MultiAttribute Exchange Market

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Multi-AttributeExchange Market
Eugene Fink Josh Johnson John Hershberger
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Motivation

• Build an automated
• exchange for trading
• goods and services

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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.
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Orders
A trader specifies a buy or sell order by
attribute values and a price limit.
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Fills
Buy order Red Mustang, made after 2000, ? 32,000
Sell order Any-color Mustang, made in 2003, ?
30,000
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Main structures

• Unordered list for partially specified orders
• Indexing tree for fully specified orders

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Trading cycle
Process all new orders
Re-match all old orders
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Performance

• Experiments on a 2-GHz Pentium
• computer with 1-GByte memory.
• Car market with eight attributes
• Bond market with two attributes

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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

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Summary

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