An Internet Multicast System for the Stock Market
N. F. Maxemchuk
D. H. Shur
AT&T Labs - Research
We are moving toward an international, twenty-four hour, distributed, electronic stock exchange. The
exchange will use the global Internet, or internet technology. This system is a natural application of
multicast because there are a large number of receivers that should receive the same information
The data requirements for the stock exchange are discussed. The current multicast protocols lack the
reliability, fairness, and scalability needed in this application. We describe a distributed architecture and a
timed reliable multicast protocol, TRMP, that has the appropriate characteristics.
We consider three applications:
1. A unified stock ticker of the transactions that are being conducted on the various physical and
electronic exchanges. Our objective is to deliver the the same combined ticker reliably and
simultaneously to all receivers, anywhere in the world.
2. A unified sequence of buy and sell offers that are delivered to a single exchange or a collection of
exchanges. Our objective is to give all traders the same fair access to an exchange independent of
their relative distances to the exchange or the delay and loss characteristics of the international
3. A distributed, electronic trading floor that can replace the current exchanges. This application has the
fairness attributes of the first two applications and uses TRMP to conduct irrefutable, distributed
An exchange is any organization, association or group which provides or maintains a marketplace where
securities, options, futures or commodities can be traded. There are hundreds of exchanges around the
world. Yahoo lists 107 stock exchanges.
Traditional stock exchanges are centralized. The exchange is located in a single physical place and all data
(both market and trades) flows through a single system. The centralized system is responsible for
transaction reporting and exchanging assets.