OTC Market Data Parsing for Synchronized Quote Distribution
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Solution Overview
Problem
OTC markets face inefficiencies due to non-standardized trading processes, lack of real-time data aggregation, and difficulties in managing quotes and portfolio valuation, leading to resource consumption, errors, and compliance issues.
Innovation Solution
A system for collecting and processing market data through a workstation, transmitter, parser, data recognizer, and communicator, enabling standardized data distribution and secure, compliant information exchange, with features like market data recognition and pricing service integration.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If quotes are distributed via phone or instant messaging in OTC markets, then brokers can communicate custom derivative contract descriptions to dealers, but dealers receive quotes at different times creating unfair advantages and must manually reformat data
Solution Approach 1:
The patent replaces manual phone or instant messaging quote distribution with an automated electronic system that uses software agents to parse messages, extract quote data, and distribute it systematically to multiple dealers simultaneously. This substitution of mechanical communication methods with automated information processing resolves the timing inconsistency and manual formatting issues.
Solution Approach 2:
The system enables self-service by allowing the quote distribution system to automatically parse incoming messages, extract relevant data, and distribute quotes without requiring dealer intervention for formatting or manual data entry. The automated parsing and distribution mechanisms handle the entire process autonomously.
2Loss of information
If dealers manually gather and consolidate information from multiple brokers in differing formats, then they can analyze quoted structures, but the process is labor-intensive and time-consuming
Solution Approach 1:
The patent implements a universal data aggregation system that can handle quotes from multiple brokers in different formats through a single platform. The system uses parsing mechanisms to normalize diverse data formats into a unified structure, enabling dealers to access consolidated market data from all brokers through one interface, thereby eliminating manual consolidation efforts.
Solution Approach 2:
The system introduces an intermediary software layer that sits between multiple brokers and the dealer, automatically gathering, parsing, and consolidating quote data from various sources. This intermediary mechanism handles the complexity of multi-format data integration, allowing dealers to access unified market information without manual intervention.
3Adaptability or versatility
If OTC markets lack a centralized source for current and historical prices, then private transactions can be facilitated, but dealers have difficulty performing mark-to-market portfolio valuation
Solution Approach 1:
The patent implements preliminary action by systematically collecting and storing current and historical price data from multiple OTC brokers before valuation is needed. The system continuously aggregates market data and maintains a centralized repository, ensuring that accurate pricing information is readily available when portfolio valuation or mark-to-market calculations are required.
Solution Approach 2:
The system introduces an intermediary data aggregation layer that collects pricing information from decentralized OTC brokers and consolidates it into a centralized source. This intermediary mechanism provides dealers with access to reliable current and historical prices needed for accurate portfolio valuation, while preserving the decentralized nature of OTC trading.
4Adaptability or versatility
If brokers send quotes in varying formats, then they can accommodate different dealer preferences, but dealers must reformat data before analysis begins
Solution Approach 1:
The patent applies extraction by using parsing mechanisms to pull out relevant quote data from various message formats and formats into a standardized structure. The system automatically identifies and extracts key information elements from diverse incoming formats, separating the essential data from format-specific variations, and presents it in a unified structure suitable for analysis.
Solution Approach 2:
The system dynamically changes data parameters by automatically transforming quotes from various formats into a standardized internal representation. The parsing and data processing mechanisms adjust parameters such as data structure, format, and organization based on the source format, converting all incoming quotes into a consistent format without requiring manual intervention from dealers.
Data Source
AI summary
A system and a method for collecting and using market data. The system includes a workstation, where at least one message is entered, a transmitter, where the at least one message is transmitted, a parser for parsing the at least one message, a data recognizer for identifying relevant information in the at least one message, a processor for extracting the relevant information and a communicator for communicating the relevant information.