Securities Trading Site Data Replication for Disaster Recovery

Solution Overview

Problem

The challenge in trading financial instruments is the conflict between maintaining short data transfer distances for rapid fail-over in case of system failure, which is impractical due to the large volume of information, and the need for geographical separation to avoid disaster impact on both primary and secondary sites.

Innovation Solution

The method involves storing quotes at the primary site and transferring only reduced information, such as orders and deals, to the secondary site, allowing for greater geographical separation while enabling quick activation of the secondary site as a primary site in case of failure, thereby reducing bandwidth requirements and increasing transaction rates.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Loss of time

If all information is transferred to the secondary site to enable rapid fail-over, then the start-up time of the secondary site is reduced, but the data transfer distance must be kept short which limits geographical separation

Engineering Contradiction:

Improvestart-up time of secondary siteVSAvoidgeographical distance between sites

Core Design Contradiction:

Loss of timeVSLength of moving object

Solution Approach 1:

The patent extracts only the essential information (orders and deals) from the complete data set, transferring only these critical elements to the secondary site while leaving the full information (including quotes) at the primary site. This selective extraction enables geographical separation while maintaining fail-over capability.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The information is segmented into different categories (quotes, orders, deals) with different transfer priorities. Only the most critical segments (orders and deals) are transferred to the secondary site, allowing the system to achieve geographical distribution while maintaining operational continuity.

Inventive Principle:

Principle #1Segmentation

2Loss of time

If all information is transferred to the secondary site, then the secondary site can take over quickly, but the bandwidth requirements increase significantly

Engineering Contradiction:

Improvestart-up time of secondary siteVSAvoidbandwidth requirements

Core Design Contradiction:

Loss of timeVSQuantity of substance

Solution Approach 1:

The patent extracts only the essential information (orders and deals) from the complete data set, transferring only these critical elements to the secondary site while leaving the full information (including quotes) at the primary site. This selective extraction enables geographical separation while maintaining fail-over capability.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The information is segmented into different categories (quotes, orders, deals) with different transfer priorities. Only the most critical segments (orders and deals) are transferred to the secondary site, allowing the system to achieve geographical distribution while maintaining operational continuity.

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS8370247B2Multi site solution for securities trading

Publication Date: 2013.02.05 NASDAQ TECHNOLOGY AB

AI summary

Securities are traded at a primary site according to information received from market makers and traders. The information, including quotes and orders for one or more instruments, is received and stored at the primary site and used to create deals in the securities. The deals are also stored at the primary site. A secondary site stores replicas of the orders and deals, but not quote information. The deals stored at the secondary site may be used to update the orders stored at the secondary site.