Trading Circles for Real-Time Market Data Sharing
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Solution Overview
Problem
Electronic trading systems face limitations in real-time data sharing among users, leading to delayed market reactions due to reliance on exchange-processed data dissemination, which restricts the completeness of market views and order fulfillment awareness.
Innovation Solution
The establishment of trading circles that facilitate point-to-point or centralized communication of circle data among members, including market data, order information, and latency insights, enabling immediate action based on shared market performance and characteristics beyond exchange limitations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If exchange-processed data dissemination is used, then system reliability is maintained, but information sharing speed and completeness deteriorate
Solution Approach 1:
The patent segments the data dissemination function into two parallel channels: the traditional exchange-processed broadcast channel for reliability, and a new direct peer-to-peer communication channel among trading circle members for completeness and speed. This segmentation allows both requirements to be satisfied simultaneously by using appropriate channels for different needs.
Solution Approach 2:
The patent introduces an intermediary mechanism (the trading circle communication system) that facilitates direct data exchange between members. This intermediary enables comprehensive information sharing without replacing the exchange's authoritative data dissemination, thus maintaining reliability while improving completeness.
2Measurement precision
If exchange-processed data dissemination is used, then data accuracy is ensured, but real-time reaction capability deteriorates
Solution Approach 1:
The patent enables preliminary action by allowing trading circle members to share and react to market data and order information directly among themselves before the exchange processes and broadcasts the data. Members can take preliminary trading decisions based on direct observations, then execute through the exchange, improving reaction speed while maintaining data accuracy through the exchange's official processing.
3Device complexity
If centralized exchange communication is used, then system simplicity is maintained, but trading efficiency deteriorates
Solution Approach 1:
The patent segments the communication system into a simple centralized exchange component and a distributed trading circle component. The exchange maintains its simple centralized architecture for order matching and official data dissemination, while trading circles provide additional efficient communication pathways, thus improving productivity without complicating the core exchange system.
Data Source
AI summary
The disclosed embodiments provide trading circles. An example method includes defining a group having a plurality of members, wherein one or more of the plurality of members interacts with an exchange that facilitates market transactions; detecting a first interaction of a first group member with the exchange; and communicating, in response to detecting the first interaction, data related to the first interaction to a second group member before the first group member receives confirmation of the first interaction from the exchange.