Dynamic Market Data Distribution Bandwidth Adaptation

Solution Overview

Problem

Electronic exchanges face challenges in balancing the timeliness and amount of market information distribution with bandwidth limitations, leading to either slow responses to changing market conditions or network congestion due to existing data distribution models.

Innovation Solution

A data distribution system and method that dynamically switches between real-time updates and interval-based updates based on bandwidth monitoring, allowing for adaptable market information transmission, ensuring a network-friendly, data-intensive, and fast response feed.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Speed

If incremental updates are sent every time the inside market or market depth changes, then rapid response to changing market conditions is achieved, but network bandwidth is surpassed and updates are queued causing delays

Engineering Contradiction:

Improveresponse speed to market changesVSAvoidnetwork bandwidth consumption

Core Design Contradiction:

SpeedVSQuantity of substance

Solution Approach 1:

The system dynamically adjusts the update frequency based on current market conditions and network bandwidth availability. When bandwidth is abundant, incremental updates are sent rapidly to provide real-time market information. When bandwidth is constrained, the system transitions to snapshot updates at predetermined intervals, preventing network saturation while maintaining acceptable information flow.

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The patent changes the parameter of update frequency from fixed to variable. By monitoring network bandwidth and market activity levels, the system adjusts the timing and frequency of market information updates, switching between real-time incremental updates and interval-based snapshot updates to optimize the balance between response speed and bandwidth consumption.

Inventive Principle:

Principle #35Parameter changes

2Quantity of substance

If snapshot updates are sent at programmed time intervals, then predictable network bandwidth requirements are achieved, but response to changing market conditions is slow

Engineering Contradiction:

Improvenetwork bandwidth consumptionVSAvoidresponse speed to market changes

Core Design Contradiction:

Quantity of substanceVSSpeed

Solution Approach 1:

The system dynamically adjusts the update frequency based on current market conditions and network bandwidth availability. When bandwidth is abundant, incremental updates are sent rapidly to provide real-time market information. When bandwidth is constrained, the system transitions to snapshot updates at predetermined intervals, preventing network saturation while maintaining acceptable information flow.

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The patent changes the parameter of update frequency from fixed to variable. By monitoring network bandwidth and market activity levels, the system adjusts the timing and frequency of market information updates, switching between real-time incremental updates and interval-based snapshot updates to optimize the balance between response speed and bandwidth consumption.

Inventive Principle:

Principle #35Parameter changes

3Loss of information

If a tremendous amount of market information is generated to characterize the market, then traders can make better-informed trades, but bandwidth limitations prevent adequate delivery of this information

Engineering Contradiction:

Improvemarket information completenessVSAvoidnetwork bandwidth consumption

Core Design Contradiction:

Loss of informationVSQuantity of substance

Solution Approach 1:

The patent segments market information into two types: incremental updates that provide only changed data elements, and snapshot updates that provide complete market state at predetermined intervals. This segmentation allows the system to deliver comprehensive market information through snapshots while using bandwidth-efficient incremental updates for real-time changes, reducing overall bandwidth consumption while maintaining information completeness.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system uses partial action by sending only the necessary portion of market information at each update interval. Incremental updates transmit only the specific data elements that have changed since the last update, rather than transmitting complete market data sets, thereby reducing bandwidth consumption while still providing traders with timely and relevant market information.

Inventive Principle:

Principle #16Partial or excessive action

Data Source

PatentUS7624063B1System and method for improved distribution of market information

Publication Date: 2009.11.24 TRADING TECHNOLOGIES INTERNATIONAL INC

AI summary

A data distribution system and method are described herein to improve the distribution of market information to subscribing client devices. Market information updates are provided to subscribing devices over a communication link every time a change in the market occurs. If a bandwidth limitation is reached on the communication link, the preferred embodiments switch to a second mode of transmission such that the market information updates are provided only at predetermined intervals. The preferred embodiment monitors the bandwidth consumption to determine what mode of transmission to apply, and in response, it can dynamically change between modes of transmission. By dynamically adjusting the mode of transmission to comport with the current network bandwidth, the preferred embodiments may provide a network friendly, data intensive, and fast response market information feed.