Trading System Data Traffic Reduction via Offset Processing
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Solution Overview
Problem
Electronic trading systems face inefficiencies in data transmission due to the need for multiple message flows to accommodate different user types with varying offset spread values, leading to increased system load and bandwidth usage.
Innovation Solution
A computerized trading system that transmits a single message stream to all users, allowing user terminals to process and apply different offset spread values, reducing the number of messages required and enabling secondary users to display accurate prices without receiving real market prices.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If separate message flows are generated for each user type with different offset spread values, then each user receives accurate price information tailored to their trading conditions, but the system experiences increased data transmission load and bandwidth consumption
Solution Approach 1:
The patent merges multiple separate message flows into a single unified message stream that contains base price information. Instead of generating separate messages for each user type (primary users, secondary users with 1 tick offset, secondary users with 2 ticks offset), the system transmits one common message that all users receive, then applies their respective offset values locally at their terminals.
Solution Approach 2:
The patent segments the price information processing into two parts: (1) a common base price message transmitted once to all users, and (2) user-specific offset values that are applied locally at each user terminal. This segmentation allows the system to maintain price accuracy for different user types while minimizing redundant data transmission.
2Adaptability or versatility
If multiple separate messages are transmitted to different user types, then each user receives customized price information with their specific offset spread values, but the system load and processing complexity increase
Solution Approach 1:
The patent implements a universal message format that serves all user types simultaneously. A single message structure is designed to be compatible with primary users, secondary users with 1 tick offset, and secondary users with 2 ticks offset. The message contains base price information that can be used by all users, with each user type applying their specific offset locally, eliminating the need for multiple specialized message generation paths.
3Measurement precision
If the system transmits real market prices to all users, then users get accurate market information, but secondary users should see prices with additional spread charges applied
Solution Approach 1:
The patent applies offset values as a preliminary action at the user terminal before price display. Instead of modifying the transmitted message based on user type, the system transmits the base price and applies the offset configuration locally at each user's terminal. This allows secondary users to automatically see prices with their configured offset (1 tick or 2 ticks) while primary users see the base price, all from the same message stream.
Data Source
AI summary
A user terminal for communicating with a computer server is operated on behalf of a first user (a second user terminal is operated on behalf of a second user). The user terminal transmits to the computer server pre-trade information including an order and receives first offset information that indicates a first price offset value, which is different from a second price offset value sent to the second user terminal. The terminals receive a single message from the server that indicates a market price but does not include the first price offset value or the second price offset value. The user terminal modifies the market price using the first price offset value to obtain a first actual price different from a second actual price corresponding to a modification of the market price based on the second price offset value.