Multi-Attribute Exchange Market

1. Multi-AttributeExchange Market Eugene Fink Josh Johnson John Hershberger

2. Combine the speed of the stock exchange with the flexibility of eBay + Motivation • Build an automated • exchange for trading • goods and services

3. Market A market is a set of items that can be traded, defined by a list of attributes. Example A used-car market is a set of all conceivable vehicles, defined by model,color, and year.

4. A value specification may include lists of values and numeric ranges. Example Buy order Model: Mustang Color: Red or White Year: 2001..2003 Price:  $32,000 Sell order Model: Mustang Color: Red Year: 2003 Price:  $30,000 Orders A trader specifies a buy or sell order by attribute values and a price limit.

5. Fill Red Mustang, made in 2003, $31,000 Fills Buy order Red Mustang, made after 2000,  $32,000 Sell order Any-color Mustang, made in 2003,  $30,000

6. Model Camaro Mustang Color Color Red White White Year Year Year 2001 2003 2002 2002 Red Camaro made in 2002 White Camaro made in 2002 White Mustang made in 2001 White Mustang made in 2003 Main structures • Unordered list for partially specified orders • Indexing tree for fully specified orders

7. Trading cycle Process all new orders Re-match all old orders

8. Throughput Trading-cycle time 105 105 bonds 104 104 cars milliseconds orders per second 103 103 cars bonds 102 102 100 101 102 103 104 105 100 101 102 103 104 105 number of orders number of orders Performance • Experiments on a 2-GHz Pentium • computer with 1-GByte memory. • Car market with eight attributes • Bond market with two attributes

9. Performance • Experiments on a 2-GHz Pentium • computer with 1-GByte memory. • Car market with eight attributes • Bond market with two attributes • Results • Supports a market with up to 300,000 orders • Processes 500 to 20,000 new orders per second

10. Summary • General model for multi-attribute exchange markets • Fast identification of matches between buy and sell orders