Dynamic Channel Assignment for Electronic Trading Networks
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Solution Overview
Problem
Current network configurations in electronic trading environments are inefficient, leading to increased burden on receiving computers, reduced data throughput, and potential network failures due to uneven distribution of trading volume across channels.
Innovation Solution
A dynamic channel assignment system where tradeable objects are assigned to channels based on defined criteria, with real-time updates communicated over a master channel, allowing for flexible and scalable data distribution, reducing the need for excessive filtering and minimizing downtime during channel reassignments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If all price feeds are multicast to every subscribing computer on the network, then all traders receive complete market data, but the burden on receiving computers increases substantially due to excessive filtering requirements
Solution Approach 1:
The patent segments the network into multiple virtual channels, each dedicated to specific products or product groups. Instead of flooding all price feeds to all computers, the system divides market data into organized channels where traders subscribe only to relevant channels based on their trading interests, eliminating the need for extensive filtering at receiving computers.
Solution Approach 2:
The patent introduces a channel assignment mechanism that acts as an intermediary between price feed sources and subscribing computers. This intermediary systematically routes price feeds to appropriate virtual channels based on product identifiers, allowing computers to receive only relevant data without manual filtering while maintaining complete data delivery to interested parties.
2Productivity
If products are grouped onto several different channels with fixed bandwidth, then network utilization improves, but the system becomes inflexible when trading volume spikes for particular products
Solution Approach 1:
The patent implements dynamic channel assignment where the system can adaptively reassign products to different virtual channels based on real-time trading volume and channel utilization. When a product experiences a trading volume spike, the system dynamically routes its price feeds to channels with available capacity, maintaining flexibility while optimizing network utilization across varying market conditions.
3Adaptability or versatility
If dynamic channel reassignment is performed, then network flexibility and load balancing improve, but downtime may occur during channel reassignments
Solution Approach 1:
The patent implements preliminary notification mechanisms where traders are alerted before channel reassignments occur. The system provides advance notice of upcoming reassignments, allowing traders to prepare their systems. Additionally, the reassignment process is coordinated to minimize disruption, with price feeds temporarily routed through intermediate channels to ensure continuous data flow during the transition period.
Data Source
AI summary
A system and method are provided that, among other things, can reduce the burden on receiving computers, increase data throughput, reduce system failure, and provide components of a scalable and flexible network architecture. Specifically, the system and method provide a multichannel-multicast network environment for use in dynamically assigning data to channels. This configuration is particularly useful in a trading network environment, as it effectively performs channel reassignments in a way not to disturb the receipt of the underlying data. While the example embodiments described herein pertain to electronic trading, the principles of the present invention may be equally applied in other environments where the advantages presented herein are beneficial.