Trading Data Prioritization Over Bandwidth-Constrained Links
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Solution Overview
Problem
Financial institutions face challenges in optimizing the utilization of bandwidth-constrained communication links for transmitting trading data across remote locations, as existing methods often send irrelevant or minimally changed data, wasting bandwidth and delaying critical information necessary for market making and trading strategies.
Innovation Solution
A method and system that prioritize the transmission of trading data over bandwidth-constrained links by analyzing data for significant variations in price and volume, assigning priorities based on calculated variations, and sending only the most relevant data over these links, using a prioritization logic module to manage bandwidth allocation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If all trading data is transmitted over bandwidth-constrained links, then data completeness is maintained, but bandwidth utilization efficiency deteriorates
Solution Approach 1:
The patent extracts only the most critical trading data fields (price, volume, timestamp) from the complete data feed and transmits only these extracted fields over the bandwidth-constrained link. This selective extraction ensures that essential information is preserved while significantly improving bandwidth utilization efficiency by filtering out redundant data.
Solution Approach 2:
The patent applies different transmission qualities to different data fields based on their importance. Critical fields like price and volume are transmitted with high priority and completeness, while less critical fields are either omitted or transmitted with reduced precision. This local differentiation of data quality optimizes the trade-off between information completeness and bandwidth efficiency.
2Loss of energy
If trading data is filtered to improve bandwidth efficiency, then bandwidth utilization improves, but data relevance deteriorates
Solution Approach 1:
The patent implements a feedback mechanism where the system continuously monitors trading market conditions and adjusts the filtering criteria accordingly. When volatility increases or specific securities show unusual activity, the system relaxes its filtering to include more data fields, ensuring data relevance adapts to changing market conditions while maintaining bandwidth efficiency during normal conditions.
Solution Approach 2:
The patent dynamically changes the parameters of data filtering based on market conditions, security type, and time of day. The system adjusts which fields are transmitted and at what priority level by modifying filtering parameters, ensuring that data relevance is maintained through adaptive criteria rather than static filters.
3Productivity
If data transmission priority is assigned based on all data fields, then comprehensive analysis is enabled, but processing time increases
Solution Approach 1:
The patent segments the data processing task into two stages: (1) immediate processing of only critical fields for priority assignment and transmission decision, and (2) subsequent comprehensive analysis at the receiving end. This segmentation enables fast initial processing and transmission while preserving the ability to perform comprehensive analysis later, reducing processing time without sacrificing analytical capability.
Solution Approach 2:
The patent performs preliminary action by pre-identifying the most critical data fields and pre-calculating priority levels before transmission. The system maintains historical data about security characteristics and market conditions to enable rapid priority assignment without analyzing all fields in real-time, thus reducing processing time while maintaining comprehensive analysis capability.
Data Source
AI summary
A method, a processing device and a computer-readable medium are provided for prioritizing trading data transmission over bandwidth-constrained communication link. The method comprises comparing fields of records indicative of the current states of securities of interest with corresponding fields of one or more previous records for said securities. The records are associated with securities being traded or to securities whose prices are being used for trading. The method comprises calculating variations of the fields and assigning priorities to the different securities of interest, based on the calculated variations, and sending fields characterizing the current state of the securities having the highest priorities over the bandwidth-constrained communication link, up to bandwidth capacity, to a remote computing device. The remote device can thereby receive in priority trading data associated with securities having the most significant or impactful variations.