Market Data Snapshot Distribution via Tiered Aggregation
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Solution Overview
Problem
Existing market data distribution systems consume excessive processing resources and bandwidth by transmitting all data periodically, which can lead to traders not having current and accurate price information, hindering optimal trading decisions.
Innovation Solution
Implementing a tier structure for market data distribution, where data is analyzed for price changes and distributed immediately if changes occur, and aggregated with similar events until a quantity threshold is met, reducing unnecessary data transmission.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If all market data is distributed periodically, then the amount of data transmitted is reduced, but traders do not receive current and accurate price information
Solution Approach 1:
The patent applies local quality by differentiating the treatment of market data based on its significance. Price-changing events receive immediate distribution while non-price-changing events are aggregated and distributed periodically. This selective approach ensures that critical information is transmitted with high priority while less critical data consumes minimal bandwidth, resolving the contradiction between reducing bandwidth usage and maintaining information accuracy.
Solution Approach 2:
The patent segments market data into two distinct categories: price-changing events and non-price-changing events. This segmentation allows the system to apply different distribution strategies to different types of data, ensuring that price-sensitive information is transmitted immediately while other data can be batched, thus balancing bandwidth efficiency with information timeliness.
2Loss of information
If all market data is distributed immediately, then traders receive current information, but processing resources and bandwidth are excessively consumed
Solution Approach 1:
The system evaluates each market data event to determine its significance, applying immediate distribution only to price-changing events while aggregating non-price-changing events. This quality-based differentiation ensures that critical information reaches traders without delay while minimizing bandwidth consumption for less critical data.
Solution Approach 2:
By segmenting market data into price-changing and non-price-changing categories, the system can apply appropriate distribution timing to each segment, ensuring timely delivery of important information while reducing overall bandwidth usage through aggregation of less critical events.
3Loss of energy
If market data is aggregated and distributed periodically, then bandwidth is conserved, but traders are not alerted of relevant events in a timely manner
Solution Approach 1:
The patent implements local quality by identifying and prioritizing price-changing events for immediate distribution, while applying periodic aggregation only to non-price-changing events. This ensures that time-sensitive information is delivered without delay while still achieving bandwidth conservation for less time-critical data.
Solution Approach 2:
Segmentation of market data into time-sensitive price-changing events and less time-sensitive non-price-changing events enables the system to apply different distribution timing strategies, minimizing notification delays for critical events while maintaining bandwidth efficiency for other data.
4Loss of energy
If a tier structure is implemented for market data distribution, then unnecessary data transmission is reduced, but system complexity increases
Solution Approach 1:
The tier structure implements local quality by creating different distribution channels based on data significance. The system evaluates each event's impact and routes it to the appropriate tier (immediate or aggregated distribution), reducing unnecessary transmissions while maintaining a relatively simple evaluation criterion focused on price changes.
Data Source
AI summary
Systems and methods are provided for processing and distributing market data. Critical data, such as data showing that a market price has changed is distributed without further delay. When the market data does not result in a change in a market price or does not meet another critical criteria, the market data is aggregated with market data for similar events and distributed when the aggregated market data passes a quantity threshold.