Distributed ledger system for anonymized transaction management

Abstract

The embodiment of the invention relates to a distributed ledger system for anonymized transaction management. Techniques are described for using a distributed ledger system (DLS) to manage transactions such as the trading of assets between entities. In some implementations, a platform provides a mechanism in which multiple institutions can participate in a dark pool for trading assets. The platform employs a DLS to support a dark pool that provides data privacy to the participating institutions, anonymity to the trading entities, data security, immutability, and transparency for auditing and regulatory compliance. Through a dark pool supported by a DLS, multiple institutions can benefit from a shared dark pool, thus increasing the number of parties who can participate in the trading activities, increasing the quantity of assets available to be traded, and increasing the likelihood of matching seller(s) to buyer for a particular trade. The DLS ensures that the information in the dark pool is kept secure and confidential, through homomorphic encryption and / or zero knowledge proof.

Description

Background technique [0001] Traditionally, trading in commodity equity, securities, stocks and / or other assets has occurred through markets. In some cases, banks or other institutions have established dark pools as an alternative to the market. Traditional dark pools are created and operated by sell-side banks, for example, as a service to their clients. Typically, large trades are submitted to dark pools to be matched with other orders as an alternative to sending them to exchanges, where the size of the trade (or even the quote) can move the market price. Through dark pools, large orders can be fulfilled without moving the market. More recently, problems have arisen in dark pools as entities use algorithms and / or high-frequency trading mechanisms to probe dark pools, discover trading patterns, and trade ahead of the discovered patterns. Contents of the invention [0002] Implementations of the present disclosure generally relate to transaction management for computer-dr...

AI Technical Summary

Problems solved by technology

More recently, problems have arisen in dark pools as entities use algorithms and / or high-frequency trading mechanisms to probe dark pools, discover trading patterns, and trade ahead of the discovered patterns

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