Systems and methods for risk management in a geographically distributed trading system
A computerized trading system includes a master node and a plurality of regional nodes, the master and regional nodes each including a processor and memory, and where the master node is communicatively coupled to each of the regional nodes over a network. The master node and regional nodes are programmed to perform a method for updating limits for each of the regional nodes, where the master node maintains a global limit and a ratio representing a proportion of the global limit allocable to each of the regional nodes. The master node allocates to each regional node a local limit that is a proportion of the global limit in accordance with the ratio, and monitors the local limit utilization at each of the regional nodes. When the master node detects one or more events, the master node allocates a new local limit to one or more of the regional nodes.
1. A computerized trading system, comprising:
a master node and a plurality of regional nodes, the master and regional nodes each including a processor and memory, wherein the master node is communicatively coupled to each of the regional nodes over a network,
wherein the master node and regional nodes are programmed to perform a method for updating limits for each of the regional nodes, the method comprising:
locating each regional node in geographic proximity to a corresponding exchange;
maintaining, at the master node, a global limit and a ratio representing different proportions of the global limit allocable to each of the regional nodes;
allocating, by the master node to each regional node, a local limit that is a proportion of the global limit in accordance with the ratio;
monitoring, by the master node, local limit utilization at each of the regional nodes;
for each regional node, comparing the local limit utilization of the regional node to the local limit utilizations of the other regional nodes;
detecting, by the master node, one or more events, wherein the one or more events detected by the master node comprise a change in limit utilization at one or more the regional nodes;
responsive to the detection, allocating a new local limit to one or more of the regional nodes, wherein, after allocating the new local limit to the regional nodes, at least one regional node transmits one or more orders to its corresponding exchange;
determining, by the master node, a difference between an unutilized portion of the local limit allocated to one of the regional nodes and a proportion of an unutilized portion of the global limit, the proportion corresponding to the global limit allocable to the regional node; and
updating, by the master node, the local limit allocated to the regional node based on the determined difference.
2. The system of claim 1 , wherein the one or more events detected by the master node further comprises the expiration of a predetermined time period during which the master node does not update any of the local limits of the regional nodes.
3. The system of claim 1 , wherein the one or more events detected by the master node correspond to a change in the global limit, and wherein the method further comprises:
determining, by the master node, a proportion of the change in the global limit for each regional node; and
allocating, by the master node, a new limit to each of the regional nodes based on the determined proportions.
4. The system of claim 1 , wherein the one or more events detected by the master node correspond to a change in the ratio, and wherein the method further comprises:
determining, by the master node, a new proportion of the global limit allocable to each regional node; and
allocating, by the master node, a new limit to each of the regional nodes based on the new proportion.
5. The system of claim 1 , wherein global limit is one of a margin limit or a consideration limit.
6. A non-transitory computer-readable medium storing instructions that, when executed by one or more processors included in a master node and a plurality of regional nodes, cause the one or more processors to carry out a method of transmitting orders capable of being executed on an exchange, the method comprising:
locating each regional node in geographic proximity to a corresponding exchange;
maintaining, at the master node, a global limit and a ratio representing different proportions of the global limit allocable to each of the regional nodes;
allocating, by the master node to each regional node, a local limit that is a proportion of the global limit in accordance with the ratio;
monitoring, by the master node, local limit utilization at each of the regional nodes;
for each regional node, comparing the local limit utilization of the regional node to the local limit utilizations of the other regional nodes;
detecting, by the master node, one or more events, wherein the one or more events detected by the master node comprise a change in limit utilization at one or more the regional nodes;
responsive to the detection, allocating a new local limit to one or more of the regional nodes;
after allocating the new local limit to the regional nodes, at least one regional node transmits one or more orders to its corresponding exchange,
determining, by the master node, a difference between an unutilized portion of the local limit allocated to one of the regional nodes and a proportion of an unutilized portion of the global limit, the proportion corresponding to the global limit allocable to the regional node; and
updating, by the master node, the local limit allocated to the regional node based on the determined difference.
7. The non-transitory computer-readable medium of claim 6 , wherein the one or more events detected by the master node further comprises the expiration of a predetermined time period during which the master node does not update any of the local limits of the regional nodes.
8. The non-transitory computer-readable medium of claim 6 , wherein the one or more events detected by the master node correspond to a change in the global limit, and wherein the method further comprises:
determining, by the master node, a proportion of the change in the global limit for each regional node; and
allocating, by the master node, a new limit to each of the regional nodes based on the determined proportions.
9. The non-transitory computer-readable medium of claim 6 , wherein the one or more events detected by the master node correspond to a change in the ratio, and wherein the method further comprises:
determining, by the master node, a new proportion of the global limit allocable to each regional node; and
allocating, by the master node, a new limit to each of the regional nodes based on the new proportion.
10. The non-transitory computer-readable medium of claim 6 , wherein global limit is one of a margin limit or a consideration limit.
11. A method of transmitting orders capable of being executed on an exchange, the method comprising:
locating each regional node in geographic proximity to a corresponding exchange;
maintaining, at a master node, a global limit and a ratio representing different proportions of the global limit allocable to each of the regional nodes, the master node being communicatively coupled to the regional nodes over a network;
allocating, by the master node to each of a plurality of regional nodes, a local limit that is a proportion of the global limit in accordance with the ratio;
monitoring, by the master node, local limit utilization at each of the regional nodes;
for each regional node, comparing the local limit utilization of the regional node to the local limit utilizations of the other regional nodes;
detecting, by the master node, one or more events, wherein the one or more events detected by the master node comprise a change in limit utilization at one or more the regional nodes;
responsive to the detection, allocating a new local limit to one or more of the regional nodes;
after allocating the new local limit to the regional nodes, at least one regional node transmits one or more orders to its corresponding exchange;
determining, by the master node, a difference between an unutilized portion of the local limit allocated to one of the regional nodes and a proportion of an unutilized portion of the global limit, the proportion corresponding to the global limit allocable to the regional node; and
updating, by the master node, the local limit allocated to the regional node based on the determined difference.
12. The method of claim 11 , wherein the one or more events detected by the master node further comprises the expiration of a predetermined time period during which the master node does not update any of the local limits of the regional nodes.
13. The method of claim 11 , wherein the one or more events detected by the master node correspond to a change in the global limit, and wherein the method further comprises:
determining, by the master node, a proportion of the change in the global limit for each regional node; and
allocating, by the master node, a new limit to each of the regional nodes based on the determined proportions.
14. The method of claim 11 , wherein the one or more events detected by the master node correspond to a change in the ratio, and wherein the method further comprises:
determining, by the master node, a new proportion of the global limit allocable to each regional node; and
allocating, by the master node, a new limit to each of the regional nodes based on the new proportion.