Encrypted Identifier System for Real-Time Trade Visibility
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Solution Overview
Problem
Current brokerage systems face inefficiencies due to processing delays, particularly for prime brokers who lack real-time data on trading activities, exposing them to risk and limiting their ability to monitor customer risk and manage trades effectively.
Innovation Solution
A system that generates and manages encrypted identifiers for customers and brokers, allowing for real-time data access and visualization of transactions while preserving anonymity, enabling prime brokers to monitor customer risk and manage trades more efficiently.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If encrypted identifiers are implemented to preserve anonymity, then participant privacy is protected, but system complexity increases
Solution Approach 1:
The patent introduces an intermediary identifier system that mediates between anonymous participants and the trading platform. Instead of directly exposing participant identities, the system uses encrypted identifiers as intermediaries that carry necessary transaction information while preserving anonymity. This resolves the contradiction by enabling functional identification without revealing sensitive participant data.
Solution Approach 2:
The patent transforms participant identification from using direct identifiers (names, account numbers) to using encrypted parameter-based identifiers. By changing the identification parameter from plaintext to encrypted form, the system maintains the ability to identify and track transactions while protecting participant anonymity, thus resolving the contradiction between reliability and complexity.
2Productivity
If real-time trade data is made available to prime brokers, then risk management capability is improved, but information security risks increase
Solution Approach 1:
The patent applies local quality by providing different levels of data access to different entities. Prime brokers receive real-time trade data for their specific customers through decrypted identifiers, while other participants maintain anonymity. This localized data disclosure enables effective risk management for authorized parties without exposing information security risks to the broader system.
Solution Approach 2:
The encrypted identifier acts as an intermediary that selectively reveals information. It allows prime brokers to access real-time trade data when needed for risk management, while simultaneously protecting participant anonymity when not required. This intermediary mechanism resolves the contradiction by enabling conditional information disclosure based on authorization and need.
3Device complexity
If traditional end-of-day data processing is used, then system simplicity is maintained, but processing delays expose prime brokers to risk
Solution Approach 1:
The patent implements preliminary action by pre-generating and distributing encrypted identifiers to participants before trading occurs. This allows real-time tracking and processing of trade data as transactions happen, rather than waiting for end-of-day batch processing. The preliminary setup of the identifier system enables immediate data availability while maintaining overall system simplicity through standardized identifier structures.
Data Source
AI summary
Disclosed examples include systems, methods, and computer products relating to data activity visibility though the use of an identifier. A method includes receiving registration data regarding a customer. The customer is registered in association with a set of customer data. An identifier is generated that encrypts the set of customer data. The identifier is transmitted to a front-end device that sends the identifier as part of a transaction message. An executed transaction report containing the identifier and relating to a transaction is received from an exchange. The set of customer data is determined from the identifier of the executed transaction report. A request is received from an authorized entity device. Dashboard data is provided for rendering at the authorized entity device that includes data regarding the transaction in association with the customer.