TW505871B - System, method, and article of manufacture for estimating a time - Google Patents

Abstract

A system, method and article of manufacture are provided for estimating a time associated with a limit order. First, an indicia identifying a security is received from a user. A time required for a limit order for the security to be filled is then estimated. Estimation of the time may be based on various factors such as a desired price for the limit order, 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 time associated with the limit order is outputted. The time 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 time associated with the limit order may be outputted to the client computers over the network.

Description

505871 A7 — B7 V. Description of the invention (1) Background of the invention 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 "excessive", limit orders protect customers from paying "excessive" to rapidly changing 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. The determination of a "good" price is a complex task because it depends on many factors that are difficult (especially simultaneously) to explain. At present, humans have no tools available to help them calculate the price of limit orders. 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 stock exchanges require people to use limit orders, it is not beneficial for brokers to avoid limit orders. To make matters worse, the second best limit order may cause the order to be insufficient. The paper size applies the Chinese National Standard (CNS) A4 (210 X 297 mm) -4-(Please read the precautions on the back before filling this page ) £ ·

-* · Ϋ mmme mmml mmmmm i mm— · 1 mmm§ SB— m · — 1 n tmmm ammmw I Printed by the Intellectual Property Bureau Staff Consumer Cooperative of the Ministry of Economic Affairs 505871 A7 B7__ V. Description of the Invention (2) (Please read the first Note | ^ write this page) to compete so that it never executes, or is too competitive 'so that buyers end up paying too much', so 'using speculation to determine the price of a limit 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 to execute the second best limit order. Therefore, a method capable of strategically estimating the price of a limit order is needed. Invention 槪 沭 A system, method, and product for providing estimated time for a limit order. First 'receive a token identifying the security from the user. Then ‘estimate the time when the limit order for the security will be filled. Time estimates are based on different factors ‘for example’ the price required for a limit order to be filled, the probability of a limit order to be filled, and / or the current bid and ask price of the security. After that, the time to output the limit order. Estimate time on a server connected to multiple client computers via the network. With this structure, tags can be received from client computers on the network. In addition, the estimated time of the limit order can be output to the client computer on the Internet. A brief description of the printed consumer employee cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs with reference to the drawings, the above-mentioned viewpoints can be better understood from the following detailed description of the preferred embodiments of the invention, wherein: FIG. Example 1 is a possible hardware implementation; Figure 1 A is an embodiment of the present invention implemented on the network, that is, the Internet; Figure 2 is a flowchart showing an estimate according to an embodiment of the present invention The limit scale is applicable to China National Standard (CNS) A4 specification (210 X 297 public love) ~ · 505871 A7 --_ B7 V. Description of the invention (3) Method of price list; Figure 2 A series of flowchart A method for estimating the probability of a limit order according to another embodiment of the present invention; FIG. 2B is a flowchart illustrating a method for estimating the time of a limit order according to another embodiment of the present invention; FIG. 3 is a flow chart A diagram illustrating a method for evaluating the price of a limit order based on a user-specified time interval and probability according to another embodiment of the present invention »FIG. 4 is a flowchart illustrating the basis of a user according to another embodiment of the present invention Specified price and probability based on estimated limit price Figure 5 is a flowchart illustrating the basis of another embodiment of the present invention. The method for estimating the probability of a limit order by a user-specified price and time interval »Figure 6 is a flowchart, more The operation 3 0 6 of FIG. 3 is explained in detail; FIG. 7 is a flowchart illustrating the operation of FIG. 6 in more detail; and FIG. 8 is the flowchart illustrating the operation of FIG. 7 in more detail 7 0 4 and 7 0 6 ° Symbol description (please read the ΦΙ note on the back before filling in. · Climbing:！ Order · 丨! 丨 — #: Write this page) Printed by the Intellectual Property Bureau Staff Consumer Cooperatives 11 0 Central Processing Unit 11 2 Bus 11 4 Random Dynamic Access Memory 11 6 Read-Only Memory This paper size applies to Chinese National Standard (CNS) A4 (210 X 297 mm) -6-A7 Printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs Description of the invention (4) 118 I / 〇 adapter card 120 disc storage unit 122 user interface adapter card 12 4 keyboard 12 6 mouse 128 speaker 132 microphone 134 communication adapter card 13 5 network 136 display adapter Card 138 Display device 2 0 0 Network 202 Client 04 Server I. Description of the embodiment Generally speaking, the present invention is convenient for placing a limit order without focusing on more complicated problem forms. 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 a formal, tough mathematical model that correlates the price of the limit order with 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 used on personal computers, such as IB and compatible personal computers, etc. < Please read the notes on the back first ^ Fill this page) i I-ti equipment-W # —-1 ϋ immm Mtm mmMm mmmmm I ammmw §m§ 8 · tl This paper size is applicable to Chinese National Standard (CNS) A4 (210 X 297 mm) -7-505871 A7 --B7 V. Description of the invention (5) Macintosh computer or UNIX Workstation. (Please read the precautions on the back before filling out this page.) The representative hardware environment is illustrated in Figure 1. The description is based on a central processing unit such as a microprocessor 1 1 0 and some via the system bus 1 1 2 One of the other units connected is a typical hardware configuration of a workstation. The workstation shown in Figure 1 contains random access memory (RAM) 1 1 4, read-only memory (R 0 M) 1 1 6 and is used to connect peripheral devices such as disc storage unit 1 2 0 to the bus 1 1 2 I / 〇 adapter card 1118, used to connect keyboard 124, mouse 126, speaker 1 2 8, microphone 1 3 2, and / or user interface devices such as touch screen (not shown) User interface card 1 2 to the bus 112, 2 1 4 for connecting a workstation to a communication network (for example, a data processing network), and 1 12 for connecting the bus to a display device. 138 的 VGA card 136. The workstation typically has a resident operating system on it, for example, 'Microsoft Windows NT or Windows / 95 operating system (0 S), the Intellectual Property Bureau of the Ministry of Economic Affairs, the employee consumer cooperative printed IBM OS / 2 operating system, MAC OS, or UNIX operating system. Those skilled in the art will understand that the present invention can also be implemented on other platforms and operating systems described above. FIG. 1A illustrates an embodiment of the present invention implemented on network 20 (i.e., the Internet). In particular, this embodiment includes a plurality of clients 202 all 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 of all, in 2008, 8 paper sizes are applicable to the Chinese National Standard (CNS) A4 (210 X 297 mm) 505871 A7 ____________ B7 Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 5. Introduction to the Invention (6) In operation 210, a token identifying the security is received from the 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. Reference is now made to 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 a simplified skeleton for estimating the time interval at which a limit order will be filled. First, starting in 2 2 3, in operation 2 2 4, a token identifying a security is received from a user. In each of the above embodiments, one of the options, the mark may include a time stamp of the security. 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 of the limit order to be filled (please read the precautions on the back first and fill out this page) I .1 wh1 «Equipment • 1 I- ϋ — — — —Til This paper size applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 505871 A7 __ B7 V. Description of the invention (7), the hope of a limit order transaction Probability, and / or 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 126, microphone 132, touch screen (not shown), or any device capable of transmitting this information. In addition, the estimation can be performed via the CPU 110, and the CPU 1 1 0 is then stored in a computer-readable medium (ie, RAM 114, ROM 116, disc storage unit 1 2 0, and / or any computer capable of storing Programmers). Alternatively, dedicated hardware such as application specific integrated circuit (AS IC) can be used to accomplish the above work. In addition, the price output can be performed by the display 138, the speaker 128, 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. In an embodiment of the present invention, the following formula can be used to estimate the price P = Pl + sign * sigma * discount, the paper size is applicable to the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -10- illllllll * iir-I ί IIIII a — — — — — — — —. _ — (Please read the notes on the back before filling out this page) 505871 Α7 ____ Β7 V. Description of the invention (8) Among them, • P 1 = in The price (including) between the current bid and ask prices; (Please read the notes on the back before filling this page) • If the limit order is a sell order, sig η = 1, and if the limit order is a buy order, sign = —L; • si gma = constant, described in the following; • The discount satisfies the equation: prob. = 2 * CUMN0RM (discount); where. p r ob = the probability of a limit order being filled;. CUMNORM (X) = definite integral of standard normal density function of interval [0, X]; and. f (X) = 1 / s q r t (2 * 7Γ) e X p (-X2 / 2) In the above formula, the variable x represents the upper limit of the time interval between randomly or deliberately selected limit order transactions. In a similar manner, the variable P 1 can be chosen arbitrarily or intentionally. In this description, the current buying price can be defined as _〇 In addition, the selling price can be defined as _〇 The printing of employee consumer cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs should pay attention to 'if the variable to be estimated is the probability of a limit order being executed instead Price, the above formula can be replaced by prob = 2-2 * CUMNOM (P-Pl) / (sign * slgma). On the other hand, if the variable to be estimated is the time interval during which the limit order is executed, the above formula can be replaced by T = (P — P 1) / (P — Q) 2, where Q is calculated as above The same execution odds and the best price of the limit order calculated with a one-minute desired waiting time. In different possible embodiments of the present invention, the Chinese national standard (CNS) A4 specification (210 X 297 mm) can be applied by the user or any paper size. 11-505871 A7 V. Description of the invention (9 (Please read first Note on the back, please fill out this page again) Other entities 'select s 1 gma according to the distribution of different factors. Should be injected into the stomach' sigma can also be accepted as a component of the above mark. Implementation of different factors on which s 1 gma is selected Examples include: historical changes in securities * < intended time period; forecasted changes in securities at any predetermined time period; current changes in securities, forecast transaction range of securities at any predetermined time period, implicit changes in securities, and / Or another type of factor. Those skilled in this art know the different meanings of the above items. For example, 'implicit change' is the implicit change in the current price of a security's option. In yet another embodiment, the Calculate the sigma using the following formula:

sigma = k * RF where k = sqrt (; r / 8) (note that 7Γ can be estimated by 4 * Arctan (l)); RF = sqrt (T / n) * SUM [aJ (Hi-Li)] i = 0 .... y; Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs, where: Constant (may be 0); Fixed on the trading day. η = Units selected at random time (疋 length,. HQ two securities's current highest transaction price;: L. = securities's current lowest transaction price; any predetermined number of days; this paper size applies Chinese National Standards (CNS) A4 specifications (210 X 297 mm) -12 A7 Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 5. Invention Description (10 ° = highest transaction price of securities before i-day; and ° L i = lowest transaction of securities before i-day Price. Although the 'variable y can be any predetermined number of days, it is better to' select more days to enhance the accuracy of the estimate. In different embodiments of the present invention 'for a limited number of i 値, Ai may be non-zero. In addition, at least one 値 of a ^ may be calculated through regression or be a function sq Γ t (i). In another embodiment, 'i may be defined as a security at any time in the previous i day, respectively. Highest and lowest prices. Referring now to Figures 3-8, another method of estimating the price or other related parameters will now be described. This method starts at operation 300. Then, in operation 302, 'receive the limit price from the user. Single The desired time interval for the transaction. As shown in operation 3 04, the user can also receive the desired probability that the limit order will be executed. Then, based on the desired time interval and the desired probability, the 'estimation' is related to the limit order The price is noted in operation 306. Finally, in operation 308, the price is then output to facilitate the closing of the limit order. After operation 308, the method is completed in operation 310. Figures 4 and 5 both show the results shown in Figure 3. Other possible embodiments of the embodiment shown in Fig. 4. Fig. 4 shows a variation thereof, in which, starting in operation 400, and in operations 402 and 404, respectively, receiving a desired probability and a desired Price. Then, in operations 406 and 408, respectively, estimate and output the time interval for the limit order to be executed. Note that 'estimate the time interval based on the desired price and probability. Then' in Figure 4 The method ends at operation 4 1 0. Figure 5 shows the variation, which starts at operation 5 0 'respectively. This paper size applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -13-please read first Memorandum i IIIII 505871 Α7 ............................................. B7 V. Description of the invention (11) In operations 502 and 504, a desired time interval and a desired price are received from the user. Then, in operations 506 and 508, estimates and outputs The probability of closing a limit order. In this embodiment, the probability is estimated according to the desired price and time interval. The method of Figure 5 then ends 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 0 2. This deduction will assume a sufficiently short time interval and the price will be explained in Brownian motion. In one embodiment, the deduction method includes P r ob [L (P, Ding)] = 1 K * F (P) / R (T), where (P) represents the price of the limit order on the financial instrument , (T) represents the valid (or to be executed) life or time interval of the limit order, P r 〇b [L (P, T)] is the limit order with the price (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 that represents the trading interval within the time interval (T). The constant (k) can be calculated, k = 4Il ′ where Π = 3 · 1 4… ·. With continued reference to Figure 6, in operation 604, the predictor is used to calculate a random variable R (T). Let max (T) and min (T) represent the maximum and minimum of the time interval (current, current + T) or (T), respectively, R (T) = E [max (T) — mi This paper size applies China National Standard (CNS) A4 Specification (210 X 297 mm) -14-Please read the back note first and then I I install the page I w | IIIII Order printed by the Intellectual Property Bureau Staff Consumer Cooperatives

T 505871 Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs A7 B7 V. Description of Invention (12)], where E [] represents the mathematical expectation 値 operator. The method of Figure 6 will end at operation 6 06. The present invention thus reduces the problem of the execution success rate of a limit order calculated as (P) to an estimated 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 (D) as long as it meets certain engineering standards for accuracy, toughness, and adaptability. If this criterion is met, the output R f (T) can replace the deductive method prob [L (P, T)] = 1 — k (R) in k * F (P) / R (ding) to generate the pricing as (P) The probability that the limit order will be filled within the time interval (T). Prediction R i (T) thus represents an adaptive, robust deduction for real-time prediction of future trading ranges of securities traded through a stock exchange. As described above, R (T) represents the trading range of a certain securities within the upcoming time interval (τ), and the estimated element Rf (T) is a valid substitute for R (T). In order for the estimated element R f (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 (D) should be able to smoothly predict at any time and at regular intervals without the need for extreme edge vibration. Why ca n’t the field conditions of the book ‘produce meaningful and useful results’ to estimate that R f (T) should further show its strong quality. Mold opening ------------ ^ Loading ------- 丨 Order ------ (Please read the precautions on the back before filling this page) This paper size is applicable to China Standard (CNS) A4 specification (210 X 297 mm) 15 505871 A7 B7 V. Description of the invention (13) The estimation of parameters should also lead to consistent results in the space of all relevant securities. Finally, the predictive element R f (τ) should measure the good fitness of the model and produce consistent results for all securities in 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 to increase adaptability and a longer time period helps to increase toughness, a good transaction can be obtained by using two trading intervals of different lengths. In an embodiment of the present invention, the predictor may adopt Rf (T) = cs (T) * r (S) + cl (T) * r (L), where r (x) is at the time interval T) The size of the transaction range S) in China (that is, in an embodiment, please read the note of Si first, I order now X, now) 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. Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs • Step 1: Estimate t = 1 cs (t) and cL (t). 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, discount the external portion of the line to make it so that the standard deviation of any observation is no longer greater than the fixed threshold, i.e., number two, and then use the appropriate discount schedule to re-estimate the new regression line. • Step 2: Using the same technique as in step 1, estimate Cs + I (t) and CL + I (t) for t = 1. This paper size applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -16- 505871 A7 B7 V. Description of the invention (14) • Step 3: Step 1 predicts the effective 1-day trading range at the beginning of the day. Step 2 predicts the 1-day trading area that is valid at the end of the day. Let X be the portion of the transaction that has elapsed at point P during the day. In the part (1-X, X), the mixed forecasts 1 and 2 are derived to derive the forecast that starts on the 1-day trading range 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: It is deduced from the first principle that (D) will change with the square root of (τ). Therefore, by taking 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 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 a time interval (t) = 1, so as to generate a first initial estimate Rf 1 (t), which is valid for the beginning of the day . Pay attention to operation 7 Ο 4. Thereafter, as shown in operation 7 06, regression is used to estimate Cs + i (t) and CL + 1 (t) at a time interval (t) = 1 day to generate a second initial estimate Rf2 ( T), which is valid for the end of the day. Then, as shown in operation 708, the first preliminary predictor Rii (T) and the second preliminary predictor R " (T) are used to generate the predictor Rf (T). Processing then terminates at operation 7 1 0. Referring now to FIG. 8, as described previously, step 1 begins with operation 800, after which a standard regression line is made to supply the make-up. Please refer to the operation of this paper. Applicable to China National Standard (CNS) A4 specification (210 X 297 mm) -17- (Please read the back ^ · _1 ϋ 1 tmmm ϋ 1 n · ef n I ϋ 1 1 B i (This page) Printed by the Employees 'Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs. Printed by the Consumers' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs. 505871 A7 B7 5. Description of the invention (15) 8 02. Then, in operation 804, the portion other than the dodge is discounted. Then, in operation 806, the discount schedule is used to estimate the regression line, after which the processing ends in operation 808. 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 the limit order is useful for tools with large fluctuations, the signal-to-noise ratio will improve with the scale of the forecast. The signal-to-noise ratio is an important feature of price limit order pricing applications. Now, other features will be explained. 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 auctions is the New York Stock Exchange. In the auction market, buyers and sellers will converge on the trading floor and announce their individual purchase prices (prices to buy) and ask prices (acceptable selling prices). As a result of the continuous auction process, transactions in any particular security occur at the highest price that any buyer is willing to pay and the lowest price that any seller is willing to receive. Without 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 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. The special broker is located at one of the trading boards and has several role functions in the trading process: the paper size of the auctioneer applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -18- — — — — — —III — —! -1111111 1111111 · Λ (Please read the notes on the back before filling out this page) Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 505871 A7 B7 V. Description of the invention (16), shouting the best purchase price and Sell price to the broker requesting a quote during the trading session, and ensure that all transactions will be posted; media, call the specific broker who previously expressed interest in buying to the pole to respond to the intentional sale at the pole; agent, such as limit price Representing investors in transactions with restricted conditions; and franchised agents, when needed, provide funds 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 investors and transfer 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 matching 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 of the booth will pay attention to the parameters of the order. For example, the transaction (buy or sell the paper size applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -19- ---------- --Equipment ----- 1--Order ·! 1 — # · (Please read the notes on the back before filling in this page) Printed by the Intellectual Property Bureau Employee Consumer Cooperative of the Ministry of Economic Affairs 505871 A7 A ^ _B7 V. Description of the Invention (17)) side, stock code (for example, IB Μ, G Μ, etc.), quantity (for example, 9,000 shares), price (market price or limit price), any specific conditions (for example, and (None, none, traded or unsuccessful, good until cancelled, public, etc.), and the time to place the order. 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. 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 AD P or Quotron, this quotation provides a better perspective and experience of 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 traded. Through the description, but not exhaustively explaining the possible changes in the "special quote" that can be obtained, the "special quote" and "market quote" may indicate: (1) who are the closest buyers and sellers of the securities and the volume and Price; (2) Just as we know from the bookkeeping of the trading crowd and special brokers, we can know the market depth (the degree of market interest) and who is the current market price and spread of players; (3) learned from the broker itself Opinion and explanation of market price; and (4) based on previous history, previous days, etc., it can be known that people who are not currently trading may be interested in trading. The trading public, including special brokers who 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. The size of the paper used is from China Standard (CNS) A4 (210 X 297 mm) -20--— — — — I — a — — — — — — — — — (Please read the Note: Please fill in this page again.) 505871 A7 _______ B7 V. Description of the invention (18) The experience of the public and the brokers on the market and the information obtained, investors can understand the true story of the specific securities market, so that Be able to make educated decisions to determine what positions to take in the securities market. In this specification, quote requests and orders are usually called orders '. However, quotes and executions are usually called orders' responses, but they are transmitted as orders. 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, the stall salesperson would copy the instructions on the order slip or the quotation request form depending on the nature of the instructions. 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 on-site broker, the stall clerk will be on the perimeter of the trading floor, so he will need the help of a messenger or passer to bring the order to the on-site 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 “unsolicited quotations” for messengers, which is an important market insight for investors represented by floor brokers who have not specified this request. Therefore, it is recognized that the activities of the trading board may apply the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -21-(Please read the precautions on the back before filling this page) · .1-1 ϋ an n -ϋ mmm§ ^ eJ 1 ϋ mmm§ ϋ n Printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 505871 A7 B7 V. Invention Description (19) (Please read the notes on the back before filling in The on-site brokers of the investors listed here will send unsolicited quotations back to the booth salespersons so that the salespersons can properly disseminate the information. 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 slips on which the order is recorded are easily misplaced, and if dropped, they may be lost among the many discarded slips messed up in 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. Printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs. Until the commission 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 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 practically every aspect of the market is automated, in consideration of the fairness and efficiency of the pricing mechanism due to the auction process, real auctions and the participation of on-site brokers have been protected and not abandoned. Automated processing has been partially driven as needed to make the auction market more efficient and effective. First of all, I hope to reduce the decision to purchase stocks and the actual implementation and reporting. The paper size applies the Chinese National Standard (CNS) A4 specification (210x297 gong) 505871 A7 _ B7 V. The time between the invention description (20). 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 the ever-increasing daily transaction volume. Investors and securities brokers are concerned with the exact copying of instructions. If the original instruction or processed response is difficult to identify, processing of the instruction 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 Chengming ’. 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 after the investor places the order and the broker receives the order, 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 floor brokers whether they have received orders. Due to noise in the trading floor, pagers often have oscillators. Once reminded, the broker will leave the trading crowd to find the "yellow phone", which will be used 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 masses, the Chinese paper standard (CNS) A4 (210 X 297 mm) is applied only to meet the paper size of the order or quotation from the investor. _ 23-(Please read the precautions on the back before filling out this page) -------- Order --------- #. Printed by the Intellectual Property Bureau Staff Consumer Cooperatives of the Ministry of Economic Affairs 505871 Ministry of Economic Affairs Printed by the Consumer Property Cooperative of Intellectual Property Bureau A7 B7 V. Inquiry about the status of invention (21). Therefore, the advancement of this technology does not ensure that the order will be faithfully followed and processed in a timely manner, and requires the broker to continuously leave the trading crowd and find available yellow telephones to contact the booth salesperson. In June 1984, a headset was introduced on the New York Stock Exchange (NYSE). However, this method has its limitations. Since the stall clerk may contact several brokers, or may be ten or more, the broker may not be able to reach each of the stall clerks if they have spoken to another broker. In addition, when the floor broker is talking to his salesperson rather than to another person in the trading crowd, especially if the floor broker who is in contact with the salesperson is facing another floor 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 sale of 5,000 GM shares. Another person in the crowd may mistakenly buy it for the purchase price. Therefore, when headset mobile phones allow on-site brokers to contact the stall salespersons and maintain their mobility, they are still full of the possibility of miswriting and delaying reports. These orders and sophisticated audit trails do not occur at the time of the transaction but after the transaction, and in some cases, only after the close of the trading day, which complicates these issues. As a result, traditional procedures expose investors to undesired risks. A solution is to include a system that provides a computer terminal to a futures trading broker. "By 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. But the workstations that have been revealed are not portable and therefore cannot be used by the trading crowd. In addition, although this system can confirm that the message was received at the broker's workstation 'but', its paper size is in accordance with China National Standard (CNS) A4 (210 X 297 mm) -24-installed ------ (Please read the notes on the back before filling this page)

**, _ 丨 丨 丨 丨 丨 丨 丨 I 505871 Α7 __; _ B7 V. Description of the invention (22) Unable to notify the sender 'The receiver has seen the order received. As a result, the user of this system cannot determine whether the transmitted command is known until the execution is received. Since the workstation remains unparticipated while the broker is processing the transaction among the crowd, at 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 IT system will broadcast the information 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. Transactions on the marketplace must be reported to members and the general public. This is done by asking the father for a communication system ’. 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 the day, it may be a subsidiary of the exchange or an independent clearing house that will act as a party to all public contracts. For each seller of the futures contract, the clearing house will become the buyer, and for the buyer, Language, will become the seller. The clearing house assures its members that all paper contracts of the two parties are in accordance with the Chinese National Standard (CNS) A4 specification (210 X 297 mm). -25-Read the notes at the back and fill out this page. Printed by the Consumer Cooperative 505871 A7 __________ B7 V. Implementation of Invention Description (23). Floor traders generally categorize in two ways: (1) speculators, or "copyrights," to buy and sell for their own accounts; and (2) floor brokers, who seek for securities brokerage companies, manufacturers, and agricultural processors Lock the price of their products. Unless the trader is a member of the exchange, the trader needs to process transactions through a member broker. In general, brokers (stock brokers) that handle public affairs must be registered as Futures Commission Merchants (FCMs). A “slapping hand” can hold a long position (that is, weeks or months) or speculate in a very short period of time (a calculated position within seconds or minutes of entering a transaction). It will trade in one or more trading pools. It will profit from the speed at which it holds or calculates the position, but this is essentially not a guarantee of profit. Some traders take a reverse position between futures and options when the spread is abnormal, and specialize in spread trading. Floor traders have the advantage of lower transaction costs available to all members of the exchange. The Ministry of Economic Affairs, Intellectual Property Bureau, employee consumer cooperatives will print on-the-spot dealers who perform orders on behalf of other people but rarely or never on their own behalf as brokers. The brokers specialize in commercial processors, exporters, and finance. Orders from clients such as institutional futures trading funds. They can only receive a small percentage of the commission paid by the client to their securities brokerage company, but the commission income actually depends on the volume of business. The order held by the floor broker at any time is called its "deck". If he chooses, he may be allowed to trade on his own account, but he cannot use public orders to profit his own trading. When a registered representative of a securities brokerage company receives an order from a customer, the paper size applies the Chinese National Standard (CNS) A4 (210 X 297 mm) -26-505871 A7 ____ B7 Printed by the Employees ’Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs System V. Description of Invention (24) 'The representative will send the order to the order counter of the securities brokerage company on the market' Here, the order will usually be delivered to the messenger and taken directly to the appropriate pool or ring. broker. Once the broker in the trading pool has an order, 'he typically uses voice and gestures to announce his bid or offer price, delivery month, and the amount to buy or sell. Once the order is executed, it will be taken by a messenger. The order confirmation returned to the securities brokerage company on the market will be sent back to the office that initiated the order. Confirm with the customer over the phone, or if the customer gives it to him. The order will be sent from the registered representative as fast as possible. All orders are at the same time stamp along the path of the order, as the order can be traced to the best possible. Gradually, this process will begin with computerized communications at the terminals and printers used by registered representatives. Usually, the computer will record the orders at the same time to prepare reports for registered representatives and their clients ^ the skills of the brokers to make a living during the trading and the skills of the accepted orders. They must instantly order the most effective strategy for closing the order: whether to wait for a purchase, whether to hold it at the current price, or to raise it appropriately. To be effective, they must know the transaction pool: OK. They must understand the speculators, copycats, and their attempts to hide themselves. One of the tricks of a broker is to know its deck. Platform, and then, the terms transmitted to the different systems in the office are bound by the fast-track system. The terms of its decision to make the price or sell the high price will be confirmed when it is recorded that the order does indeed represent the usual meeting. There will be inadequate inspections at the single counter stage. This system is close to the broker so that they can receive commissioned commissions at a later time, or to lower or lower the selling price. What is the intention of the holder and as mentioned above, the deck The paper size is applicable to Chinese National Standard (CNS) A4 (210 X 297 mm) -27 _ Please read the note on the back first

Item Re-dust Written Page I Order

505871 A7

Printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs. 5. Description of Invention (25) A stack of orders to be executed by a broker. Multiply by 7 inches of paper and arrange them in order with the market price. Brokers usually put it in their pockets so that their hands can trade cards and pencils. Sometimes decks are coincidental and prepared. Probably the most common order type is a statement of how much he wants to buy or sell for a given transaction price he wants, but simply places the order. "Dependence order" refers to the quantity and delivery. For example, the price or time limit, the order "includes the price limit specified by the customer; better price level execution. "Temporary effect" is the designated price for immediate cancellation. A "Stop Loss Order" is sometimes different from a Limit Order. "Stop Buy Order" will instruct the broker to execute the order on time and above the current market price, and the order must be placed below the current market price. The difference between a limit buy order and a stop buy order may require the purchase of December sugar, which may be sold. The client may tell his broker to buy the contract; this is a “limit order”. May tell its broker until the price is at least the order is typically written at about 5 up or down and folded by the brokers in order to hide and send them signals freely and handle their inches thick and require strong remembering skills "Market Order", in which the customer cuts the contract for the month. He would not refer to any restrictions other than the best possible price to cut the month as soon as possible, or both. "Limit prices can only be executed at a specified price or the order contains orders that must be executed or confused, but they actually increase the price of the corresponding futures to the sight order." Limit buy orders "usually limit the price or better The explanation is as follows. The customer purchases at a price of 5.43 cents per pound not exceeding 5.35 cents. Under the same situation, another customer only purchases when the price rises to 55 cents (please read the precautions on the back before filling this page). The scale applies to the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -28- 505871 Α7 _ Β7 V. Description of the invention (26) < Please read the precautions on the back before filling this page) Buy December sugar At this point, the order will be executed in the market; this is a "stop buy 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 a typical “Limit Sell Order”, a ‘Stop Sell Order’ is below the current market price, and when it is selected, it can be executed at a specified Stop Loss Price, above 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 can order their brokers not to buy and cannot pay more than 5.55 cents before raising to 5.53 cents 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. The "Touch Price Order (M · I · T ·)" printed by the Employee Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs is similar to the limit order, but the M · I · Τ · order is when the market trades at the price specified on the order Executed in the market, so it can be executed at the specified price, above or below. M · I · T · orders are sometimes called "kanban orders". Orders can be entered for one day, a specific time, or an unlimited time (that is, they remain valid until cancelled). Sometimes, the customer may want to obtain the position in a short time, but to trade this paper, the Chinese national standard (CNS) A4 specification (210 X 297 mm) is applicable. -29-505871 A7 __ B7 V. Description of Invention (27) The broker on the field uses some of his personal judgment when closing. If the order manifests that the broker wants to close it in the market but consumes his time, the broker can execute this, and because the wait is too long or not long enough for the price to satisfy the customer, You are not responsible. Such an order can be marked as "unheld". 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 implementations. · Customers can order 5,000 bushels of corn for one bushel for $ 1.45 and 5,000 bushels of wheat for one bushel for $ 2.56, but Not both. A better and more common example of a selection list is the setting of the target and stop loss. If one selection is concluded, another selection is cancelled by order; for example, when one contract of soybean oil has been purchased at 14.50 points, the customer can entrust Its broker sold soybean oil at a stop loss of 14 · 95 or 14 · 25, depending on which happened first, and then immediately cancelled the other parts of the order to avoid inadvertently reversing its position. A “batch order” is used to establish or calculate positions as the market rises or falls. A sugar trader can instruct his broker to buy a sugar contract at 5.45 cents and buy another contract whenever the price drops by five points until he accumulates six contracts. When it sells its position, it can entrust a broker to sell one contract at 5.70 cents and sell another contract whenever the price rises by 5 points until its six contracts are sold out. A "dependence order" can be filled by a broker after the price of another contract or another commodity reaches a specified position. This paper size applies to China National Standard (CNS) A4 specifications (210 X 297 mm) -30-(Please read — — — — — — — — i I Grind IIII 1 Read the notes on the back before filling this page) Economy Printed by the Consumer Cooperative of the Ministry of Intellectual Property Bureau of the Ministry of Economic Affairs Printed by the Consumer Cooperative of the Ministry of Economics and Intellectual Property of the Ministry of Economic Affairs Printed by 505871 A7 B7 V. Invention Description (28) Since the difference in profit is only concerned about the difference rather than the position, 'the fixed price difference can be used instead of the specified price Create "Spread Trading". 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 and sell a stock market that can match the price of an order, a special broker will complete the transaction; sometimes, the same special broker will buy a special stock or sell it Out of the same stock in order to maintain the stock market and prevent its prices from changing significantly. 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 main data storage devices. The main data storage devices are used to record the coded data items of orders representing purchases and sales of goods. These orders include orders with specific prices and "the paper size of the paper is applicable to China. Standard (CNS) A4 Specification (210 X 297 Public Love) 31 ------------ ^ «Installation ---- 1 (Please read the precautions on the back before filling this page) *, order ---------- 505871 A7

5. Description of Invention (29) "Other orders on the market". The system includes a purchase order sorting device. First, the order is decremented by price, and secondly, the purchase order is 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 in the order of increasing price first and decreasing order in 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 so as 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 performed within a given time period (for example,' within a day ') and trader-specific products. Cumulative location. This paper size is in accordance with China National Standard (CNS) A4 (210 X 297 mm) -32-(Please read the notes on the back · 11! 1111 ^ · 1111! 111-Item ¥ Write this page) Intellectual Property of the Ministry of Economic Affairs Printed by the Employees 'Cooperatives of the Bureau 505871 Α7 ____ Β7 Printed by the Consumers' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs V. Invention Description (3Q) Video telegram-based systems are also known, which basically allow traders to exchange typed messages . Although these systems can produce physical copies of records, rapid communication with the other party is greatly restricted because of the need to type each other and read all received messages when sending lengthy text messages. 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, conventional video telegram systems cannot monitor inputs 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 significantly reduce the input of information required by both parties' traders 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 an error-free completed transaction. In a similar manner, the composition of data transmissions can be monitored to reduce possible costly data entry errors when prices and quantities are being entered. Recently, the number of automated exchanges has increased, with one or more (please read the note on the back first &#; fill out this page)! _ 良 • II a ·· 丨 丨 丨 丨 Order ----- ---- Peak · This paper size applies Chinese National Standard (CNS) A4 specification (210 X 297 mm)-ά- 505871 A7 B7 V. Description of the invention (31) Central processors related to the remote end, via these terminals' Members of the exchange can conclude transactions or provide market information requested by members of the exchange. Although automated systems provide traders with many advantages, such as' preventing or at least inhibiting market manipulation, increasing the speed of closing transactions, recording the date of purchase or sale of a particular product, etc., it is actually impossible to match Exchanges around the world provide 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 with their own exchange's remote user members through their local exchanges and central exchanges, or with user members of any other exchange in the world. The exchange will monitor all transactions on each local exchange and provide market information to user members of any exchange belonging to all parts of the world. Therefore, 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 a user of the World Energy Exchange in Dallas wants to obtain information about the trading of specific commodities on the Paris Futures Exchange, it will communicate with the host computer of the Central Exchange and obtain that information. If the same user wishes to apply the Chinese National Standard (CNS) A4 specification (210 X 297 mm) to this paper standard of Paris Futures Exchange -34-(Please! T -_ Which is installed 丨 丨 _Order-1 丨丨 — 丨 1% write this page) Printed by the Employees 'Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs Printed by the Employees' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs Printed by 505871 A7 --- B7 V. Description of the invention (32) In addition-user member transactions It will enter the buying or selling price through his remote terminal to his local exchange, and then the local exchange will transmit this information to the central exchange host computer, and then to the Paris Futures Exchange via satellite system. The bid or ask price will be 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 futures exchanges 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 based on the paper size proposed by the Chinese National Standard (CNS) A4 (210 X 297 mm) -35-'· 1111111 a — — — — — — — — J (Please read the note on the back first Matters ^ 1 $ write this page) 505871 Printed by A7 B7, Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs. 5. Description of Invention (33) The input of the goods transaction and the trader member of the designated local exchange accept the transaction constituted by its 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. In traditional exchanges, after the transaction is completed, the card is handed to the exchange staff, who then enters the information into a 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, there may be errors during typing. Second, the two cards may have different prices for completing the transaction. Third, 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, an “unsettled transaction” ticket is created 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 the client is at a long distance, he is at a disadvantage because he is not involved in the settlement 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 paper size of this settlement book is applicable to the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -36-· emmm mmmam mmtm Βϋ 1 · ϋ One port ¥ a I — ammm mm — Mmmmm ϋ -ϋ at I (Please read the notes on the back before filling out this page) Printed by the Employees' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 505871 A7 B7 V. Description of Invention (34) The processing is computerized. However, since the information is entered manually, after the transaction facts, its price lies only in the accounting treatment and not in the control of transaction processing. The exchange only knows at the end of the day whether the trader has exceeded its position limit or incorrectly identified the clearing member or provided other incorrect information. In most exchanges, 300 to 400 people will be required to process transaction cards and complete settlement functions. As with today's systems oversight (ensuring proper operation and minimizing errors and abuses), there are also many issues. In existing exchanges, 'supervision is done through on-site surveillance. Employees of the exchange stand on the field and observe the occurrence of transactions. In the exchange market, there are close to 1,000 people, so it is best to observe irregularly. Some exchanges have programs to detect illegal trading instances. These illegal trading instances are repetitive, but even when such instances are detected, the information that can often be used as evidence is inaccurate and unreliable. The automated futures exchange of the present invention creates fully automated futures contract transaction processing, providing accurate and accurate information, transactions based on factual data, ensuring the execution and immediate confirmation of contracts, instant processing of information and control of electronic supervision, and the use of computers Hardware to implement processing. Since it is a combined process that allows the market to function properly, ‘unlike other exchanges, it does not separate settlement and supervision from futures transaction processing. All transactions executed on the automated futures trading system will be executed by a central computer complex program to process orders for exchange futures contracts. This central computer can only be accessed via specially programmed remote computer terminals distributed only to exchange members holding member passwords. Each remote terminal is made up of keyboard, printer, online storage device, and video monitor 'This paper size applies to China National Standard (CNS) A4 (210 X 297 mm) -37-— — — — — — — — I! — —: 1111111 ill — — — — — — ^^^ 1 · (Please read the notes on the back to write this page) 505871 A7 ---__ B7 Printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs V. Description of the invention (35) The video monitor will display the transaction information in the exchange. Members will be able to use these terminals to transfer the bid and ask prices of their accounts to the central computer for the bid and ask prices. When the order is transmitted to the central computer, it includes the quantity when the order was placed, and the capacity at the time of the order; that is, whether the agent will keep all the orders received, according to the order of each purchase and sale price and Displaying all selling prices by price and increasing by price will become part of the far end displayed for each member. The breadth of the market will also be shown. The purchase price represents a purchase price of 20 to 10 contracts. In addition, the futures contract of each remote terminal's video, when it is the person who manages it, will have the relevant grid, time, or himself. Pay the price and the price in a decreasing manner. Therefore, the video monitor is displayed. That is, for 0 contracts or multiple related assets, the buying characteristics of their own customer account will be compared with the amount of the entrusted exchange and the display of each buying market. 2 0 0 is 2 0 The time has the purchase price and the market information. Each contract and the purchase price, please read the note on the back first.

If I order, the monitor will display the selling price, the current price range, the number of each contract month, and allow the spread trading relationship (spread relationship, time, and product) between the same time. Regarding this process, the user wants to modify the buying or selling price, and then has the ability to modify the price at a remote terminal, which is analogous to a public outcry trading system, and is a good transaction. There is a "feel" in the existing transaction, but it cannot transmit any process. The video display is done by the keyboard. Seeing buy and because of its display, the trading volume and the total amount of buy and sell orders, and finally, the monthly contract difference between different contracts (according to moving the cursor to modify, so that the sellers of supply and demand in the market that can display the The paper size related to the market distribution applies the Chinese National Standard (CNS) A4 specification (210 X 297 mm) -38-Printed by the Intellectual Property Bureau Staff Consumer Cooperatives of the Ministry of Economic Affairs 505871 A7 B7 V. Description of the invention (36) Accurate information for Clients. The central computer of the Exchange will automatically match equal bid and offer prices to execute transactions on a first-come-first-served basis. Each transaction will be executed by the printing organization of the terminal of these members. Members of both parties confirmed immediately. 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 including straddling spread transactions, limit orders, and stop orders. Order. Since the bid and ask prices will be transmitted directly from the remote terminal to the computer, there will be no "unsettled transaction" opportunity Transaction means that the transaction is completed but the buyer and seller did not match. In addition, since the transaction is implemented only by computer, there will be an accurate time for each order entry, an accurate time for its execution, and an accurate time for the execution report to be transmitted Records. 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 the information is passed back and forth between themselves and the trader. At that time, 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 the transaction is completed, the system will accurately record them The status at the time of the agreement, therefore, members will be able to determine the volume of transactions that occur at any given time and have the information needed to determine whether they may enter and exit the market at the desired price position. Each terminal on the system will be specifically designated for transactions A certain number of contracts. The position limit of each individual therefore depends on the trust capabilities of the participants. Under the system of trading, members may far exceed their limits when performing transactions without being detected by the exchange. In this trading system, restrictions will be programmed * W IIIIIIIILIL--1 IIIIII illllllll (Please read the precautions on the back before (Fill in this page) This paper size is in accordance with China National Standard (CNS) A4 (210 X 297 mm) -39-Printed by the Employees' Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs 505871 A7 B7 V. Description of Invention (37) At each personal terminal In this way, the possibility of “unsettled transactions” caused by individual traders exceeding their limits is eliminated. During the trading period, on-site market supervision will be implemented through the control terminal at the exchange. Information will be fed directly into the monitoring system to detect Test the type of transaction that may be manipulated 'and ensure that all information is recorded as it was when the transaction occurred. 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. Although different embodiments are described above, it should be understood that they are merely 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. This paper size applies to China National Standard (CNS) A4 (210 X 297 mm) -40-(Please read the precautions on the back before filling this page)

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Claims (1)

505871 A8B8C8D8 6. Scope of Patent Application1. A method for estimating the waiting time of a limit order, including the following steps: (a) receiving a mark to identify the securities; (b) estimating the limit order of the securities to be traded The time required; and (〇) the time to output the limit order. 2 · The method according to item 1 of the scope of patent application, wherein the time is estimated as a function of the desired price of the limit order. 3. The method of item 1 in the scope of patent application, where the estimated time is a function of the expected probability of the limit order to be filled. 4 · The method of item 1 in the scope of patent application, in which the estimated time is a function of at least one of the current bid and ask prices of the security. 5 · The method according to item 1 of the scope of patent application, wherein the time is estimated on the server connected to multiple client computers via the network, and the marks are received from the client computers on the network. . 6 · If the method of the scope of patent application is the first, in which the following formula is used to estimate the time: T = (P-P1) / (PQ) 2, where: Printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs- ------------· II (Please read the notes on the back first | Write this page) • P1 = the price (inclusive) selected between the current bid and ask prices; .P = Pl + sign * sigma * discount * where: • If the limit order is a sell order, si gn = l, If the limit order is a buy order, s ign = — 1; • sigma = constant; this standard is applicable to China National Standard (CNS) A4 specifications (210 X 297 mm): 41-505871 A8B8C8D8 Employees of Intellectual Property Bureau, Ministry of Economic Affairs Printed by Consumer Cooperatives 6. Scope of Patent Application • Discount satisfies the equation: prob = 2 * CUMNORM (discount); Among them,. P r 〇 b = Hope probability of limit order execution:. CUMN〇RM (x) = definite integral of the standard normal density function of interval [0, x]; and. f (x) = 1 / sqrt (2 * π) exp (-x2 / 2); and • Q = P given x = —minutes 7 · The method of item 6 of the scope of patent application, where the predetermined time Calculate the sigma as a function of the historical movement of the security during the period. 8 · The method according to item 6 of the scope of patent application, wherein s i s m a is calculated as a function of the predicted change in the security over a predetermined period of time. 9 · The method according to item 6 of the patent application scope, wherein s i gma is calculated as a function of the current movement of the security. 10 • The method of item 6 in the scope of patent application, wherein s i gma is calculated as a function of the implied change in the security. 1 1 · The method according to item 6 of the patent application, wherein the sigma is calculated as a function of the forecast trading range of the securities within a predetermined time period ο 1 2 · The method according to item 6 of the patent application, wherein the following formula is used To calculate sigma: sigma = k * RF where: • k = constant; .RF = sqrt (T / n) * SUM [aj (Hi-Li)] i = 0 .... y; This paper scale applies to China Standard (CNS) A4 specification (210 X 297 mm) β 42-• n ϋ »inn ϋ nnnnnn I · ni (please read the notes on the back first to write this page) Order · 505871 ic8D8 6. The scope of patent application Among them:. a! = constant;. n = the length of the trading day in time (T); The current highest transaction price of the security; L 〇 = the current lowest transaction price of the security;. y = predetermined number of days;. the highest transaction price of the securities before day i; and. L1 = the lowest transaction price of the security i days ago. 1 3. The method according to item 12 in the scope of patent application, where k = sQrt (; r / 8) 0 1 4. The method according to item 12 in the scope of patent application, wherein at least one of a: is via regression And calculate. 15. The method according to item 12 of the scope of patent application, wherein at least one of a, is a function of s Cl r t (i). 16. The method according to item 6 of the scope of patent application, wherein the following formula is used to calculate si gma: sigma = k * RF, printed by the Consumer Cooperatives of the Intellectual Property Bureau of the Ministry of Economic Affairs !!! i 藤 I (Please read first (Notes on the back write this page) Where: k = constant; • RksqmT / nPSUMUKHi-Li)] i = 〇 .... y; where:. a i = constant; this paper size applies Chinese National Standard (CNS) A4 specification (210 > < 297 mm) -43-505871 505ΐ ___SI __ 6. Scope of patent application. n = the length of the trading day in time (D); = The current highest transaction price of the security;. = The current lowest transaction price of the security;. y = predetermined number of days;. = the highest transaction price of the securities at any time in the previous period; and. Li = minimum transaction price of the securities at any time in the i-day period. 17. The method according to item 16 of the scope of patent application, wherein at least one of '31' is calculated by regression. 1 8 · Method according to item 16 of the scope of patent application 'where k = sqrt (7Γ / 8) ° 19 · A computer program for estimating the waiting time of a limit order embedded in a computer-readable medium, including : (A) a code section that receives a mark to identify the securities; (b) a code section that limits the time at which a limit order for a security is to be executed; and (c) a code section that outputs the time of the limit order segment. 2 0 · — A system for estimating the waiting time of a limit order, including: (a) a logic organization that receives a mark to identify securities; printed by the Consumer Cooperative of the Intellectual Property Bureau of the Ministry of Economic Affairs I ------- -• 丨 J 丨 · .Loading ---- (Please read the note on the back first to write this page) (b) a logical mechanism for estimating the waiting time for the completion of a limit order for a security; and (c) a logical mechanism for the time for outputting a limit order. 2 1 · —A method for estimating the waiting time (d) of a limit order on a computer system, including the following steps: (a) receiving a mark for identifying securities from an input device; this paper size applies Chinese national standards ( CNS) A4 specification (210 X 297 mm) -44-A8B8C8D8 505871 VI. Patent application scope (b) Use the specified model stored in the memory device to automatically estimate the limit price of the securities according to the parameters specified by the user The time required for the order to be filled is represented by the mark. The parameters include the probability of the limit order to be filled and the price of the limit order; and (c) output the time of the limit order to the output device. 2 2 · —A computer-readable recording medium that enables a computer to perform processing of the estimated limit order waiting time (T), including: (a) processing of receiving a mark from an input device to identify securities; (b) Use the specified model stored in the memory device to automatically estimate the time required for the transaction of the limit order of the security to be executed according to the parameters specified by the user. The security is represented by the mark, and the parameter contains the limit order Probability of wishing to transact and hoped price of limit order; and (c) processing of outputting the time of the limit order to the output device. 2 3. A computer system for estimating the waiting time (T) of a limit order, including: (a) a unit for receiving a mark for identifying a security from an input device; (b) using a specified model stored in a memory device , A unit that automatically estimates the time required for the transaction of the limit order of the securities to be executed according to the parameters specified by the user, and the parameters include the probability of the order to be executed and the price at which the order will be executed; The time of the limit order is output to the unit of the output device. This paper size applies to China National Standard (CNS) A4 (210 X 297 mm) -45-(Please read the precautions on the back to write this page) Order-· Printed by the Intellectual Property Bureau of the Ministry of Economic Affairs, Consumer Cooperatives