Distributed Combo Order Protocol for Atomic Multi-Engine Execution

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Solution Overview

Problem

Existing exchange systems struggle to execute combination orders (combo orders) across multiple distributed matching engine (ME) instances in an atomic manner, leading to potential price slippage and increased latency due to the limitations of distributed ME architectures.

Innovation Solution

A combo order protocol that enables ME instances to synchronize state across distributed ME instances through direct inter-process communication, eliminating the need for a centralized transaction controller, ensuring atomic transactions with minimal latency and zero price slippage.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If order book locking is used to ensure atomic transactions across distributed matching engine instances, then transaction reliability is improved, but processing latency increases and scalability deteriorates

Engineering Contradiction:

Improvetransaction reliabilityVSAvoidprocessing latency

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system segments the atomic transaction coordination into distributed matching engine instances, each managing its own order book independently. Instead of locking entire order books across all instances, each instance locks only its local order book during atomic transactions, enabling parallel processing and reducing overall latency while maintaining transaction reliability.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

A centralized transaction controller acts as an intermediary to coordinate atomic transactions across distributed matching engine instances. The controller manages transaction coordination without requiring locks on remote order books, using communication protocols to ensure atomicity while minimizing processing latency through efficient inter-process communication.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If centralized controllers are used to manage atomic transactions across distributed matching engine instances, then transaction coordination is improved, but system scalability deteriorates and single points of failure are introduced

Engineering Contradiction:

Improvetransaction coordinationVSAvoidsystem scalability

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The system segments transaction coordination responsibilities by implementing distributed matching engine instances that can operate independently. Each instance manages its own order book and can execute atomic transactions locally, reducing dependency on a single centralized controller and enabling horizontal scaling while maintaining coordination through communication protocols.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

Each distributed matching engineinstance is assigned specific local responsibilities for managing particular order books. This local quality approach allows each instance to operate autonomously with its own locking mechanisms, eliminating the need for a centralized controller to manage all transactions and enabling the system to scale by adding more independent instances.

Inventive Principle:

Principle #3Local quality

3Reliability

If centralized controllers coordinate atomic transactions across distributed matching engine instances, then transaction atomicity is improved, but device complexity increases

Engineering Contradiction:

Improvetransaction atomicityVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system segments the complex transaction coordination function across multiple distributed matching engine instances, each handling atomic transactions for its assigned order books independently. This segmentation reduces the complexity burden on any single component while maintaining overall transaction atomicity through coordinated communication between instances.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

Each distributed matching engineinstance implements its own transaction coordination and locking mechanisms, making the system self-managing. Instances autonomously handle atomic transactions for their assigned order books without requiring complex centralized control, reducing overall system complexity while maintaining transaction atomicity through peer-to-peer coordination.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS12614231B2Systems and methods for deriving synthetic assets and atomic transaction processing for the same

Publication Date: 2026.04.28 BGC PARTNERS LP

AI summary

An exchange system is disclosed that implements a combo order protocol that allows for combo orders to be provisioned across a plurality distributed ME instances. The plurality of distributed ME instances of the exchange system can maintain an order book for an associated asset when in a “normal” state, and can be configured to transition from the normal state to a combo order transaction state to execute a leg of a provisioned combo order in concert with the other associated ME instances, and in an atomic manner that both guarantees zero price “slippage” for the combo order and that minimizes or otherwise reduces the potential for introducing processing latencies (e.g., due to order book locking by distributed ME instances).