Use of adaptive and/or customized compression to enhance the efficiency of digital data exchanges

• US 8,756,149 B2
• Filed: 08/11/2013
• Issued: 06/17/2014
• Est. Priority Date: 09/15/2009
• Status: Active Grant

• Current Assignee: Auerbach Group LLC
• Original Assignee: Auerbach Group LLC
• Inventors: Auerbach, Andrew
• Primary Examiner(s): Vezeris, James A
• Application Number:
  US13/964,086
• Publication Number:
  US 20130325690A1
• Time in Patent Office: 310 Days
• Field of Search: 705/35, 705/36.R, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: H03M 7/40 Conversion to or from variable length codes, e.g. Shannon-Fano code, Huffman code, Morse code

Abstract

The present invention relates to a method for enhancing the efficiency of digitally communicated data exchanges and to a computer system that implements such a method. The invention particularly concerns the use of adaptive custom compression techniques, binary integers (“bits”), massively parallel processing, database optimization techniques and/or calculation optimization techniques to achieve such enhanced efficiency. The invention is applicable to any digitally communicated data exchange, but is particularly applicable to exchanges of financial information such as financial market buy/sell orders, market making, etc.

Claims

1. A computer-implemented method for enhancing the efficiency of digitally communicating a message from a first computer to a second computer of an interconnected computer system, wherein:

each of said first and second computers is a device having means for sending and receiving data, and means for storing data in computer memory; and

wherein said method comprises;

(A) causing said computer system to apply a data compression technique to an unencoded version of a message communicated, or to be communicated, between said first and second computers, thereby establishing a coding scheme database that is available to both said first computer and second computer;

wherein;

(1) said data compression technique is customized so that said coding scheme allocates shorter codes to order-units having a higher p-value in said unencoded version of said message and longer codes to order-units having a lower p-value present in said unencoded version of said message; and

(2) said p-value is a metric of the moving average of the frequency of said order-unit, weighted by its assigned importance, relative to other order-units in said message(s), such that an order-unit having a higher importance-weighted frequency is assigned a higher p-value than an order-unit having a lesser importance-weighted frequency;

(B) causing said first computer to encode said message to be communicated using said coding scheme database to thereby produce an encoded version of such message; and

(C) digitally communicating said encoded version of said such message from said first computer to said second computer, directly or via one or more intermediate computers, wherein the message length of said encoded version of such message is shorter than the message length of the unencoded version of such message, and wherein said second computer, upon receiving said encoded version of such message, employs said coding scheme database to decode said encoded version of such message.

3. The computer-implemented method of any one of claims 1-2, wherein said data compression technique additionally employs massively parallel processing.

4. The computer-implemented method of any one of claims 1-2, wherein said data compression technique additionally employs a database optimization technique.

5. The computer-implemented method of any one of claims 1-2, wherein said data compression technique additionally employs a calculation optimization technique.

6. The computer-implemented method of any one of claims 1-2, wherein said data compression technique encodes said message into an encoded version having at least 80% efficiency.

7. The computer-implemented method of any one of claims 1-2, wherein said data compression technique encodes said message into an encoded version having at least 90% efficiency.

8. The computer-implemented method of any one of claims 1-2, wherein said data compression technique encodes said message to be communicated into an encoded version that is at least 50% shorter than the unencoded version of said message.

9. The computer-implemented method of any one of claims 1-2, wherein said data compression technique encodes said message to be communicated into an encoded version that is at least 5-fold shorter than the unencoded version of said message.

10. The computer-implemented method of any one of claims 1-2, wherein said data compression technique employs an Arithmetic Algorithm or a Huffman Algorithm.

2. A computer-implemented method for enhancing the efficiency of digitally communicating a message from a first computer to a second computer of an interconnected computer system, wherein:

each of said first and second computers is a device having means for sending and receiving data, and means for storing data in computer memory; and

wherein said method comprises;

(A) causing said computer system to apply a data compression technique to an unencoded version of a message communicated, or to be communicated, between said first and second computers, thereby establishing a coding scheme database that is available to both said first computer and second computer;

wherein;

(1) said data compression technique is adaptive to permit said coding scheme to adjust over time to allocate shorter codes to order-units having a higher p-value in said unencoded version of said message and longer codes to order-units having a lower p-value for order-units present in both said unencoded version of said message and in at least one previously communicated message; and

(2) said p-value is a metric of the moving average of the frequency of said order-unit, weighted by its assigned importance, relative to other order-units in said message(s), such that an order-unit having a higher importance-weighted frequency is assigned a higher p-value than an order-unit having a lesser importance-weighted frequency;

(B) causing said first computer to encode said message to be communicated using said coding scheme database to thereby produce an encoded version of such message, and

(C) digitally communicating said encoded version of said message from said first computer to said second computer, directly or via one or more intermediate computers, wherein the message length of said encoded version of such message is shorter than the message length of the unencoded version of such message, and wherein said second computer, upon receiving said encoded version of such message, employs said coding scheme database to decode said encoded version of such message.

11. A computer system, comprising a first and a second computer, in digital communication with one another, wherein said computer system is specially adapted for enhancing the efficiency of digitally communicating a message, and wherein:

(A) each of said first and second computers is a device having means for sending and receiving data, and means for storing data in computer memory;

(B) said computer system applies a data compression technique to an unencoded version of a message communicated, or to be communicated, between said first and second computers, thereby establishing a coding scheme database that is available to both said first computer and second computer;

wherein;

(1) said data compression technique is customized so that said coding scheme allocates shorter codes to order-units having a higher p-value in said unencoded version of said message and longer codes to order-units having a lower p-value present in said unencoded version of said message; and

(2) said p-value is a metric of the moving average of the frequency of said order-unit, weighted by its assigned importance, relative to other order-units in said message, such that an order-unit having a higher importance-weighted frequency is assigned a higher p-value than an order-unit having a lesser importance-weighted frequency;

(C) said first computer employs said coding scheme database to produce an encoded version of the message to be communicated based on order-units present in an unencoded version of said message, and digitally communicates said encoded version of said message to said second computer, directly or via one or more intermediate computers;

wherein the message length of said encoded version of said message is shorter than the message length of the unencoded version of said message;

and

(D) said second computer upon receiving said encoded version of said message, employs said coding scheme database to decode said encoded version of said message.

13. The computer system of any one of claims 11-12, wherein said first and second computer are in digital communication with one another via a point to point network, a broadcast network, a wide area network, a local area network, a telecommunications network, or a data communication network.

14. The computer system of claim 13, wherein said first and second computer are in digital communication with one another via a broadcast network.

12. A computer system, comprising a first and a second computer, in digital communication with one another, wherein said computer system is specially adapted for enhancing the efficiency of digitally communicating a message, and wherein:

(A) each of said first and second computers is a device having means for sending and receiving data, and means for storing data in computer memory;

(B) said computer system applies a data compression technique to an unencoded version of a message communicated, or to be communicated, between said first and second computers, thereby establishing a coding scheme database that is available to both said first computer and second computer;

wherein;

(1) said data compression technique is adaptive to permit said coding scheme to adjust over time to allocate shorter codes to order-units having a higher p-value, and longer codes to order-units having a lower p-value present in both said unencoded version of said message and in at least one previously communicated message; and

(2) said p-value is a metric of the moving average of the frequency of said order-unit, weighted by its assigned importance, relative to other order-units in said message(s), such that an order-unit having a higher importance-weighted frequency is assigned a higher p-value than an order-unit having a lesser importance-weighted frequency;

(C) said first computer employs said coding scheme database to produce an encoded version of the message to be communicated based on order-units present in an unencoded version of said message, and digitally communicates said encoded version of said message to said second computer, directly or via one or more intermediate computers;

wherein the message length of said encoded version of said message is shorter than the message length of the unencoded version of said message;

and

(D) said second computer, upon receiving said encoded version of said message, employs said coding scheme database to decode said encoded version of said message.