TW494333B - System, method, and article of manufacture for estimating a price of a limit order - Google Patents

Abstract

A system, method and article of manufacture are provided for estimating a price associated with a limit order. First, an indicia identifying a security is received from a user. A price is then estimated for a limit order for the security. Estimation of the price may be based on various factors such as a desired time interval during which the limit order is to be filled, a desired probability with which the limit order is to be filled, and/or a current bid price and offered price of the security. Thereafter, the price for the limit order is outputted. The price may be estimated on a server connected to a plurality of client computers via a network. By this structure, the indicia may be received from the client computers over the network. Further, the estimated price for the limit order may be outputted to the client computers over the network.

Description

494333 Printed by A7 B7, Consumer Cooperatives, Intellectual Property Bureau, Ministry of Economic Affairs 5. Description of the Invention (彳) The present invention is generally related to the software used to purchase and sell securities that are traded on the exchange, and particularly to strategically estimate the price of limit orders Systems, methods' and products. The use of limit orders is the standard way to buy and sell securities traded on the exchange. With the exception of a few characteristics, limit orders are similar to general market orders. For example, in addition to specifying the transaction volume, a limit order also specifies the lowest acceptable transaction price. In addition, contrary to market orders, limit orders are not guaranteed to be filled. Due to the increasing market variability, under the increasing pressure of the stock exchange, the disciplined business encourages customers to use limit orders. Because customers need to decide how to define "too much",-limit orders protect customers from paying "too much" to fast-moving stocks. Customers who try to use market orders to buy stocks with large fluctuations are likely to be dissatisfied with the transaction price. As a matter of fact, disputes caused by the increase in profits caused by bad market transactions are the main threat of online brokerage business. Unfortunately, brokers are only able to successfully convince their clients to use limit orders to a minimum. The main reason for this trend is that it is difficult for ordinary people to place orders at good prices when placing limit orders. In the case of a buy order, the "good" price is a price that is high enough to make a deal possible, rather than low enough to ensure that the buyer does not pay too much to buy the stock. Because of the many factors that people find difficult (especially simultaneous) to explain, the decision of a "good" price is a complex task. At present, the size of this paper is applicable to the Chinese National Standard (CNS) A4 (210 X 297 mm). ----- r --- Order --------- (Please read the note on the back first Matters written on this page) 494333 A7 B7 Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 5. Description of the invention (2) There are no tools available to help them calculate the price of the limit order. As a result, people often avoid using limit orders or resume speculation to price them. Because customers are more likely to be dissatisfied with the results of market orders ’and because the stock exchange requires people to use limit orders, it is not beneficial for brokers to avoid limit orders. What's worse, because the second best limit order may make the order insufficient to compete, so that it will never be executed 'or too competitive' so that the buyer eventually pays too much, so 'use speculation to determine the limit The price of the order is problematic. Finally, the second best limit order that will be executed is a limit order that the customer paid too much. In this view, people waste a lot of money every year on the execution of the second best limit order. Therefore, a method capable of strategically estimating the price of a limit order is needed. Summary of the Invention A system, method, and product for providing the price of an advance price limit order. First, a token identifying the security is received from the user. Then, 'estimate the price of the limit order for the security. The price is estimated based on different factors ‘for example’ the time interval required for the limit order to be filled, the probability of the limit order to be filled, and / or the current bid and ask price of the security. After that, the price of the limit order is output. Prices can be estimated on servers connected to multiple client computers via the Internet. With this structure, tags can be received from client computers on the network. In addition, the estimated price of the limit order can be output to the client computer on the Internet. · Brief description of the drawings With reference to the drawings, from the following detailed description of the preferred embodiments of the invention, it can be better ------------ install ----- r --- order-- -(Please read the notes on the back before filling this page) #

V This paper size applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -5- 494333 A7 ---__ _B7__ V. Description of the invention (3) Understand the above viewpoints, among which: Η 1 is based on the invention One of the possible examples is the hardware hardware. (Please read the notes on the back before filling out this page.) Figure 1 A is an embodiment of the present invention implemented on the Internet, that is, the Internet; 2 is a flowchart showing a method of estimating the price of a limit order according to an embodiment of the present invention; FIG. 2A is a flowchart showing a method of estimating the probability of a limit order according to another embodiment of the present invention ; Figure 2 is a flowchart illustrating a method for estimating the time of a limit order according to another embodiment of the present invention; Figure 3 is a flowchart illustrating a method according to a user-specified time according to another embodiment of the present invention; Interval and probability to evaluate the price of the limit order. Figure 4 is a U diagram showing the method of estimating the time interval of the limit order according to another embodiment of the present invention. Ministry of Intellectual Property Bureau employee consumption cooperation Print out a fixed-price estimate of a single price, which is based on the law's example, according to the law of the party, according to the gap between the time, and the determination of the price flow of the grid.图 图 Ηπ P17 Rn ffl / Talk about the details carefully — έ — έ— ί 三口 1, 三口 1 三 三 More pictures 4 ο ο 3 6 3 6 and 6 ο 7 and 4 ο 7 7 -6- This paper size is applicable to China National Standard (CNS) A4 (210 X 297 mm) 494333 A7 B7 V. Description of the invention (4) Comparison table of the main components printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 1 1 〇 Central processing unit 1 1 2 Bus 1 1 4 Random dynamic access memory 1 1 6 Read-only memory 1 1 8 I / O adapter card 1 2 0 Disc storage unit 1 2 2 User interface adapter card 1 2 4 Keyboard 1 2 6 Mouse 1 2 8 Speaker 1 3 2 Microphone 1 3 4 Communication adapter card 1 3 5 a network 1 3 6 display adapter card 1 3 8 display device 2 〇〇 network 2 〇 2 client 2 〇 4 server Best sinus generally to the embodiment described, the present invention facilitates lines under single and without limit orders to focus on the problem more complicated aspects. More specifically, the present invention relates to the selection of intuitive parameters which are easily provided by a user who is not complicated. Next, use the official paper size to apply Chinese National Standard (CNS) A4 (210 X 297 mm) ----------- install ----- r --- order --- I (Please read the notes on the back before filling this page) #-

V 494333 A7 B7 5. Description of the Invention (5), a tough mathematical model, which can make the price of the limit order related to the factors specified by the user. When hiding its complexity from the user, this mathematical model also incorporates more complex factors into the model. FIG. 1 is a possible hardware embodiment capable of implementing the present invention. As shown, the present invention can be implemented in a personal computer, such as a personal computer, an Apple Macintosh computer, or a UNIX workstation. A representative hardware environment is illustrated in FIG. 1 'which illustrates a typical hardware of an example workstation based on one central processing unit 1 10 such as a microprocessor and some other units connected via a system bus 1 12 Configuration. The workstation shown in Figure 1 contains random access memory (RA) 1 1 4, read-only memory (ROM) 1 1 6, and is used to connect peripheral devices such as disc storage unit 1 2 0 to the bus Row 1 1 2 of 1/0 adapter card 1 1 1 8 for connecting keyboard 1 2 4, mouse 1 2 6, speaker 1 2 8,-microphone 1 3 2, and / or such as touch screen (Not shown) and other user interface devices to the user interface card of the bus 112 1 2 2. Communication card 1 3 4 to connect the workstation to a communication network (for example, a data processing network) and to connect the bus Row 1 1 2 to the display card 136 of the display device 138. A workstation typically has a resident operating system on it, for example, Microsoft Windows NT or Windows / 95 Operating System (OS), IBM OS / 2 Operating System, MAC OS, or U IX Operating System · System. Those skilled in the art will understand that the present invention can also be implemented on the other platforms and operating systems described above. Figure 1 A is a paper standard implemented on the network 20 (ie, the Internet). The paper size applies to the Chinese National Standard (CNS) A4 specification (210 X 297 mm). (Please read the precautions on the back before filling in this Page) "Installation ----- r --- Order --- # Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 A7 __ B7 V. Description of Invention (6) An embodiment of the invention. In particular, this embodiment includes a plurality of clients 202 connected to the server 204 via the network 200. With this structure, the present invention can be implemented on a large scale. Referring now to FIG. 2, a simplified skeleton of estimated limit order prices for securities (ie, stocks, bonds, etc.) is shown. First, starting in 209, in operation 2 10, a token identifying a security is received from a user. Then, in operation 2 1 2, the price of the limit order of the security is estimated. The price is estimated based on different factors, for example, the desired time interval for the limit order to be filled, the probability of the limit order to be filled, and / or the current selling and buying prices of the security. In addition, price estimates depend at least in part on whether limit orders are sell or buy orders. Any or all of the above parameters can be accepted as a component of the tag. Finally, as shown in operation 2 1 4, after the method ends at 2 1 5, the price of the limit order is output. Now consider Figure 2A, which shows a simplified skeleton used to estimate the probability of closing a limit order. First, start in 2 1 6 and in 2 1 7 receive a token identifying the security from the user. Then, in operation 2 1 8, the probability of the limit order of the security is estimated. Probability estimates are based on different factors, for example, the time interval required for a limit order to be filled, the desired price for a limit order to be filled, and / or the current selling and buying prices of a security. In addition, the prediction of probability can depend at least in part on whether the limit order is a sell or a buy order. Any or all of the above parameters can be accepted as a component of the tag. Finally, as shown in operation 2 2 0, after the processing ends in 2 2 1, the desired transaction probability of the limit order is output. Refer to Figure 2B, which shows the time used to estimate the limit order to be completed. This paper size is applicable to the Chinese National Standard (CNS) A4 (210 X 297 mm) ------------ ........ (Please read the precautions on the back before filling out this page) Order --- # Printed by the Employees 'Cooperatives of the Intellectual Property Bureau of the Ministry of Economy -9-Printed by the Employees' Cooperatives of the Intellectual Property Bureau of the Ministry of Economy 494333 A7 One B7 Five (7) The simplified skeleton of the interval. First, starting in 2 2 3, in operation 2 2 4 ', a token identifying the security is received from the user. In each of the above embodiments, the 'one of the options *' target sS may include a time war of securities. Then, in operation 2 2 6, the time interval of the limit order of the security is estimated. The time interval is estimated based on different factors, for example, the expected price at which the limit order will be filled, the expected probability at which the limit order will be filled, and / or the current bid and ask price of the security. In addition, the time interval estimate may depend at least in part on whether the limit order is a sell order or a buy order. Any or all of the above parameters can be accepted as a component of the tag. Finally, as shown in operation 2 2 8, the time interval of the limit order is output, after which the method ends in 2 2 9. It should be noted that any user-specified parameter, that is, price, time interval, probability, current bid price, ask price, etc., can be input by any input device. For example, the input device may be the keyboard 124, slide Mouse 1 2 6, McKinsey 1 3 2. Touch screen (not shown), or any device capable of transmitting this information. In addition, estimation can be performed via CPU 1 10, and c PU 1 1 0 will then be stored in a computer-readable medium (ie, RAM 114, ROM 116, disc storage unit 120, and / or any Capable of storing computer programs). Alternatively, dedicated hardware such as application specific integrated circuit (AS I C) can be used to accomplish the above work. In addition, price output may be performed by a display 1 3 8, a speaker 1 2 8, a printer (not shown), or any other output mechanism capable of transmitting the price to the user. It should be understood that the above components need not be resident on a single computer, as shown in FIG. 1A, and may also be components of the network client 202 and / or the server 204. This paper size applies to China National Standard (CNS) A4 specification (210 X 297 mm) -10-pack ----- ^ --- order ---------- # (Please read the Please note this page) Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 A7 B7 V. Description of the invention (8) In one embodiment of the present invention, the following formula can be used to estimate the price P = Pl + sign * sigma * discount, where. • P 12 is the price (inclusive) selected between the current bid and ask prices; • If the limit order is a sell order, sign = l, and if the limit order is a buy order, sign = -l ; • sigma = constant, described in the following; • the discount satisfies the equation: prob = 2 * CUMNORM (discount); where,. prob = the probability of a limit order being filled;. (: UMN〇RM (X) = definite integral of the standard normal density function of interval [〇, X]; and .f (x) = l / sqrt (2 * 7Γ) exp (-x2 / 2) in the above formula The variable x represents the upper limit of the time interval for the limit order to be arbitrarily or deliberately selected. In a similar manner, the variable P 1 can be arbitrarily or deliberately selected. In this description, the current bid price can be defined as _ _. In addition, the selling price can be defined as _. It should be noted that if the variable to be estimated is the probability of the limit order being traded instead of the i price, the above formula can be calculated by prob = 2-2 * CUMN〇RM (P-P1) / (signhigma) substitution. On the other hand, if the variable to be estimated is limited to the time interval of a single transaction, the above formula can be replaced by T = (P — P 1) / (P-Q) 2, where, as calculated above In general, Q series applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) with the same paper size. • ----------- i II l · --- order --- -(Please read the precautions on the back before filling this page) # -11-494333 A7 B7 printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs V. Invention Description (9) Line Odds' and one minute The waiting time is the best price of the calculated limit order. In different possible embodiments of the present invention, S1gma can be selected by the user or any other entity according to different factors. It should be noted that sigma can also be Received as a component of the above mark. Examples of different factors on which sigma is selected include: historical changes in securities at any predetermined time period; predicted changes in securities at any predetermined time period; current changes in securities; securities at any predetermined time The predicted trading range of the cycle, the implicit change in the security, and / or another type of factor. Those skilled in this art know the different meanings of the above items. For example, the implicit change is the current price of the option of the security Implied variation. In yet another embodiment, the following formula can be used to calculate sigma: sigma = k * RF where-• k = sqrt (7Γ / 8) (It should be noted that 7Γ can be determined by 4 * Arctan (l ) Estimation); • RF = sqrt (T / n) ^ SUM [aJ (H1-L〇] i = 〇ay; where:. A ^ = constant (may be 0); η = at any chosen time Turn at the unit (T) I. Fixed length; i. Η〇 == current highest transaction price of securities; .LQ = current lowest transaction price of securities;, .y = any predetermined number of days; .h t = highest transaction price of securities before i-day; and ^ The paper size is applicable to China National Standard (CNS) A4 (210 X 297 mm). 12: ------------ install ----- r --_ order --- (please Read the notes on the back before filling this page) #_ Printed by the Employees' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 A7 B7 V. Description of the invention (10) ^ L 1 = the lowest transaction price of the securities i day before. Although the variable y can be any predetermined number of days, it is better to select more days to enhance the accuracy of the estimation. In different embodiments of the invention, a t may be non-zero for a limited number of 1 frames. In addition, at least one frame of 'a' can be calculated by regression or be the function sqrt (1) ° In another embodiment, H i and L ^ can be defined as the highest and Lowest price. Referring now to FIGS. 3-8, another method of estimating the price or other related parameters will now be described. The method starts with operation 300. Then, in operation 302, the desired time interval at which the limit order is to be received is received from the user. As shown in operation 304, the desired probability that the limit order is to be completed can also be received from the user. Then, based on the desired time interval and the desired probability, estimate the price associated with the limit order. Note operation 3 0 6. Finally, in operation 3 0 81, the price is then output to facilitate the execution of the limit order. After operation 3 0 8, the method is completed in operation 3 1 0. 4 and 5 each show other possible embodiments of the embodiment shown in FIG. Fig. 4 shows a variation thereof, in which "starting in operation 400" is used to receive a desired probability and a desired price from the user in operations 402 and 404, respectively. Then, in operations 406 and 408, respectively, estimate and output the time intervals at which the limit order will be filled. It should be noted that the time interval is estimated based on the desired price and probability. Then, the method of FIG. 4 ends. At operation 4 10. · Figure 5 shows the variation, which starts in operation 500 and receives the desired time interval from the user in operations 502 and 504, respectively. This paper size applies the Chinese National Standard (CNS) A4 specification ( 210 X 297 mm) ------------ Install ----- r --- Order ---- (Please read the notes on the back before filling this page) Intellectual Property of the Ministry of Economic Affairs Printed by the Bureau's Consumer Cooperatives 494333 Α7 __________ Β7 V. Description of Invention (11) and desired price. Then, in operations 506 and 508, respectively, the probability of closing a limit order is estimated and output. In this embodiment, the probability is estimated based on the desired price and time interval. The method of FIG. 5 then terminates at operation 5 1 0. The different information of the other embodiments of Figs. 4 and 5 can be input, processed, and output in a manner similar to the embodiment of Fig. 1a. Reference is now made to FIG. 6 'which shows a more detailed flowchart related to operation 3 06 of FIG. As shown, starting in operation 600, the method includes using a specific deductive method that represents the relationship between time interval, probability, and price to calculate the price in real time. Note operation 6 2. This deduction will assume a sufficiently short time interval and the price will be explained in Brownian motion. In an embodiment, the deduction method includes prOb [L (P, T)] = 1—K * F (P) / r (t), where (P) represents the price of the limit order on the financial instrument , (Τ) represents the effective (or parental) hunt-to-life or time interval of the limit order, and prob [L (P, T)] is the limit order whose price is (P) within the time interval (T) Probability of closing. In addition, (k) is a constant, F (P) is the inverse derivative of exp (-k * x2), and R (T) is a random variable, which represents the trading interval within the time interval (τ). The constant (k) can be calculated, k = 4n, where Π = 3 · 14 ... ·. With continued reference to FIG. 6, in operation 604, the predictor is used to calculate the i random variable R (T). Let ma X (T) and mi η (T) respectively represent the maximum and minimum values of the price of the time interval (currently, current + Τ) or (T), R (T) = E [max (Τ) — mi η (T)], where E [] represents the mathematical expectation operator. The method in Figure 6 will end 0 ϋ II nn I ϋ nn ϋ · ϋ n I · ϋ ϋ I n two, · n —mw Mmme (Please read the notes on the back before filling this page) # This paper size is applicable to China Standard (CNS) A4 specification (210 X 297 mm) -14- 494333 A7 B7 V. Description of the invention (12) Ends at operation 6 06. The present invention therefore reduces the execution success rate of the limit order calculated as (P) to the problem of estimating the random variable R (T) ', that is, to ensure the mathematical expectation of the trading range within the time interval (T). For the upcoming transaction range, the prediction R f (T) can be effectively used as an estimate of R (T) as long as it meets certain engineering standards of accuracy, toughness, and adaptability. If this criterion is met, the output R f (T) can replace the deductive method prOb [L (P, T)] = 1-R (T) in k * F (P) / R (T) to produce The probability that a limit order priced at (P) will be executed within a time interval (d). The estimated element R f (T) thus represents an adaptive, robust deduction for real-time prediction of future trading ranges of securities traded through a stock exchange. As mentioned above, R (T) represents the trading house of a certain securities in the upcoming time interval (T), and the estimated element Rf (T) is a valid substitute for R (T). In order for the estimated element Ri (T) to be used in the pricing of commercial limit orders, it should have certain characteristics. For example, when testing out-of-sample data, the estimated element R f (T) should present a high signal-to-noise ratio. In addition, there is no need to make significant corrections to real-time data, it is possible to adapt to unexpected changes in real-time changes and to be able to incorporate real-time data in a mathematically consistent manner. In addition, the robust predictor R f (Ding) 1 should be able to predict smoothly at any time and at regular intervals without the need for extreme oscillations. Regardless of the extreme market conditions, by producing meaningful and useful results, the predictive element R f (T) should further exhibit its tough quality. The estimation of model parameters should also lead to consistent results in the space of all relevant securities. The paper size applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm)-] 5 · (Please read the precautions on the back before (Fill in this page) ----- r --- Order ----- Printed by the Consumer Cooperative of Intellectual Property Bureau of the Ministry of Economic Affairs

Ji 494333 Consumer Cooperatives, Intellectual Property Bureau, Ministry of Economic Affairs, Qiu System A7 —___ B7_____ 5. Description of Invention (13). Finally, predicting the element R ί (Τ) should measure the good fitness of the model and produce consistent results for all securities at the same period of time when the data outside the sample is taken. Any prediction technique will require identification of the variables being explained. In financial settings, the backwardness of the predicted quantity is a neutral choice. Statistical surveys show that the lagging behind the trading area has an important explanatory power in the history of the subsequent day's trading range. Since a shorter time period helps increase adaptability and a longer time period helps increase toughness, by using two trading intervals of different lengths of time, good transactions can be obtained. In an embodiment of the present invention, the predictor may adopt R f (T) = cs (Τ) * r (S) + CL (T) * r (L), where r (x) is at a time interval ( T) (that is, (now X, now)). In one embodiment, (S) is arbitrarily selected as one day, and (L) is selected as seven days. The correction of the parameters C S (t) and C L (t) for any 値 of (t) will be discussed below, where (t) is less than one day. • Step 1: Estimate c s (t) and c L (t) for t = 1 day. The form of the above model suggests using regression to estimate parameters. To enhance toughness, a two-phase least squares linear rounding method is used. In the first phase, a standard regression line is made up. Then, the external portion of the line is discounted to make up, so that the observed standard deviation is no longer greater than the fixed threshold, i.e., number two, and then, using the appropriate discount schedule to re-estimate the new regression line. • Step 2: Using the same technique as in step 1, estimate C S + 1 (t) and C L f 1 (t) for t = 1. • Step 3: Step 1 predicts the 1-day trading range that is valid at the beginning of the day. Step 2 predicts the valid 1-day trading range at the end of the day. Make this paper size applicable to China National Standard (CNS) A4 specification (210 X 297 mm) _ 16------------- install ----- r --- order · --- (Please read the precautions on the back before filling out this page) 494333 A7 B7 printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs j. Invention Description (14) χ is the part of the transaction that has passed at some point during the day. In the part (1-X, X), the 'hybrid predictions 1 and 2' are derived to derive the prediction of the trading range starting on the 1st day of p. The model is therefore corrected to accept real-time information about the size of the previous range without using real-time data directly in the estimation process. Step 4: Derive from the first principle that R f (T) will follow the square root of (丁) And change. Therefore, by obtaining the output of step 3 and multiplying by the square root of (T), the interval at any time interval can be predicted, where (T) is in units of days. FIG. 7 is a flowchart showing the description of the above four steps. After processing starts in operation 700, in operation 702, r (S) and r (L) are determined. Next, use regression to estimate cs (t) and cL (t) at time interval (t) = 1, so as to generate a first initial estimated element R μ (t), which is valid for the beginning of the day of. Note operation 7 〇 4. After 'as shown in operation 7 06, use regression to estimate csi (t) and c L + i (t) at time intervals (t) = 1 day to generate the second initial estimate rf 2 ( T), which is valid for the end of the day. Then, as shown in operation 708, the first preliminary estimate Rfi (T) and the second preliminary estimate Rf2 (T) are used to generate an estimate Rf (T). Processing then terminates at operation 7 1 0. i Referring now to FIG. 8, as described previously, step 1 begins after operation 8 0 0 ′ and the standard regression line is rounded up to supply the roundup. See Operation 8 0 2. Then, in operation 804, the portion other than the dodge is discounted. Then 'in operation 806, use the discount schedule, the estimated regression line, this paper size applies the Chinese National Standard (CNS) A4 specification (21〇x 297 mm) ----------- -Install ----- r --- Order --- (Please read the notes on the back before filling out this page) 494333 Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs A7 B7 _ 5. After the description of the invention (15) The processing ends in operation 8 0. Historical testing of result models for different securities with out-of-sample data shows high signal-to-noise ratios, usually more than one. In addition, because limit orders are useful for tools with large fluctuations, the 'signal-to-noise ratio will improve with the size of the forecast. The signal-to-noise ratio is an important feature of the pricing application of limit orders. Now, other Details that may be combined with the principles of the invention. Currently, there are many types of financial markets, of which securities, futures and other negotiable instruments are available for trading. Among the known types of financial markets, the best-known example of the auction market is the New York Stock Exchange. In the auction market, the buyer and seller will converge on the trading floor and announce their individual purchase price (price to be purchased) and asking price (acceptable selling price). As a result of the continuous auction process, the transaction of any particular security occurs at the highest price that any buyer is willing to pay and the lowest price that any seller is willing to receive. Without the use of proprietary trading, transaction costs can be minimized. For example, like other types of transactions such as over-the-counter trading, proprietary trading appears between the buyer and the seller. The actual auction floor is divided into multiple rooms, each of which has a pole or post on which a trading board is hung. The trading board has specific securities marked for trading. Each security is traded on a trading board. At the auction floor, there are three main roles among the trading crowd: special brokers, floor brokers, and floor traders. Special brokers are located on one of the trading boards and have several role functions in the trading process: the filmmaker's yells for the best bid and ask prices to the broker who requests a quote during the trading session, and ensures that all transactions will be posted ; Media, call the paper size previously stated to purchase interest applies to the Chinese National Standard (CNS) A4 specifications (210 X 297 mm) -18-, 蜃 pray M ·· I MM I ΜΜ a ·· MV Μ ·· tw Wu Yi (please read the phonetic on the back? Please fill in this page) Printed by the Employees' Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 A7 ___ B7 V. Description of the invention (16) The special agent went to the pole t to respond to the intention of the pole. Sell; agents, who represent investors in transactions with restricted conditions such as price limits; and chartered agents' provide funds when needed to maintain liquidity when supply and demand are unbalanced. The on-site brokers are scattered throughout the field and act as agents to handle the orders on behalf of the buyer and seller. Almost 90% of the orders handled by the on-site brokers were obtained from salespeople located around the exchange. Except that the floor trader will trade for his own account, the floor trader functions as a floor broker. Further information on the stock market and its current automation will be provided. Salespersons are not part of the trading crowd, but they play the role of investor transactions. The salesperson will receive orders and quote requests from the investor and forward them to one of the on-site brokers for processing. Once processed, the salesperson will report the execution and quote to the investor. Alternatively, the order can be transferred to a trading bar for matchmaking and reporting. As used in this specification, the investor is the originator of the order, which may include banks and retirement funds, other brokers / agents, trading desks (organizations, retailers, arbitrageurs), and public clients. (Including individuals), etc. A typical transaction originates from placing an order on an over-the-counter trading desk to buy or sell specific securities. The trading desk may transfer the order to a salesperson (electronically or by telephone) or electronically to a special broker at the trading pole. The salesperson is the "orderer" or "stall salesperson" as it is known. The salesperson will pay attention to the parameters of the order, such as the 'transaction (buy or sell) side, the security code (for example, IBM, GM, etc.), and the quantity (for example, 9, 0 0 0 Shares), price (market price or limit price), this paper size applies Chinese National Standard (CNS) A4 specifications (210 x 297 mm) _ to. -------- ^ --- (Please read the back first (Please note this page before filling out this page) 494333 A7 __________ B7 V. Description of the invention (17) Any specific conditions (for example, all or nothing, deal or not deal, good until cancellation, public, etc.), and the following Single time. Since the market price of any security changes with each transaction and is affected by the activities of other securities, the importance of the salesperson's function is to ensure that the order will be sent to the broker so that it can be executed immediately. The executed order is completed or partially executed, that is, the securities are bought or sold based on the parameters of the order. Printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs. Investors can also ask the trading desk to get a quote from the floor to feel what is happening in the market for a particular security. Different from the official quotation provided by quotation services such as ADP or Quotron, this quotation can better understand and understand the market. The official quotation includes the best bid and ask prices, the market volume of the best price, and the possibility of stocks on the day Opening and closing prices and last trade. Through explanation, but not exhaustive explanation of the possible changes in "special quotes" that can be obtained, "special quotes" and "market quotes" may indicate: (1) who are the closest buyers and sellers of the securities and the volume of these transactions (2) Just as we know from the bookkeeping of the trading public and special brokers, we can know the market depth (the degree of market interest) and who is the current market price and the difference between the players; (3) from the broker itself Obtained opinions and explanation of market price; and (4) Based on previous history, previous days, etc., it is known that people who are not currently among the trading masses may be interested in trading. The trading public, including special brokers that generate market prices in the securities and other floor brokers and traders working under the pole, will provide market prices that cannot be obtained from official quotes. Using the information obtained from the experience and understanding of the trading crowd and floor brokers, 'Investor #' has enough insight into the true story of the particular securities market, so that it can apply the Chinese National Standard (CNS) to this paper standard. A4 specification (210 X 297 mm) 494333 Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs A7 B7 V. Description of the invention (18) An educated decision to determine what positions to take in the securities market. In this specification, a 'quotation request and order' is usually referred to as an order. However, the quotation and execution is often referred to as a response to the order, but will be transmitted as an order. The floor broker will execute orders and obtain quotations according to instructions from the stall salesperson. Floor brokers typically stop at one of several trading boards. It is not common for floor salespersons to specialize in a few selected securities. Dedicated floor brokers are therefore usually located in clusters in the immediate vicinity of a trading board; however, floor brokers are only functional if they can move freely between boards and between different bars. Is effective. Traditionally, a 'stall salesperson' would copy the order on the order slip or on the request for quotation, depending on the nature of the order. The booth clerk will decide whether to send the order electronically to the trading pole or use a delivery broker. If the stall clerk decides to use the floor broker, the stall clerk is located around the trading floor, so he will need the help of a messenger or passer to bring the order to the floor broker. Similarly, the floor broker will provide a copy of the quoted price and execute it to the messenger in response to all orders that the floor broker has processed since the last time the messenger found the broker among the trading crowd. In this way, floor brokers can remain in the crowd and perform their work. In addition, floor brokers can provide messenger “unsolicited quotations”, which is an important market insight for investors represented by floor i brokers who have not specified this request. Therefore, a savvy floor broker who recognizes that the activities of the trading board may be beneficial to the investors he represents will send unsolicited quotations back to the booth salespersons so that the salespersons can properly disseminate the capital --- --------- · .Installation ---- l · --- Order. (Please read the precautions on the back before filling this page) MW. This paper size applies to China National Standard (CNS) A4 (210 X 297 mm) -21-Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 Α7 Β7 V. Description of Invention (19). The messenger will send the quotation, execution, and unsolicited quotation to the booth salesperson for comparison and return. . According to law, orders must be processed in an immediate manner. The copied instructions must be delivered to the floor broker and the copied execution and quotation must be retrieved from the floor broker and properly returned to the booth salesperson. ’However, the slip on which the order is recorded is easily misplaced, and if it is dropped, it may be lost among the many discarded slips messed up during the trading boom. Due to the frequent movement of brokers, messengers, etc. on the floor, it is difficult to find slips of paper that fall into the crowded trading cards. Until the order or quotation is returned to the booth salesperson, the booth operator cannot report the progress of the instruction to the investor. For example, in a rising market, until the execution is retrieved from the trading broker and the execution is compared with the order, the stall clerk cannot report the partial execution of the buy order or the β average price of that part of the contract. The broker on either side of the transaction will copy the transaction time, the party (buyer or seller), and the time so that the transactions can be compared later. Unique symbol numbers are usually printed on the "table" of the broker in each session of the execution bar for easy comparison. Although every aspect of the market is automated, in consideration of the fairness and efficiency of the pricing mechanism due to the auction process, the real auction and the daddy of the on-site brokers have been protected and not abandoned. Automated processing has been partially promoted as needed to make the auction market more efficient and effective. First, we want to reduce the time between the decision to buy a stock and the actual execution and reporting. Without paper, the market is better and more efficient. It is hoped that the auction market will be able to compete more effectively with the thriving third market, and handle a paper size that applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -22- ------- ---- · Install ----- r --- Order --------- (Please read the note on the back #; fill out this page) Printed by the Employees' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 A7 B7 V. Description of the invention (20) Directly increasing daily transaction volume. Investors and securities brokers are concerned about the exact copying of the order ° If the original order or the processed response is hard to read, then the @ 理 of the order will be delayed. For example, because prices or quantities are misunderstood, one party may not be able to agree with the other. Or, the instruction cannot be processed until cleared. The potential for errors increases with each copy of the instruction. In addition, these transcriptions may delay the processing of instructions, rendering the effectiveness of each instruction at risk. For example, ‘If the market advances beyond the highest receivable bid price at the time since the investor placed the order and the broker received the order note’, the one-day limit buy order may not be executed. With the advancement of pager technology, the actual market has modified the traditional transmission order and response system between the stall clerk and the floor broker. Using this technology, instead of handing over instructions to team members or messengers, booth operators use pagers to remind on-site brokers whether or not they have received orders. Due to noise in the trading floor, pagers often have oscillators. Once reminded, the floor broker will leave the trading crowd to find the "yellow phone" to use this phone to contact the booth and receive instructions (and may return execution and quotes). The floor broker will copy the instructions forwarded by the salesperson and return to the trading board. Since the floor broker will typically receive a lot of instructions at the booth when they are among the trading crowd, the floor broker will be fixedly called to send more orders during the middle of the transaction. In addition, by calling the on-site brokers again and pulling them out of the crowd, it is only to satisfy the inquiries from investors about the status of orders or quotes. Therefore, the progress of this technology does not ensure that the instructions will be faithfully followed and processed in a timely manner, and requires the broker to leave the trading group continuously. The paper size applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm)- --------- Installation ----- ^ — Order— (Please read the precautions on the back before filling out this page) Printed by the Employees' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 Α7 Β7 V. Description of the invention ( 21) Public and find a yellow phone available to contact the booth salesperson. In June 1994, a 'headphone' was introduced to the New York Stock Exchange (NYSE). But this method has its limitations. Since the booth clerk will contact several brokers 'or ten or more, the broker may not be able to reach each of the booth clerks if he speaks with another broker'. In addition, when the on-site broker is talking to his salesperson rather than to another person in the trading crowd, especially if the on-field broker who is in contact with the salesperson is facing another on-premises broker or special agent, Salesperson contact among the trading crowd may confuse other members of the crowd. On the spot, the broker was reporting the execution of the sale of 5,000 GM shares, and another person in the crowd may have mistakenly bought it for the purchase price. As a result, when a head-mounted mobile phone allows on-site brokers to contact the stall salespersons and maintain their mobility, 'it is still full of the possibility of mis-copying and delaying reports. Orders and meticulous audit trails performed will not occur. These issues are compounded at the time of the transaction, but after the transaction, and in some cases, only after the close of the trading day. As a result, traditional procedures expose investors to undesired risks. One solution is to include a system that provides a computer terminal to the broker of futures trading. Through the terminal, according to the investor's instructions, match buy and sell orders, such as limit orders, etc., and provide executed orders. Single electronic audit trail. However, the workstations that have been revealed are not portable, and therefore cannot be used by the trading crowd. In addition, Weiran system can confirm that the message was received at the broker's workstation, however, it cannot notify the sender that the receiver has seen the order received. As a result, the paper size is in accordance with the Chinese National Standard (CNS) A4 (210 X 297 mm) -24- ---------------- r --- order --- (Please read the precautions on the back before filling in this page) 494333 A7 ---- B7 V. Description of the Invention (22) Make the users of this system unable to determine whether the transmitted instructions have been received until they are executed. Learned. Since the 'workstation remains unparticipated while the broker is processing the transaction, in the booth, etc.', the order or request for quotation remains unnoticed for the time not received. Hand-held computers are being introduced into the field to gradually replace messenger work. For example, the conventional A U D I T (Automatic Data Entry Terminal) handheld instant transaction matching terminal is currently being tested in the Chicago Board of Trade floor, but has some difficulties. This device uses limited handwriting recognition to allow brokers to enter transaction information into handheld terminals. The A U D I system will broadcast the data of each transaction from the transaction office to the exchange computer. Furthermore, in the Coffee, Sugar and Delicious Asia Exchange, handheld terminals similar to computers with dedicated text and function keys are being tested to report the price and month of each futures and option contract. Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs. Transaction market: Transactions must be reported to members and the general public. This is done through different communication systems of different exchanges. Transaction information is typically entered by market reporters employed by exchanges in each trading pool and is available through computer terminals and electronic signage in each field. Currently, open-outcry auctions in the trading pool generate a large amount of information that must be accurately and quickly recorded by hand. At the end of each day, the exchange clearinghouse, which may be a subsidiary of the exchange or an independent entity, will act as a party to all open contracts: for each seller of the futures contract, the 'clearing house will become the buyer' and the buyer will However, the word 'will become the seller. The clearing house assures its members of the execution of all public contracts. This paper size applies to China National Standard (CNS) A4 specifications (210 X 297 public love) 494333 A7 ____ B7 V. Description of invention (23 traders in the field are generally classified in two ways: (1) speculators, or "copying hands" , Buying and selling for their own accounts; and (2) floor brokers' seeking to lock the prices of their products on behalf of securities brokerage companies, manufacturers, and agricultural processors. Unless the trader is a member of the exchange, the trader needs to go through the member Brokers deal with transactions. Generally speaking, the 'Ri Ji Ji (δ Boarding Brokerage Company) that handles public affairs must be registered as a futures Commission Merchants (or F CM s). "Shandler" can hold long-term niches (I.e., weeks or months), or speculation in a very short period of time (in the seconds or minutes after entering a transaction). It will trade in one or more trading pools. It will trade from it Profit from holding or calculating positions' However, this point is essentially unable to ensure profit. Some traders take the opposite direction between futures and options when the spread is abnormal. And specialized in spread trading. The floor trader has the advantage of lower transaction costs that all members of the exchange can get. The floor trader who executes orders for others but rarely or never They are brokers who specialize in orders from customers such as commercial processors, exporters, financial institutions and futures trading funds. They can only receive a small percentage of commissions paid by customers to their securities brokerage companies. However, commission income Actually it depends on the volume of business. The order held by the broker at any time is called its "deck". If it chooses,

I may be allowed to trade on his own account, but he cannot use public orders to profit his own trading. When a representative registered with a securities brokerage company receives an order from a client, the representative will send the order to the order counter of the securities brokerage company on the market

Please read the precautions of δ first; Install this book · Page I Order Printed by the Intellectual Property Bureau of the Ministry of Economic Affairs, Printed by the Consumers' Cooperatives The paper size is applicable to China National Standard (CNS) A4 (210 X 297 mm) -26- Ministry of Economic Affairs Wisdom Printed by the Property Cooperative Consumer Cooperative 494333 A7 B7 V. Invention Description (24) Here, the order is usually given to the messenger and taken directly to the appropriate broker in the trading pool or ring. Once the broker in the trading pool has an order, he typically uses sounds and gestures to announce his bid or offer price, the month of delivery, and the amount to buy or sell. Once the order is executed, the messenger will bring it back to the order table of the securities brokerage company on the market, and the confirmation of the order will be sent back to the office that initiated the order. The representative then usually confirms with the customer over the phone, or gives the customer a confirmation slip if he is in the office. The order will be transmitted from the registered representative to the order counter as fast as possible. All orders will have different timestamps at different stages along the path along the order, as an inspection for the order being quickly processed in the best possible form. Gradually, this process will be performed using a computerized communication system, which starts at the terminal used by the registered representative and ends at the printer close to the broker. Through j, the computer will also record the terms of the order for later use in preparing reports for registered representatives and their clients. The skills that brokers rely on to earn a living during trading are their skills to execute the orders they receive and accept. They must instantly decide on the strategy to make the entrusted order most efficient: whether to wait for the bid or ask price, or whether to hold at the current price, or to increase or decrease the bid price appropriately. To be effective, they must know the trading pool: who will execute at what price

I line. They must understand the intentions of speculators, copyists, and other scribes and hide their own attempts. One of the tricks of a broker is to know its deck. As mentioned above, the deck is a stack of orders to be executed by a broker. The order is typically written in about 5 ϋ ϋ · ϋ nn 1 I ϋ n · · ϋ ϋ nn ϋ 1: mouth '· nnn (Please read the precautions on the back before filling this page) This paper size applies to Chinese national standards (CNS) A4 size (210 X 297 mm) -27- 494333 A7

V. Description of the invention (25) Multiply by 7 inches of paper 'and then arrange by the broker in accordance with the execution order as the market price rises or falls. The broker usually folds them to hide and puts them in their pockets' so that their hands are free to send signals and process their transaction cards and pens. Sometimes the deck is an inch thick and requires strong memory skills and preparation plans. Probably the most common type of order is a "market order" in which the customer will state how much he wants to buy or sell for a given delivery month. He does not specify the price he wants to trade, but simply asks to place an order at the best possible price as soon as possible. A "dependence order" is added with certain restrictions other than the quantity and delivery month, such as a 'price or time limit, or both. "Limit Order" contains the price limit specified by the customer; it can only be executed at the specified price or better. The "temporary effect" order contains the order that must be executed or cancelled immediately at the specified price. "Stop-loss orders" are sometimes confused with limit orders, but they are actually quite different. The “Stop Buy Order” will instruct the broker to execute the order when the price of the futures rises to the level specified above the current market price. “Limit orders” are usually placed below the current market price and must be executed at a limited price or better. The difference between a limit buy order and a stop buy order is illustrated by the following example. Customers may want to buy December sugar, which may be sold at a price of 5.43 cents per pound1. Customers may tell their broker to purchase a contract at a price not exceeding 5.35 cents; this is a "limit buy order". In the same situation, another client may tell his broker that the price will not rise until at least 5 · 5 5 cents a day * _ to buy the contract for December sugar, at which point the order will be executed in the market · 'This II --------- · 1 (Please read the precautions on the back before filling out this page) Order --- The paper printed by the Consumers' Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs applies the Chinese National Standard (CNS) A4 specifications (210 X 297 mm) -28- 494333 A7 __ B7 V. Description of the invention ⑼) It is a "stop-pay" order. Because the stop-buy order will be executed at the market price after the stop-loss price is reached, it is placed above the current market price and can be executed at the price specified at the time of the stop loss, above it, or when it was placed; at that point, Stop loss is selected. A “Stop Order” will instruct the broker to execute an order when the price drops to a given position to be executed at the market price. Different from the typical “Limit Sell Order”, the Stop Sell order is below the current market price, and when it is selected, it can be executed at the specified Stop Loss Price, above it, or below it. Some customers will increase their stop-loss price as market prices rise to benefit as much as possible from the main action and ensure that they may only pay back with some gain. This order is often referred to as a "traceable stop order." A somewhat more complex order is a "Limit Sell Order". Clients may order their brokers not to buy and not pay more than 5.55 points until it rises to 5.53 points per pound. This is not the same as an unlimited stop loss, which is a market order when the stop loss price is reached. The limit price may be the same as or different from the specified stop loss. A "price order (M · I · T ·)" is similar to a limit order, but the M · I · T · order is executed on the market when the market trades at the price specified on the order. Therefore, it can be executed at the price The specified price, the price above it, or the price below it. M · I · T · orders are sometimes called "kanban orders". The order can be entered for one day, a specific time, or an unlimited time (that is, until it is cancelled. It remains valid). Sometimes, the client may wish to acquire the position in a short time, but the broker on the exchange will use his personal judgment when closing. If the size of the paper is in accordance with China National Standard (CNS) A4 (210 X 297 mm) (please read the precautions on the back before filling this page) Printed by employee consumer cooperatives Printed by the Intellectual Property Bureau of the Ministry of Economic Affairs Printed by employee consumer cooperatives 494333 A7 ----------- B7 V. Invention description (27) The bill of lading shows that the broker wants to trade it on the market but wants to When his time is consumed, the broker can perform this, and he is not responsible if he waits too long or waits too long for the price to satisfy the customer. Such orders can be marked as "not held". Clients can specify when they want their orders to close, for example, "at the time of opening", "at the time of closing", or "specified time". The "Choice Sheet" offers one of two possible executions: customers can order 5, 0 0 0 bushels of corn for one bushel at $ 1.45, and order 5.0 for one bushel at $ 2.54. 〇 Bushels of wheat, but not both. A better and more common example of a selection order is the setting of the target and stop loss. If one selection is concluded, another selection is cancelled by order; Can entrust its broker to sell soybean oil at a stop loss of 1 4 · 9 5 or 1 4 · 25, depending on which happens first, and then immediately cancel the other parts of the order to avoid inadvertently placing it Reverse. A “batch order” is used to establish or calculate positions as the market rises or falls. A sugar dealer can instruct its broker to buy a sugar contract for 5.45 cents and to buy another contract whenever the price drops by five points until it accumulates six contracts. When he sells his position, he can commission a broker to sell one contract at 5.7 cents and sell another contract whenever the price rises by 5 points until his six contracts are sold out. A "dependence order" can be filled by a broker after the price of another contract or another commodity reaches the designated position of 1J. Since the spread earner only cares about the spread and not the position, you can use the solid ---------------- r --- ^ --------- (Please read first Note on the back, please fill in this page again) This paper size is applicable to China National Standard (CNS) A4 (210 x 297 public love) -30- Printed by the Employees' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 A7 B7 5. The description of the invention is as below) Establishing a "spread trade" with a price difference rather than a specified price. He can therefore entrust his agent to "buy a July pork belly and sell a February pork belly at a price higher than February and a spread of 80 points or more." This order can be used to establish a new spread trading position. This new spread trading position is a position that the trader believes will narrow or obtain profit with a narrower spread and satisfy the profit of 80 points spread. Although the foregoing description focuses on the futures market, it should be understood that the order management system of the present invention can be applied to all markets, including those securities trading markets. The securities market is usually based on the actions of special brokers, each special broker acting as the market for one or more specific securities. For example, on the New York Stock Exchange, the final decision on the price of any given transaction is usually made by a special broker who handles a particular stock and maintains a bid or "bookkeeping" order that provides sales and commissions to purchase that stock. Whenever one or more people want to buy_buy and sell a stock market that can match the price of the order, the special broker will complete the transaction; sometimes, the same special broker will buy the special stock of his specialization Or sell the same stock to maintain the stock market and prevent large price changes. Similar functions must be performed in all auction markets that include alternative goods such as wheat, corn, etc., as well as stocks and bonds, especially matching commissions to buy and sell. In a system related to the present invention, prices are established in auction transactions on the stock market. This computing system includes the main data storage device. The main data storage device is used to record the coded data items representing the fi-orders representing the purchase and sale of goods. These orders include orders with specific prices and other "on the market" order. The system includes a purchase order sorting device, first according to the price ------------ install ----- L --- order --------- (Please read the precautions on the back first (Fill in this page again) This paper size is in accordance with Chinese National Standard (CNS) A4 (210 X 297 mm) -31-Printed by the Employees' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 A7 B7 V. Method of Decrease, Secondly, buy orders are arranged and recorded according to the input time, so that at each price position, the oldest order is at the top. The selling order sorting device records the selling order first in the order of increasing prices and then in decreasing order of time, so that at each price position, the oldest order is again at the highest position. The closing price storage device is used to record the final real selling price of the goods. With the appropriate control mechanism, the closing price storage device and the main data storage device can be coupled to the sorting device in order to transfer the "marketed" price being transmitted at the above-mentioned last selling price from the data storage device to the recorded data item to the sorting device . The two sorting device is coupled to the comparator. When the buy order and the sell order are sequentially arranged, the comparator compares the sell order and the buy order to determine the price of the lowest buy order equal to or greater than the recorded sell order and thus establishes a new selling price of the goods. In addition to matching buy and sell orders, the system provided by the present invention will allow brokers to manage their decks and improve the accuracy of communication between the venue and customers. The present invention can also reduce the cost of a dealer support office by reducing the workload on paper and the errors caused by it. Goods trading systems such as the use of traditional telephones are well known. These systems provide the fast communication needed for goods transactions with rapidly changing prices; however, telephone-based systems are not the physical copies of records that provide transactions. Physical copies of records are important for cargo dealers as a means of completing transactional documentation. In addition, the 'telephone-based system is only a communication system and cannot process information about transactions to provide traders with real-time information on all transactions executed during a given time period \ period (for example, within a day) and trader-specific Accumulation of goods. Video telegram-based systems are also known, which basically allow the paper size to be applied to the Chinese National Standard (CNS) A4 (210 X 297 mm). -------- Order i (please read the precautions on the back before filling this page). -32- 494333 Printed by A7 B7 $, Invention Note (30) for the trader of the Intellectual Property Bureau of the Ministry of Economic Affairs' Consumer Cooperatives. Exchange typed messages. Although these systems can produce physical copies of glogs, since they need to type each other when sending lengthy text messages and need to read all the messages they receive, they greatly restrict fast communication with the other party. Due to the length of the messages sent, the network response time is slow. The use of free text messages also makes it difficult for a single trader to monitor the progress of more than one transaction simultaneously. Another problem with the video telegram system is to produce a physical copy of all transmitted and received messages. In order to find the required information or documents, you must search through a stack of free text communications to find out what you need, such as a final consent to buy or sell Documentation of communications. Although attempts have been made to use computer translators to scan free text stacks with certain keywords that may indicate agreement, this computer translation system is inherently unreliable and their translations must be fixed Check to confirm their accuracy. However, the video telegraph system of the conventional art cannot monitor the input to prevent transmission of a large number of input errors related to transactions such as price and volume. The present invention can overcome these shortcomings of conventional techniques by constituting a trader's input, display output, data message itself, and transaction method. The transactions constituted by the present invention provide a sufficiently flexible environment to allow the negotiation of complex transactions and greatly reduce the input of information required by traders from both parties and greatly enhance the understanding of responses. In addition, the data transmission constituted by the present invention can be accurately processed by a digital computer to generate a completed transaction without error records. & class, #

I method can supervise the transmission of the composition data to reduce possible expensive data entry errors when the price and quantity i are entered. · Recently, automated exchanges have increased. They have central processors associated with one or more remote sites. Via these terminals, members of the exchange can apply the Chinese National Standard (CNS) A4 specification (210 X) 297 mm) -33------------- ^ ----- r --- Order --------- (Please read the notes on the back before filling (This page) 494333 A7 ___ B7______ V. Description of Invention (31) A transaction has been concluded or the market information requested by members of the Exchange has been provided. (Please read the notes on the back before filling out this page) Although automated systems provide traders with many advantages, for example, 'prevent or at least inhibit market manipulation, increase the speed of closing transactions, and record the date and time of purchase or sale of specific goods , Etc., but in reality, it is not possible to provide exchanges located around the world with the ability to communicate with each other and allow users in one exchange to electronically directly trade with users of members of other exchanges around the world. The present invention provides a central exchange host computer configuration and system that communicates with exchanges in various places in different parts of the world via institutions such as satellite systems to overcome the shortcomings and problems of conventional techniques. User members at the remote end of any exchange can trade through their local exchanges and central exchanges with remote user members of their own exchanges or with user members of any other exchange in the world. Exchange j supervises all transactions on each local exchange and provides market information to user members of any exchange belonging to all parts of the world. Therefore, it is printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs. User members of any local exchange can directly communicate with the central trading host computer to obtain market information related to any member exchange. He can also place bid and offer prices on users of any other local exchange through his own local exchange that communicates with the central exchange host computer and other selected exchanges via satellite systems. Therefore, if the user of the World i Energy Exchange in Dallas wants to obtain information related to the trading of specific commodities of the Paris Futures Exchange, he will communicate with the central computer and obtain this information. If the same user wishes to trade with another user member of the Paris Futures Exchange, he will enter buy via his remote terminal -34- This paper size applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) ) Printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 A7 B7_______ V. Description of the invention (32) The price or selling price to its local exchange, and then the local exchange will transmit this information to the central computer of the central exchange, and then via The satellite system is transmitted to the Paris Futures Exchange, where the bid or ask price is displayed on the remote terminal of the user member. Therefore, user members of the Dallas World Energy Exchange can trade goods with user members of the Paris Futures Exchange or any other member exchange in the world. Product information and trading channels from personal local futures exchanges occur as described below. Establish a central gathering point for goods information from individual local futures exchanges (the central computer of the central exchange). Product information is accessed via a ground or satellite link. The information is then transmitted to local exchanges via global satellites. Traders have the necessary equipment to receive information and classifications of goods broadcast from remote user terminals and display pre-selected personal exchanges in the world where they wish to trade and to display the goods they are interested in. From the relevance and observation of the product information ^, the trader can determine the position (ie, the bid or ask price). Enter the required positions and send them via satellite to a central gathering point and to a personal local futures exchange. When the relevant local futures exchange confirms receipt of all participating sites and the acceptance of the site by another trader, the central computer of the central exchange will transmit the site confirmation to the individual trader at the remote user terminal to complete the site transaction Its establishment. Then there are two basic forms of information flow. First, participating local 1 futures exchanges will gather and follow global broadcast market information. This futures market information will be received in large quantities by the remote user terminal of the trader, and it will be displayed on the remote user terminal of the trader. The second flow of information is input by the proposed trade in goods and the trader members of the designated local exchange accept it ------------ install ----- ^-order ----- (Please read the precautions on the back before filling this page) This paper size applies Chinese National Standard (CNS) A4 specification (210 X 297 mm) -35- 494333 A7 B7 V. Description of Invention (33) Transaction constituted by notice . The established positions and their subsequent calculations or completions will also be forwarded through the central computer of the Central Exchange. Related to the remote user terminal screen display is a touch screen data entry system for displaying input information and data representing the bid and offer prices. By representing the buying or selling price, the selected goods, and the physical touch symbol of the selected local exchange, the relevant information will pass through the user's local exchange, the central computer's main computer, and the selected local exchange, The system is entered from a user terminal for transmission to a remote user terminal associated with the selected exchange. Printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs In a traditional exchange, after the transaction is completed, the card is given to the staff of the exchange, which then enters the information into the computer. At the same time, transaction cards must be manually classified to match transactions. At the end of the day, computer bills will be checked against the transaction card to reach agreement on the transactions that have been formed. As you know, first of all, _ may have errors during typing. Secondly, the two cards may have different prices for completing the transaction. Thirdly, because the trader is based on the sight of the contract, there will be different opinions on whether the transaction is actually fully completed. When an agreement is not reached, a 'unsettled transaction' ticket will be made and an agreement must be reached as to whether the transaction is completely completed and at what price. The nature of disagreement will determine that a trader, broker, or client must bear the cost of unsettled transactions. Furthermore, because customers are far away,

I was at a disadvantage because it was not involved in the resolution process. Accounting also has its problems. Once transaction matching occurs, the information is fed into the settlement processing of the exchange. In most exchanges, the settlement process is computerized. However, because the information is entered manually, the paper size is applicable to the Chinese National Standard (CNS) A4 specification (210 x 297 public love ^ "36-" 494333 A7 B7___" V. Description of the invention (34) (Please read the back Note: Please fill in this page again) so that after the fact of the transaction, the price is only in the control of accounting processing rather than transaction processing. The exchange only knows at the end of the day whether the trader exceeds its position limit or incorrectly identifies the settlement member or Provide other incorrect information. In most exchanges, 300 to 400 people will be required to process transaction cards and complete settlement functions. As with the current system supervision (ensure proper operation and make mistakes and abuse (Minimum) also has many problems. In the existing exchanges, supervision is done through on-site monitoring. Exchange employees stand on the site and observe the occurrence of transactions. In the exchange's field, there are close to 1,000 people. Therefore, it is best to observe irregularly. Some exchanges have programs to detect illegal trading instances. These illegal trading instances are repetitive, but even when these When an instance is detected, the information that can usually be used as evidence is inaccurate and unreliable. The Employees' Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs printed the automated futures exchange of the present invention to create a fully automated futures contract trading office I to provide accuracy And accurate newsletters, transactions based on factual information, ensuring the execution and immediate confirmation of contracts, real-time processing of information and control of electronic supervision, and the use of computer hardware to implement processing. Since it is a combination processing that allows the market to function properly, Therefore, unlike other exchanges, it will not separate settlement and supervision from futures transaction processing. All transactions executed on the automated futures trading system will be executed by a complex program on a central computer to process orders for exchange futures contracts. This central computer can be accessed only through specially programmed remote computer terminals distributed only to exchange members holding member passwords. Each remote terminal is controlled by a keyboard, printer, online storage device, and video monitor The video monitor will display the futures traded on the exchange A variety of related assets -37- This paper size is applicable to China National Standard (CNS) A4 (210 X 297 mm) 494333 A7 ---- B7 V. Invention Description (35) (Please read the precautions on the back before (Fill in this page). Members will be able to use these terminals to transmit the bid and ask prices of their own accounts to the central bank when they are themselves, or to the central bank when they are agents. Computer. When the order is transmitted to the central computer, its relevant characteristics will be recorded 'including the quantity, price, time when the order was placed and the capacity when the order was entered; that is, whether it is an agent or me. Transactions The central computer will keep all the received orders, according to its price, quantity and input time, arrange each purchase price and selling price and display all the buying prices in descending manner and all selling prices in increasing manner. Therefore, each bid and offer price will become part of the market information displayed on each member's remote video monitor. The breadth of the market is also displayed. That is, the bid price of 200 contracts means that one bid price is to buy 200 contracts or 20 bid prices is to buy 10 contracts. In addition, the video monitor on a remote terminal will display the total amount, the last selling price, the current price range, the number of each contract month, and the spread trading relationship or spread between different contract months, and allow simultaneous spread trading (depending on time And goods). Printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs about this process, the user moves the cursor on the video display to the bid or ask price that they want to modify, and then completes the modification via the keyboard, so that there is a ability. Seeing the power of buying and selling displays 1 is analogous to the open-outcry trading system 'and it is a good deal because it shows supply and demand in the market. In the existing exchange market, traders have a “feel” to the market, but they cannot send accurate information to customers to any extent related to the distribution of buying and selling. -38- This paper size applies to China National Standard (CNS) A4 (210 X 297 mm) Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 494333 A7 B7 V. Description of the invention (36) The central computer of the Exchange The principle of processing first is to automatically match equal bid and offer prices to execute transactions. The execution of each transaction will be confirmed immediately with the members of both parties of the transaction through the printing organization of these members' terminals. Each execution report will contain information about the transaction date, time, quantity and price. The central computer of the exchange will be able to process a complete series of futures orders including straddling spread transactions, limit orders, and stop-loss orders. Since the bid and ask prices will be transmitted directly from the remote terminal to the computer, there will be no "unsettled transaction". Unsettled transaction means that the transaction is completed but the buyer and seller have not matched. In addition, since transactions are carried out only by computers, there will be records of the precise time entered for each order, the precise time at which it was executed, and the precise time at which the execution report was transmitted. Another important factor in trading is the ability to determine market liquidity. Furthermore, on the exchange market, traders may notice that the transaction is active, but when information i and the trader are passed back and forth, the price may have changed significantly or the bid and offer prices no longer appear .尙 No existing exchange can accurately determine the immediate transaction volume during the trading period. When transactions are completed, the system will accurately record the conditions at which they were reached, so members will be able to determine the volume of transactions that occur at any given time and have the required information to determine whether it is possible to enter and exit the market at the desired price position . system. Each terminal on the terminal is specifically designated to trade a certain number of contracts.

— I Each individual's positional restriction therefore depends on the participant's trust capabilities. Under the current system of the exchange, members may exceed their limits when executing transactions, and will not be detected by the exchange. In this trading system, 'restrictions will be programmed in each personal terminal, thus eliminating the reasons that individual traders exceed their limits. I paper size applies Chinese National Standard (CNS) A4 specifications (210 X 297 mm). 39 ^- ----------- Install ----- r --- Order --- (Please read the notes on the back before filling this page) 494333 Α7 Β7 V. Description of the Invention 07) (Please first Read the notes on the reverse side and fill out this page). "Unsold transactions" possibility. During the trading period, the market will be monitored on-site via the control terminal at the exchange. Information is fed directly into the supervisory system to detect possible transaction types, and since all information is recorded as it was when the transaction took place, accuracy can be ensured. All information from the trading system will be moved directly to the settlement system. Therefore, there are no manual matching transactions and ensuring the accuracy of the information. Earlier and faster money conversions will be possible, thus increasing the financial viability of the exchange as a whole. In the futures industry, it has been recognized that multiple factors sometimes determine the price of goods. As a result, the use of computerized analysis has grown rapidly and various tools have been developed for drawing and receiving information. However, the processes used for transactions and processing transactions are still ancient. This system provides institutions to execute transactions, confirm information, and inform all parties of changes without any bias to any participant. Therefore, it can accommodate a larger and more efficient market at a lower cost. Printed by the Consumers' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs Although different embodiments are described above, it should be understood that they are only examples and are not limiting. Therefore, the breadth and scope of the preferred embodiments should not be limited by any of the above-exemplified embodiments, but only by the scope of patent application and its equality described below. -40- This paper size applies to China National Standard (CNS) A4 (210 X 297 mm)

Claims (1)

494333 Printed by A8 B8 C8 __ D8 of the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs, Patent Application 1 · A method of estimating the price of a limit order, including the following steps: (a) receiving a mark identifying the security; (B) Estimate the price of the limit order for the security; and (c) Output the price of the limit order. 2. The method according to item 1 of the scope of patent application, the estimated price as a function of the desired time interval for the transaction. 3. The method, based on the method of the scope of the patent application, the function of the expected probability of the transaction. 4. If the method of item 1 of the scope of patent application is a function of at least one of the previous buying price and selling price, the estimated price. 5 · If the method of the first scope of patent application is applied, which is connected to a server of multiple client computers, the estimated price is received from the client computers on the network. 6 · For example, the method of item 1 of the scope of patent application, where the formula is the estimated price: P = Pl + sign * sigma * discount, where: • P 1 = the number selected between the current bid and ask prices (including ); • If the limit order is a sell order, sign = 1 'If the limit order is a buy order, the limit order is the limit order, and the limit order is the order of the security. Via the net and the mark is used below (please read Note on the back -------- order ---------_ write this page) sign sigma = constant; the discount satisfies the equation: prob = 2 * CUMN〇RM (discount) ;, Trace prob = the probability of hope for a limit order. This paper uses the national standard (CNS) A4 size (210 X 297 male sl -41-494333 A8 B8 C8 D8 t), the scope of patent applications NScumnorm (.1! Degree function Fixed points; and the standard of the interval is normal 丨 Ifii (X) 1 / sqrt (2 * 7Γ) exp (x2 / 2) printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs Among them, the sigma is calculated as a function of the historical movement of the securities within a predetermined period of time. The method around item 6, in which the sigma is calculated as a function of the predicted change in the securities over a predetermined period of time. 9. The method in item 6 in the scope of the patent application, wherein the function is the function of the current changes in the securities, to calculate the slgma. 〇. The method according to item 6 of the scope of patent application, in which the sigma is calculated as a function of the implied change in the securities. 1 1. The method according to item 6 of the scope of patent application, wherein the certificate is issued within a predetermined time period Calculate the sigma as a function of the predicted trading range. 1 2. As in the method of the 6th scope of the patent application, the following formula is used to calculate the sigma: sigma = k * RF where: k = constant; • RF = sqrt ( T / n) * SUM [aJ (Hi-Li)] i = Oa.y; I where: v: i = constant,. • η = length of the trading day in time (T); 〇 = securities The current highest transaction price; I ·· ______________ installed --- (Please read the notes on the back to write this page) "-• σ · Wood paper size applies to Chinese National Standard (CNS) A4 specifications (210 X 297 public (%) -42-494333 A8 B8 C8 D8 VI. Application scope Zhaiyan G = Securities Before the minimum trading price; 'y = predetermined number of days;' / H t two on the 1st highest trading price of the securities; and 1 = i recently lowest trading price of the security. 1 3. The method according to item 12 of the scope of patent application, wherein k = sqrt (7γ / 8) 0 1 4 · The method according to item 12 of the scope of patent application, wherein at least one of ai is calculated by regression . 15. The method according to item 12 of the scope of patent application, wherein at least one of a is a function of s q r t (i). 16. The method according to item 6 of the scope of patent application, wherein the following formula is used to calculate sigma: sigma = k 氺 RF, where _ * k = constant; • RF = sqrt (T / n) * SUM [aj (Hi-Li)] i = 0 a. Y; where: printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs I = constant; ~ η = length of the trading day in time (T); Η. = Today's highest trading price of securities today; --------------- (Please read the notes on the back page first to write this page) # · 〇 = Today's lowest current trading price of securities; · = Predetermined days; 'i = i days before The highest transaction price of securities at any time; and 1¾¾ ^ = the lowest transaction price of securities at any time within i days. This paper size applies to China National Standard (CNS) A4 (210 X 297 mm) _ 43. 494333 Printed by the Intellectual Property Bureau of the Ministry of Economic Affairs Θ Industrial Consumer Cooperative A8 B8 C8 _ D8 VI. Application for patent scope 1 7. If applying for a patent The method according to the 16th item, wherein at least one of at is calculated by regression. < 1 8 · The method according to item 16 of the scope of patent application, wherein k = sqrt (; r / 8) 0 1 9. A computer embedded in a computer-readable medium with an estimated price of a limit order The program includes: (a) a code section that receives a mark to identify the security; (b) a code section that limits the price of the limit order for the security; and (c) a code that outputs the price of the limit order Section. 20. A system for estimating the price of a limit order, including: (a) a logic mechanism that receives a mark to identify a security; (b) a logic mechanism that estimates the price of a limit order for a security; and (c) an output limit The logical mechanism of the price of the price list. 21 A method for estimating the price of a limit order on a computer system, including the following steps: (a) receiving a mark for identifying a security from an input device; (b) using a specified model stored in a memory device, according to The parameter specified by the user automatically estimates the price of the limit order of the security represented by the mark, and the parameter includes the desired time interval at which the limit order is to be executed; and (c) outputs the price of the limit order to the output device. 2 2 · —A computer-readable recording medium that enables a computer to perform price processing of estimated limit orders, including: _ (a) processing from an input device to receive a mark identifying a security; (b) using storage stored in memory The specified model in the body device is based on the instructions (please read the precautions on the back I.1 I write this page) --------- # · This paper size applies to China National Standard (CNS) A4 specifications ( 210 X 297 mm) -44- 494333 A8 B8 C8 D8 6. The parameters specified by the user of the patent application range will automatically estimate the price of the limit order for the security represented by the mark. The parameters include the limit order to be filled. The desired time interval •, and (C) the processing of outputting the price of the limit order to the output device. 2 3 · — A computer system for estimating the price of a limit order, including: (a) a unit for receiving a mark identifying a security from an input device; (b) using a specified model stored in a memory device, according to the use The parameter specified by the user automatically predicts the unit of the price of the limit order marked by the security represented by the parameter, and the parameter includes the desired time interval for the limit order to be executed; and (c) outputs the price of the limit order to the output device Of the unit. (Please read the precautions on the back of this page to write this page first.) Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs This paper applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -45-