Spreadsheet-Based Trading System with Real-Time Order Management
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Solution Overview
Problem
Current online trading systems for Over-The-Counter (OTC) instruments lack efficient integration of real-time investment quotes with electronic spreadsheets for automated trading strategies and order execution, limiting the ability to instantly evaluate and execute complex trading strategies across multiple financial instruments.
Innovation Solution
A system that receives real-time OTC or Exchange Traded (ET) investment quotes through a secure internet connection, processes them using a spreadsheet-based investment strategy, and automatically generates and transmits orders for immediate execution, utilizing a Dynamic Data Exchange (DDE) interface and Java applets to link Excel spreadsheets with trading engines for secure and real-time order management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If real-time investment quotes are integrated with electronic spreadsheets for automated trading strategies, then the ability to instantly evaluate and execute complex trading strategies is improved, but the system complexity increases
Solution Approach 1:
The patent employs an Order Management System (OMS) as an intermediary component that bridges the spreadsheet application and the trading engine. The OMS receives data from the spreadsheet, processes trading strategies, generates orders, and transmits them to the trading engine. This mediator handles the complexity of real-time data integration and order management, allowing the spreadsheet to remain a familiar user interface while enabling sophisticated automated trading capabilities through the OMS layer.
2Extent of automation
If automated order generation and transmission is implemented, then the extent of automation is improved, but the difficulty of detecting and measuring order status increases
Solution Approach 1:
The patent implements a feedback mechanism where the Order Management System continuously monitors order status from the trading engine and updates the spreadsheet in real-time. When an order is transmitted to the trading engine, the system receives execution status updates and automatically refreshes the spreadsheet display to show current order state, filled positions, and portfolio changes. This feedback loop provides transparent visibility into automated order execution without requiring manual intervention or complex external monitoring tools.
3Speed
If real-time data processing and order execution is enabled, then the speed of trading strategy evaluation is improved, but the loss of time for data transmission and processing increases
Solution Approach 1:
The patent implements preliminary action by pre-configuring trading strategies, parameters, and rules within the spreadsheet application before real-time market data arrives. Users can set up multiple trading strategies with predefined conditions, entry/exit criteria, and order parameters in advance. When real-time quotes are received, the pre-configured strategies are immediately evaluated against current market conditions, eliminating the need for real-time strategy formulation or parameter adjustment. This preliminary setup reduces processing time during actual trading execution.
Data Source
AI summary
A system and method for receiving streamed, real time quotes with respect to financial instruments. The system applies a spreadsheet based investment strategy to the real time quotes, generating electronic orders based on the results of the investment strategy analysis and transmitting the orders for real time execution. The system generates a unique order identifier that allows users to actively track the status of orders in real time. This unique order identifiers can be shared with other users so that other trading strategies can be developed to execute upon the successful execution of the order (e.g., hedging).