Network Device Coalescing Market Data for Bandwidth Optimization
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Solution Overview
Problem
In electronic trading environments, the increased frequency of market data updates can overwhelm software systems, leading to outdated information for traders, system failures, and disconnections, especially when traders use low-bandwidth connections, resulting in disadvantages and high operational costs for providers.
Innovation Solution
A system and method for managing communication between network devices and client devices that coalesce time-sensitive information, adjusting data feeds to match connection speeds, allowing traders to subscribe to data at compatible rates, and dynamically adjusting service levels based on connection performance.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If market data update frequency is increased to provide more real-time information, then information timeliness is improved, but system reliability deteriorates due to overwhelming software systems and causing failures
Solution Approach 1:
A network device is introduced as an intermediary between the exchange and client devices. This intermediary coalesces market data updates and manages communication, preventing direct overwhelming of client software systems while maintaining information timeliness through controlled data delivery.
Solution Approach 2:
The network device automatically monitors connection speeds and dynamically adjusts data feed rates without manual intervention. The system self-regulates by detecting when clients are falling behind and adjusting publication rates accordingly, maintaining reliability while preserving information timeliness.
2Loss of energy
If traders use low-bandwidth connections to reduce costs, then operational costs are reduced, but information timeliness deteriorates due to inability to process frequent market data updates
Solution Approach 1:
The network device dynamically adjusts the data publication rate based on real-time monitoring of connection speeds and client performance. This allows low-bandwidth connections to receive timely information at optimized rates, maintaining information timeliness while accommodating cost-effective connection choices.
Solution Approach 2:
The system changes the parameter of data publication rate based on connection characteristics. For low-bandwidth connections, the publication rate is adjusted to match connection capabilities, ensuring timely delivery without overwhelming the connection, thereby maintaining information timeliness at reduced operational costs.
3Loss of information
If fast high-bandwidth connections are provided to maintain information timeliness, then information timeliness is improved, but operational costs increase for both providers and traders
Solution Approach 1:
The network device adjusts the data publication rate parameter based on connection bandwidth. High-bandwidth connections receive data at higher rates for maximum timeliness, while lower-bandwidth connections receive optimized rates, eliminating the need for all traders to pay for expensive high-speed connections while maintaining appropriate information timeliness for each connection type.
4Reliability
If internal message queues are used to buffer market data updates, then system reliability is maintained, but information timeliness deteriorates as queues grow and deliver increasingly outdated information
Solution Approach 1:
The network device performs preliminary actions by monitoring connection speeds and predicting when clients may fall behind before significant queue buildup occurs. It proactively adjusts publication rates to prevent outdated information delivery, maintaining both reliability and information timeliness through advance intervention.
Solution Approach 2:
The system implements feedback mechanisms where the network device monitors client performance and connection status, then adjusts data publication rates accordingly. This closed-loop control prevents message queue buildup by adapting the delivery rate to actual client processing capabilities, maintaining information timeliness while ensuring reliable delivery.
Data Source
AI summary
A network device coalesces data received from an exchange, and provides a user with the opportunity to receive fewer, but up-to-date, data updates from an exchange when duplicate prices become available or a large volume of prices becomes available suddenly. Accordingly, the trader can be assured of receiving non-duplicated prices that are fed at a rate that is cohesive with that trader's connection speed. The present invention is designed to conserve on bandwidth thereby increasing the likelihood that bandwidth will be available to receive desirable market information.