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System for Enhanced Equity Trading

IP.com Disclosure Number: IPCOM000211584D
Publication Date: 2011-Oct-13
Document File: 1 page(s) / 17K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a method to more rapidly trade equities (flash trading) between markets given that a time lag exists between the markets. This system may also be used for buying and selling cloud-storage and network bandwidth based on market demands and trends.

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System for Enhanced Equity Trading

Disclosed is a system for more rapidly trading equities (flash trading) between markets, given that a time lag exists between the markets. This system may be used for buying and selling cloud-storage and network bandwidth based on market demands and trends.

A general, high-level sequence of steps may be represented as follows:

1. State modeling/trading engines capable of communicating with each other are co-located at each market of interest.

2. Engines capable of trading based on accumulated information are maintained in a coherent state, less the information communications lag, making use of adaptive predictive algorithms to predict and act in anticipation on future state of other engines.

3. The predicted state is used to make trades in the local market, which is closer in the time domain to a distant engine, in order to beat single engine based competitors limited by round trip time of information flight.

In Step 1, the system may automatically make use of optimization methods to determine the precise location, decision to locate, time to locate, and triage of location options.

When determining location parameters, the following may be considered: nature of machines/systems/networks, the nature of personnel, the nature of network traffic, energy use and energy considerations, risk analysis, adaptive learning in which, based on benefits of trading in a previous interval of time, decisions about more co-locations are made.

An...