Multi-Dimensional Order Interface for Non-Standard Commodity Matching
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Solution Overview
Problem
Existing data transaction processing systems struggle to efficiently transact non-standard commodities due to their varied attributes, leading to inefficient pricing and matching mechanisms, manual negotiation, and lack of electronic central-limit trading, especially in markets for physical commodities like crude oil and iron ore.
Innovation Solution
Implementing multi-dimensional orders that allow participants to submit a single order message with multiple price points, represented as a price frontier, which is processed by a data transaction processor to match with unsatisfied orders in a multi-dimensional order book structure, reducing computational resources and network congestion.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional standardized product trading mechanisms are used, then electronic central-limit trading can be efficiently implemented, but non-standard commodities with varied attributes cannot be effectively transacted
Solution Approach 1:
The patent transforms the trading mechanism by changing from fixed standardized parameters to dynamic multi-dimensional price parameters. Each commodity can have multiple price points corresponding to different attribute combinations (e.g., quality, quantity, delivery time, location), allowing non-standard commodities to be traded efficiently through electronic matching of these multi-parameter orders.
Solution Approach 2:
The patent adds additional dimensions to the traditional price-parameter space by introducing multi-dimensional pricing structures. Instead of a single price point, transactions now operate in a multi-dimensional space where each dimension represents a different attribute (quality, quantity, delivery terms, etc.), enabling comprehensive matching of non-standard commodity transactions.
2Adaptability or versatility
If manual negotiation is used for non-standard commodities, then customized transactions can be arranged, but the process becomes slow and not easily systematized
Solution Approach 1:
The patent implements self-service electronic matching where the system automatically matches buy and sell orders based on multi-dimensional parameters without requiring manual intervention. The electronic communication network autonomously compares order parameters, identifies matches, and executes transactions, thereby systematizing the customization process and eliminating time-consuming manual negotiation while preserving full customization capability.
3Measurement precision
If multiple discrete order messages are sent for each price point, then precise pricing can be achieved, but network congestion and computational resources increase
Solution Approach 1:
The patent merges multiple discrete price point specifications into a single integrated order message structure. Instead of transmitting separate messages for each price-attribute combination, the system consolidates all multi-dimensional pricing information (multiple prices across different attributes) into one comprehensive order message, thereby maintaining precise pricing capability while significantly reducing network data transmission volume and computational processing requirements.
Data Source
AI summary
Systems and methods are provided for processing multi-dimensional orders. A data transaction request message is received at a data transaction system. The data transaction request message includes data representative of at least a first function for a first attribute of a commodity and a second function for a second attribute of the commodity. The data transaction system identifies a set of solutions described by the first function and the second function. The set of solutions including values for different variations of the object that the participant who submitted the data transaction request message is willing to offer or receive for the respective variation. The data transaction system attempts to match one or more of the values from the set of solutions to previously received but unsatisfied electronic data transaction request messages counter thereto stored in an order book data structure.