Interferometric Fiber Optic Trading Detection

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Existing methods for securities trading event detection and communication are impractical and unstable due to the need for continuous updates in optimal trading location calculations, which can lead to missed opportunities and costly physical relocations, and are dependent on accurate modeling and computations.

Innovation Solution

A system using embedded interferometric detectors in fiber optic cables to detect trading opportunities through interferometric constructive or destructive interference, sending trading instructions analog-to-digital, and determining optimal trading sites based on the first occurrence of price separation between markets, eliminating the need for complex computations and physical relocations.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If continuous updates in optimal trading location calculations are performed using existing methods, then trading accuracy may be maintained, but system stability deteriorates and physical relocations become necessary

Engineering Contradiction:

Improvetrading detection accuracyVSAvoidsystem stability

Core Design Contradiction:

Measurement precisionVSStability of the object's composition

Solution Approach 1:

The patent replaces mechanical computation systems with an optical interferometric system. Trading opportunities are detected through optical interference patterns in fiber optic cables, eliminating the need for continuous digital calculations and physical relocations of trading operations. The interferometric detection provides stable, continuous monitoring without requiring system updates or physical moves.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent introduces fiber optic cables as intermediaries to detect trading opportunities. Instead of directly computing optimal locations, the system uses optical signals transmitted through fiber cables that passively detect price separations between markets. This intermediary approach stabilizes the system by removing the need for active computation and physical relocation.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Measurement precision

If complex computations and accurate modeling are used for trading event detection, then detection accuracy improves, but system complexity increases

Engineering Contradiction:

Improvetrading event detection accuracyVSAvoidsystem complexity

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The patent replaces complex computational modeling with optical interferometry. The fiber optic cable system naturally detects price separations through optical interference, eliminating the need for complex algorithms, data modeling, and computational resources. The physical optical system performs the detection function that would otherwise require sophisticated software.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The interferometric system is self-service in that it passively detects trading opportunities through the natural propagation of optical signals in the fiber cables. The system uses the existing infrastructure of fiber optic communication cables to detect arbitrage opportunities without requiring additional computational infrastructure, data centers, or complex processing equipment.

Inventive Principle:

Principle #25Self-service

3Productivity

If physical relocations are performed to maintain optimal trading locations, then trading efficiency may be maintained, but costs increase and opportunities may be missed

Engineering Contradiction:

Improvetrading efficiencyVSAvoidtime for relocation

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The patent replaces physical relocation of trading operations with optical signal detection. The interferometric system continuously monitors multiple markets through fiber optic cables and automatically identifies trading opportunities, eliminating the need to physically move trading infrastructure. This substitution maintains trading efficiency while eliminating relocation time and associated costs.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Applied Scientific Principles

This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.

Function Achieved in This Case

This approach enables rapid and efficient detection and communication of trading events, automatically determining optimal trading sites without costly relocations, and outperforms digital systems in speed and accuracy by leveraging interferometric interference for arbitrage opportunities.

Implementation Method 1

detect a predetermined security trading opportunity by interferometric constructive or destructive interference

Methodology Applied

Scientific EffectInterferometric interference: Interference

Data Source

PatentUS10262367B2System and method of interferometric securities trading, event detection, and communication

Publication Date: 2019.04.16 PARKER JR EDGAR

AI summary

A system comprising an analog liber optic cable or cables with embedded or attached interferometric detectors along its length configured to detect a predetermined security trading opportunity by interferometric constructive or destructive interference. Upon detection of the predetermined trading opportunity the system is configured to send trading instructions to the opposite ends of the fiber optic network and to translate those trading instructions from analog to digital encoding.