Abstract: A method for enforcement of trading limits for groups of traders. Each trader's workstation periodically transmits information on the trader's outstanding and executed orders to a risk management workstation. The risk management workstation aggregates this information for the traders in the group and returns this global information periodically to each trader's workstation. When a trader wishes to transmit an order to buy or sell a commodity to an exchange, the trader's workstation determines whether the trade will cause trading limit thresholds to be exceeded, based on the updated information at the trader's workstation. If trading limits would be exceeded, the trader's workstation prevents submission of the order. If trading limits are met, the workstation submits the trade order to the exchange. Thus, bottlenecks caused by centralized trading limit enforcement techniques may be avoided.

Abstract: A method for trading securities. A trader generates a variable derivative product order that identifies at least a derivative product, an underlying financial product or instrument, a pricing formula, and values of price determination variables needed by the pricing formula to establish a price for the derivative. The variable product order is transmitted electronically to an exchange. The exchange calculates the offered price of the derivative using a value of the underlying product and publishes offers to potential traders. The offered price is recalculated as the value of the underlying products changes and republished to potential traders. Trades may then be executed based on the offered prices. Hedging trades may be executed in combination with trades made based on the variable derivative product orders.

Abstract: A method for trading securities including options. A trader generates a variable derivative product order that identifies at least a derivative product, an underlying financial product or instrument, a pricing formula, and values of price determination variables needed by the pricing formula to establish a price for the derivative. The variable product order is transmitted electronically to an exchange. The exchange calculates the offered price of the derivative using a value of the underlying product and publishes offers to potential traders. The offered price is recalculated as the value of the underlying products changes and republished to potential traders. Trades may then be executed based on the offered prices. Hedging trades may be executed in combination with trades made based on the variable derivative product orders.