Parallel Basket Data Handling for Credit Default Swap Reliability
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Solution Overview
Problem
Existing systems managing bundles of constructs that may individually fail, such as credit default swaps, often lead to instability and downtime due to the need to separate failing components, which can disrupt overall system stability and data handling reliability.
Innovation Solution
A data processing system that receives a parallelization command for a credit default swap not having suffered a credit event, generates a new basket excluding the identified swap, and continues to store and update values for both the original and new baskets, allowing for parallel data handling and reducing instability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a failing construct is separated from the bundle, then the reliability of the bundle is improved, but the stability of the data handling system deteriorates due to required system shutdowns and downtime
Solution Approach 1:
The system creates a parallel basket structure in advance before any failure occurs. When a construct fails, the parallel basket is already in place and can immediately take over, eliminating the need for system shutdowns and maintaining continuous stable data handling while improving reliability through the pre-prepared backup structure
Solution Approach 2:
The data handling system is segmented into multiple independent baskets that can operate in parallel. This segmentation allows the failing construct to be isolated in one basket while other baskets continue to process data normally, preventing system-wide instability and maintaining overall data handling stability
2Ease of repair
If the entire system is shut down to separate a failing hardware component, then the failing component can be removed, but the productivity of the system decreases due to downtime
Solution Approach 1:
A parallel basket is prepared in advance with all necessary data structures and processing capabilities. When a hardware failure occurs, the system can immediately switch to the parallel basket without shutting down, allowing continuous processing and eliminating productivity loss while still enabling component repair
Solution Approach 2:
The system creates a copy of the data handling structure in the form of a parallel basket. This copy can independently process data without requiring the original system to be shut down, maintaining productivity while allowing failing components to be repaired or replaced
3Reliability
If a failing software routine is separated from the bundle, then the remaining software can continue to work, but the stability of the system deteriorates due to required routine stops
Solution Approach 1:
The software system is segmented into independent routines that can fail individually without affecting others. Each routine operates within its own basket, allowing separation of failing routines while maintaining system stability through the independent operation of remaining routines in parallel baskets
Solution Approach 2:
Parallel software routines are prepared in advance within the parallel basket structure. When a routine fails, the pre-prepared parallel routines can immediately take over its function without requiring system-wide stops, maintaining both reliability and stability
Data Source
AI summary
A data processing system and method is provided for managing futures contracts that are based on baskets of credit default swaps as underlyings. A data storage stores data identifying each credit default swap of at least two baskets, and repetitively updated values for credit default swaps of the baskets. A parallelization command is received which indicates at least one credit default swap from a first basket, wherein the credit default swap is a credit default swap not having suffered a credit event. Further, second basket data is generated in response to a received parallelization command. The data storage stores repetitively updated values for credit default swaps of the second basket and continues storing repetitively updated values for credit default swaps of the first basket. In general, a data processing system and method is provided for managing bundles of constructs that may individually fail.