Cover-OCO for legged order
View Patent ↗A position associated with a synthetic spread order may be managed where a status of a synthetic spread order is identified as legged. The synthetic spread order may have at least one child hedge order pending at an electronic exchange and in response, a bracket order is submitted to an electronic exchange for the tradeable object associated with a filled leg of the synthetic spread. In response to execution of the bracket order, the child hedge order may be cancelled.
1. A trading device comprising:
a market data receiver configured to receive market data identifying an inside market for a first tradeable object and a second tradeable object;
a graphical user interface configured to provide output from the trading device as processed data to a user and to receive input from a user, where the graphical user interface receives a request from the user to trade a synthetic spread order for a quantity of a synthetic spread, the synthetic spread including at least a quoting leg for a first tradeable object and a hedge leg for a second tradeable object; and
an electronic processor coupled with the market data receiver and the graphical user interface, where the electronic processor is configured to:
cause a quoting order for the first tradeable object to be submitted to an electronic exchange in response to receiving the request from the user,
cause a hedge order for the second tradeable object to be submitted to the electronic exchange in response to receiving from the electronic exchange confirmation of a fill of at least part of the quoting order,
monitor the market data for the inside market for the first tradeable object,
identify that the synthetic spread order has a filled leg and an unfilled leg, where the hedge order is unfilled and the quoting order is filled,
determine that the inside market for the first tradeable object has moved a predetermined amount,
cause a bracket order to be submitted to the electronic exchange for the first tradeable object in response to a determination that the inside market has moved the predetermined amount and an identification of that the synthetic spread order has the filled leg and the unfilled leg, and
cause the graphical user interface to display an order descriptor representing a status of the synthetic spread order.
2. The trading device of claim 1 where the unfilled leg comprises at least one child hedge order for the first tradeable object.
3. The trading device of claim 2 where the at least one child hedge order comprises at least a partial quantity pending execution at an electronic exchange.
4. The trading device of claim 3 where the electronic processor is further configured to cause an order message to be submitted in response to execution of the bracket order, where the order message is configured to cancel the at least one child hedge order.
5. The trading device of claim 1 where the bracket order comprises any one of a cover order and an order-cancels-order.
6. The trading device of claim 1 where a price for the bracket order is determined according to a position associated with the filled leg.
7. The trading device of claim 6 where the position associated with the filled leg is an open position.
8. The trading device of claim 6 where the electronic processor is further configured to determine the price according to a user request.
9. The trading device of claim 1 where electronic processor is further configured to submit the bracket order in response to determining that the inside market has moved a predetermined amount after identifying the synthetic spread order.
10. The trading device of claim 1 where the electronic processor is further configured to determine that the inside market has moved the predetermined amount and cause the bracket order to be submitted according to a defined parent-child relationship for the synthetic spread order.
11. The trading device of claim 1 where the electronic processor is further configured to cause the bracket order to be submitted a predetermined amount of time after determining that the synthetic spread order includes the filled leg and the unfilled leg.