Dynamic Market Data Publishing Rate Control

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Solution Overview

Problem

Existing methods for publishing market information to trader client devices often overwhelm the processing capacity of these devices, leading to latency and inefficiencies, especially in high-frequency trading environments where timely and accurate data is crucial.

Innovation Solution

A computer-implemented method and system that dynamically adjust the publishing rate of market data based on the client device's processing capacity, using a feedback-oriented network layer to ensure that data is only published when the device is ready to receive it, thereby preventing queue stagnation and reducing latency.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If market information is sent at a high rate to keep the data pipeline from becoming clogged, then data freshness is improved, but the trader's processing capacity is overwhelmed

Engineering Contradiction:
Improvedata freshnessVSAvoidprocessing capacity
Core Design Contradiction:
Measurement precisionVSProductivity

Solution Approach 1:

The patent applies dynamics by making the data publishing rate adaptive rather than fixed. The system dynamically adjusts the publishing rate based on real-time feedback about the client device's processing capacity, allowing the rate to increase when the device can handle more data and decrease when it approaches capacity limits. This resolves the contradiction by enabling high data freshness when processing capacity allows, while preventing overload when capacity is constrained.

Inventive Principle:
Principle #15Dynamics

Solution Approach 2:

The patent implements feedback mechanisms where the client device sends signals to the publisher about its processing status and data handling capacity. This feedback loop allows the publisher to adjust the data publishing rate accordingly, ensuring that the client is not overwhelmed while still receiving timely market information. The feedback principle directly addresses the contradiction by using real-time status information to balance data freshness requirements with processing capacity constraints.

Inventive Principle:
Principle #23Feedback

2Speed

If market updates are sent immediately upon change to provide quick response, then response speed is improved, but network bandwidth is exceeded and queue latency increases

Engineering Contradiction:
Improveresponse speedVSAvoidqueue latency
Core Design Contradiction:
SpeedVSLoss of time

Solution Approach 1:

The system dynamically adjusts the data publishing rate based on network conditions and client processing capacity. When network bandwidth is available and the client can process data quickly, the system sends updates immediately upon change, achieving fast response speed. When network bandwidth is constrained or the client approaches processing capacity, the system automatically reduces the publishing rate, preventing queue buildup and minimizing latency. This dynamic adjustment resolves the contradiction between response speed and queue latency.

Inventive Principle:
Principle #15Dynamics

Solution Approach 2:

The patent changes the parameter of data publishing rate from a fixed or maximum value to a dynamically adjusted value based on network and processing conditions. By monitoring network bandwidth availability and client processing capacity, the system modifies the publishing rate parameter in real-time, ensuring that updates are sent as quickly as possible when conditions permit while preventing bandwidth exhaustion and queue latency when conditions constrain data transmission.

Inventive Principle:
Principle #35Parameter changes

3Productivity

If a fixed time interval is used for data publishing to prevent pipeline clogging, then processing capacity is protected, but data delivery timeliness deteriorates

Engineering Contradiction:
Improveprocessing capacityVSAvoiddata delivery timeliness
Core Design Contradiction:
ProductivityVSLoss of time

Solution Approach 1:

The patent replaces fixed time interval publishing with dynamic rate-based publishing. Instead of sending data at predetermined intervals regardless of market conditions, the system publishes data at a rate commensurate with the client's processing capacity and network conditions. This allows the system to protect processing capacity by reducing the publishing rate when necessary, while maintaining data delivery timeliness by increasing the rate when the client can process data quickly and network bandwidth is available.

Inventive Principle:
Principle #15Dynamics

Solution Approach 2:

The system dynamically changes the data publishing rate parameter based on real-time monitoring of client processing capacity and network conditions. Rather than using a static time interval, the publishing rate is adjusted upward when the client can handle more data quickly, improving data delivery timeliness. The rate is reduced when processing capacity is constrained, protecting the system from overload. This parameter change approach resolves the contradiction between processing capacity protection and data delivery timeliness.

Inventive Principle:
Principle #35Parameter changes

Data Source

PatentEP2960850B1Method and apparatus for publishing market information
Publication Date: 2023.08.02 CHICAGO MERCANTILE EXCHANGE INC
  • EP2960850B1 patent drawingFigure 1
  • EP2960850B1 patent drawingFigure 2
  • EP2960850B1 patent drawingFigure 3

AI summary

A method and apparatus for publishing market data for a financial instrument utilizes existing network layer acknowledgement feature to publish market data for the financial instrument to a client device at rates in which the client device is able to process the data. The publishing rate is dynamic, as opposed to being fixed, and is able to adjust "on-the-fly" so as to prevent message queue stagnation.