Secure Electronic Tokens for Synchronized Market Data Timing
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Solution Overview
Problem
Existing systems struggle to provide real-time, synchronized value updates for financial instruments like futures and options across geographically dispersed terminals, due to limitations in data transfer speed and network variability, leading to potential discrepancies in data receipt times and unfair advantages among traders.
Innovation Solution
The implementation of secure electronic tokens that represent fractions of financial instruments, synchronized for near-real-time redemption and transaction across multiple terminals, using physical or virtual devices with embedded data storage, ensuring simultaneous validity and value updates.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If data is transmitted over networks to multiple geographically dispersed terminals, then information can be propagated to consumers, but data arrives at different times due to network variability and congestion
Solution Approach 1:
The patent segments the data transmission process by creating discrete electronic tokens that represent specific data values at specific times. Each token is a self-contained unit with embedded timing information, allowing terminals to process tokens independently without waiting for synchronized data streams from the network.
Solution Approach 2:
The system performs preliminary action by embedding all necessary data and timing information into electronic tokens before transmission. The tokens are pre-configured with validity time windows and redemption conditions, so terminals can validate and process them locally without requiring real-time network synchronization.
2Speed
If data is transmitted quickly over networks, then real-time pricing can be provided, but network congestion and transmission errors cause data to arrive at different times
Solution Approach 1:
The patent creates digital copies of data in the form of electronic tokens that can be replicated and distributed without degradation. Each token is an exact copy containing the same data value and timing information, ensuring that all terminals receive identical data regardless of network path or transmission speed.
Solution Approach 2:
The electronic token acts as an intermediary carrier between the data source and terminals. Instead of transmitting raw data over the network, the system uses tokens as intermediate objects that encapsulate the data, protecting it from network variability and ensuring reliable delivery.
3Loss of energy
If different terminals receive data at different times, then network bandwidth requirements are reduced, but traders gain unfair advantages based on receipt timing
Solution Approach 1:
The patent introduces dynamic time windows for token validity and redemption. Tokens have embedded timing information that defines when they can be redeemed, and the system dynamically adjusts redemption windows based on market conditions. This ensures that all terminals operate with the same time-based rules, maintaining market fairness regardless of when tokens were received.
Solution Approach 2:
The system implements feedback mechanisms where terminals report token redemption status back to the central system. This feedback loop ensures that all terminals are operating within the same time-based constraints and prevents any terminal from gaining unfair advantage by redeeming tokens outside the valid time window.
Data Source
AI summary
An electronic tokening system implemented by a data source transmits secure electronic tokens including time-based values to a plurality of terminals. The terminals may be geographically disparate, and the different terminals may have different connection speeds to the data source. The terminals may use the secure electronic tokens to consistently and reliable calculate data values.