Flexible system and method for electronic trading
System, method, and program products offer flexibility to the rather rigid way of trading in an electronic trading system. Orders for a tradeable object may typically get matched according to set terms and/or conditions at an electronic exchange. A trader may log onto the electronic exchange to trade the tradeable object, and may choose to display and trade the tradeable object according to a different set of terms and/or conditions. As such, the market data sent to the trader from the exchange is converted to a format according to the trader's selection, so that it may be presented to the trader in this format. Transaction messages sent to the exchange from the trader are converted to the format readable by the matching process, so that it can process the messages. Other features and advantages are described herein.
1. A system including:
a gateway,
wherein the gateway is configured to receive market data associated with a tradeable object, wherein the market data includes quantity information in a flow-based unit;
wherein the gateway is configured to convert the quantity information in the flow-based unit to converted quantity information in a contract-based unit;
wherein the gateway is configured to provide the converted quantity information to a trading station;
wherein the gateway is configured to receive a first message from the trading station to initiate placement of an order to buy or sell the tradeable object, the first message including an order quantity parameter in the contract-based unit;
wherein the gateway is configured to convert the order quantity parameter in the contract-based unit to a converted order quantity parameter in the flow-based unit; and
wherein the gateway is configured to send a second message to buy or sell the tradeable object, wherein the second message includes the converted order quantity parameter in the flow-based unit.
2. The system of claim 1 , wherein converting the quantity information in the flow-based unit to the converted quantity information in the contract-based unit is based on a predefined relationship.
3. The system of claim 1 , wherein the flow-based unit is associated with a set of terms and conditions utilized by an exchange.
4. The system of claim 1 , wherein the contract-based unit is associated with a set of terms and conditions preferred by a trader.
5. The system of claim 1 , wherein the tradeable object includes any of the following products: oil, natural gas, or electric power.
6. The system of claim 1 , wherein the flow-based unit includes any of the following units: bbl/day, MMBtus/day, MMBtus, MWhrs/day, or MWhrs.
7. The system of claim 1 , wherein the second message is the first message modified to include the converted order quantity parameter in the flow-based unit instead of the order quantity parameter in the contract-based unit.
8. The system of claim 1 , wherein the second message is sent to an exchange.