Amended Claims 1-8 are outstanding.
Claim Rejections - 35 USC § 112
The claim amendments overcome the rejection of the previous office action.
Claim Rejections - 35 USC § 101
35 U.S.C. 101 reads as follows:
Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.
Claims 1-8 are rejected under 35 U.S.C. 101 because the claimed invention is directed to an abstract idea without significantly more. The claim(s) recite(s) a method of determining profit/loss. This judicial exception is not integrated into a practical application because the claims fail to include additional components beyond the abstract idea.
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Claims are directed to a method.
2A Prong 1
The abstract idea is an investment loss and profit distribution step of distributing the investment loss and profit according to an investment execution result according to a distribution rate.
The elements of the abstract idea are:
A computer-implemented method of distributing investment loss and profit to lower nodes, the method implemented by one or more processors and comprising:
allocating, by the one or more processors, different node variables to one or more higher nodes that receive a lower resource and generate an investment signal for selecting a predetermined investment object or a resource for generating the investment signal, and one or more lower nodes that provide a resource to the higher nodes;
specifying, by the one or more processors, the resources for generating the investment signal and establishing connections with nodes holding the corresponding resource;
allocating, by the one or more processors, an edge variable to each of connection relationships with the lower nodes that provides the lower resource to the higher nodes;
performing a variable setting, comprising:increasing, by the one or more processors, a resource request call variable when the higher node requests the lower resource;
and increasing, by the one or more processors, a resource provision response variable when the lower node provides the lower resource; generating, by the one or more processors, the investment signal and conducting investment execution using the lower resource provided by the lower nodes;
and performing a contribution rate calculation, comprising:v calculating, by the one or more processors, a contribution rate of each of the lower nodes when generating the investment signal using resources of the lower nodes anddistributing, by the one or more processors, the investment loss and profit resulting from the investment execution based on a calculated wherein the calculated distribution rate is calculated based on at least one selected from a group consisting of:
(i) the calculated contribution rate, the resource request call variable, and the resource provision response variable and (ii) a correlation value calculated by performing a correlation operation between data input into the investment signal generated by a highest node for investment execution and lower node resource data received from the lower node.
These limitations fall into Certain Methods of Organizing Human Activity — Fundamental Economic Practices / Commercial Interactions/ mental processes that can be done by the human mind and/or mathematical operations (the contribution rate calculations).
2A Prong 2
The components in addition to the abstract idea are 1) the nodes, 2) one or more processors
Berkhiemer Evidence that the additional elements are well understood, routine and conventiona, Specification ¶[0052]: “It is obvious to those skilled in the art that the formation of the node network can be performed according to a conventional computer network configuration technique and method.”
¶[0105]: “a method of generating a predetermined investment signal and executing an investment … is known as a known technology, detailed description thereof is omitted in the present disclosure.”
¶[0059]: “It is obvious to those skilled in the art that the generation of the investment signal for investment execution and the signal combination of the investment and investment execution using them can be implemented using a technology applied to investment execution models such as stocks and funds using ordinary computers.”
These admissions constitute factual support under Berkheimer v. HP Inc., 881 F.3d 1360 (Fed. Cir. 2018), that the additional elements are well-understood, routine, and conventional.
2B
The additional elements beyond the abstract idea are listed above.
Accordingly, the claim language is not patent eligible.
The dependent claims broadly construed do not add additional elements and are rejected for the reasons of the representative claim. the claims, considered as an ordered combination, do not amount to significantly more than the abstract idea. The combination of generic computing elements performing conventional functions (networking, data storage, variable assignment, arithmetic) to implement a profit-distribution business method does not transform the claims into patent-eligible subject matter.
Response to Arguments
The remarks directed to the amendments have been addressed in the above rejection.
Claim Rejections - 35 USC § 103
The following is a quotation of 35 U.S.C. 103 which forms the basis for all obviousness rejections set forth in this Office action:
A patent for a claimed invention may not be obtained, notwithstanding that the claimed invention is not identically disclosed as set forth in section 102, if the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains. Patentability shall not be negated by the manner in which the invention was made.
The text of those sections of Title 35, U.S. Code not included in this action can be found in a prior Office action.
Claim(s) 1-8 are rejected under 35 U.S.C. 103 as being unpatentable over Taylor US Patent Pub 20200364791.
As to claim 1 and 7
a node variable allocation step of allocating, by the one or more processors, different node variables to one or more higher nodes that receive a lower resource and generate an investment signal for selecting a predetermined investment object or a resource for generating the investment signal, and one or more lower nodes that provide a resource to the higher nodes; Fig 8 and [0109] [0173] As discussed above, an example of a trading signal (higher node) that can be generated by an example embodiment is a liquidity indicator that indicates a presence of a reserve order for a financial instrument. [0175] Detecting the presence of a reserve order resting at a given price (the lower node) in a market can be valuable information for a variety of market participants as this indicates the presence of hidden liquidity in the market for the subject financial instrument. For example, detection of a reserve order may encourage a market participant to increase the size of an order to execute against the price with the reserve order,
2) a node network establishment step of specifying, by the one or more processors, the resources for generating the investment signal and establishing connections with nodes holding the corresponding resource; [0088] This signal may be used by an automated trading application to make a trading decision and generate a trade order (e.g., sell a larger quantity of IBM stock on the NYSE than indicated by the size (or number of shares) of the best bid in the most recent quote message)
3) an edge variable allocation step of allocating, by the one or more processors, an edge variable to each of connection relationships with the lower nodes that provides the lower resource to the higher nodes; As the the applicant’s specification defines the Edge/Edge variable/Edge attribute value. [0042] In the present disclosure, a connection relationship between the higher module and the lower module is set as ‘edge’, and the connection relationship of each node is set as one of the edge attribute values. For example, if the highest node and a specific node below it are connected as nodes that exchange resources, the edge variable between the highest node and the specific node may have a connection attribute value of ‘1’, and if not connected, the edge variable may be set to have ‘0’.
4) performing a variable setting, comprising:increasing, by the one or more processors, a resource request call variable when the higher node requests the lower resource;
5) and increasing, by the one or more processors, a resource provision response variable when the lower node provides the lower resource; an investment execution step of generating, by the one or more processors, the investment signal and conducting investment execution using the lower resource provided by the lower nodes; [0111] . An example includes a signal that indicates the alignment or divergence of price direction predictions for an underlying stock and option contracts to buy or sell the stock at future times. [0111] FIG. 8 shows another signal generate stage that is interposed between the data aggregate stage and a transmit stage. This allows signals to be produced from the messages output from the data aggregate stage, as well as any signal data appended to those messages. An example includes a signal that indicates the alignment or divergence of price direction predictions for an underlying stock and option contracts to buy or sell the stock at future times.
The reference fails to teach of claim 6) performing a contribution rate calculation, comprising: calculating, by the one or more processors, a contribution rate of each of the lower nodes when generating the investment signal using resources of the lower nodes and an investment loss and profit distribution step of distributing, by the one or more processors, the investment loss and profit resulting from the investment execution based on a calculated according to an investment execution result according to a distribution rate set in the edge variable, wherein the calculated distribution rate is calculated based on at least one selected from a group consisting of:
the calculated contribution rate, the resource request call variable, and the resource provision response variable and (ii) a correlation value calculated by performing a correlation operation between data input into the investment signal generated by a highest node for investment execution and lower node resource data received from the lower node.
The reference does however render this obvious. See the prior art reference at [0356] For example, a proprietary trader using mid-frequency or high-frequency strategies needs to allocate capital to the most profitable trading opportunities. As the prior art teaches the art recognized variable for allocating capital to the most profitable trade. It would have been obvious for one skilled in the art at the time to have distributed “rate” to the most profitable risk adjusted trade, thereby increasing the expected return. The instant Specification teaches the “ [d]istribution rate is a ratio of distributing profitability performance to lower nodes. As for the distribution rate, like the contribution rate, a predetermined distribution rate may be assigned to each lower node by the profit distribution module of the highest node, or the distribution rate to the lower module may be determined by the higher module connected to the lower module.” PHOSITA would recognize that distributing profitability performance to lower nodes increases the expected return. As an PHOSITA would understand that the investment signal generated by node of investment execution is maximized by adding more weight to the input/lower node resource data.
2. The method of claim 1, wherein
the highest node in the established node network calculates a contribution rate of each of lower nodes when generating the investment signal using resources of the lower nodes, and
the distribution rate of investment loss and profit for each node is calculated based on the calculated contribution rate.
This limitation is not expressly taught but the reference does teach of [0359] Another example use case is for proprietary traders—who can allocated capital more profitably. For example, a proprietary trader using mid-frequency or high-frequency strategies needs to allocate capital to the most profitable trading opportunities. The Quote Vector signal allows the trader to select liquid names with large Purse-per-Share (PPS) opportunity. For example, consider Stock A and B that are priced at $18.50 and $14.75, respectively, and Stock A and B have PPS values are $0.03 and $0.01, respectively. While Stock A requires 8.5% more capital commitment per share, the trader can capture 3× more profit per share by using the Quote Vector signal. With limits on available capital to trade, the trader chooses to trade Stock A, making the most of Quote Vector's ability to drive profitable trades. A skilled PHOSITA would understand that tracking the proifit of a signal is and updating the model as the trade become more or less profitable would optimize the model and would be obvious for its intended purpose.
3. The method of claim 2, wherein
the calculated distribution rate is set in each edge variable indicating the connection relationship between the respective nodes, and
This limitation is not expressly taught but the reference does teach of tracking the profit/loss of each signal - a loss and profit dividend to each node is calculated based on a product of the distribution rate set in the edge variable and the investment loss and profit. The reference does however render this obvious. 0359] Another example use case is for proprietary traders—who can allocated capital more profitably. For example, a proprietary trader using mid-frequency or high-frequency strategies needs to allocate capital to the most profitable trading opportunities [0175] Detecting the presence of a reserve order resting at a given price in a market can be valuable information for a variety of market participants as this indicates the presence of hidden liquidity in the market for the subject financial instrument. It would have been obvious for one skilled in the art at the time for the calculated distribution rate to the most profitable risk adjusted trade. The use of known teaching for their expected results is obvious.
4. The method of claim 3,
Further comprises
a resource request variable increase step of increasing a resource request call variable when the higher node requests the lower resource according to the lower resource request step, and a resource provision variable increase step of increasing a resource provision response variable when the lower node provides the lower resource according to the higher resource provision step.
This limitation is not expressly taught but the reference does teach of tracking the profit/loss of each signal - a loss and profit dividend to each node is calculated based on a product of the distribution rate set in the edge variable and the investment loss and profit. The reference does however render this obvious. See the prior art reference at [0356] For example, a proprietary trader using mid-frequency or high-frequency strategies needs to allocate capital to the most profitable trading opportunities. As the prior art teaches the art recognized variable for allocating capital to the most profitable trade. It would have been obvious for one skilled in the art at the time to have distributed “rate” to the most profitable risk adjusted trade. The use of known teaching for their expected results is obvious.
5. The method of claim 4, wherein
the investment loss and profit distribution step further comprises a procedure of verifying whether or not the distribution rate between the higher node and the lower node is appropriate. The examiner defines appropriate as profitable. This limitation is not expressly taught but the reference does teach of tracking the profit/loss of each signal - a loss and profit dividend to each node is calculated based on a product of the distribution rate set in the edge variable and the investment loss and profit. The reference does however render this obvious. See the prior art reference at [0356] For example, a proprietary trader using mid-frequency or high-frequency strategies needs to allocate capital to the most profitable trading opportunities. As the prior art teaches the art recognized variable for allocating capital to the most profitable trade. It would have been obvious for one skilled in the art at the time to have distributed “rate” to the most profitable risk adjusted trade. The use of known teaching for their expected results is obvious.
6. A method of distributing investment loss and profit between network entities, the method comprising:
a node setting step of allocating node variables to resources included in a plurality of network entities connected through a network;
a resource list derivation step of deriving a list of resources required for generating an investment execution signal;
a node network establishment step of establishing a connection relationship of nodes holding resources included in the resource list as a ‘connection’ attribute;
an investment execution step of requesting and receiving resources from the nodes set as the connection attribute and performing investment execution; FIG. 21 shows an example embodiment where the trading application server includes an Application Programming Interface (API) that abstracts the trading application from the message parsing and cache updating operations. This simplifies the task of developing new trading applications. It also enables new market data and fields, as well as new signals and fields to be added to messages without impacting existing trading applications that do not use the new content
Like claim 1, the reference fails to teach
an edge variable setting step of calculating a distribution rate for distributing a loss and profit of investment execution to the nodes that provided the resources, and setting the calculated distribution rate in an edge variable expressing a connection relationship with the nodes that provided the resources; and
a loss and profit distribution amount calculation step of collecting the set edge variables and calculating a loss and profit dividend to be distributed to each node based on a product of the loss and profit of investment execution and the edge variable.
As best can be understood (see the 112 rejections above) this claimed method is commensurate in scope with claim 1 and is rejected based on the teaching set forth above. The citations and rationale See the prior art reference at [0356] For example, a proprietary trader using mid-frequency or high-frequency strategies needs to allocate capital to the most profitable trading opportunities. As the prior art teaches the art recognized variable for allocating capital to the most profitable trade. It would have been obvious for one skilled in the art at the time to have distributed “rate” to the most profitable risk adjusted trade. The use of known teaching for their expected results is obvious.
8. The system of claim 7, wherein
the highest entity further comprises
a resource acquisition module implemented by the processor that identifies the resource required for generating the investment signal, Fig. 21 Market Data +Signal API
queries each lower node to see if the resource is a resource that is providable by each lower node, or reads a given resource database and generates a signal requesting provision of a lower resource to the lower node capable of providing the lower resource, Fig. 21 (Synchronized Market Data and Signal Fields)
acquires the resource from the lower node , Fig. 21 (Synchronized Market Data and Signal Fields)
an investment execution module implemented by the processor that generates the investment signal using the acquired resource of the lower node Fig. 21 (Order Gateway)
Response to Arguments
The applicant argues that Taylor does not teach or suggest feature of "increasing, by the one or more processors, a resource request call variable when the higher node requests the lower resource" and "increasing, by the one or more processors, a resource provision response variable when the lower node provides the lower resource. This amended limitation has been addressed above.
2. Taylor Fails to Teach Calculating Distribution Rate Based on Counted Variables Amended Claim 1 requires calculating the distribution rate based on at least one selected from the group consisting of. (i) the calculated contribution rate, the resource request call variable, and the resource provision response variable; and (ii) a correlation value calculated by performing a correlation operation between data input into the investment signal generated. The examiner disagrees as broadly construed the reference teaches the calculated contribution rate by setting calling one or more nodes.
Applicant's amendment necessitated the new ground(s) of rejection presented in this Office action. Accordingly, THIS ACTION IS MADE FINAL. See MPEP § 706.07(a). Applicant is reminded of the extension of time policy as set forth in 37 CFR 1.136(a).
A shortened statutory period for reply to this final action is set to expire THREE MONTHS from the mailing date of this action. In the event a first reply is filed within TWO MONTHS of the mailing date of this final action and the advisory action is not mailed until after the end of the THREE-MONTH shortened statutory period, then the shortened statutory period will expire on the date the advisory action is mailed, and any nonprovisional extension fee (37 CFR 1.17(a)) pursuant to 37 CFR 1.136(a) will be calculated from the mailing date of the advisory action. In no event, however, will the statutory period for reply expire later than SIX MONTHS from the mailing date of this final action.
Any inquiry concerning this communication or earlier communications from the examiner should be directed to RICHARD C WEISBERGER whose telephone number is (571)272-6753. The examiner can normally be reached Monday - Thursday 10AM-8PM PCT.
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If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, Michael Anderson can be reached at 571-270-0580. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300.
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RICHARD C. WEISBERGER
Examiner
Art Unit 3693
/RICHARD C WEISBERGER/Primary Examiner, Art Unit 3693
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