Systems and methods for providing an interactive graphical representation of a market for an electronic trading system

Systems and methods for providing an interactive graphical representation of a market for an electronic trading system are provided. A graph may be displayed on a display of a workstation in an electronic trading system. In one example, the graph may include a curve corresponding to a range of values of a financial instrument. In another example, the graph may include symbols that represent bids and offers for one or more financial instruments. A user may be allowed to select a portion of the graph. In response to the user's selection, a trading dialog box may be provided, thereby allowing the user to place a trade directly from the graph.

BACKGROUND OF THE INVENTION

The present invention relates to systems and methods for providing a graphical representation of a market. More particularly, the present invention relates to systems and methods for providing an interactive graphical representation of a market for an electronic trading system that allows a user to, for example, place a trade directly from the graphical representation.

Electronically-based trading systems have gained widespread popularity over the years. Such trading systems are frequently used for trading items ranging from financial instruments (such as stocks, bonds, currency, futures contracts, etc.) to used household goods (such as old records, baseball cards, antiques, etc.). In many of these trading systems, bid/offer-hit/lift processes are used to negotiate a sale of a given item. In connection with such processes, bids and/or offers for items are entered into an electronic trading system, and a hit or lift is submitted in response to a bid or offer, respectively, to agree to a sale or purchase.

Currently, prior to entering a bid or offer into an electronic trading system or submitting a hit or lift in response to a specific bid or offer, traders can review trading-related information in a tabular format. For example, the trader can access a table that includes a list of financial instruments and corresponding bids and offers for each of the instruments. Based on the information provided to the trader in the table, the trader can determine, for example, what bids or offers to enter into the electronic trading system or which existing bids and offers are desirable to hit or lift. However, these determinations can be difficult due to the overwhelming amount of information provided to the trader in the table.

Currently, traders can also access graphical representations of financial markets to gain an overall understanding of a market's activity. Graphs, in contrast to tables of financial information, make it easier for the trader to determine market trends. However, these graphs are not interactive, as the trader is only provided with a representation of the current activity of a market and is not able to enter a bid or offer or submit a hit or lift directly from the graph.

Accordingly, it would be desirable to provide systems and methods for providing an interactive graphical representation of a market for an electronic trading system that allows a user to, for example, place a trade directly from the graphical representation.

SUMMARY OF THE INVENTION

In accordance with the present invention, systems and methods for providing an interactive graphical representation of a market for an electronic trading system that allows a user to, for example, place a trade directly from the graphical representation are provided.

In some embodiments of the present invention, a graph having a first axis and a second axis may be displayed on a display of a workstation. In one example, the graph may include a curve corresponding to a range of values of a financial instrument. In another example, the graph may include a plurality of first symbols and a plurality of second symbols. Each first symbol of the plurality of first symbols may correspond to a bid for a financial instrument. Each second symbol of the plurality of second symbols may correspond to an offer for a financial instrument. A user may be allowed to select a portion of the graph. In response to the user selection of the portion of the graph, a trading dialog box may be displayed on the display of the workstation.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

FIG. 1is a schematic diagram of an illustrative electronic trading system100suitable for implementation of a graphical trading interface application in accordance with the present invention. As shown in the FIG., system100may include one or more workstations102. Workstations102may be local or remote. Workstations102are connected by one or more communication links104to communications network106that is connected via communication link108to server110. Server110is connected via communication link112to back office clearing center114.

Server110may be any server suitable for providing access to the graphical trading interface application, such as a processor, a computer, a data processing device, or a combination of such devices. In one example, server110may be a server powered by eSpeed, Inc. Server110and back office clearing center114may form part of the electronic trading system. Furthermore, server110may contain the graphical trading interface application and merely transmit a graphical user interface (GUI) or other display screens to a user at a user workstation, such as workstation102.

Communications network106may be any suitable communications network including the Internet, an intranet, a wide-area network (WAN), a local-area network (LAN), a wireless network, a digital subscriber line (DSL) network, a frame relay network, an asynchronous transfer mode (ATM) network, a virtual private network (VPN), a public switched telephone network, any other suitable communications network, or a combination of such networks. Communication links104and108may be any communication links suitable for communicating data between workstations102and server110, such as network links, dial-up links, wireless links, any other suitable communication link, or a combination of such links.

Workstations102may include, for example, any suitable personal computer (PC), mainframe computer, dumb terminal, data display, two-way pager, wireless terminal, portable telephone, portable computer (e.g., a notebook computer), palmtop computer, handheld personal computer (H/PC), automobile PC, personal digital assistant (PDA), Internet-enabled cellular phone, combined cellular phone and PDA, any other suitable computing device, or a combination of such devices. Workstations102may be used to implement the graphical trading interface application in accordance with the present invention.

Back office clearing center114may be any suitable equipment, such as a computer, a laptop computer, a mainframe computer, any other suitable computing device, or a combination of such computing devices, for causing transactions to be cleared and/or verifying that transactions are cleared. Communication link112may be any communication link suitable for communicating data between server110and back office clearing center114, such as a network link, a dial-up link, a wireless link, a hard-wired link, or any other suitable communication link.

Server110, back office clearing center114, and a workstation102, which are depicted inFIG. 1, are illustrated in more detail inFIG. 2. Referring toFIG. 2, workstation102may include processor202, display204, input device206, and memory208, which may be interconnected. In a preferred embodiment, memory208contains a storage device for storing a workstation program for controlling processor202. Memory208also preferably contains a graphical trading interface application210in accordance with the present invention.

As shown inFIG. 2, graphical trading interface application210may include application program interface212. Alternatively, as described above, graphical trading interface application210may be resident in the memory of server110. In such embodiments, the electronic trading system may contain graphical trading interface application210and application program interface212as an application that is discrete from the electronic trading application, which also may be included therein. The only distribution to the user may be a GUI which allows the user to interact with graphical trading interface application210resident at server110.

Processor202uses the workstation program to present on display204, for example, graphical trading interface information received through communication link104and trading commands and values transmitted by a trader at workstation102. Furthermore, input device206may be used to manually enter commands and values to be communicated to the electronic trading system.

Server110may include processor220, display222, input device224, and memory226, which may be interconnected. In a preferred embodiment, memory226contains a storage device for storing information relating to market conditions received through communication link108or through other links, and also receives trading commands and values transmitted by one or more users. The storage device further contains a server program for controlling processor220. Processor220uses the server program to transact the purchase and sale of financial instruments.

Back office clearing center114may include processor228, display230, input device232, and memory234, which may be interconnected. In a preferred embodiment, memory234contains a storage device for storing a clearing program for controlling processor228. Processor228may use the clearing program to complete the transactions that are entered into by the users. Processor228uses the clearing program to further verify that the transactions are completed and cleared.

It should be noted that the present invention is primarily described herein in terms of an electronic trading application. It will be understood that the electronic trading application may be any suitable software, hardware, or both configured to implement the features of the present invention. In one suitable approach, the electronic trading application may be located at a central location (e.g., a central server, such as server110). In another suitable approach, the electronic trading application may reside among different locations (e.g., a network).

In one particular embodiment, the electronic trading application may include client-side software, hardware, or both. For example, the electronic trading application may encompass one or more Web pages or Web page portions (e.g., via any suitable encoding, such as HyperText Markup Language (HTML), Dynamic HyperText Markup Language (DHTML), Extensible Markup Language (XML), JavaServer Pages (JSP), Active Server Pages (ASP), or any other suitable approaches).

Furthermore, although the electronic trading application is described herein as being implemented on user computer equipment, this is only illustrative. As described hereinabove, the electronic trading application may be implemented on any suitable platform (e.g., PC, mainframe computer, dumb terminal, data display, two-way pager, wireless terminal, portable telephone, portable computer, palmtop computer, H/PC, automobile PC, PDA, Internet-enabled cellular phone, combined cellular phone and PDA, etc.) to provide such features.

In accordance with the present invention, systems and methods for providing an interactive graphical representation of a market for an electronic trading system are provided. As described hereinabove, an individual is better suited to determine a pattern on a graph than in a table of information. Thus, the systems and methods of the present invention take advantage of this ability in order to facilitate the trading of financial instruments. Financial instruments may include, for example, fixed income related instruments (e.g., United States Treasuries, United Kingdom Gilts, European Government bonds, and Emerging Market debts, swaps, and repos), securities, stocks, currencies, etc. The examples provided hereinbelow are related to the trading of fixed income related instruments. However, these examples are merely illustrative, and the systems and methods of the present invention may be used in connection with any suitable financial instrument.

FIG. 3shows a graphical trading interface that may be provided to a user by the graphical trading interface application in accordance with the present invention. (It should be noted that the terms “user” and “trader,” in reference to a participant in an electronic trading system, are used interchangeably herein.) In general, graphical trading interface300, or simply graph300, provides a user with a graphical representation of a market. In other words, any financial instrument having two or more related parameters that can be “plotted” on a graph may be provided to the user in graph300. The financial information used to create graph300may be information that is typically stored in a tabular format (e.g., a spreadsheet). In the example shown inFIG. 3, graph300includes a “U.S. Agency and Treasury Curve” (as shown in drop-down title box301). The user may be provided with a number of different graphs from which to choose. For example, the user may select drop-down title box301to access a list of possible graphs (not shown). The user may select drop-down title box301by using an input device (e.g., input device206ofFIG. 2) such as a mouse, keyboard, or any other suitable input device.

Graph300has a first axis302and a second axis304. As described hereinabove, axes302and304represent two related parameters in connection with the financial instrument curves shown in graph300. In this example, first axis302represents the maturity date for a financial instrument, and second axis304represents the yield of a financial instrument. (It should be noted that the values shown along second axis304(e.g., “1,” “2,” “3,” etc.) represent yield as a percentage, and therefore a yield of “1” is actually a yield of “1%.”) However, these examples are merely illustrative, and axes302and304may represent any suitable parameters in connection with a financial instrument. For example, instead of representing the yield of a financial instrument, second axis304could represent the price of a financial instrument.

As shown, graph300has two curves306and308. In the example shown, curve306represents United States Agencies and curve308represents United States Treasuries. Thus, graph300shows the relationship between United States Agencies curve306and United States Treasuries curve308. More generally, graph300shows the “spread” between United States Agencies and United States Treasuries over maturity dates (i.e., first axis302). This spread may be of particular importance to a trader, as United States Treasuries are typically considered a “yardstick” by which to measure the value of United States Agencies. It should be noted that the present example of a spread is merely illustrative. The present invention may provide other yardsticks in connection with financial instruments, such as, for example, an option adjusted spread (OAS) for callable bonds, net basis and “optionality Greeks” for deliverable bonds, weighted average life and maturity for mortgage-backed securities (MBS), forward spreads based on repo, rates for forward “structures” of synthetic borrowing or lending, etc.

Preferably, the curves shown in graph300are updated in real-time. In other words, the curves shown in graph300are updated as the graphical trading interface application keeps up with some activity (e.g., changes in the yield of a financial instrument, changes in available bids or offers for financial instruments, etc.). In one example, the graphical trading interface application may receive information in connection with some activity from a trading platform that forms a portion of the electronic trading system (e.g., eSpeed™ trading platform). In another example, the graphical trading interface application may receive information in connection with some activity from an external source, such as a different trading platform or a financial market ticker. The market ticker may include, for example, information in connection with the trading platform that forms a portion of the electronic trading system of the present invention, in addition to information in connection with other trading platforms.

The user may be able to “zoom into” an area of interest on graph300. In one example, first axis302may be divided into discrete portions, or “vertical columns,” of a fixed width. In this example, in which first axis302represents the maturity date, the fixed width is a length of time, such as one year, two years, etc. When a user selects a portion of graph300using, for example, an input device (e.g., input device206ofFIG. 2), the user is actually selecting a particular vertical column of a fixed width. More specifically, the point on graph300that the user selects is actually along a “center axis” of the vertical column. In the example shown, the user has selected a point on graph300that is along the center axis of column310. Column310defines the span of maturity dates for United States Agency curve306and United States Treasury curve308from February 2008 to October 2010. It should be noted that, although this example is described in terms of vertical columns, “horizontal columns” could also be defined by dividing second axis304into discrete portions using the principles described hereinabove.

In another example, shown inFIG. 4, the user may select the desired width of first axis302for zooming into an area of interest in graph300. When the user selects a portion of graph300using, for example, an input device (e.g., input device206ofFIG. 2), a selectable date range overlay400may be displayed on graph300. The user may enter a start date in field402and an end date in field404. The user may submit the start and end dates by selecting go button406. In the example shown, the user has entered “02/08” in start field402and “10/10” in end field404. These entries correspond to a range of maturity dates for Unites States Agencies curve306and United States Treasuries curve308from February 2008 to October 2010. Although overlay400as shown inFIG. 4provides a user with fields402and404corresponding to start and end dates, respectively, this example is merely illustrative. Fields402and404of overlay400may correspond to any suitable parameter represented by first axis302, thereby setting a width of the first axis for zooming into graph300. Also, as stated hereinabove in connection withFIG. 3, overlay400may also be used to select a width of second axis304for zooming into graph300.

FIG. 5shows a graphical trading interface that may be provided to a user by the graphical trading interface application in accordance with the present invention. Graphical trading interface500, or simply graph500, may be provided, for example, in response to a user zooming into graph300(as described hereinabove in reference toFIGS. 3 and 4). Graph500shows a range of maturity dates for Unites States Agencies curve506from February 2008 to October 2010.

In this example, first axis502of graph500represents the maturity date for a financial instrument (as in, for example,FIG. 3), and second axis504represents the spread between the yields of financial instruments. For example, second axis504may represent the spread between the yields for curves306and308ofFIG. 3. (It should be noted that the values shown along second axis504(e.g., “40.00,” “45.00,” “50.00,” etc.) must be multiplied by a factor of 10−2to relate the values shown along second axis504to the values shown along second axis304ofFIG. 3.) Thus, in the example ofFIG. 5, United States Treasuries curve308ofFIG. 3is not shown. This is because, as stated hereinabove, second axis504represents the spread between United States Agencies curve306and United States Treasuries curve308. However, the example ofFIG. 5is merely illustrative, and United States Treasuries curve308(or any other suitable yardstick curve) may be provided.

Graph500is shown as having two axes (i.e., first axis502and second axis504). However, the example ofFIG. 5is merely illustrative, and graph500may have any suitable number of axes (e.g., one, two, three, etc.). (An illustrative example of a graph that is a “singularity,” thereby having only one axis, is described hereinbelow in reference toFIG. 8.)

Graph500includes first symbols510(i.e., diamonds) that correspond to current bids and second symbols508(i.e., squares) that correspond to current offers. Curve506may represent the “fair value” curve with respect to the current bids and offers shown in graph500. In the example shown, each of the bids and offers corresponds to a bid or an offer for United States Agencies at a particular maturity date.

The user may desire to view information in connection with a specific bid and/or offer. In the example ofFIG. 6, information overlay600is shown in connection with both a bid604and an offer602for a United States Agency having a maturity date of March 2009. Information overlay600may be displayed in response to an interaction by the user. For example, the user may run a cursor over top of bid604and/or offer602to view information overlay600. Information overlay600shows the issue, coupon, maturity date, exact market spread, and size related to bid604and offer602. In this example, the issue is “FHLMC,” or Federal Home Loan Mortgage Corporation (also known as “Freddie Mac”), the coupon is “5¾,” the maturity date is “3/09,” or March 2009, the exact market spread is “58.4/56.4,” and the size is “5×5.”

As described hereinabove, a user may place a trade directly from a graphical trading interface in accordance with the present invention. From graph500ofFIG. 6, for example, the user may desire to place a bid or offer or to submit a hit or lift in response to a particular bid or offer. In an example in which the user desires to place a bid or offer, the user may select any portion of graph500. In response to the user's selection, the user may be provided with trading dialog box overlay700as shown inFIG. 7. Trading dialog box overlay700may include price field702and size field704, into which the user may enter a desired price and size, respectively, for a particular financial instrument. The user may then select either bid button706or offer button708, depending on the desired transaction.

Referring back toFIG. 6, in an example in which the user desires to submit a hit or lift in response to a particular bid or offer, respectively, the user may select any portion of graph500. Preferably, the user selects one of a bid604, an offer602, or curve506. In response to the user's selection, the user may be provided with trading dialog box overlay700as shown inFIG. 7. If the user selected a bid604, an offer602, or curve506, price field702and/or size field704may be pre-filled with information corresponding to the selection. If one or both of price field702and size field704are not pre-filled, or if the user desires to alter the value in one or both of the fields, the user may do so prior to selecting either buy button710or sell button712to complete the transaction. Trading dialog box overlay700includes close button714to allow the user to close the overlay and return to graph500.

Graph500ofFIGS. 5 and 6is shown as having two axes (i.e., first axis502and second axis504). However, this example is merely illustrative, and as mentioned hereinabove, an illustrative example of a graph that is a “singularity” is shown inFIG. 8.

FIG. 8shows various graphical trading interfaces that may be provided to a user by the graphical trading interface application in accordance with the present invention. Graphical trading interfaces800,802, and804, or simply graphs800,802, and804, are graphs having only one axis each. Multiple graphs are shown at one time inFIG. 8in contrast to, for example,FIG. 5, in which only one graph (i.e., graph500) is shown. This is because graphs800,802, and804do not take up much space on a display (e.g., display204of workstation102(FIG. 2)). However, the example ofFIG. 8is merely illustrative, and any suitable number of graphs that are singularities may be displayed at one time for a user (e.g., one, two, three, etc.).

As shown in drop-down title box806, graph800represents a certain parameter (i.e., axis808) in connection with a United States Agency having a maturity date of “5/08,” or May 2008. The user may be provided with a number of different graphs from which to choose. For example, the user may select drop-down title box806to access a list of possible graphs (not shown). Graph800includes axis808, which in this example represents the spread between the yield for the United States Agency having a maturity date of May 2008 and the United States Treasury having a maturity date of May 2008. Graph800includes first symbol812(i.e., a diamond) that corresponds to a current bid and second symbol810(i.e., a square) that corresponds to a current offer for the United States Agency.

The information provided in graph800corresponds to a portion of the information provided in graph500(FIG. 5). For example, as shown inFIG. 5, the spread (i.e., second axis504) for bid508and offer510for a United States Agency having a maturity date of May 2008 (i.e., first axis502) is the same as the spread shown in graph800ofFIG. 5, as represented by axis808. Thus, while graph500(FIG. 5) shows the spread over a span of maturity dates, as represented by axes502and504, graph800shows the spread for a particular maturity date, as represented by axis808.

The example ofFIG. 8has been described in connection with graph800. However, it should be noted that graphs802and804have identical features to those described in connection with graph800(i.e., axis, first symbol, second symbol, drop-down title box). The difference between graphs802and804, obviously, is that each of graphs802and804represent the spread between the yield for a United States Agency having a particular maturity date and a United States Treasury having the same maturity date.

From any of graphs800,802, and804, the user may desire to place a bid or offer or to submit a hit or lift in response to a particular bid or offer. As described hereinabove in connection withFIG. 6, the user may be provided with a trading dialog box overlay (e.g., trading dialog box overlay700ofFIG. 7) in response to the user's interaction with any one of graphs800,802, and804(not shown). As described hereinabove, the trading dialog box may be pre-filled with information corresponding to the selection.

FIG. 9shows a graphical trading interface that may be provided to the user by the graphical trading interface application in accordance with the present invention. Graphical trading interface900, or simply graph900, provides the user with the ability to compare curves to one another, each curve representing a range of values of a financial instrument, and to place a trade directly from the graph. In the example shown inFIG. 9, graph900includes a United States Treasury curve902for treasuries having a maturity of ten years (“usg—10y”) and a United States Treasury curve904for treasuries having maturity of twenty years (“usg—20y”). The user may be provided with a number of different curves from which to choose. For example, the user may select a first curve (e.g., curve902) from drop-down title box906and a second curve (e.g., curve904) from drop-down title box908. Although only two drop-down title boxes are shown, the user may be provided with any number of title boxes or other such options to display any number of curves for comparison in graph900. Because graph900includes more than one curve, a legend such as legend910may be included in order to differentiate between different curves.

A comparison of curves, each curve representing a range of values of a financial instrument, may provide a trader with a quick, accurate representation of a market's current position. Preferably, the curves shown in graph900are updated in real-time. In other words, and as described in more detail in reference toFIG. 5, the curves shown in graph900are updated as the graphical trading interface application keeps up with some activity (e.g., changes in the yield of a financial instrument, changes in available bids or offers for financial instruments, etc.). As shown inFIG. 9, region912may be of particular interest to a trader. In the example shown in the FIG., the ten-year Treasuries represented by curve902are valued at a price that is higher than expected, while the twenty-year Treasuries represented by curve904are valued at a price that is lower than expected. Thus, the trader may desire to capitalize on the anomalous situation quickly and easily. Specifically, the trader may desire to both sell ten-year Treasuries and buy twenty-year Treasuries. To do so, the trader may select region912of graph900and, in response to the selection, may be provided with trading dialog box overlay1000as shown inFIG. 10.

Trading dialog box overlay1000may allow the trader to both buy and sell in response to an anomalous situation such as that shown inFIG. 9. Trading dialog box overlay1000may include a buy region1002and a sell region1004. Both buy and sell regions1002and1004, respectively, may be pre-filled with price and size information corresponding to region912of graph900(FIG. 9). To place the trades, the user may select buy button1006and sell button1008.

FIG. 11is a flow chart of illustrative steps involved in providing an interactive graphical representation of a market in accordance with the present invention. At step1100, a graph may be displayed. For example, a graph such as graph300(FIG. 3); graph500(FIG. 5); graph802,804, or806(FIG. 8); or graph900(FIG. 9) may be displayed. The graph may be displayed on a display of a workstation, such as display204of workstation102(FIG. 2). At step1102, a user may be allowed to select a portion of the graph. In one example, in response to the user's selection of a portion of the graph, a trading dialog box may be displayed at step1104. For example, a trading dialog box such as trading dialog box700(FIG. 7) or trading dialog box1000(FIG. 10) may be displayed. In another example, in response to the user's selection of a portion of the graph, a trading dialog box may be displayed that is pre-filled with information that corresponds to the user-selected portion of the graph (step1106).

Thus, systems and methods for providing an interactive graphical representation of a market for an electronic trading system are provided. One skilled in the art will realize that the present invention can be practiced by other than the described embodiments, which are presented for purposes of illustration and not of limitation, and that the present invention is limited only by the claims which follow.