Distributed Ledger Market Data Hub
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Solution Overview
Problem
Financial institutions face challenges in securely distributing market data across multiple dealers while maintaining privacy controls and avoiding data monopolies, which limits innovation and increases costs.
Innovation Solution
A multi-dealer market data distribution system utilizing distributed ledger technology, such as Quorum Blockchain, that aggregates market data from multiple contributors, applies privacy controls, and provides syndication controls to each member, ensuring secure and transparent data sharing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If data is centralized in a few vendors, then data distribution control is improved, but data monopoly and lack of innovation occur
Solution Approach 1:
The patent segments the centralized data distribution system into a distributed network of independent nodes. Each node operates autonomously while contributing to the overall data distribution ecosystem, eliminating the monopoly of a single vendor while maintaining coordinated control through consensus mechanisms.
Solution Approach 2:
The patent combines multiple independent data sources and distribution nodes into a unified distributed ledger network. This merging creates a collaborative ecosystem where multiple vendors contribute data and control simultaneously, preventing any single entity from monopolizing the data distribution while maintaining system-wide coordination.
2Loss of information
If financial institutions share market data widely, then transparency and innovation are improved, but privacy control and security risks worsen
Solution Approach 1:
The patent implements local quality by allowing different privacy control levels for different data contributors and recipients. Each participant can define specific access permissions and privacy policies for their contributed data, enabling selective transparency where data is shared appropriately while maintaining privacy controls where needed.
Solution Approach 2:
The distributed ledger acts as an intermediary that enables transparent data sharing while automatically enforcing privacy controls. The ledger's consensus mechanism and smart contracts mediate between the need for transparency and privacy protection, allowing data to be shared widely with verifiable provenance while maintaining contributor-defined access restrictions.
3Loss of information
If distributed ledger technology is implemented, then data sharing transparency is improved, but system complexity increases
Solution Approach 1:
The patent implements a universal distributed ledger platform that performs multiple functions: data storage, transparency verification, privacy control enforcement, and consensus validation. This multi-functional approach consolidates what could be separate complex systems into a single unified infrastructure, reducing overall system complexity while maintaining transparency.
Data Source
AI summary
An embodiment of the present invention is directed to a Market Data Hub with Distributed Ledger Technology. The innovative system and method are directed to implementing a Quorum Blockchain Node that manages contributed content and allows for custom analytics, alerting, reporting, machine learning interfaces, etc., while preserving entitlements controls and privacy controls specific to participants. Moreover, the system and method disseminates market data to downstream consumers and syndicated entities that are entitled to view the market data.