Secure Protocol to Construct Electronic Trading

Abstract

As one form of electronic commerce, the scale of online trading in stocks is rapidly growing. Although bro- kers lie between the customers as trustees in the current market, retrenchment of broker seems inevitable. This paper proposes a protocol that allows trading to proceed with only the market and the customers. We show the required characteristics for this type of trading at first. Next, to fulfill these characteristics, we apply an electronic auction protocol and digital signatures. The result is a trading protocol with security equivalent to that the current trading system.