Market Data Hub with Entitlement Controls
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Solution Overview
Problem
Financial institutions face challenges in securely sharing and distributing sensitive market data due to data monopolies and lack of transparency, leading to high costs and limited innovation, as well as concerns over disclosure and entitlement controls.
Innovation Solution
A multi-dealer market data distribution system that receives and aggregates market data from multiple contributors, applies entitlement controls, and provides secure communication and syndication, using a processing engine and secure communications platform to ensure data protection and transparency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a small number of entrenched vendors build data monopolies in specific asset classes, then data distribution control is improved, but innovation incentive deteriorates
Solution Approach 1:
The patent segments the data distribution system into multiple independent vendor nodes that each maintain control over their own data assets. Rather than a single centralized monopoly, the system divides the market into segments where each vendor operates autonomously but contributes to a collective distribution network, thereby maintaining control while enabling innovation through diverse vendor initiatives.
Solution Approach 2:
The patent creates a universal data distribution platform that serves multiple functions: data aggregation, entitlement control, secure distribution, and analytics. This multi-functional system allows different vendors with diverse data types to participate in a single ecosystem, promoting innovation while maintaining reliable distribution through a standardized universal platform.
2Reliability
If financial institutions are not willing to entrust others with the full range of their data, then data security is improved, but data sharing capability deteriorates
Solution Approach 1:
The patent applies local quality by implementing fine-grained entitlement controls that allow different levels of data access for different recipients. Instead of treating all data sharing uniformly, the system applies specific security policies to different data elements, recipients, and use cases, enabling institutions to share data selectively while maintaining security where needed.
Solution Approach 2:
The patent introduces an intermediary data distribution platform that acts as a trusted mediator between financial institutions and external recipients. This intermediary handles the complex entitlement control and security enforcement, allowing institutions to maintain security posture while enabling broader data sharing through the intermediary's controlled distribution mechanisms.
3Quantity of substance
If market data is aggregated from multiple contributors, then data availability is improved, but complexity of managing entitlement controls deteriorates
Solution Approach 1:
The patent implements self-service by allowing each data contributor to define and enforce their own entitlement controls through standardized interfaces. Each vendor can independently configure who can access their data and under what conditions, eliminating the need for centralized manual configuration and reducing the complexity of managing entitlements across multiple contributors.
Solution Approach 2:
The patent uses parameter changes by implementing configurable entitlement control parameters that can be adjusted by each contributor based on their needs. The system transforms complex entitlement management into a series of parameter settings (access rights, time windows, data formats) that contributors can modify without changing the underlying system architecture, thereby managing complexity through parameterization.
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.