Market Data Hub Entitlement Controls for Secure Sharing
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Solution Overview
Problem
Financial institutions face challenges in sharing market data due to data monopolies, limited innovation, and concerns over sensitive information disclosure, leading to restricted access and high costs for market data services.
Innovation Solution
A multi-dealer market data distribution system with a secure communications platform and complex event processing engine that aggregates market data while applying entitlement controls, providing secure access and reducing costs through transparency and standardization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If financial institutions share market data through information brokers, then data availability and transparency improve, but data security and control over sensitive information deteriorate
Solution Approach 1:
The patent introduces a market data hub as an intermediary platform that receives market data from multiple contributors and distributes it to subscribers. The hub applies entitlement controls and access policies to manage data distribution, acting as a trusted mediator that enables data sharing while maintaining security and control mechanisms.
Solution Approach 2:
The system dynamically changes access parameters by applying different entitlement controls to different data contributors and subscribers. Access rights, data formats, and distribution parameters are adjusted based on contributor preferences and subscription levels, enabling flexible data sharing with maintained security.
2Reliability
If entrenched vendors maintain data monopolies in specific asset classes, then data control and security are maintained, but innovation and competition are limited
Solution Approach 1:
The patent segments the market data distribution system into multiple independent contributors and subscribers connected through a hub. This segmentation breaks vendor monopolies by allowing multiple data sources to coexist and compete, while each contributor maintains control over their own data through entitlement controls.
Solution Approach 2:
The market data hub provides universal access to multiple types of market data from different asset classes through a single platform. It supports multiple contributors and subscribers with diverse needs, enabling innovation across different financial instruments and data types without requiring separate proprietary systems.
3Reliability
If financial institutions restrict access to sensitive data, then data security is maintained, but data quality and optionality for market analysis deteriorate
Solution Approach 1:
The patent applies local quality by implementing contributor-specific entitlement controls that allow each data contributor to define their own access policies. Different levels of data quality and access are provided to different subscribers based on their needs and authorization, enabling secure sharing while maintaining data quality for authorized users.
4Adaptability or versatility
If multiple data sources are aggregated, then market data availability and competition improve, but system complexity and entitlement management deteriorate
Solution Approach 1:
The market data hub provides universal functionality for aggregating data from multiple contributors and distributing it to numerous subscribers. It handles entitlement management, data formatting, and distribution through a single unified platform, reducing the complexity that would arise from managing multiple separate data exchange systems.
Data Source
AI summary
An embodiment of the present invention is directed to a market data hub. The innovative system comprises a processing engine that manages contributed content and allows for custom analytics, alerting, reporting, machine learning interfaces, etc., while preserving entitlements controls specific to participants. Moreover, the system disseminates market data to downstream consumers and syndicated entities that are entitled to view the market data.