Method and system for linking an anonymous electronic trade order to an identity of a trader

• US 20070150408A1
• Filed: 12/19/2006
• Published: 06/28/2007
• Est. Priority Date: 12/23/2005
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: International Business Machines Corporation
• Inventors: Camenisch, Jan, Kenyon, Christopher
• Granted Patent: US 7,835,978 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/3829 involving key management
• CPC Class Codes: G06Q 20/383 Anonymous user system
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method for automatically linking an anonymous electronic trade order having an order quantity (q) to an identity of a trader by providing an identity marker (s) of the trader; embedding the identity marker (s) by splitting the anonymous trade order into a number (n) of trade orders each having a corresponding order quantity x (i) to generate a trade order set; and placing the generated trade order set in an electronic order book.

Claims

1. A method for automatically linking an anonymous electronic trade order having an order quantity (q) to an identity of a trader comprising the following steps:

(a) providing an identity marker (s) of said trader;

(b) embedding said identity marker (s) by splitting said anonymous trade order into a number (n) of trade orders each having a corresponding order quantity x (i) to generate a trade order set; and

(c) placing the generated trade order set in an electronic order book.

2. The method according to claim 1, wherein said identity marker is formed by a generated cryptographic signature of said trader.

3. The method according to claim 1, wherein said identity marker is formed by a generated random number.

4. The method according to claim 1, wherein said embedding step comprises calculating a number of splitting possibilities (InS) to split up said anonymous trade having a corresponding order quantity (q) into a number (n) of trade orders having an aggregated order quantity equal to the order quantity (q) of said anonymous trade whereby:

5. The method according to claim 4, wherein embedding the identity marker (s) is performed by calculating the order quantities x(i) of a trade order set comprising a number (n) of trade orders and having an aggregated quantity equal to the quantity (q) of the anonymous electronic trade order is performed in a calculation loop as follows:

set i;

=0;

m;

=n+1;

x(0);

=0

repeat

set i;

=i+1;

s;

=s−

x(i−

1);

m;

=m−

1

set 1;

=[log2(s)]

solve log[In(m,s)=1] for s by a bisector algorithm

set x(i);

=[s]

until i=n

wherein i is a loop variable and l, m are auxiliary variables.

6. The method according to claim 1, wherein the sum of the order quantity x(i) of the split orders is essentially equal to the order quantity (q) of said anonymous electronic trade order.

7. The method according to claim 1, wherein each electronic order comprises:

an object identifier (O-ID) identifying an object;

a trade direction indicator (TDI);

a quantity integer number (q;

x) indicating a number of traded objects;

a time stamp (TS) indicating a time when the electronic order is placed in the electronic order book;

a price real number (p) indicating a price for one unit of the identified object;

8. A method for automatically linking an anonymous electronic trade order having an order quantity (q) to an identity of a trader comprising the following steps:

(a) generating a cryptographic signature (S) by said trader using a private key of said trader;

(b) embedding said cryptographic signature (S) by splitting said anonymous trade order into a number (n) of trade orders each having a corresponding order quantity x(i) to generate a trade order set; and

(c) placing the generated trade order set in an electronic order book.

9. The method according to claim 8, wherein a public key and the identity of said trader is made available through a separate communication channel.

10. The method according to claim 8, wherein the public key and the identity of said trader is placed on a website.

11. The method according to claim 8, wherein the cryptographic signature is generated by an elliptic curve signature generation algorithm.

12. The method according to claim 8, wherein the embedding is performed by a direct mapping algorithm.

13. The method according to claim 8, wherein a cryprographic signature is derived from the order quantities x(i) of the placed order set placed in the electronic order book.

14. The method according to claim 13, wherein it is checked whether the derived cryptographic signature is a valid cryptographic signature of the trader.

15. A method for automatically linking an anonymous electronic trade order having an order quantity (q) to an identity of a trader comprising the following steps:

(a) generating a random number;

(b) embedding said random number by splitting said anonymous trade order into a number (n) of trade orders each having a corresponding order quantity x(i) to generate a trade order set;

(c) placing the generated trade order set in an electronic order book.

16. The method according to claim 15, wherein the embedding is performed by a constructive embedding algorithm.

17. The method according to claim 15, wherein the generated random number is made available in an authentic manner through a separate communication channel.

18. The method according to claim 17, wherein the random number is encrypted using a private key of said trader.

19. A computer program product for performing a method for automatically linking an anonymous electronic trade order having an order quantity (q) to an identity of a trader comprising the following steps:

(d) providing an identity marker (s) of said trader;

(e) embedding said identity marker (s) by splitting said anonymous trade order into a number (n) of trade orders each having a corresponding order quantity x (i) to generate a trade order set; and

(f) placing the generated trade order set in an electronic order book.

20. A computer program product for performing a method for automatically linking an anonymous electronic trade order having an order quantity (q) to an identity of a trader comprising the following steps:

(a) generating a cryptographic signature (S) by said trader using a private key of said trader;

(b) embedding said cryptographic signature (S) by splitting said anonymous trade order into a number (n) of trade orders each having a corresponding order quantity x(i) to generate a trade order set; and

(c) placing the generated trade order set in an electronic order book.

21. A computer program product for performing a method for automatically linking an anonymous electronic trade order having an order quantity (q) to an identity of a trader comprising the following steps:

(a) generating a random number;

(b) embedding said random number by splitting said anonymous trade order into a number (n) of trade orders each having a corresponding order quantity x(i) to generate a trade order set;

(c) placing the generated trade order set in an electronic order book.

22. A computer system for automatically linking an anonymous electronic trade order having an order quantity (q) to an identity of a trader comprising:

(a) an input interface for receiving said anonymous electronic trade order and and identity marker (s) of said trader;

(b) a calculating unit for embedding said identity marker (s) by splitting said anonymous trade order into a number (n) of trade orders each having a corresponding order quantity x(i) depending on the input identity marker(s) to generate a trade order set; and

(c) an output interface to place the generated trade order set in an electronic order book.

23. The computer system according to claim 22, wherein the identity marker(s) is formed by a generated cryptographic signature of said trader.

24. The computer system according to claim 22, wherein the identity marker(s) is formed by a generated random number.

25. The computer system according to claim 22, wherein each electronic order comprises:

an object identifier (O-ID) identifying an object;

a trade direction indicator;

a quantity integer number (q) indicating a number of traded objects;

a time stamp (TS) indicating the time when the electronic order is placed in the electronic order book;

a price real number (p) indicating a price for one unit of the identified object.

26. The computer system according to claim 22, wherein the generated trade order set is placed in said electronic order book via said data network