USPTO Patent US12586091B2: High Velocity Value Changes Mitigation
Summary
The USPTO has granted patent US12586091B2 to Chicago Mercantile Exchange Inc. for a system designed to detect and mitigate the effects of high velocity value changes in automated trading systems. The patent addresses issues arising from the speed of automated trading that can lead to a state not reflecting true consensus.
What changed
The United States Patent and Trademark Office (USPTO) has granted patent US12586091B2 to Chicago Mercantile Exchange Inc. The patent, titled 'High velocity value changes mitigation,' describes a processing module designed to behave deterministically and mitigate issues arising from the high speeds of automated trading systems. Specifically, it addresses the problem where rapid trading can cause a centralized order object's state to diverge from a true consensus or desirable state, proposing automatic responses and actions by a computing system as a solution.
This patent grant is primarily informational and does not impose new regulatory obligations on financial institutions. However, it highlights technological advancements in the area of automated trading systems and risk mitigation. Compliance officers in firms utilizing high-frequency trading or complex algorithmic strategies may wish to be aware of this patented technology, particularly concerning system design and deterministic processing for maintaining order object integrity.
Source document (simplified)
Detection and mitigation of effects of high velocity value changes based upon match event outcomes
Grant US12586091B2 Kind: B2 Mar 24, 2026
Assignee
Chicago Mercantile Exchange Inc.
Inventors
Neil A. Lustyk, John Scheerer, James Bailey, Paul Millhuff
Abstract
A processing module may be centralized and coupled to multiple inputs from customers, and behave deterministically, e.g., programmed to depend on state, inputs and outputs. The rapid speed of automated trading systems implementing such a centralized, deterministic module, where all users can access a central limit order object, can quickly result in an object state that does not reflect a true consensus or desirable state. Accordingly the resulting problem is a problem arising in computer systems due in part to the high speeds of computer systems. The solutions disclosed herein are, in one embodiment, implemented as automatic responses and actions by a computing system.
CPC Classifications
G06Q 30/0201 G06Q 40/04 G06Q 40/00 G06Q 40/03
Filing Date
2024-10-31
Application No.
18933157
Claims
23
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