Financial Market Message Scoring for Lower Traffic

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Solution Overview

Problem

Current financial instrument trading systems face inefficiencies in message processing, leading to strain on computer systems and networks, high bandwidth and processing time consumption, and significant memory and storage requirements due to large numbers of messages.

Innovation Solution

Implementing a system that scores financial market messages based on efficiency and liquidity, using algorithms to evaluate message quality and assign scores, which can be used to charge fees or provide rewards, thereby encouraging efficient message use.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If traders submit multiple individual messages to modify or cancel orders, then trading flexibility and control are improved, but message traffic volume increases straining computer systems and networks

Engineering Contradiction:

Improvetrading flexibilityVSAvoidmessage traffic volume

Core Design Contradiction:

Adaptability or versatilityVSQuantity of substance

Solution Approach 1:

The patent combines multiple individual messages (cancel order message and new order message) into a single modify order message. This merging approach maintains trading flexibility while reducing the total number of messages transmitted, thereby decreasing strain on computer systems and networks.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The modify order message serves multiple functions: it can modify order parameters, cancel existing orders, and place new orders all through a single message type. This multi-functionality eliminates the need for separate message types for each operation, reducing message traffic volume while maintaining trading flexibility.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Ease of manufacture

If individual messages are processed separately, then message processing simplicity is maintained, but bandwidth and processing time consumption increase

Engineering Contradiction:

Improvemessage processing simplicityVSAvoidbandwidth and processing time consumption

Core Design Contradiction:

Ease of manufactureVSUse of energy by moving object

Solution Approach 1:

By merging multiple operations into a single modify order message, the system reduces the total number of processing operations required. This decreases bandwidth consumption and processing time while maintaining the simplicity of processing through standardized message handling.

Inventive Principle:

Principle #5Merging (Combining)

3Productivity

If large numbers of messages are transmitted, then trading activity and liquidity are improved, but memory and storage requirements increase

Engineering Contradiction:

Improvetrading activityVSAvoidmemory and storage requirements

Core Design Contradiction:

ProductivityVSVolume of stationary object

Solution Approach 1:

The modify order message serves as a universal message type that can represent multiple trading operations. This reduces the total number of messages that need to be stored and processed, decreasing memory and storage requirements while maintaining trading activity and liquidity.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS20250315891A1Message processing

Publication Date: 2025.10.09 CHICAGO MERCANTILE EXCHANGE INC

AI summary

Systems and methods are provided for scoring the use of financial market messages. Uses of messages that are efficient and/or improve market liquidity receive positive scores. Traders are charge fees or receive rewards that are dependent upon message quality scores.