Decentralized Financial Quote Dissemination via Authenticated Social Posts
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Solution Overview
Problem
The centralized dissemination of pricing quotations in open outcry financial markets becomes impractical as the number of financial products increases, necessitating improved and decentralized systems for transmitting pricing information from the trading floor.
Innovation Solution
A financial exchange authorizes traders to post verified messages on social networks, using authenticated user names to disseminate information about financial activities, including pricing quotations, through a computing device connected to the exchange, allowing for decentralized dissemination and validation of market data.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If a centralized system with pit reporters is used to disseminate pricing quotations, then the system is simple to manage and control, but the system becomes impractical and inefficient as the number of financial products increases
Solution Approach 1:
The patent divides the centralized reporting function into multiple decentralized trader participants. Instead of relying on a single centralized pit reporter system, multiple traders are authorized to independently post pricing quotations directly to the electronic quotation system. This segmentation allows the system to handle increasing numbers of financial products efficiently while maintaining manageability through distributed responsibility.
2Productivity
If multiple traders are authorized to post pricing information directly, then the dissemination efficiency improves, but the reliability and accuracy of pricing information may deteriorate without proper validation
Solution Approach 1:
The patent implements a validation mechanism where the exchange computer system receives pricing quotations from authorized traders, validates them against current market data and pricing rules, and only posts verified quotations to the electronic quotation system. This feedback loop ensures that while multiple traders can efficiently disseminate pricing information, the reliability and accuracy are maintained through systematic verification and correction of any erroneous quotations.
Data Source
AI summary
One or more methods may be used to disseminate floor quotes from an open outcry financial market, such as via messages posted on a social network. These messages may include additional information for providing “color” to the price quotation. In some cases, a method of disseminating the floor quotes may include receiving, at a computer device, a request from a trader to receive an authenticated user name associated with a financial exchange. The financial exchange may then permit the trader to post one or more messages to a social network using the authenticated user name, where the message includes information about a trade on the financial exchange.