Fractional Trade Input Layer for Constrained Transaction Precision
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Solution Overview
Problem
Electronic transaction processing systems often impose constraints on data inputs, limiting precision and flexibility, which can restrict the accuracy and utility of outputs and complicate the implementation of these systems.
Innovation Solution
A system and method enabling unconstrained data inputs, specifically allowing fractional quantities for futures contracts, through a hybrid physical and cash settlement mechanism, which creates a user-defined tradable future contract (UDF) that allows precise alignment with user goals without modifying the underlying system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If constraints are imposed on data inputs (e.g., limiting to whole numbers), then the system implementation is simplified and resources are reduced, but the precision of outputs is limited
Solution Approach 1:
The patent introduces an intermediary layer between the user interface and the core trading system. This intermediary accepts unconstrained inputs (including fractional values) from users, processes them through a wrapper class that handles the precision requirements, and then submits appropriately formatted orders to the constrained trading system. This mediator resolves the contradiction by allowing high-precision user input while maintaining the simplified constrained system architecture.
Solution Approach 2:
The system is segmented into distinct components: a user interface layer that accepts unconstrained inputs, a wrapper class that processes and validates the inputs according to system constraints, and the core trading system that executes orders. This segmentation allows each component to operate at its optimal precision level without forcing constraints on the entire system, thereby maintaining both precision and simplicity.
2Adaptability or versatility
If constraints are imposed on data inputs (e.g., limiting to whole numbers), then the system uses fewer resources, but the flexibility and adaptability of the system is reduced
Solution Approach 1:
The wrapper class acts as an intermediary that provides flexibility to the system by accepting various input formats including fractional values, while the core trading system continues to use efficient constrained processing. The intermediary handles the adaptability requirements without requiring the entire system to be redesigned, thus maintaining resource efficiency while increasing flexibility.
3Ease of operation
If constraints are imposed on data inputs, then the system is easier to operate and maintain, but the precision with which inputs may be provided is restricted
Solution Approach 1:
Instead of constraining the user interface to match system limitations, the patent inverts the approach by allowing the user interface to accept unconstrained high-precision inputs and then having the intermediary layer adapt the data to system requirements. This inversion maintains ease of operation for users while ensuring system compatibility through the wrapper class processing.
Data Source
AI summary
The disclosed embodiments relate to automatically enabling unconstrained inputs of data, e.g., related to quantities of a proposed trade order for submission to an electronic trading system from parties in an electronic data transaction system that enforces constraints, e.g., a maximum precision in specified quantities, on the inputs relating to the proposed trades that can be submitted by the counterparties. The disclosed embodiments relate to a user interface and system that enables a participant to specify quantities for trades with an increased precision, e.g., fractional quantities, enabling more precise alignment of the transactional characteristics with the specific goals of the participant, in an electronic trading system which constrains tradeable quantities to a maximum allowable precision, e.g., such as whole number quantities, based on business and/or regulatory requirements, e.g., requirements which dictate, for example, that transactions may only take place in whole number quantities or units.