Prime Match: A Privacy-Preserving Inventory Matching System

Antigoni Polychroniadou, Gilad Asharov, Benjamin Diamond, Tucker Balch, Hans Buehler, Richard Hua, Suwen Gu

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Inventory matching is a standard mechanism for trading financial stocks by which buyers and sellers can be paired. In the financial world, banks often undertake the task of finding such matches between their clients. The related stocks can be traded without adversely impacting the market price for either client. If matches between clients are found, the bank can offer the trade at advantageous rates. If no match is found, the parties have to buy or sell the stock in the public market, which introduces additional costs. A problem with the process as it is presently conducted is that the involved parties must share their order to buy or sell a particular stock, along with the intended quantity (number of shares), to the bank. Clients worry that if this information were to "leak" somehow, then other market participants would become aware of their intentions and thus cause the price to move adversely against them before their transaction finalizes. We provide a solution that enables clients to match their orders efficiently with reduced market impact while maintaining privacy. In the case where there are no matches, no information is revealed. Our main cryptographic innovation is a two-round secure linear comparison protocol for computing the minimum between two quantities without preprocessing and with malicious security, which can be of independent interest. We report benchmarks of our Prime Match system, which runs in production and is adopted by a large bank in the US - J.P. Morgan. Prime Match is the first secure multiparty computation solution running live in the financial world.

Original languageEnglish
Title of host publication32nd USENIX Security Symposium, USENIX Security 2023
PublisherUSENIX Association
Pages6417-6434
Number of pages18
ISBN (Electronic)9781713879497
StatePublished - 2023
Externally publishedYes
Event32nd USENIX Security Symposium, USENIX Security 2023 - Anaheim, United States
Duration: 9 Aug 202311 Aug 2023

Publication series

Name32nd USENIX Security Symposium, USENIX Security 2023
Volume9

Conference

Conference32nd USENIX Security Symposium, USENIX Security 2023
Country/TerritoryUnited States
CityAnaheim
Period9/08/2311/08/23

Bibliographical note

Publisher Copyright:
© 2023 32nd USENIX Security Symposium, USENIX Security 2023. All rights reserved.

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