Deterministic Token Encryption for Redundant Trading Messages
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Solution Overview
Problem
Existing electronic trading systems face challenges in managing redundant and overlapping data communications, which overload communication infrastructure and compromise market integrity due to unequal information access and transmission delays, especially in complex multi-party transactions involving confidential information.
Innovation Solution
Implementing a token management system using deterministically reproducible key pairs to securely associate and encrypt financial messages, allowing market participants to access relevant data from a universal source like a blockchain, eliminating redundant communications and ensuring equitable information access.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If the exchange computing system generates multiple messages (direct/private and public) containing overlapping information, then market participants receive comprehensive information, but network load increases and communication infrastructure becomes overloaded
Solution Approach 1:
The patent segments information into public market data and private confidential information, transmitting them through separate channels. Public data is disseminated via market data feeds while private information is sent through direct encrypted messages, eliminating redundant transmission of the same data through multiple channels.
Solution Approach 2:
The patent introduces an intermediary encryption mechanism using deterministic tokens and key pairs. Confidential information is encrypted before transmission, and only authorized parties with the corresponding private keys can decrypt and access it, ensuring secure selective disclosure without overloading the network with unencrypted sensitive data.
2Reliability
If confidential information is encrypted and transmitted to specific recipients, then information security is maintained, but additional decryption infrastructure and key management are required
Solution Approach 1:
The patent implements self-service cryptographic functionality where each market participant generates their own key pair and manages their own encryption/decryption operations. The deterministic token generation allows parties to independently establish secure communication channels without requiring centralized key distribution infrastructure, reducing overall system complexity.
Solution Approach 2:
The patent uses deterministic tokens that change parameters (public key, private key, encrypted data) based on the specific communication needs. The encryption parameters are dynamically generated for each confidential message, allowing flexible secure communication without requiring a fixed complex cryptographic infrastructure.
3Loss of information
If data is replicated in multiple locations across parties and business layers, then information availability is improved, but data consistency and accuracy deteriorate
Solution Approach 1:
The patent extracts confidential information from the public market data feed and places it in separate secure communication channels. By removing sensitive data from the replicated public infrastructure, the system avoids the consistency problems that arise from replicating confidential information across multiple locations, while still maintaining availability through targeted private transmission.
Data Source
AI summary
A computer implemented method includes generating, by a processor associated with a first client computer, a request message; generating, by the processor, a first public token based on a first private token; augmenting, by the processor, the electronic data transaction request message with the first public token; transmitting, by the processor, the augmented electronic data transaction request message to a second client computer; generating, by the processor, a second public token based on the first public token; identifying, by the processor, from a database of result messages, a result message labeled with the second public token, the identified result message including encrypted confidential information; generating, by the processor, a second private token corresponding to the second public token used to identify the result message; and decrypting, by the processor, the encrypted confidential information with the second private token.