Network Latency Normalization for Deterministic Transaction Processing
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current electronic trading systems face challenges in ensuring transactional determinism and equitable access to information and opportunities due to varying network latencies across different communication paths, leading to unfair advantages and inefficiencies.
Innovation Solution
Implementing a system that timestamps transaction messages at the network edge and enforces a standardized minimum latency across all paths to ensure equal processing times, compensating for both static and dynamic latency variations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If multiple network paths are used for transaction communication, then system throughput and reliability are improved, but latency variations create unfair advantages and violate transactional determinism
Solution Approach 1:
The system performs preliminary latency measurement and calculation before transaction processing. By pre-calculating the latency compensation value based on historical network conditions, the system can proactively adjust processing timing to ensure deterministic transaction ordering regardless of actual network path latency variations.
Solution Approach 2:
The system dynamically changes the processing timing parameter based on measured network latency. By adjusting the processing deadline or timing window according to actual network conditions, the system maintains transactional determinism while allowing multiple network paths to operate simultaneously for improved throughput.
2Reliability
If latency compensation is applied to ensure transactional determinism, then processing fairness is improved, but additional processing complexity and time overhead are introduced
Solution Approach 1:
The system uses self-service mechanisms where network devices or intermediaries automatically measure and report latency information without requiring complex manual configuration. The latency compensation is calculated and applied automatically based on pre-established protocols, reducing operational complexity while maintaining processing fairness.
Solution Approach 2:
The system implements feedback loops where network latency is continuously measured and used to adjust processing parameters. By using feedback from latency monitoring to dynamically tune compensation values, the system achieves processing fairness with relatively simple control logic rather than complex predetermined rules.
3Speed
If minimum latency enforcement is implemented, then transaction processing speed is improved, but network bandwidth consumption increases due to potential retransmissions
Solution Approach 1:
The system applies partial latency compensation rather than full compensation, allowing transactions to proceed at optimized speeds while using a portion of the available bandwidth efficiently. By applying only the necessary compensation to achieve determinism rather than over-compensating, the system avoids excessive retransmissions and bandwidth consumption.
Data Source
AI summary
A plurality of message transceivers coupled with each other via a portion of an electronic communications network characterized by a transmission latency are each operative to perform an action on data transaction messages received thereby. Upon receipt by any of the plurality of message transceivers of a first augmented data transaction message transmitted thereto by another of the plurality of message transceivers, the receiving message transceiver is configured to delay performance of the action on the first augmented data transaction message for an amount of time based on an extent to which a defined amount of time exceeds a transmission time, resulting from the transmission latency of the portion of the electronic communication network via which the first augmented data transaction message was conveyed, of the first augmented data transaction message between the transmitting and receiving message transceivers when the transmission time is less than the defined amount of time.