Deterministic Public Tokens for Confidential Market Data Routing
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing electronic trading systems face challenges in managing redundant and overlapping communications, maintaining confidentiality of sensitive information, and ensuring equitable access to market data, leading to network congestion and potential market information imbalances.
Innovation Solution
Implementing a token management system using deterministically reproducible key pairs to securely transmit financial messages, allowing market participants to encrypt and decrypt confidential information, and route messages through a universal source like a blockchain, eliminating redundant communications and ensuring simultaneous access to data.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If the exchange computing system generates multiple messages (direct/private and public) containing overlapping information, then market participants receive comprehensive information, but network congestion increases and system efficiency decreases
Solution Approach 1:
The patent segments information into two distinct categories: public market data that can be freely disseminated, and confidential information that requires selective distribution. By separating these information types and using different transmission mechanisms (public feeds vs. encrypted direct messages), the system eliminates redundant transmissions while ensuring both public information accessibility and confidential information security, thereby resolving the contradiction between information completeness and system efficiency
Solution Approach 2:
The patent changes the encryption parameter state dynamically: confidential information is encrypted when transmitted to subsets of market participants and can be decrypted only by authorized recipients. This parameter change (encrypted vs. plaintext) allows the same information to be selectively distributed without creating redundant unencrypted transmissions, thus improving system efficiency while maintaining information completeness
2Ease of operation
If confidential information is included in publicly available result messages, then all market participants can access the information, but confidentiality is compromised
Solution Approach 1:
The patent introduces encryption as an intermediary mechanism between confidential information and market participants. The encryption algorithm acts as a mediator that allows confidential information to be included in public messages while maintaining confidentiality - only authorized participants with decryption keys can access the actual confidential content, thus achieving both information accessibility and confidentiality preservation simultaneously
3Adaptability or versatility
If data is replicated in multiple locations to support complex business relationships, then information availability improves, but data consistency and accuracy deteriorate
Solution Approach 1:
The patent extracts the confidentiality requirement from the data replication problem by using encryption. Instead of replicating confidential information in multiple locations (which would cause consistency issues), the system extracts only the necessary public information for replication and keeps confidential information encrypted and selectively accessible. This allows the system to support complex business relationships through public data replication while maintaining data consistency by avoiding unnecessary confidential data replication
Data Source
Figure 1
Figure 2
Figure 3A
AI summary
A computer implemented method includes generating, by a processor associated with a first client computer, a request message; generating, by the processor, a first public token based on a first private token; augmenting, by the processor, the electronic data transaction request message with the first public token; transmitting, by the processor, the augmented electronic data transaction request message to a second client computer; generating, by the processor, a second public token based on the first public token; identifying, by the processor, from a database of result messages, a result message labeled with the second public token, the identified result message including encrypted confidential information; generating, by the processor, a second private token corresponding to the second public token used to identify the result message; and decrypting, by the processor, the encrypted confidential information with the second private token.