orders from trading device 110 and updating the status of orders based on trade confirmations received from exchange 130. As another example, gateway 120 can merge market data from exchange 130 and send it to trading device 110.

In a particular embodiment, gateway 120 provides services beyond processing the data communicated between trading device 110 and exchange 130. For example, gateway 120 can provide risk management.

For example, gateway 120 may include one or more electronic computing platforms, such as handheld devices, laptop computers, desktop computers, workstations with single or multi-core processors, servers with multi-core processors, and/or computer clusters.

Gateway 120 may include one or more gateway applications. Each gateway application may, for example, perform order processing and market data processing. For example, this processing may be based on user preferences.

In certain embodiments, for example, the gateway 120 communicates with the transaction device 110 using a local area network, a wide area network, a virtual private network, a T1 line, a T3 line, an ISDN line, an access point (point-of-presence), the Internet, and/or a shared storage system.

Typically, Exchange 130 may be owned, operated, controlled, or used by an exchange entity. Typical exchange entities include: CME Group, the New York Stock Exchange/London International Financial Futures and Options Exchange (“NYSE LIFFE”), Intercontinental Exchange (“ICE”), and Eurex. Exchange 130 may include an electronic matching system, such as a computer, server, or other computing device, configured to allow the buying and selling of traded objects offered by the exchange. For example, the electronic matching system may include a matching engine. For example, Exchange 130 may include separate entities, some of which list and/or manage traded objects, while others receive orders and match orders. For example, Exchange 130 may include an electronic communication network (“ECN”).

Exchange 130 is configured to match orders with buy and sell trading objects. Exchange 130 can list trading objects for trading. For example, orders can include those received from trading device 110. Orders can be received from trading device 110, for example, via gateway 120. Furthermore, orders can be received from other devices that communicate with exchange 130. That is, exchange 130 typically communicates with various other trading devices (which may be the same as trading device 110) that also provide orders to be matched.

Exchange 130 is configured to provide market data. For example, market data can be provided in the form of one or more messages or data packets, or through a shared storage system. For example, market data can be provided to trading device 110. For example, market data can be sent to trading device 110 via gateway 120. For example, market data can include data representing the internal market. The internal market is the lowest selling price (also referred to as the "best asking price") and the highest buying price (also referred to as the "best bidding price") at a specific point in time (the internal market can change at any time). Market data can include market depth. Market depth refers to the quantity available in the internal market, and also to the quantity available outside the internal market at other prices. Therefore, the internal market can be considered as the first level of market depth. For example, the smallest price change (one tick) from the internal market can be considered as the second level of market depth. In a particular embodiment, market depth is set for all price levels. In a particular embodiment, market depth is not set for all price levels. For example, market depth can be set only for the first 5 price levels on both sides of the internal market. As another example, market depth can be set for the first 10 price levels where the quantity is available in the market. Market data can also include information such as the last traded price (LTP), the last traded volume (LTQ), and order execution information.

In a particular embodiment, system 100 includes more than one trading device 110. For example, multiple trading devices identical to the trading device 110 discussed above can communicate with gateway 120 to send orders to exchange 130.

In a particular embodiment, system 100 includes more than one gateway 120. For example, multiple gateways identical to the gateway 120 discussed above can communicate with trading device 110 and exchange 130. For example, this arrangement can provide redundancy if one gateway 120 fails.

In a particular embodiment, system 100 includes more than one exchange 130. For example, gateway 120 may communicate with multiple exchanges that are the same as the exchanges 130 discussed above. For example, this arrangement allows trading device 110 to trade on more than one exchange through gateway 120.

In a particular embodiment, system 100 includes one or more exchanges 130 and one or more gateways 120. For example, multiple gateways identical to the gateways 120 discussed above can communicate with multiple exchanges identical to the exchanges 130 discussed above. For example, each gateway can communicate with one or more different exchanges. For example, this arrangement allows one or more trading devices 110 to trade on more than one exchange (and/or provide redundant connections to multiple exchanges).

In a particular embodiment, trading device 110 includes one or more computing devices or processing units. In other words, the functions of trading device 110 can be performed by more than one computing device. For example, one computing device can generate orders to be sent to exchange 130, while another computing device can provide a graphical user interface to the user. In a particular embodiment, gateway 120 includes one or more computing devices or processing units. In other words, the functions of gateway 120 can be performed by more than one computing device. In a particular embodiment, exchange 130 includes one or more computing devices or processing units. In other words, the functions of exchange 130 can be performed by more than one computing device.

In a particular embodiment, gateway 120 is part of trading device 110. For example, components of gateway 120 may be part of the same computing platform as trading device 110. As another example, the functionality of gateway 120 may be performed by components of trading device 110. In a particular embodiment, gateway 120 is not present. For example, when trading device 110 does not need to utilize gateway 120 to communicate with exchange 130, such as if trading device 110 is already configured to communicate directly with exchange 130.

In a particular embodiment, gateway 120 is actually located in the same location as trading device 110. In a particular embodiment, gateway 120 is actually located in the same location as exchange 130. In a particular embodiment, trading device 110 is actually located in the same location as exchange 130. In a particular embodiment, gateway 120 is actually located in a location separate from trading device 110 and exchange 130.

In a particular embodiment, system 100 may include other devices such as middleware, firewalls, hubs, switches, routers, exchange-specific communication equipment, modems, security managers, and/or encryption/decryption devices that are specific to the communication architecture.

II. Typical Computing Devices

Figure 2 shows a block diagram of a typical computing device 200 that can be used to implement the disclosed embodiments. For example, the trading device 110 of Figure 1 may include one or more computing devices 200. For example, the gateway 120 of Figure 1 may include one or more computing devices 200. For example, the exchange 130 of Figure 1 may include one or more computing devices 200.

The computing device 200 includes: a processor 202, an interconnect bus 204, a chipset 206, a memory controller 208, an input/output (I/O) controller 210, a system memory 212, a mass storage memory 214, an I/O bus 216, a network interface 218, a display 220, an input device 222, and an output device 224.

Computing device 200 may include additional, different, or fewer components. For example, it may include multiple buses, multiple processors, multiple storage devices, multiple network interfaces, multiple display devices, multiple input devices, multiple output devices, or any combination thereof. As another example, computing device 200 may not include output device 220, which is separate from display device 220. As another example, computing device 200 may not include display device 220. As another example, computing device 200 may not include input device 222. Instead, for example, computing device 200 may be controlled by external or remote input devices via network interface 218.

Computing device 200 includes a processor 202 coupled to an interconnect bus 204. The interconnect bus 202 may include a communication bus, channel, network, circuit, switch, optical fiber, or other mechanism for transmitting data between components within the computing device 200. The interconnect bus 204 may communicatively couple to any component of the computing device 200 and transmit data between any components of the computing device 200. For example, during the installation of a trading application, one or more computer-readable instructions to be executed by the processor 202 may be passed from input device 222 and/or network interface 218 to system memory 212 and/or mass storage 214. When the computing device 200 is running or preparing to run a trading application stored in system memory 212 and/or mass storage 214, the processor 202 may retrieve instructions from system memory 212 and/or mass storage 213 via the interconnect bus 204.

For example, processor 202 may be a processor, processing unit, or microprocessor. For instance, processor 202 may include one or more general-purpose processors, digital signal processors, application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs), analog circuits, digital circuits, programmable processors, and/or combinations thereof. Processor 202 may be a single device or a combination of one or more devices, such as those associated with a network or distributed processing. Any processing strategy can be employed, such as multiprocessing, multitasking, parallel processing, and/or remote processing. Processing can be local or remote, and processing can be transferred from one processor to another. Processing device 200 may be a multiprocessor system and therefore may include one or more additional processors communicatively coupled to interconnect bus 204.

Processor 202 can operate to execute logic encoded in one or more tangible media such as system memory 212, mass storage memory 214, and/or via network interface 218. As used herein, the logic encoded in one or more tangible media includes instructions executable by processor 202 or different processors. For example, the logic can be stored as part of software, hardware, integrated circuits, firmware, and/or microcode. The logic can be received from an external communication device via a communication network, for example, connected to the Internet. Processor 202 can execute the logic to perform the functions, operations, or tasks shown in the accompanying drawings or described herein.

The processor 202 in Figure 2 is coupled to a chipset 206, which includes a memory controller 208 and an I/O controller 210. The chipset typically provides I/O and memory management functions, as well as multiple general-purpose and/or special-purpose registers and timers accessible or used by one or more processors coupled to the chipset 206. The memory controller 208 enables the processor 202 (or each processor, if multiple processors are present) to access system memory 202 and mass storage memory 214.

For example, system memory 212 and mass storage memory 214 can be one or more tangible media, such as computer-readable storage media. System memory 212 can include various volatile and non-volatile storage media, including, for example, random access memory (RAM), read-only memory (ROM), programmable read-only memory (PROM), electrically programmable read-only memory (EPROM), electrically erasable programmable read-only memory (EEPROM), flash memory, any other tangible data storage device, or any combination thereof. Mass storage memory 214 can include various types of mass storage devices, including, for example, hard disk drives, optical media, magnetic tape, any other tangible data storage device, or any combination thereof. In a particular embodiment, system memory 212 and mass storage memory 214 are permanent.

For example, system memory 212 and mass storage memory 214 may be a single storage module. System memory 212 and mass storage memory 214 may be adjacent to processor 202, may be part of processor 202, may be programmed with processor 202, may be networked with processor 202, and/or may be remote from processor 202, such that, for example, processor 202 can retrieve and process data stored in system memory 212 and mass storage memory 214. System memory 212 and mass storage memory 214 may store instructions executable by processor 202. These instructions can be executed to perform one or more operations or functions described herein or shown in the accompanying drawings.

I/O controller 210 executes instructions that enable the processor to communicate with network interface 218, display 220, input device 222, and output device 224 via I/D bus 216. Although memory controller 208 and I/O controller 210 are shown as discrete blocks in chipset 206 in Figure 2, the functions performed by these blocks can be integrated into a single semiconductor circuit or executed using two or more discrete integrated circuits. One or more components of computing device 200 can be implemented as a system-on-a-chip (e.g., the system-on-a-chip of iPhone ^™ ).

Network interface 218 can be unidirectional or bidirectionally coupled. Therefore, network interface 218 can communicatively connect one, two, or more communication networks or communication devices. For example, interconnect bus 214 can be coupled to the same gateway as gateway 120 shown in Figure 1 discussed above via network interface 218, allowing one, some, or all components of computing device 200 to access and communicate with the gateway. As another example, network interface 218 can couple interconnect bus 204 to other communication networks. Network interface 218 can be, for example, an Integrated Services Digital Network (ISDN) card or a modem to provide data communication connectivity. As another example, network interface 218 can be a Local Area Network (LAN) card to provide data communication connectivity to, for example, a compatible LAN connected to the Internet. Wireless links can also be implemented. For example, network interface 218 can transmit and receive electrical, electromagnetic, or optical signals carrying analog or digital data streams representing various types of information.

For example, display device 220 may include: visual output device, cathode ray tube (CRT) display, electronic display, electronic paper, flat panel display, light-emitting diode (LED) display, electroluminescent display (ELD), plasma display panel (PDP), liquid crystal display (LCD), thin film transistor display (TFT), organic light-emitting diode display (OLED), surface conduction electron transport display (SED), laser TV, carbon nanotube, nanocrystal display, head-mounted display, projector, three-dimensional display and/or transparent display device.

Configure display device 220 to display a transaction screen. For example, the transaction screen can be the same as the transaction screen discussed above. The transaction screen can be interactive. An interactive transaction screen can allow the execution of, for example, one or more transaction operations. For example, an interactive transaction screen can allow the setting and/or sending of one or more order entry parameters using one or more order entry operations. For example, the transaction screen can be interacted with using display device 220 and/or input device 222.

For example, input device 222 may include a keyboard, mouse, microphone, touchscreen, trackball, keypad, joystick, and/or other devices for providing input. Input device 222 may be used to send command selections to processor 202, for example. For example, input device 222 may be a mouse for controlling a cursor displayed on a trading screen. For example, a mouse may include one or more buttons for selection and control.

For example, output device 224 may include: a keyboard, mouse, speaker, touchscreen, trackball, keypad, haptic device or system, joystick, and/or other devices for providing output. For example, output device 224 may be used to output one or more signals such as haptic signals or audio signals to a user. Although input device 222 and output device 224 are shown as discrete blocks in FIG2, the functions performed by these blocks can be integrated into a single I/O device.

III. Transmitting transaction data to members of the trading circle

Figure 3 illustrates a typical transaction circle manager 300 that can be used to implement the specific embodiments disclosed herein. In a specific embodiment, the typical transaction circle manager 300 shown in Figure 3 is implemented on or connected to the typical transaction device 110 shown in Figure 1. In a specific embodiment, for example, the transaction circle manager 300 includes a discrete computing device, such as a server or gateway, configured to cooperate with the transaction device 110 shown in Figure 1. In other embodiments, the transaction circle manager 300 includes executable instructions or code that can be implemented or run by the typical transaction device 110 shown in Figure 1.

In some embodiments, an example of the typical transaction circle manager 300 shown in Figure 3 is implemented for each circle (sometimes referred to herein as a group), and the respective transaction circle manager 300 can be dedicated to the respective transaction circle. A typical transaction circle manager 300 can manage multiple circles whose individuals or entities are otherwise unrelated.

For the purpose of transmitting transaction data among circle members, a typical trading circle manager 300 enables users of trading devices such as trading device 110 and others shown in Figure 1 to define and establish one or more trading circles with other users. The typical trading circle manager 300 facilitates the transmission of transaction data among members of a trading circle, delivering transaction data to circle members without waiting for the exchange to process the information received in conjunction with the transaction data and generate an appropriate response (e.g., providing a notification as a response to a submission). Therefore, compared to the current system, members of a trading circle receive transaction data associated with other members much faster. In the current system, users interacting with the exchange wait for the exchange to process orders and/or other transactions before becoming aware that another user or entity has placed an order or initiated a transaction. In contrast to the current system, the typical trading circle manager 300 delivers data related to orders placed on the exchange by, for example, members of the same circle, without requiring the receiving members of the circle to wait for the exchange to process and transmit order-related data.

For example, when a first member of a circle established and managed by the typical trading circle manager 300 shown in Figure 3 places a first order on an exchange that includes the first trading object, a second member of the same trading circle can submit a second order to the exchange that includes the first trading object. In the current system, to be aware of the second order, the first circle member must wait for the exchange to process the order submitted by the second circle member and transmit information related to the market changes caused by the second order. Conversely, as soon as the second circle member (or the trading device associated with and/or used by the second circle member) sends the second order to the exchange, the typical trading circle manager 300 transmits data related to the second order to the first circle member. In other words, the typical trading circle manager 300 transmits the instructions for the second order (e.g., the instructions may include details of the second order) together with the second order sent to the exchange (e.g., simultaneously or substantially simultaneously). Therefore, the typical trading circle manager 300 enables the first circle member to receive data related to the first trading object and an estimate or inference of the first trading object's impact on the exchange without the first circle member having to wait for the exchange to process the second order from the second circle member.

Regarding market operations performed by other circle members, circle members who receive trading data from senior members within the same circle via the typical trading circle manager 300 shown in Figure 3 have a significant advantage over non-circle members. Specifically, individuals and/or entities organized as trading circles and employing the typical trading circle manager 300 are likely to receive trading data before non-members. Continuing with the example above, using the typical trading circle manager 300, a first-circle member receives data related to a second order submitted by a second-circle member (e.g., price and quantity information contained in the second order and/or an indication that an additional order has been submitted for the first trading object) at the first possible time, while non-members are more likely to receive data related to the second order at a second possible time, later than the first. In this example, the first possible time corresponds to the time when the second order is sent to the exchange, while the second possible time corresponds to the time after the exchange has received the second order, processed the second order, and transmitted data related to the processing of the second order. Subsequently, the first member of the circle can utilize the time period between the first and second possible times provided by the typical trading circle manager 300 to take one or more actions on, for example, the first trading object before non-members actually become aware of the second order.

The typical trading circle manager 300 shown in Figure 3 includes a circle definition module 302 that communicates with a circle definition database 304 via a communication interface 322. The typical trading circle manager 300 also incorporates a communication module 306 configured to provide connectivity to members of one or more managed and controlled trading circles. For example, the communication module 306 can provide connectivity to an order status monitor 308 in the form of received or detected trading orders and/or trading order updates. The order status monitor 308 can be configured to identify trading orders and trading order updates or modifications passed between circle members and, for example, the exchange 130 shown in Figure 1. In a particular example, an exchange analysis module 310 is arranged to communicate with the order status module 308 of the manager 300 and other modules and components, and is configured to determine the impact of identified trading order communications on the exchange. The trading circle manager 300 also includes a circle data manager 312, configured to correlate the position data of each member of each trading circle that is operable in one or more managed and controlled trading circles. The trading circle manager 300 incorporates a price data monitor 314 to comprehensively monitor, add to, and/or estimate the available trading order data for each member of each trading circle. The trading circle manager 300 may also incorporate a theoretical execution module 320, configured to synchronize trading order data among members of each circle considered potential counterparties for a specific trading object.

Figure 3 shows a typical trading circle manager 300 that illustrates a circle definition module 302 communicating with a circle definition database 304. This module 302 is configured to create circles upon receiving a request from a user registered with the typical trading circle manager 300. It is also possible to receive a circle creation request simultaneously with a request from a user registered with the typical trading circle manager 300. In operation, the typical circle definition module 302 prompts the requesting user for the information required to define the trading circle. For example, the information that the circle definition module 302 may request includes: the trading circle name; the administrator name; one or more super administrator passwords, circle passwords, and user passwords; membership restrictions; the selection of predetermined terms and/or rules; contact information; a list of invitations for members; and market information. Membership restrictions may include, for example, restrictions on the company, company branches, the asset class being traded, user titles or levels (e.g., manager, market maker), risk limits, or any other user-definable circle criteria. Depending on the user's requirements, additional, different, and/or limited information can be requested and used to define the trading circle. Typical circle definition module 302 generates a definition of the requested transaction circle using predetermined information. Generating the definition includes, for example, generating a unique identifier, assigning the unique identifier to the transaction circle, and using the unique identifier to transfer data within the transaction circle (e.g., using the unique identifier to mark data groups). Typical circle definition module 302 adds an entry to typical circle definition database 304, which includes the generated unique identifier, information provided by the requesting user, and/or any other appropriate information related to the entry.

When a user requests information including an invitation to a group of people and/or entities to join a trading circle, the typical circle definition module 302 shown in Figure 3 sends an invitation to each invitee. To send the invitation, the typical circle definition module 302 uses contact information provided along with a list of, for example, email addresses or social network account identifiers (e.g., account names). The typical circle definition module 302 can include information in the invitation that enables the invitee to access and join the established trading circle. For example, the invitation can include: a URL, a trading circle name, and a password. The invitation sent by the typical circle definition module 302 can also include instructions for accessing the URL and for entering the trading circle name and password into the corresponding input fields on the webpage created at that URL. If the invitee follows the invitation instructions, the typical circle definition module 302 receives an instruction associated with the invitation and uses that instruction to add the corresponding invitee to the established trading circle. Adding the invitee to the established trading circle includes, for example, including identification information associated with the invitee in the corresponding entry in the definition database 304.

The typical trading circle manager 300 facilitates the addition and modification of the way people are notified in trading circles. That is, people can learn about one or more trading circles through means other than the initial invitation process described above. In some cases, members, administrators, and non-administrators of a trading circle can also invite people to join after the trading circle has been established and is running. Alternatively, people can learn about trading circles without being invited. To enable people to decide to join or request entry into a trading circle, the typical circle definition module 302 can provide a web link or other mechanism to trigger a request to the trading circle manager 300. The information requested along with the submission options provided by the circle definition module 302 can be customized according to the administrator creation requirements of each corresponding trading circle. The typical circle definition module 302 receives the decision to join and passes information related to the request to, for example, the creator or administrator of the corresponding trading circle. The circle definition module 302 awaits a response indicating whether the person or entity requesting membership in the trading circle has been approved. If approved, the typical circle definition module 302 adds the requester or entity to the appropriate entry in the definition database 304. Otherwise, the typical circle definition module 302 will notify the requesting user that membership has been denied.

Figures 4A through 4C and 5 illustrate exemplary circle constructions and communication architectures that can be implemented by the trading circle manager 300. Figure 4A illustrates an exemplary circle construction that can be implemented by the trading circle manager 300, based on the disclosures provided herein. The features, elements, and capabilities associated with the illustrative circle construction shown in Figure 4A will be further discussed and explained in conjunction with the trading circle manager 300 shown in Figure 3. Figure 4B illustrates an exemplary distributed communication architecture that can be implemented by the trading circle manager 300, based on the disclosures provided herein. Figure 4C illustrates an exemplary centralized communication architecture that can be implemented by the trading circle manager 300, based on the disclosures provided herein.

The circle definition module 302 establishes trading applications or components that include any individual, user, and/or one or more predetermined features associated with each circle. Figure 4A illustrates multiple typical trading circles that can be established and managed by the trading circle manager 300. Figure 4A includes a first trading organization 400 and a second trading organization 402. The first trading organization 400 adopts and/or represents each trader and associated trading devices 400a to 400m, and the second trading organization 402 adopts and/or represents each trader and associated trading devices 402a to 402n. Each trading device 400a to 400m and 402a to 402n is configured to interact with, for example, the exchange 130 shown in Figure 1. As discussed and described in conjunction with the trading device 110 shown in Figure 1, trading devices 400a to 400m and 402a to 402n, as well as the remaining trading devices shown in Figures 4A to 4C, can be implemented. Trading devices 404, 406, and 408 represent individual traders and/or groups of traders independent of trading organizations 400 and 402. In certain embodiments, the trading devices shown in Figures 4A to 4C can represent different trading programs running on the same or different trading devices. In certain embodiments, the trading devices shown in Figures 4A to 4C can represent examples of AUTOTRADER ^™ running on the same or different trading devices.

The typical configuration shown in Figure 4A also includes a social network 410, such as a network of individuals or groups, comprising multiple users and contributors to the same social networking service. This social network can be a dedicated network established for a defined group, such as a business organization or association. Based on shared university, public geographic area, common or similar interests, users of social network 410 can organize smaller groups or associations using the social networking service. In some examples, association members can send messages or post-messages accessible to other members of the same association. In the example shown in Figure 4A, the users of social network 410 include individuals or groups of individuals represented by transaction devices 412 to 418 and 420 to 426.

Figure 4A also illustrates an example of transaction circles that can be established between the various transaction devices, transaction organizations, and social networks discussed and described. A first transaction circle 450 encompasses individuals and transaction devices including a first transaction organization 400. A second transaction circle 452 encompasses individuals and transaction devices including a second transaction organization 402. A third transaction circle 454 includes transaction devices 412 to 418 representing members of a subgroup of social network 410. A fourth transaction circle 456 includes the second transaction organization 402 (and the second transaction device 452) and individual transaction devices 404 and 406. A fifth transaction device 458 is defined to include individual transaction devices 408 and 406 of the fourth transaction circle. Transaction device 406 indicates that a single individual and its associated transaction devices can simultaneously be members of more than one transaction circle (e.g., the fourth transaction circle 456 and the fifth transaction circle 458). The typical transaction circle manager 300 shown in Figure 3 is capable of forming and managing additional or replacement transaction circles. For discussion purposes, the following description will use the first trading circle 450 and the trading devices 400a to 400m of the first trading circle 450. However, the following description and the examples disclosed herein can be applied and/or adopted by any of the typical trading circles of Figures 4A to 4C and/or any other user group.

Returning to a typical illustration of the trading circle manager 300 shown in Figure 3, the communication module 306 facilitates the transfer of trading data among members of a trading circle such as the typical trading circle 450 shown in Figure 4A. In one embodiment, trading circle 450 may contain each member or user of TTNET ^™ provided by Trading Technologies International, Inc. The typical communication module 306 can be configured to organize, sort, and transfer any type of trading data that each circle member has agreed to share with their senior circle members. In some examples, each circle member accesses and/or receives the same information from other circle members. In one embodiment, the typical communication module 306 transmits circle data related to senior circle members via feeds or other multicast communications, configuring multicast communications to transmit data to each client of the feed. In another embodiment, the communication module 306 can be configured to broadcast discrete messages and/or communication packets directly to each circle member. In yet another embodiment, in response to an information query received from one or more circle members, the communication module 306 can transmit trading data. The communication module 306 generates feeds based on feed information stored in the definition database 304. Furthermore, the circle definition module 302 subscribes to feeds implemented by the typical communication module 306 for circle members. For example, a trading device 400a associated with the first member of the trading circle 450 can be configured to receive data via the feeds implemented and provided by the communication module 306. The typical communication module 306 can transmit trading data to the trading devices 400a to 400m that include the typical trading circle 450 using additional or alternative communication technologies.

In the example shown, the order status monitor 308 shown in Figure 3 detects orders and/or modifications to orders transmitted to exchange 130 by one or more trading devices 400a to 400m. During operation, the order status monitor 308 detects one or more messages transmitted to exchange 130 from any of the trading devices 400a to 400m via gateway 120 and the Internet or other wide area network 470. A typical order status monitor 308 determines the type of message detected, including, for example, whether the detected message is about an order, a modification request for an order, or any other type of message sent to the exchange. A typical trading circle manager 300 can include additional or replacement analysis modules to identify additional or replacement interactions between circle members and the exchange.

In some examples, the order status monitor 308 immediately triggers the communication module 306 to send data related to the detection message to the exchange analysis module 310 and/or the trading devices 400a to 400m, including the trading circle 450. In the example shown, the exchange analysis module 310 determines the impact of the detected order and/or order modification on, for example, the order book of the corresponding exchange (if any). For example, the detection message may correspond to a hedge order in the quoting leg of the trading circle 450, which is being executed in the lean leg of a futures trade under the exchange. In this example, the exchange analysis module 310 determines that the hedge order will reduce the quantity available at the corresponding price level by a certain amount (based on the hedge order quantity and the current availability of the trading object at the hedge order price level). Other members of the trading circle 450 may be aware of trading objects at similar or the same price. If so, then for these senior circle members who are familiar with the trading objects, knowing the detected hedge order and the resulting reduction in the trading object is valuable information. The fact that circle members receive data related to detected headgear orders before non-circle members allows circle members to react to the reduction in quantity before non-circle members.

As another example, if the detected message is a buy order of 100 (100) at a price of 90 (90), and the exchange indicates that 75 (75) of the same object (i.e., less than the order quantity) can be purchased at 90 (90), then the typical exchange analysis module 310 determines that the object cannot be purchased at 90 (90), or at least not at 90 (90) for a certain period of time (e.g., sometimes after the initial buy order is detected, when the quantity of the object to be purchased is added to the price level of 90 (90)). Furthermore, for experienced circle members, knowing the expected changes in the exchange is valuable information, and the typical trading circle manager 300 informs circle members of this information before non-circle members can.

As another example, if the detected message is a buy order of 100 units at a price of 90 units, and the exchange indicates that 500 units (i.e., more than the order quantity) of a trading object can be purchased at 90 units, then, for example, sometimes after the initial buy order is detected, if the quantity of the trading object increases or decreases, the typical exchange analysis module 310 determines that the quantity of the trading object to be purchased will immediately decrease by 100 units, or at least may decrease by 100 units. Furthermore, for experienced circle members, knowing the expected changes in the exchange is valuable information, and the typical trading circle manager 300 informs circle members before non-circle members can know this information.

The example trading devices 400a to 400m and other trading devices shown can generate and transmit a wide variety of orders, trading strategies, configurations, etc. Different types of messages detected by the order status monitor 308 and analyzed by the typical exchange analysis module 310 can affect different types of counterparty orders and/or trading strategies in different ways. The typical exchange analysis module 310 shown in Figure 3 is configured to determine these effects and prepare them for transmission to the trading devices 400a to 400m in the trading circle 450. Members of the trading circle 450 can use the information provided by the typical order status monitor 308 and/or the typical exchange analysis module 310 in any appropriate manner (e.g., configuring one of the trading devices 400a to 400m to automatically adjust or reprogram trading strategies in response to indications of price and/or quantity changes).

The typical trading circle manager 300 also includes a circle data manager 312. The typical circle data manager 312 supports comprehensive access to position data (e.g., operational orders) of each circle member including trading circle 450. Using this data, the typical circle data manager 312 comprehensively monitors and tracks data feeds containing specific market aspects or specific market aspects (e.g., trading instruments, one or more market events, and user-defined and identifiable metrics described in the circle definition) that are of interest or pre-ordered by each circle member including trading circle 450. In other words, the typical circle data manager 312 shown in Figure 3 tracks which circle members will be affected by different types of changes associated with one or more exchanges. The typical circle data manager 312 works in conjunction with the exchange analysis module 310 to exclude and otherwise restrict the transmission of trading data to relevant or interested members of trading circle 450. In particular, the typical circle data manager 312 receives information from the exchange analysis module 310 regarding which aspects of the exchange are affected by detected orders/modifications associated with circle members. For example, the order status monitor 308 can detect messages sent by trading device 400a, which is operable in trading circle 450, to dealer 130 involving trading object "X" (see Figure 1). Furthermore, the typical exchange analysis module 310 determines that the detected message will cause, or is likely to cause, a decrease in the quantity of "X" at one or more price levels. Additionally, the typical circle data manager 312 knows that the second trading device 400b has at least one order traded in exchange 130 involving "X," while the third trading device 400c has no orders, contracts, or trading strategies involving "X." In this example, the typical circle data manager 312 instructs the communication module 306 to transmit information related to the detected message (e.g., data related to trading device 400a sent to trading device 400) and/or the analysis performed by the exchange analysis module 310 to the second trading device 400b, and excludes and discards the transmission of such information to the third trading device 400c (not shown).

The selective transmission provided by the circle data manager 312 can be disabled for some or all members of the trading device 450. Instead of filtering the information transmitted by the communication module 306, the typical circle data manager 312 can be disabled, and the trading analysis module 310 and/or the order status monitor 308 can instruct the communication module 306 to transmit the data thus provided to all circle members in the same way.

The typical trading circle manager 300 shown in Figure 3 can be incorporated into the price data monitor 314 to increase and/or estimate the amount of price information available to members of the trading circle 450. As mentioned above, many exchanges limit the number of price levels that can be transmitted in terms of quantity data. Figure 5 shows a screenshot of a trading window 500 that reflects price levels and market depth information related to the trading objects available to the exchange 130 shown in Figure 1. Different price levels are shown in the value column 502, which includes increments of, for example, $0.25 or minimum price changes of twenty-five (25) units. The buy quantity column 504 aligns the boundary with the first edge of the value column 502, and the sell quantity column 506 aligns the boundary with the second edge of the value column 502. As shown in Figure 5, the exchange 130 indicates that fifty-four (54) buy quantities are at a price level of five hundred and twenty-five (525), ninety-seven (97) buy quantities are at a price level of five hundred (500), and so on. Furthermore, Exchange 130 indicates that the sell volume of 61 (61) is at the price level of 550 (550), and the sell volume of 47 is at the price level of 575 (575). However, the exchange does not transmit data exceeding the price level of 425 (425) in the buy column 504 or the price level of 675 (675) in the sell column 506. Therefore, Exchange 130 provides a limited view of the market.

To provide a more complete view of the market, a typical price data monitor 314 collects information from trading devices 400a to 400m of the trading circle 450 and uses this data to provide circle members with information related to price levels that are not transmitted by the exchange 130. Referring to the example shown in Figure 5, the price data monitor 314 sends information about price levels of 400 (400), 375 (375), 350 (350), and above for the bid side to the members of the trading circle 450. Furthermore, the typical price data monitor 314 sends information about price levels of 700 (700), 725 (725), 750 (750), and above for the sellers to the members of the trading circle 450. In the example shown in Figure 5, the price data monitor 314 displays this additional information in the first and second extended columns 508 and 510. However, the price data monitor 314 can transmit this additional price level information by appending or replacing it.

To gather information, the price data monitor 314 accesses, for example, the operating orders of trading devices 400a to 400m whose price levels exceed the price level range currently determined by the exchange 130. Therefore, the typical price data monitor 314 determines the price level range that the exchange is currently transmitting information about, and then queries trading devices 400a to 400m to determine whether any of the trading devices 400a to 400m has operating orders outside the determined range. Alternatively, the typical price data monitor 314 is capable of collecting data related to all operating orders of trading devices 400a to 400m, and then determining which operating order falls outside the price level range that the exchange is currently transmitting information about.

To utilize the collected information, the typical price data monitor 314 shown in Figure 3 includes an aggregator 316 and an extrapolator 318. In the example shown in Figure 3, the aggregator 316 and the extrapolator 318 provide separate but related functions. The typical aggregator 316 synthesizes data collected from trading devices 400a to 400m related to price levels that are not being transmitted by exchange 130 to form the quantity of each of these price levels. For example, if the first trading device 400a of trading circle 450 has an operating order involving the trading object shown in Figure 5, a price level of 400 (400), and a number of buyers of 20 (20), and the second trading device 400b has an operating order involving the trading object shown in Figure 5, a price level of 400 (400), and a number of buyers of 14 (14), then the typical aggregator 316 synthesizes the number of buyers to indicate that the quantity of the 400 (400) price level is at least 34 (34). This information is reflected in the first extended column 508 of Figure 5. If the additional trading devices 400a to 400m of the trading circle 450 have operating orders at the price level of 400 (400), then the aggregator 316 will add the corresponding quantity to the total shown in Figure 5.

While the additional price level data provided by a typical aggregator 316 is accurate, aggregator 316 is limited by the proportion of the total operating orders at exchange 130 that can be attributed to trading circle 450. In some cases, the operating orders at trading circle 450 may be a small fraction of the total operating orders at exchange 130. Therefore, the value of thirty-four (34) described above may be a small fraction of the actual quantity available at price level four hundred (400). However, aggregator 316 provides valuable extended price level information to circle members that is not available to non-circle members.

To provide an expanded view of the market compared to aggregator 316, the typical extrapolator 318 shown in Figure 3 generates estimates of the available quantity of different price levels for which exchange 130 is not actively transmitting information. The typical extrapolator 318 uses known price information about trading circle 450 and exchange 130 to generate estimates of unknown price information associated with exchange 130. To this end, the typical extrapolator 318 determines the portion of the total market for the traded object belonging to trading circle 450, substantially within the price level range for which exchange 130 is actively transmitting information. In certain embodiments, the typical extrapolator 318 may operate using various extrapolation techniques, such as historical extrapolation, linear extrapolation, polynomial extrapolation, percentage extrapolation, and any other techniques now or in the future.

For example, referring to Figure 5, extrapolator 318 determines that the total number of operating orders of trading devices 400a to 400m in the trading circle 450 of the price level at which exchange 130 is transmitting price information is one hundred and eighteen (118). At this time, typical extrapolator 318 determines that the total amount transmitted by exchange 130 is five hundred and ninety (590), which is the sum of the number of buyers and the number of sellers in columns 504 and 506. Therefore, typical extrapolator 318 determines that the operating orders of trading devices 400a to 400m in the price level at which exchange is transmitting price information represent twenty percent (20%) of the market. Typical extrapolator 318 uses the percentage of hormones to generate one or more extrapolated values or estimates for price levels exceeding the price level at which exchange 130 is transmitting price information. In particular, typical extrapolator 318 determines the total number of operating orders of trading devices 400a to 400m in the price level at which exchange 130 is not transmitting information. Typical extrapolator 318 applies a calculated percentage to this total to generate an estimate for each (a subgroup) of price levels exceeding the transmitted price level at exchange 130. Continuing the example above, if extrapolator 318 determines that trading devices 400a to 400m have a total quantity of fifteen (15) at the 375 price level, then typical extrapolator 318 multiplies fifteen (15) by five (5) (20% calculated above) to arrive at an estimate of seventy-five (75) for the entire market at the 375 (375) price level. Typical extrapolator 318 performs the same calculation for any appropriate number of price levels falling outside the range of price levels transmitting price information at exchange 130. Typical price data monitor 314 facilitates the transmission of extrapolated values and estimates to, for example, the typical window 500 shown in Figure 5 and/or any other appropriate user interface via one or more additional columns.

Therefore, the typical price data monitor 314 shown in Figure 3 uses data related to members of the trading circle 450 to obtain price information at price levels where the exchange 130 is not transmitting price information. Whether this extended price information is provided by the aggregator 316 or the extrapolator 318, members of the trading circle 450 can access this information, but non-circle members cannot. Therefore, the typical price data monitor 314 gives members of the trading circle 450 a significant advantage over non-circle members when interacting with the exchange 130.

The typical trading circle manager 300 shown in Figure 3 also includes a theoretical execution module 320. Based on trading data associated with one or more senior members of the trading circle 450, this theoretical execution module 320 notifies the first member of the trading circle 450 that one or more orders associated with the first member are likely to be executed. The typical theoretical execution module 320 tracks the operating orders of circle members and the details of those operating orders. For example, the theoretical execution module 320 tracks the identity of the trading counterparty associated with the operating order, the buyer's bid for the operating order, and the quantity of the operating order. In other words, for a specific tracked operating order, the typical theoretical execution module 320 tracks and stores (or accesses) information indicating the market conditions required for the operating order to be executed.

Furthermore, the typical theoretical execution module 320 receives from the order status monitor 308 an indication that one or more orders have been placed by someone in the trading circle 450. Alternatively, the typical theoretical execution module 320 can detect one or more orders being placed by senior circle members. The typical theoretical execution module 320 analyzes the placed orders to determine whether the orders placed by the senior circle members have created the market conditions required for the tracking operation orders to be executed. In other words, the typical theoretical execution module 320 determines whether a member of the trading circle 450 has taken an action, such as placing an order, that has caused or is likely to cause the operation orders of another member of the trading circle 450 to be executed or at least partially executed. The theoretical execution module 320 makes these determinations based on information shared by circle members before or during the process of sending information to the exchange 130. Therefore, the typical theoretical execution module 320 can notify circle members that an order will be executed or is likely to be executed before the exchange 130 notifies circle members of the execution.

For example, the first member of trading circle 450 may have an order at exchange 130 to buy one hundred (100) units of the trading object denoted as GEH1 at $9968.00. While the first member's order is active, a second member of trading circle 450 may place an order to sell "n" units of GEH1 at $9968.00, where "n" is less than one hundred (100). In the example shown, the theoretical execution module 320 detects the order placed by the second member and, based on the position of the first member, determines that the order is likely to be executed. In particular, the second member's order is likely to be executed because there is a quantity greater than "n" at the price level of $9968.00. In response to this detection, the typical theoretical execution module 320 causes the communication module 306 to send a theoretical execution indication and details of the calculations performed by the theoretical execution module 320 (e.g., the quantity "n" of the order is likely to be executed) to the second member. Furthermore, the communication module 306 can include a flag or other type of indicator to mark a theoretical trade as highly likely to be executed, as opposed to confirming that the order will be executed. It can also transmit additional or alternative information related to the operation of the theoretical trade module 320, such as details of the first-round member's operating orders or the identity of the first-round member, to the second-round members.

The typical theoretical execution module 320 also tracks and analyzes the ranking and/or queuing positions of circle members in the exchange 130 shown in Figure 1. Exchange 130 can implement different types of ranking or queuing strategies, such as FIFO (First-In, First-Out) ranking strategies. Based on the actions of senior circle members, the typical theoretical execution module 320 can use this queuing position information to calculate the likelihood that the circle member's operating orders will be executed. Continuing with the typical case described above, if the theoretical execution module 320 determines that the first member of trading circle 450 has a higher ranking or favorable queuing position at exchange 130, then the theoretical execution module 320 can notify the first member of trading circle 450 that the operating order will be executed by an amount "n" due to an order placed by the second member of trading circle 450. If the second member of trading circle 450's order is greater than "n", then the typical theoretical execution module 320 will notify the first member of trading circle 450 that the entire operating order of one hundred (100) units will be executed. Alternatively, if the first member of trading circle 450 has a lower ranking or unfavorable queuing position, the typical theoretical execution module 320 reduces the expectation that the first member will have their operational orders executed. Messages sent to the first member of trading circle 450 via communication module 306 can include likelihood data (e.g., percentage) calculated by the theoretical execution module 320. When determining the likelihood of the first member of trading circle 450's operational orders being executed (e.g., based on a percentage) due to, for example, orders from a second member of trading circle 450 and/or other information from exchange 130 or senior members of trading circle 450, the calculations of the theoretical execution module 320 can be supplemented by, or alternatively, by, the number of members of trading circle 450 preceding the first member in the ranking of exchange 130. Thus, (at least) based on the actions of senior members of trading circle 450, the typical theoretical execution module 320 provides an indication and/or likelihood of position at exchange 130 where orders are being executed. The typical theoretical execution module 320 provides this indication and/or likelihood before exchange 130 processes this information, thereby giving an advantage to all circle members.

Figure 4B illustrates distributed communication configurations, such as peer-to-peer or mesh configurations, that can be implemented and managed by a typical trading circle manager 300. Specifically, examples and/or versions of the typical trading circle manager 300 can run on each of the trading devices 400a to 400m, 402a to 402n, 404, 406, 408, and 412 to 418 shown in Figure 4B, and the typical trading circle manager 300 can be configured to share trading and circle data with other circle members. Examples of trading circle managers 300 also allow associated trading devices to transfer trading orders to the exchange 130 directly or via gateway 120. The trading circle manager 300 can be a distributed example of a trading circle manager 300.

In the example shown in Figure 4B, the trading devices 400a to 400m of the trading organization 400 include trading circles 450, and each contains a typical example of a trading circle manager 300. During operation, trading devices 400a can be configured to pass trading orders (as indicated by reference arrow 460) to network 440. In this example, network 440 can be a public network such as the Internet and/or a private network such as a corporate WAN. The passed trading orders 460 can then be sent and transmitted to exchange 130 via network 440. Passing trading orders 460 to exchange 130 can trigger trading circle manager 300 to send updates to one or more circle members. For example, if trading order 460 is a buy order for 10 units of a traded object at a price level of 450 (450), as shown in Figure 5, then order status monitor 308 of trading circle manager 300 detects and captures the information associated with that order. The order status monitor 308, in conjunction with the communication module 306 and the exchange analysis module 310, determines the impact of trading plate 460 on the order book related to the trading objects supported at exchange 130. The trading circle manager 300 and the communication module 306 can transmit circle data generated by the exchange analysis module 310, containing estimated or anticipated impacts of trading plate 460, to the remaining trading devices 400b and 400m, as indicated by reference arrows 462a and 462b. Thus, before exchange 130 generates response 461 and transmits it to the originating trading device 400a, each member of the trading circle 450 can manipulate the information contained in trading plate 460 (based on the impacts or estimated impacts contained in received updates 462a and 462b).

Based on, for example, the round-trip time associated with sending a trading order 460 and receiving a response 461 from exchange 130, members of circle 450 can also share and transmit waiting time information. Specifically, it is possible to track and store timestamps in every communication sent and received by each member of trading circle 450. Subsequently, a time description of the message waiting time endured by users interacting with exchange 130 can be calculated using the stored timestamp values. Since this information changes over time due to trading activity, network resource availability, etc., a waiting time profile for each exchange 130 can be constructed using the accumulated waiting time. Traders, trading algorithms, or other information consumers can use the various waiting time information and waiting time profiles to redirect market communications to the exchange and/or market with the shortest waiting time.

The response transmits order 460 to exchange 130. Based on, for example, orders, rejections, and/or restrictions being generated or accepted, members of circle 450 can also share and transmit market condition information. Furthermore, if one or more circle members receive rejections within a given time period, this indicates a bottleneck constraint at the target exchange 130. By measuring and tracking rejections at a given exchange 130 over time, the trading circle manager 300 can estimate the bottleneck constraint. Similarly, by measuring and tracking rejections at a given exchange 130 as price levels change, the trading circle manager 300 can estimate any valid price range requirements at that exchange. Traders, trading algorithms, or other information consumers can use the collected market condition information to redirect market communications to preferred exchanges and/or markets.

In one or more exemplary embodiments, the circle data manager 312 of the trading circle manager 300 can identify one or more other trading devices 400b to 400m as open positions related to the trading object associated with the trading board 460. In this example, the circle data manager 312 can assume that trading devices without open positions in the trading object do not need to determine the outcome and/or predict the outcome. This eliminates the need for trading devices without open positions to receive unnecessary communication or updates from the trading circle manager 300. Alternatively, data feeds containing circle data can be subscribed to trading devices without open positions in the trading object for monitoring and operation of market activities.

Figure 4B also illustrates that each trading device 404 of the trading circle 456 can be configured to transmit trading orders 463 to the network 440 and exchange 130 via gateway 120. In this example, the trading orders 463 generated by trading device 404 are associated with one or more trading objects identified in the circle definition module 302 and circle definition database 304, and utilize their distance from the trading circle 456. Transmitting the trading order 463 to gateway 120 triggers the simultaneous transmission of circle data to the remaining circle members. In particular, trading device 404 transmits circle data update 464a to trading organization 402, and circle data update 464b to individual trading device 406. Therefore, before trading device 404 or any other non-circle member can operate on order confirmation or execution 465, trading organization 402, including trading devices 402a to 402n and individual trading device 406, can operate on the information contained in updates 464a and 464b. In this way, members of trading circle 456 can have better time and/or speed than non-circle members such as members of social network 410 or independent trading device 408.

Figure 4C illustrates a centralized communication configuration that can be implemented and managed by a typical trading circle manager 300. Specifically, each of the trading devices 400a to 400m, 402a to 402n, 404, 406, 408, and 412 shown in Figure 4C communicates with and sends updates to the independent trading circle manager 300. In this configuration, for one or more trading circles and associated circle members, transaction and circle data can be aggregated and/or compiled by the independent trading circle manager 300. The independent trading circle manager 300 can also be configured to aggregate and transmit wait times and/or transaction information related to each circle member.

In the example shown in Figure 4C, trading devices 402a to 402n of trading organization 402, trading devices 404 and 406, and the remaining trading devices 400a to 400m, 408, and 412 to 426 are configured to communicate with a centralized, independent trading circle manager 300. During operation, trading device 402a can be configured to pass trading orders (as indicated by reference arrow 480) to the centralized trading circle manager 300. In this example, the independent, centralized trading circle manager 300 is communicatively coupled to exchange 130 via network 440. Upon receiving the passed trading order 480, as described above, the trading circle manager 300 can analyze the details contained in the order and pass updates containing circle data to the remaining members of trading circle 456. Therefore, passing trading order 480 to the centralized trading circle manager 300 triggers the passing of trading data updates 482a to 482c and associated circle data to trading devices 402n, 404, and 406, respectively. The circle data included in transaction data updates 482a to 482c enables trading devices 402n, 404, and 406 in trading circle 456 to operate on this information without waiting for confirmation or updates from exchange 130. Instead, the original trading plate 480 continues to be sent to exchange 130 and network 440.

Upon receiving a response from trading platform 480, as shown in Figure 4C, exchange 130 generates a response, trade, or other notification 484. The notification 484 generated by exchange 130 is then sent to gateway 120 for transmission to one or more pre-submitted trading devices. Specifically, notification 484 can be sent to one or more trading devices, such as trading organization 400, via client feed 484b, and to social network 410 via client feed 484c. Similarly, confirmations and/or trades contained in notification 484 can be sent to trading device 402a via client feed 484a. Thus, before notification 484 is generated, let alone received by non-circle members, members of trading circle 456, in cooperation with centralized trading circle manager 300, can share and manipulate the information contained in trading platform 480.

Figure 6 is a block diagram illustrating a typical method for implementing the typical circle definition module 302 shown in Figure 3. As described above, the typical circle definition module 302 receives requests from users to initiate a trading circle and to join an existing trading circle. In the example shown in Figure 6, the circle definition module 302 receives a request from a first user of the trading circle manager 300 to join an existing trading circle (block 600). In response to this request, the typical circle definition module 302 sends a message to a person or device associated with the corresponding trading circle, such as a trading circle administrator. This message includes information related to the requesting user, such as the requesting user's identity and/or credentials. If the typical circle definition module 302 receives approval from the administrator for the requesting user, then the typical circle definition module 302 accepts the requesting user to join the trading circle (block 604). In the example shown, accepting a user to join the trading circle includes adding an identifier corresponding to the requesting user to the definition of the trading circle. The typical circle definition module 302 stores the updated circle definition to the corresponding entry in the circle definition database 304 (block 606). Returning to the approval process (box 602), if the circle definition module 302 does not receive approval for the requesting user from the administrator or does not receive a response from the administrator (e.g., within a specific time period), then the typical circle definition module 302 will refuse to pass it on to the requesting user (box 608). Then, the example shown in Figure 5 ends (box 610).

Figure 7 is another block diagram illustrating a typical method for implementing the typical trading circle manager 300 shown in Figure 3. The example shown in Figure 7 begins with an order status monitor 308 detecting an order or modification of an order from one of the multiple circle members of a trading board defined in database 304 (block 700). For example, the order status monitor 308 detects an order sent from trading device 400a (see Figure 4A) associated with the first member of trading circle 450 to exchange 130. A typical exchange analysis module 310 analyzes the detected order/update and information associated with the current state of exchange 130 to determine the impact of the detected order/modification (block 702). For example, the exchange analysis module 310 determines whether and how the detected order/modification affects the order book of exchange 130.

If the typical order status monitor 308 is active (box 704), it identifies which circle member is interested in the detected order/modification or data relating to the impact of the detected order/modification on exchange 130 (box 706). For example, when the detected order/modification includes first and second trading objects (e.g., constituting the quote and trend portions of an inter-period trade, respectively), the typical order status monitor 308 considers any circle member with an operating order including one (or both) of the first and second trading objects as interested in receiving the relevant information. Therefore, when active, the typical order status monitor 308 prevents members of trading circles from being bombarded with information that is not necessarily relevant to them. In this example, the typical communication module 306 transmits information to the circle members deemed interested in the information, including the detected order/modification, data relating to the detected order/modification (e.g., the identity of the corresponding circle member), and the impact of the detected order/modification on exchange 130 and/or other market entities (box 708). In addition, the information transmitted by the communication module 306 can include any theoretical transactions identified by the theoretical transaction detector 320.

In the example shown, if the typical order status monitor 308 is inactive (box 704), the typical communication module 306 transmits this information to each circle member (box 710). Then, the example shown in Figure 7 ends (box 712).

Figure 8 is another block diagram illustrating a typical method for implementing the typical price data monitor 314 shown in Figure 3. The example shown in Figure 8 is triggered by a response to, for example, a scheduling event or other types of instructions (block 800). The price data monitor 314 collects price information from exchange 130 (block 802). As mentioned above, exchange 130 provides price information for a limited number of price levels. The price data monitor 314 also collects price information related to the operating orders of members of trading circle 450 (block 804). In the illustrated embodiment, collection includes querying trading devices 400a to 400m of trading circle 450 to identify operating orders of members of trading circle 450 that exceed the price level range transmitted by exchange 130. A typical aggregator 316 of the price data monitor 314 synthesizes the data collected from trading devices 400a to 400m with the information collected from exchange 130 (block 806). The synthesized information forms an aggregated graph of the market depth of members of trading circle 450. In the example shown, an aggregated graph of the market provided by a typical aggregator 316 is displayed to members of the trading circle through window 500, for example, as shown in Figure 5.

As described above, the typical price data monitor 314 also includes an extrapolator 318 to provide a more complete picture of the market (but may be inaccurate) compared to the aggregator 316. In the example shown in Figure 8, the extrapolator 318 determines price information related to members of trading circles 450 within the price level range of the volume data transmitted by exchange 130 (box 808). Furthermore, the typical extrapolator 318 determines price information related to members of trading circles 450 outside the price level range of the volume data transmitted by exchange 130 (box 810). The typical extrapolator 318 uses the price information related to members of trading circles 450 within the transmitted price level range to calculate that trading circles 450 are not part of the market (box 812). For example, the extrapolator 318 generally determines the percentage of volume at exchange 130 that is attributed to trading circles 450. For price levels outside the transmission range, the typical extrapolator 318 extrapolates the price information collected from trading circles 450 using the calculated portion or percentage (box 814). That is, the typical extrapolator 318 applies the percentage of the number of markets representing the transmitted price level as indicated by trading circle 450 to the price information collected from trading circle 450 for price levels outside the transmission range. Therefore, the typical extrapolator 318 extends the trading circle 450 to the generating market. The data generated by aggregator 316 and extrapolator 318 is then passed to the circle members (box S16). Then, the example shown in Figure 8 ends (box 818).

Some of the figures described illustrate typical block diagrams, systems, and/or flowcharts representing methods for implementing all or part of a particular embodiment. For example, one or more components, elements, blocks, and/or functions of a typical block diagram, system, and/or flowchart may be implemented individually or in combination in hardware, firmware, or discrete logic as a set of computer-readable instructions and/or combinations thereof stored on a tangible computer-readable medium.

For example, typical block diagrams, systems, and/or flowcharts can be implemented using any combination of application-specific integrated circuits (ASICs), programmable logic devices (PLDs), field-programmable logic devices (FPLDs), discrete logic, hardware, and/or firmware. Furthermore, some or all of the typical methods can be implemented manually or in combination with the aforementioned techniques.

For example, typical block diagrams, system diagrams, and/or flowcharts can be executed using one or more processors, controllers, and/or processing devices. Examples can be implemented using coded instructions stored on a tangible computer-readable medium, such as computer-readable instructions. Tangible computer-readable media can comprise a variety of volatile and non-volatile storage media, including, for example, random access memory (RAM), read-only memory (ROM), programmable read-only memory (PROM), electrically programmable read-only memory (EPROM), electrically erasable programmable read-only memory (EEPROM), flash memory, hard disk drives, optical media, magnetic tape, file servers, any other tangible data storage device, or any combination thereof. Tangible computer-readable media are permanent.

Furthermore, although typical block diagrams, system diagrams, and/or flowcharts have been described above with reference to the accompanying drawings, other implementations are possible. For example, the execution order of components, elements, blocks, and/or functions may be changed, and/or some of the described components, elements, blocks, and/or functions may be modified, deleted, re-divided, or combined. Additionally, any or all of the components, elements, blocks, and/or functions may be executed sequentially and/or in parallel using, for example, discrete processing threads, processors, devices, discrete logic, and/or circuits.

Although embodiments have been disclosed, various variations can be made, and equivalents can be substituted. Furthermore, many modifications can be made to suit specific circumstances or materials. Therefore, the disclosed technology is not intended to limit the specific embodiments disclosed, but will include all embodiments falling within the scope of the appended claims.

Claims (30)

1. A computer-implemented method, comprising: Define a group with multiple members; A transaction order is sent from the first member of the group to the first exchange; Receive a response to the transaction order from the first exchange; and Based on the response to the trading order, information related to the theoretical execution of the trading order is transmitted to each of the remaining group members, so that the remaining group members can more quickly know the possible market conditions or positions obtained from the theoretical execution, without having to wait for the exchange to process market data. 2. The method according to claim 1, further comprising: Determine the round-trip time associated with sending the transaction order, and wherein said information includes the round-trip time. 3. The method according to claim 2, further comprising: Based on the round-trip time of the transaction orders sent from multiple group members to the first exchange, a waiting time profile for the first exchange is constructed. 4. The method according to claim 2 or 3, further comprising: Based on the round-trip time of the transaction orders sent from multiple group members to the second exchange, a waiting time profile for the second exchange is constructed. 5. The method according to claim 4, further comprising: Compare the waiting time profiles of the first exchange with those of the second exchange to identify the exchange with the lowest waiting time; and The transfer will be directed to the exchange with the minimum waiting time. 6. The method according to any one of claims 1 to 3, wherein the information is not transmitted outside the group. 7. The method of claim 2, wherein the response is a rejection. 8. The method according to claim 7, further comprising: The bottleneck limitation of the exchange is based on the rejection calculation, and the information is based on the bottleneck limitation of the calculation. 9. The method of claim 8, wherein calculating the bottleneck limit includes tracking rejections from the first exchange over time. 10. An apparatus for managing transactions, comprising: A definer that defines a group having multiple members; A communicator that sends a trading order from the first member of the group to a first exchange, receives a response to the trading order from the first exchange, and, based on the response to the trading order, transmits information related to the theoretical execution of the trading order to each of the remaining group members, so that the remaining group members can more quickly know the possible market conditions or positions obtained from the theoretical execution without waiting for the exchange to process market data. 11. The apparatus of claim 10, further comprising an aggregator for determining a round-trip time associated with sending the transaction order, wherein the information includes the round-trip time. 12. The apparatus of claim 11, wherein the aggregator is further configured to construct a waiting time profile of the first exchange based on the round-trip time of transaction orders sent from multiple group members to the first exchange. 13. The apparatus of claim 11 or 12, wherein the aggregator is further configured to construct a waiting time profile for the second exchange based on the round-trip time of transaction orders sent from multiple group members to the second exchange. 14. The apparatus of claim 13, further comprising: A comparator, wherein the comparator is used to compare the wait time profile of the first exchange with the wait time profile of the second exchange to identify the exchange with the lowest wait time; and A transaction algorithm is used to direct transfers to exchanges with the minimum waiting time. 15. The apparatus of claim 11 or 12, wherein data related to the round-trip time is not transmitted outside the group. 16. The apparatus of claim 10, wherein the response is a rejection. 17. The apparatus of claim 16, further comprising an aggregator for calculating bottleneck limitations of the transaction based on the rejection, wherein the information is based on the bottleneck limitations of the calculation. 18. The apparatus of claim 17, wherein calculating the bottleneck limit includes tracking rejections from the first exchange over time. 19. A trading device, comprising: The trading circle manager includes multiple modules that configure the trading device to share trading information among members of the trading circle. Based on the response to a trading order from the exchange, the trading information related to the theoretical execution of the trading order is transmitted to each member of the trading circle, so that the remaining members of the trading circle can more quickly know the possible market conditions or positions obtained from the theoretical execution without waiting for the exchange to process market data. 20. The trading device of claim 19, wherein the module includes a circle definition module that communicates with a circle definition database, and wherein the circle definition module is used to establish the trading circle. 21. The trading device of claim 20, wherein the circle definition module establishes the trading circle in response to receiving a request from a user registered with the trading circle manager. 22. The trading device of claim 19, wherein the module includes an order status monitor that detects orders transmitted by the trading device to the exchange. 23. The trading device of claim 22, wherein the module includes a communication module for facilitating communication, and wherein the order status monitor triggers the communication module when it detects an order transmitted to the exchange. 24. The trading device of claim 23, wherein the module includes a trading analysis module, and wherein the communication module is triggered to send data relating to the detected message to the trading analysis module. 25. The trading device of claim 24, wherein the trading analysis module determines the impact of detected orders on the trading order book of the trading circle, and wherein the information about the trading circle provided to members of the trading circle is based on the determined impact of the detected orders on the trading order book. 26. The trading device of claim 19, wherein the module includes a theoretical execution module that tracks the operational orders of members of the trading circle and notifies the at least one member when, based on trading data associated with one or more other members of the trading circle, an order associated with at least one member of the trading circle is likely to be executed. 27. The trading device of claim 26, wherein the module includes a circle data manager for cross-correlating individual location data of multiple circle members to identify members affected by changes associated with the trading. 28. The transaction device according to claim 27, wherein the circle data manager filters the transmission of the transaction information to relevant members of the transaction circle. 29. The trading device of claim 19, wherein the module includes a price data monitor for increasing the amount of price information available to members. 30. The trading device of claim 29, wherein the price data monitor collects trading information from multiple members and, based on the trading information, provides one or more members with information relating to price levels to which the exchange has not transmitted information.