Hardware-attested trade integrity system for prediction markets

A computer-implemented method of producing a regulator-verifiable trade integrity record for a prediction market exchange, the method comprising:

• (a) loading a measured surveillance code base into a hardware trusted execution environment (TEE), the TEE producing a hardware-rooted measurement of the measured surveillance code base verifiable against a hardware-vendor attestation service;
• (b) ingesting, into the TEE over an encrypted channel terminating within the TEE, order-flow records and account-metadata records associated with trading activity on the prediction market exchange;
• (c) computing, within the TEE, cryptographic account-linkage fingerprints from features of the ingested records, identifying one or more linkage groupings of accounts whose pairwise linkage scores exceed a configured linkage threshold, and classifying trade patterns among the identified one or more linkage groupings as one or more of wash-trading indicators, coordinated-trading indicators, and collusion indicators, to produce one or more classifications;
• (d) producing, within the TEE, a hardware-attestation quote cryptographically binding the one or more classifications to the hardware-rooted measurement of the measured surveillance code base, to a cryptographic commitment over the ingested records, and to a surveillance parameter commitment over surveillance parameters in force during a covered interval, the surveillance parameters including at least the configured linkage threshold;
• (e) rejecting any classification of the one or more classifications that does not satisfy both (i) production by the measured surveillance code base executing within the TEE on records ingested over the encrypted channel and (ii) cryptographic binding in the hardware-attestation quote verifiable against the hardware-vendor attestation service, and recording a signed rejection record in a tamper-evident audit ledger;
• and
• (f) for each classification of the one or more classifications not rejected, committing the classification and the hardware-attestation quote to the tamper-evident audit ledger as a new entry, a root of the tamper-evident audit ledger being periodically committed to a publicly verifiable data registry.

A non-transitory computer-readable medium storing program instructions that, when executed within a hardware trusted execution environment (TEE) of a computer system, cause the TEE to:

• (a) receive, over an encrypted channel terminating within the TEE, order-flow records and account-metadata records associated with trading activity on a prediction market exchange;
• (b) compute cryptographic account-linkage fingerprints from features of the received records, identify one or more linkage groupings of accounts whose pairwise linkage scores exceed a configured linkage threshold, and classify trade patterns as one or more of wash-trading indicators, coordinated-trading indicators, and collusion indicators, to produce one or more classifications;
• (c) produce a hardware-attestation quote cryptographically binding the one or more classifications to a hardware-rooted measurement of the program instructions, to a cryptographic commitment over the received records, and to a surveillance parameter commitment over surveillance parameters in force during a covered interval, the surveillance parameters including at least the configured linkage threshold;
• (d) reject any classification of the one or more classifications that does not satisfy both (i) production by the program instructions, measured to the hardware-rooted measurement, on records received over the encrypted channel and (ii) cryptographic binding in the hardware-attestation quote;
• and
• (e) cause export of each classification of the one or more classifications not rejected and the corresponding hardware-attestation quote to a tamper-evident audit ledger whose root is periodically committed to a publicly verifiable data registry, in a form independently verifiable by a regulator against a hardware-vendor attestation service.