Trading commodities and securities happens for the most part via third party market makers such as exchanges, auctions or brokers. These institutions reduce the searching and matching costs and ensure efficient and liquid markets. They are, however, also weak points in the economy system and vulnerable to security breaches and collusion.
Market solutions has been novel applications of both MPC and blockchain technologies and provides a bedrock for better markets.
In collaboration with Tora, Partisia has developed SMC infrastructure for the next generation of financial order matching. Tora is the provider of the industry’s most advanced cloud-based order and execution platform (OEMS) and operator of Crosspoint also known as off-exchange matching. Every day over three billion dollars of institutional volume is traded through the Tora platform.
The MPC infrastructure is a unique protocol called MACE (Multiparty Agile Computation Engine) that meets the very high security, performance and flexibility requirements needed. Tora apply MACE in the Crosspoint matching service to avoid any data leakages or misuse of information on financial exchanges.
The Cyberian order matching solution is one of the most advanced uses of MPC.
In close cooperation with the Danish sugar industry, the Partisia team developed a secure exchange (also called a double auction) based on Secure Multiparty Computation (MPC). The exchange was the world’s first large scale application and commercial use of MPC. The solution has been used frequently since 2008.
The Partisia Contract Exchange help the Danish sugar industry (including Danisco one of the largest Danish companies at the time) adjust to the changing market situation with a price drop of approximately 40%.
The successful use of MPC was the starting point of Partisia and has been reported in the landmark paper “Secure Multiparty Computation Goes Live” from Financial Cryptography 2009.
In close cooperation with Copenhagen Economics, Partisia has been awarded framework agreements with both the Swedish and the Norwegian Telecommunication Authorities on designing, developing and operating spectrum auctions.
Spectrum auctions is a highly specialized field on designing advanced auctions used to allocate user rights to certain frequency bands. The state is the seller and since the licenses are prerequisite for a teleoperator, the auction basically forms the entire telecom industry. For that reason, these auctions are also referred to as high stake auctions.
As an example, Partisia’s High Stake Auction tailored for the Norwegian 1800 MHz Spectrum Auction has been used to trade spectrum rights for a total of NOK 877.983.276 over the course of 7 days and 83 bidding rounds in December 2015.
Energiauktion.dk – a Partisia spinout – is an automated end-to-end auction broker using a Secure Multiparty Computation (MPC) based auction. In close cooperation with experts in energy trade, Partisia has developed a cloud solution based on MPC. The solution is the world’s first commercial cloud solution based on MPC.
The solution consists of two services: The Power Procurement and The Energy Saving Auction solutions. Both services make it simple to run professional procurement auctions and are tailored to Small and Medium sized Enterprises (SMEs).
The Power Procurement solution is basically a trustworthy “middleman”, simplifying the procurement and bidding process as well as managing consumption data, auctions and resulting contracts for both buyers and sellers.
