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

• US 7,835,978 B2
• Filed: 12/19/2006
• Issued: 11/16/2010
• Est. Priority Date: 12/23/2005
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: International Business Machines Corporation
• Inventors: Kenyon, Christopher Mark, Camenisch, Jan Leonhard
• Primary Examiner(s): Patel; Jagdish N
• Assistant Examiner(s): BARTLEY, KENNETH
• Application Number:
  US11/642,013
• Publication Number:
  US 20070150408A1
• Time in Patent Office: 1,428 Days
• Field of Search: 705/37, 705/50, 705/58, 705/74
• 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 a computing device for automatically linking an anonymous electronic trade order, having an order quantity (q), price and identification of objects to be traded, to an identity of a trader comprising the following steps:

(a) said computing device receiving an anonymous electronic trade order from a known trader, said anonymous electronic trade order having an order quantity (q), price and identification of objects to be traded;

(b) said computing device generating an identity marker (s) number for said trader;

(c) said computing device generating a trade order set by splitting said anonymous trade order having an order quantity (q) into a number (n) of split trade orders each having a corresponding order quantity x(i) and embedding said identity marker into each of said split trade orders to generate a trade order set, whereby each order quantity x(i) is less than q and between a predefined qmin and qmax and whereby splitting into split trade orders frees available bits for inserting said identity marker; and

(d) said computing device 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 split 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 split 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;

=[log 2(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 a sum of the order quantity x(i) of the split orders is 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; and

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

8. A method for a computing device for automatically linking an existing anonymous electronic trade order, having an order quantity (q), price and identification of objects to be traded, to an identity of a trader comprising the following steps:

(a) said computing device receiving an anonymous electronic trade order from a known trader, said anonymous electronic trade order having an order quantity (q), price and identification of objects to be traded;

(b) said computing device generating a random number linked to the identity of said trader;

(c) said computing device generating a trade order set by splitting said anonymous trade order having an order quantity (q) into a number (n) of split trade orders each having a corresponding order quantity x (i) and embedding said identity marker into each of said split trade orders to generate a trade order set whereby each order quantity x(i) is less than q and between a predefined qmin and qmax and whereby splitting into split trade orders frees available bits for inserting said identity marker into each split trade order;

(d) said computing device placing the generated trade order set in an electronic order book.

9. The method according to claim 8, wherein the embedding is performed by a constructive embedding algorithm.

10. The method according to claim 8, wherein the generated random number is made available in an authentic manner through a separate communication channel.

11. The method according to claim 10, wherein the random number is encrypted using a private key of said trader.

12. A computer system for automatically linking an existing anonymous electronic trade order, having an order quantity (q), price and identification of objects to be traded, to an identity of a trader comprising:

(a) an input interface for receiving said anonymous electronic trade order having an order quantity (q), price and identification of objects to be traded and identity marker (s) number for said trader;

(b) a calculating unit for generating a trade order set by splitting said anonymous trade order having an order quantity (q) into a number (n) of split trade orders each having a corresponding order quantity x (i) and embedding said identity marker into each of said split trade orders depending on the input identity marker (s) to generate a trade order set, whereby each order quantity x(i) is less than q and between a predefined qmin and qmax and whereby splitting into split trade orders frees available bits for inserting said identity marker; and

(c) an output interface to communicate the generated trade order set over a network to an electronic order book.

13. The computer system according to claim 12, wherein the identity marker (s) is formed by a generated cryptographic signature of said trader.

14. The computer system according to claim 12, wherein the identity marker (s) is formed by a generated random number.

15. The computer system according to claim 12, 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 a time when the electronic order is placed in the electronic order book; and

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

16. The computer system according to claim 12, wherein the generated trade order set is placed in said electronic order book via said data network.