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.
Partisia Contract Exchange is used to trade contracts in the Danish sugar industry and address intricate problems of matching, pricing and confidentiality
A market solution for the Danish sugar industry
In close cooperation with the Danish sugar industry we have deployed Partisia Contract Exchange to help the industry adjust to the changing market situation. The Partisia Contract Exchange has run twice in 2008.
Partisia Contract Exchange was introduced to trade production contracts among sugar beet growers in Denmark during a period of many changes and difficult pricing issues. The new EU sugar regime reduces prices by approximately 40 %. The sugar industry in Denmark and other EU countries is therefore in the process of adjusting to these changes. Danisco, the only processing company in Denmark, has closed one of three processing plants. In addition, initiatives have been made to increase the productivity of the sugar beet growers. With thousands of diverse growers and with approximately one third of them located on a different island than the two remaining processing plants, reallocating the contracts was one of the main challenges. Reallocation is one of the most effective ways to adjust since the results appear directly when production is moved from high to low cost producers. Needless to say that such gains are possible in a stable market situation as well since the productivity of individual producers tend to develop over time.