Market Data Obfuscation for Fair Trading
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Solution Overview
Problem
Current financial instrument trading systems face challenges in maintaining market integrity and fairness due to potential imbalances in market information distribution, where private market data may be communicated before public data, leading to unfair advantages for some participants.
Innovation Solution
The system employs message obfuscation techniques, such as encryption, to ensure that private market data is only recognizable after corresponding public data is received by all participants, using unique encryption keys and dummy keys to maintain a consistent message format and delay any attempts to decode private data until public data is available.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If private market data is transmitted separately before public data, then communication efficiency is improved, but market fairness deteriorates due to information asymmetry
Solution Approach 1:
The system performs preliminary obfuscation of private market data before transmission, encoding it in advance so that even if transmitted earlier, the data remains unintelligible without the corresponding public data context. This allows efficient separate transmission while preventing premature information advantage.
Solution Approach 2:
The patent introduces an intermediary obfuscation layer between the private data and the recipient, using public data as a key to unlock meaningful information. This mediator ensures that private data cannot be understood independently, maintaining market fairness while allowing efficient communication.
2Object-affected harmful factors
If message obfuscation is applied to private data, then market fairness is improved, but device complexity increases due to encryption and key management
Solution Approach 1:
The system uses public market data to serve multiple functions: it acts as a decryption key for private data, provides market context, and maintains fairness. This multi-functionality reduces the need for separate complex key management systems, as the public data itself becomes the unlocking mechanism.
Solution Approach 2:
The obfuscation system is self-service in that the public data automatically serves as the key to unlock private data meaning. No separate key distribution or management infrastructure is needed—the market data itself performs the key function, simplifying the overall system architecture.
3Reliability
If separate communication channels are used for private and public data, then data security is improved, but loss of time occurs due to synchronization delays
Solution Approach 1:
The system performs preliminary obfuscation of private data using the public data structure, so that when private data arrives earlier through separate channels, it is already prepared to be immediately understood once public data becomes available, eliminating synchronization delays.
Solution Approach 2:
The patent changes the state of private data from readable to obfuscated form, allowing it to be transmitted independently through separate secure channels without causing synchronization issues. The parameter change enables time-independent transmission while maintaining security.
Data Source
AI summary
Methods, devices, and systems for communicating market data with market participants involve obfuscating at least a portion of a first financial message. Communicating the market data also involves augmenting a second financial message with a key configured to remove the obfuscation from the obfuscated portion of the first financial message. The market data is ultimately communicated by transmitting the first financial message to a particular participant, and transmitting the second message to a plurality of participants. The particular participant may then use the key from the second financial message to remove the obfuscation of the first financial message.