Method and apparatus for a fair exchange
First Claim
1. A method of equalizing a time at which client devices receive market data from a host exchange through a plurality of network devices, the method comprising the steps of:
- establishing a first travel time from the host exchange to a first network device over a network, wherein the first network device is coupled to a first client device;
establishing a second travel time from the host exchange to a second network device over a network, wherein the second network device is coupled to a second client device, wherein the second travel time is shorter than the first travel time;
generating a first market data for a tradeable object, the first market data comprising a current best bid price and a current lowest ask price available for the tradeable object;
sending the first market data from the host exchange to the first network device at a first time over the network;
sending the first market data from the host exchange to the second network device at a second time that is different from the first time, wherein the second time is determined based on the first time and a difference between the first travel time and the second travel time such that the arrival times of the first market data at the first client device and the second client device are equalized;
upon receiving the first market data at the first network device, releasing the first market data from the plurality of first network devices device to the first client device; and
upon receiving the first market data at the second network device, releasing the first market data from the second network device to the second client device.
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0 Petitions
Reexamination
Accused Products
Abstract
A fair exchange is disclosed to reduce potential inequities in an electronic trading environment. Market data is sent from a host system to client devices through one or more synchronized local communication servers such that the data can be displayed simultaneously or nearly simultaneously at each client device. Market data sent to client devices might include price information. Likewise, a host system may transaction data sent from client devices via the local communication servers. The ordering of transaction data is based, at least in part, on when the local communication servers received the transaction data from the client devices. Transaction data sent to a host system might include order information.
112 Citations
22 Claims
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1. A method of equalizing a time at which client devices receive market data from a host exchange through a plurality of network devices, the method comprising the steps of:
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establishing a first travel time from the host exchange to a first network device over a network, wherein the first network device is coupled to a first client device; establishing a second travel time from the host exchange to a second network device over a network, wherein the second network device is coupled to a second client device, wherein the second travel time is shorter than the first travel time; generating a first market data for a tradeable object, the first market data comprising a current best bid price and a current lowest ask price available for the tradeable object; sending the first market data from the host exchange to the first network device at a first time over the network; sending the first market data from the host exchange to the second network device at a second time that is different from the first time, wherein the second time is determined based on the first time and a difference between the first travel time and the second travel time such that the arrival times of the first market data at the first client device and the second client device are equalized; upon receiving the first market data at the first network device, releasing the first market data from the plurality of first network devices device to the first client device; and upon receiving the first market data at the second network device, releasing the first market data from the second network device to the second client device. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)
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13. A system for equalizing a time at which client devices receive market data from a host exchange through a plurality of network devices, the system comprising:
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a first network device coupled to a first client device; a second network device coupled to a second client device; and a host exchange coupled to the first network device and the second network device over a network, the host exchange configured to receive a first travel time from the host exchange to the first network device and a second travel time from the host exchange to the second network device, wherein the second travel time is shorter than the first travel time, the host exchange configured to generate a first market data comprising a current highest bid price and a current lowest ask price available for a tradeable object, the host exchange further configured to send the first market data to the first network device at a first time, and further configured to send the first market data to the second network device at a second time that is different from the first time, wherein the second time is determined based on the first time and a difference between the first travel time and the second travel time such that arrival times of the first market data at the first network device and the second network device are equalized, wherein upon receiving the first market data at the first network device, the first network device is configured to release the first market data to the first client device, and wherein upon receiving the first market data at the second network device, the second network device is configured to release the first market data to the second client device. - View Dependent Claims (14, 15, 16, 17, 18, 19, 20, 21, 22)
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Specification