Computerized method and system for accumulation and distribution of securities
AssigneeInteractive Brokers LLC
InventorThomas Pechy Peterffy
Life of this patent
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Abstract
Disclosed embodiments include computer-implemented methods and systems that permit a market participant to automatically trade a relatively large order block order to accumulate or distribute securities as multiple, relatively smaller, component orders based on order parameters and subject to conditions for the placing and/or execution of such component orders. The component orders may continue automatically, without the need for further intervention from the market participant, until the total quantity specified by the market participant is accumulated or distributed.
Claims21
A computerized system for reducing potential communication interruptions with a trader terminal in connection with electronically submitting a plurality of component orders for a security to one or more electronic marketplaces, the system comprising:
- electronic storage;
- a network connection device configured to establish a communications connection with at least the trader terminal and the one or more electronic marketplaces;
- and
- one or more computing devices in communication with the electronic storage and the network connection device, the computing devices configured to:
- receive trader inputs from the trader terminal for trading a block of the security as the plurality of component orders, the trader inputs including indications of order parameters and conditions, the parameters including an order type parameter, an order direction parameter, a total block order size parameter, a component order size parameter, a component order price parameter and a component time increment parameter, and the conditions including a condition based on price of the security and a condition based on price of another security;
- receive electronic market data from the electronic marketplace pertaining to the security and the other security and storing the market data in the electronic storage;
- in response to receipt of the indications of order parameters, automatically generate a plurality of component orders based on the parameters without need for intervention by the trader terminal between generation of component orders, each of the component orders based on the component order size parameter and the component order price parameter, and wherein an aggregate order size of the plurality of component orders is based on the total block order size parameter;
- determine whether the conditions are satisfied based on the market data and, when the conditions are satisfied, cause the component orders to be sequentially submitted to the one or more electronic marketplaces for execution at time intervals based on the component time increment parameter, without need for intervention by the trader terminal between the component orders being submitted, and when the conditions are not satisfied, preventing component orders from being submitted to the one or more electronic marketplaces;
- and
- determine to not submit any component orders if a position related to the trader terminal is obtained in the security that is equal to or greater than the total block order size parameter.
Dependencies are inferred from the claim text.