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Cryptographic Rule-Based Trading

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Financial Cryptography and Data Security (FC 2012)

Part of the book series: Lecture Notes in Computer Science ((LNSC,volume 7397))

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Abstract

We present an interesting new protocol where participants in a securities exchange may submit cryptographically encrypted rules directly to an exchange rather than orders to buy and sell. We define this in two parts: a secure, partially trusted computer that runs the exchange and proves its actions correct, and a set of participants who define the rules and submit them to the exchange. At each “tick” of the exchange, market prices are taken from the national market system, all submitted rules are evaluated, with any resulting trades executed at market prices. Cryptography reduces information leakage, masks participants’ intent, and provides for verification. A cryptographic audit trail proves that all transactions executed by the exchange are according to a set of published exchange rules and the encrypted trading rules.

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Author information

Authors and Affiliations

  1. General Cryptography, UK

    Christopher Thorpe & Steven R. Willis

Authors
  1. Christopher Thorpe
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  2. Steven R. Willis
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Editor information

Editors and Affiliations

  1. Department of Computer Science, Columbia University, 1214 Amsterdam Avenue, 10027-7003, New York, NY, USA

    Angelos D. Keromytis

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Thorpe, C., Willis, S.R. (2012). Cryptographic Rule-Based Trading. In: Keromytis, A.D. (eds) Financial Cryptography and Data Security. FC 2012. Lecture Notes in Computer Science, vol 7397. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-32946-3_6

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  • DOI: https://doi.org/10.1007/978-3-642-32946-3_6

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-32945-6

  • Online ISBN: 978-3-642-32946-3

  • eBook Packages: Computer ScienceComputer Science (R0)

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