Latency Equalization for Fair Electronic Test Order Execution
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Solution Overview
Problem
Existing electronic test environments fail to provide a level playing field for portfolio construction tests due to disparities in computational power and speed, leading to unfair advantages for systems with superior processing capabilities, and lack effective latency management for inbound and outbound data transmission.
Innovation Solution
Implementing a system that levels inbound and outbound latencies through latency equalization techniques, using structured data processing and machine learning models to manage data transmission and ensure fair portfolio construction, while maintaining data security and privacy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If systems with superior computational power and speed are used in electronic test environments, then processing efficiency and portfolio construction speed are improved, but unfair advantages are created leading to latency arbitrage opportunities
Solution Approach 1:
The patent introduces a central server as an intermediary that receives portfolio construction requests from multiple computing systems, processes them centrally, and distributes results. This mediator equalizes the playing field by ensuring all participants go through the same processing pipeline, eliminating unfair advantages from local computational power disparities while maintaining overall system productivity
Solution Approach 2:
The system implements latency equalization techniques that ensure all computing systems experience substantially similar transmission delays when communicating with the central server. This creates equipotential conditions where no participant gains unfair advantage from faster local processing, as all operations are synchronized through the central coordination point
2Speed
If real-time data processing is implemented for portfolio construction, then responsiveness and user experience are improved, but inbound information latencies create unfair advantages
Solution Approach 1:
The patent merges the data processing operations of multiple computing systems into a single centralized processing pipeline. By combining all portfolio construction requests and processing them through the same server, the system ensures that all participants receive results at the same time, eliminating inbound information latency disparities while maintaining real-time responsiveness through efficient batch processing
3Adaptability or versatility
If computational systems with varying processing speeds participate in portfolio rebalancing tests, then system versatility and adaptability are improved, but outbound order execution latencies create latency arbitrage
Solution Approach 1:
The system performs preliminary actions by receiving all portfolio construction requests before executing any processing or distributing results. This preliminary collection phase allows the central server to equalize processing conditions for all participants, ensuring that outbound order execution latencies do not create unfair advantages, while still accommodating diverse participant requirements
Data Source
AI summary
Methods, systems, and apparatus, including computer programs encoded on a computer storage medium, for accessing, by a data processing system and from a hardware device, outbound latency data and inbound latency data defining an outbound latency and an inbound latency to control a transmission of electronic test orders from a plurality of test subject devices independent of the computational powers of multiple test subject devices. The outbound latency defined by the outbound latency data is restricted to execution of electronic test orders and transmission of an electronic test order is restricted to one or more times. An execution of electronic test orders is triggered by an electronic test environment.