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Improved Over-The-Counter (OTC) Market Integrity and Privacy via cryptographic proofs of computational integrity

Objective

Over-The-Counter (OTC) trading is trading done directly between two parties, without supervision of an exchange. Traders in OTC markets face several types of counterparty risk (Default, Replacement, Settlement and Liquidity). The technology developed by the PI's ERC-funded research will be applied to solve two basic problems:

How to preserve the privacy and anonymity of traders involved in decentralized OTC trading, while improving accountability and transparency.

The objective is the creation of a decentralized peer to peer network in which asset ownership can be settled cryptographically with little cost and latency. The system will allow traders to (1) prove ownership of assets, (2) transfer ownership between two trading parties in an efficient, secure, and timely manner. Achieving this will help traders comply with new financial regulations (such as the Dodd-Frank Act) regarding OTC markets, and reduce (1) market inefficiencies, (2) counterparty risk, and (3) settlement and clearing latencies and costs.

Keywords

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Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-POC - Proof of Concept Grant

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2015-PoC

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Host institution

TECHNION - ISRAEL INSTITUTE OF TECHNOLOGY
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 150 000,00
Address
SENATE BUILDING TECHNION CITY
32000 Haifa
Israel

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Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 150 000,00

Beneficiaries (1)

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