Trade Management System with Regional Clock Synchronization
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Solution Overview
Problem
Conventional trade management systems face challenges in handling trade orders across multiple regions due to communication time lags, leading to potential fraud and inefficiencies, particularly when high-frequency traders exploit these gaps.
Innovation Solution
A trade management system that includes a trade management program with a reception module for receiving order information, a clock module for synchronizing time across trade servers, and a verification module using tokens to ensure timely and secure order processing, allowing for equal handling of trade orders across regions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If trade orders are received from multiple regions for one exchange, then the system can handle broader market participation, but communication time lag occurs due to geographical distance
Solution Approach 1:
The system performs preliminary actions by establishing regional trade servers in advance in different geographical locations, each equipped with local clock modules. These servers pre-process orders from their respective regions before transmission to the exchange, reducing the effective communication lag for time-critical operations.
Solution Approach 2:
Regional trade servers act as intermediaries between clients in different regions and the central exchange. Each regional server receives, validates, and forwards orders locally, eliminating the need for all clients to communicate directly with the distant exchange, thereby reducing communication time lag.
2Productivity
If trade orders are processed in real-time across regions, then trading efficiency is improved, but fraud detection becomes more difficult due to time synchronization issues
Solution Approach 1:
The patent replaces mechanical time synchronization methods with cryptographic token-based verification. Each order includes a token generated by the regional server's clock module, allowing the exchange to verify the order's timestamp and origin without relying on complex time synchronization protocols, thus maintaining trading efficiency while enabling fraud detection.
Solution Approach 2:
The system implements feedback mechanisms where the exchange verifies order tokens and timestamps, providing confirmation or rejection back to regional servers. This feedback loop enables real-time fraud detection while maintaining overall trading efficiency through automated validation.
3Measurement precision
If clock modules are calibrated to the same time across all regions, then time synchronization is improved, but the system becomes vulnerable to coordinated attacks exploiting calibration time
Solution Approach 1:
The system implements local quality by allowing each regional server to maintain its own calibrated clock module independent of other regions. While all clocks are calibrated to the same time standard, they operate autonomously locally, preventing coordinated attacks that would require simultaneous manipulation of all regional clocks. The calibration ensures time synchronization for fair ordering while local independence maintains security.
Data Source
AI summary
To provide a trade management program, an information processing apparatus, and a trade management system that equally handle trade orders having a communication gap. A trade management system includes: trade servers 2a, 2b, and 2c that receive orders from clients 4a1 and 4a2, 4b1 and 4b2, and 4c1 and 4c2 installed in the same regions A, B, and C, respectively; and a trade aggregation server 1 including a reception means for receiving order information including an application time of an order from each of the trade servers 2a, 2b, and 2c installed in different regions, and a determination means for determining the order information within a period set with a predetermined closing time.