Global e-Bourse Suites® (“GLEBS”) is a collection of intellectual property aimed at innovating exchange-traded derivatives (“ETD”) platforms, as well as other centralized and decentralized marketplaces linked thereto; all predicated on the following premises:
Commercials, investors, and speculators need more efficient vehicles to strike greater balance and consistency among physical (spot/forward) and financialized (futures/options) trading and hedging interests.
As digital transformation disrupts physical asset markets, more flexible transparent platforms are needed to maximize connectivity between physical economies and the financial sector.
Global markets are ready for a game-changing hybrid paradigm (“HP”): database systems and models developed to optimize price discovery and liquidity for interrelated physical, financialized and digitized asset-backed units, baskets and mediums of exchange, enabling a multitude of ETD and other affiliated platforms to unlock values and hedge price volatility risks for $trillions of illiquid underutilized commodities, credit instruments and other assets ripe for digitization (i.e., securitization and tokenization) exploitable in secondary markets.
Patented Benchmark Complex Solutions (“BCS”) employ uniform systems, methods and synergistic sets of ETD instruments to execute and physically settle large volumes of standardized-yet-customizable asset trades over a permissioned exchange-controlled network (“ECN”). Key features:
Physically settled ETD contracts are linked to weighted average benchmark (“WAB”) sets comprising exchange-specified pluralities of asset forms, rather than conventional practices that denote one asset form as an arbitrary benchmark for all asset forms. WAB-based contracts facilitate matching of practically opposite counterparty interests, as opposed to the conventional practice based on absolute opposite matching.
Differential index (“DI”) contracts regulate WAB equilibrium. Complementary DI contracts value varying qualitative and logistics properties unique to each/all assets in an exchange-specified plurality. Forward Point Delivery DI contracts value timing differences between an actual physical delivery or receipt and the operative WAB-based contract’s expiration date. Algorithms determine the requisite quantities of long and/or short DI contracts formulated to be co-delivered in connection with completing each counterparty’s uniquely multi-faceted physical settlement process.
Examples of GLEBS trading platform types developed from our broadly defined patent art include:
Global Energy e-Bourse: for ETD transactions covering crude oil, refined products, natural gas, and coal, the intrinsic market values of which are impacted by differentiable qualitative (e.g., API Gravity, Sulfur Content), freight handling, and other logistics properties. Particularly well suited for major corridors of global trade (e.g., the Middle East-to-East of Suez market).
Global IMR e-Bourse: for ETD transactions covering industrial minerals, rocks, and resources produced throughout different regions of the world, principally traded today via opaque OTC platforms. Examples include potash and fertilizers produced therefrom, bauxite and alumina produced therefrom, phosphate and graphite. Each such tradable asset has peculiar qualitative, freight handling, and logistics properties that are differentiable.
Global Cannabis e-Bourse: for ETD transactions covering cannabis plants (strains: Sativa, Indica, and Ruderalis) harvested for wholesale trade in bulk or as components (leaves/flowers, seeds, stalks/roots) refined or otherwise processed into dozens of by-products fitting diverse sales channels that have emerged regionally throughout a globally transformative industry experiencing huge growth. BCS-based ETD contracts – physically-settled spots and forwards, plus financially-settled futures and options -- are formulated for each geographic region’s FOB-based physical delivery point(s). Contracts reflect major harvested plant strains in bulk form and respective components. Values are increased or decreased by algorithm-determined quantities of long or short Complementary Differential Index contracts factoring variability attendant to each strain’s qualitative attributes (certifiable organic or non-organic status; % THC content; % CBD content; % cannabinol content). ETD contracts are also formulated for bulk refined products: THC Oil and CBD Oil (the latter as Pure, Broad Spectrum, and Full Spectrum).
Global e-Souk: for Sharia-compliant ETD predicated on intent to actually physically deliver and receive halal assets. Enables Islamic banks and their customers to trade, finance, and hedge within the parameters of Murabaha, Musawama, and Salam-style transactions. BCS’ potential to overcome longstanding censures against conventional futures, options et al could break open a huge untapped market.
Global e-Counter: enables registrants of affiliated (aforementioned) platforms to engage in barter and countertrade transactions structured to execute and settle equivalent-for-equivalent trades via uniform processes that employ price references predicated on global mediums selected to minimize or eliminate the tendering of national currencies when the underlying assets are physically delivered or received as of the attendant platforms’ operative settlement dates.
Global Credit e-Bourse: for ETD covering credit instruments qualified within WAB sets based on issue type (e.g., corporate industrials, utilities, transports, and financial services, as well as municipal bonds, preferred stocks, leveraged loans, etc.); and varying qualitative attributes (e.g., coupon rate of interest, rated credit quality, and remaining duration to maturity/call/conversion), each being incorporated into Complementary Differential and Forward Point Delivery Differential Index contracts.
Global d-Bourse: novel platforms incorporating algorithm-powered HP price discovery databases serving to optimize liquidity and transparency; designed inter alia for:
Trading, hedging, and digitizing asset-backed units, baskets, repurchase agreements, and mediums of exchange (“ABMoE”) used by wholesale buyers and sellers that are also able to manage price volatility risks via GLEBS’ diverse ETD solutions;
Syndicating Retail DABMoE Tokens digitized for user-customers of external and affiliated cryptocurrency exchanges providing wallet and payment applications, (i.e., real-world-asset-backed options to Bitcoin, altcoins and other virtual cryptocurrencies); and
Permissionless peer-to-peer (“P2P”) marketplaces facilitating the decentralized exchange (“DEX”) of long and short spot cryptoasset index pairs whose respective market prices are geared to track those of a referenced BCS-based WAB linked to a specified set of real-world assets physically traded over traditional platforms outside of the digital world. Such DEXs allow P2P traders to access market exposures without making direct investments in the referenced physical assets, asset baskets, ETD’s, etc.
Global Emissions e-Bourse: an outlet for novel hybrid incentive trade instruments (ITI), which value multifaceted local and global benefits derived from verified emissions control system remediation. Values attributed to Hybrid ITI are an integral part of co-designed global funding mechanisms aimed at implementing crucial health, environmental, and climate change initiatives in emerging economies, particularly in the Middle East and Asia, where super-emitters of PM, HC, VOC, CO, and NOx cause major cross border damage.
U.S. Patents issued and pending:
No. 9,002,741 issued August 6, 2015: System for Market Hedging and Related Method (dealing primarily with tradable energy assets; e.g., crude oil and its refined products, natural gas and coal)
No. 9,460,470 issued October 4, 2016: System for Market Hedging and Related Method (covers all tradable assets with varying qualitative and quantitative properties that impact market value)
No. 9,741,042 issued August 22, 2017: Global Pollution Control System Employing Hybrid Incentive Trade Instruments and Related Method of Establishing Market Values; tied in part to No. 8,722,002 System for Recycling Captured Agglomerated Diesel Soot and Related Method
No. 10,269,070 issued April 23, 2019: System and Method for Sharia-based Energy Market Hedging and Related Method (note: in 2017, counterpart filing in Singapore was awarded Patent Certificate No. 11201508233Q)
Published Application No. 20190095995 published March 28, 2019: Systems and Methods for Operating Exchange-Controlled Network Handling Digitized Asset-Backed Mediums of Exchange
No. 10,510,115 issued December 17, 2019: Computerized Exchange-Controlled Network System and Related Method
No. 11,107,160 issued August 31, 2021: Referential Data Structures for Automatically Updating Asset Attribution in Real Time Based on Streaming Data
No. 11,263,629 issued March 1, 2022: Possesses the same title as issued patent No. 11,107,160 because it was filed as a Continuation-In-Part application, which is directed to servers that securely validate, verify, record, trace, and track transactions for cryptocurrency specimens which are underpinned by Digitized (i.e. securitized and tokenized) Asset-Backed Mediums of Exchange.
No. 11,403,655 issued August 2, 2022: Possesses the same title as issued patent nos., 11,107,160 and 11,623,629 (since filed as continuation-in-part). In this case, the server(s) generate tokens associated with BCS-based fungible assets specified for trading over subnetworks directed by FCMs or other exchanges (each affiliated in cooperation with the Exchange). The tokens are backed by cash-settled WAB Set, Complimentary Differential Index, and Forward Point Delivery Differential Index contracts that, together, can serve to greatly expand Hybrid Paradigm Liquidity.
Additional patents related to the forgoing are issued or pending in countries outside the U.S. plus with PCT-WIPO
Trademarks protected by USPTO, all registered February 26, 2016
Global E-Bourse Suites (serial no. 86/920,723)
Global Energy e-Bourse (serial no. 86/920,735)
Global Energy e-Souk (serial no. 86/920/743)
Global Credit e-Bourse (serial no. 76/920751)
Glossary of Select Terms Cited in Patent Art
Market Index:
A hypothetical portfolio of investment holdings representing a segment of the financial market, with the calculation of index value derived from the prices of its underlying tradable asset holdings, adjusted for weightings reflecting the respective attributes of each asset index member.
Benchmark:
A standard or reference point against which the performance, quality, or attributes of a tradable asset or asset group is measured.
Benchmark Complex:
A structured system that evaluates and categorizes a group of fungible-yet-varying tradable assets into sets that share inter alia quality, logistics, and market significance attributes to generate more refined trading and settlement standards.
Benchmark Complex Solutions (“BCS”):
Proprietary processes encompassing standardized systems. methods and instruments developed to match counterparties with practically rather than absolutely opposite tradable asset interests. As a result, larger volumes of trade orders can be more efficiently and transparently executed and settled by physical delivery over computerized trading platforms integrated to serve an organization of affiliated Exchanges, their customers, and respective communities of interests via cloud-powered, cryptographically-assured and dongle-enabled Exchange-controlled networks (“ECN’s”) and permissioned ledgers.
BCS Algorithms:
Computational processes that support data-driven BCS employing weighted averages to generate price benchmarks reflecting the effects of qualitative, quantitative, logistics, and forward point delivery differentials for an Exchange-formulated set of eligible fungible-yet-varying tradable assets.
Weighted Average Benchmark (“WAB”):
Representing the centerpiece of BCS, a WAB is an Exchange-formulated tradable asset benchmark indicating aggregate qualities of its underlying tradable assets. WAB’s are generated based on weighted averages of the physical properties or attributes of tradable assets qualifying as members of the formulated set. Trade orders are executed for standardized WAB Exchange-traded derivatives (“ETD”) contracts plus complementary index-based contracts (cited below) developed to uniquely reflect valuation differences between actual properties of tradable assets physically delivered per an operative ETD contract and the aggregate qualities indicated by the WAB.
Complementary Differential:
A factor used to calculate valuation differences covering qualitative, quantitative and other attributes common to all fungible-yet-varying tradable assets eligible as members of an Exchange-formulated WAB set; used to facilitate standardized matching of counterparties’ practical rather than absolute opposite asset trading interests subjected to physically settled transactions per operative BCS.
Complementary Differential Index (“CDI”):
A tradable index capturing the effects of complementary differentials cited above, and which underlies Exchange-specified ETD contracts traded either on a standalone basis or as standardized instruments co-delivered as part of physically settled transactions taking place per BCS developed for specific fungible-yet-varying tradable assets.
Logistics Differential:
A factor used to calculate valuation differences covering logistics attributes (such as storage and transport) common to all fungible-yet-varying tradable assets eligible as members of an Exchange-formulated WAB; used to facilitate standardized matching of counterparties’ practical rather than absolute opposite asset trading interests subjected to physically settled transactions per operative BCS.
Logistics Differential Index (“LDI”):
A tradable index capturing the effects of logistics differentials cited above, which can be traded similarly to Complementary Differential Indexes.
Forward Point Delivery Differential (“FPDD”) and related Index:
FPDD is a factor used to calculate the valuation impact of timing differences between the actual physical receipt/delivery date of a tradable asset being bought/sold, and the expiration date of the operative WAB contract. As in the case of differential index contracts cited above, FPDD Index ETD contracts can be traded on a stand-alone basis or as standardized instruments co-delivered as part of transactions physically settled per operative BCS.
Hybrid Paradigm:
A computer implemented process employing data-driven algorithms leveraging the effects of multi-market/platform price discoveries featuring Asset-Backed Exchange-Traded Basket (“ABETB”; cited below) order matching systems aimed at optimizing price liquidity throughout a global organization of affiliated Exchange platforms employing similar trading systems, methods and instruments.
Hybrid Paradigm Price Discovery Database (“HPPDD”):
A cloud-based collection of price discovery order matching and related predictive analysis data compiled, processed, stored, transmitted and received globally around the clock; used with systems, methods and instruments applying to a multitude of trading opportunities taking place over affiliated centralized and decentralized platforms addressing asset market sizes totaling hundreds of trillions of dollars worldwide.
Blockchain:
A distributed database or ledger shared across a computer network’s nodes, best known for their crucial role in cryptocurrency systems, used for example to maintain a secure and decentralized record of transactions.
Blockchain Assets:
Digital assets, including cryptocurrencies, tokens, and NFTs, issued, managed, and transferred on a blockchain network, characterized by decentralization, transparency, immutability, and security; a new paradigm for ownership and transfer of value.
Oracle:
A third-party service providing trusted information to smart contracts on a blockchain from external sources, acting as an intermediary between the on-chain and off-chain worlds, with the latter often provided by centralized sources, allowing smart contracts to execute based on real world inputs and outputs.
Validator:
A trusted entity responsible for adding new blocks and verifying transactions in proposed blocks, thus playing a vital role in the functioning of blockchain consensus mechanisms. They check whether new transactions align with the network’s rules and ensure that adequate funds are in place to complete the transaction. Validators also ensure the security of the blockchain by monitoring the network for double spending and other nefarious activities, achieved by connecting the open ledger with cryptographic algorithms. Validators often get paid in the native cryptocurrency of the underlying blockchain.
Consensus Mechanism:
A set of rules and software protocols that allow a decentralized network to agree on a single version of a digital ledger. They are essential for blockchains, cryptocurrencies and other cryptoassets, and distributed ledgers because they ensure security, maintain decentralization, and replace human verifiers. They work by having nodes in a blockchain network agree on whether a piece of data can join the chain.
Smart Contract:
A program stored on and operated by a blockchain network, allowing developers to create decentralized applications that can work with cryptocurrencies and other cryptoassets, thereby providing transparent financial tools and services for end users.
Artificial Intelligence (“AI”):
The ability of a computer or a robot controlled by a computer to continually perform tasks typically assigned to humans because they require human intelligence and discernment.
Machine Language (“ML”):
A type of artificial intelligence that allows software applications to become more accurate in predicting outcomes without being explicitly programmed to do so. Machine learning algorithms use historical data as input to predict new output values.
Generative AI:
A type of artificial intelligence that can create new content, such as text, images, code, and audio or video. It learns patterns and structures from existing data and then uses this knowledge to generate similar but novel outputs.
AI Accelerator Chips:
Specialized hardware designed to speed up the training and execution of artificial intelligence algorithms. These chips are optimized for the mathematical operations commonly used in AI, such as matrix multiplication and convolutions.
Central Processing Unit (“CPU”):
The primary processor in a computer, which handles the majority of general-purpose tasks, such as running the operating system, executing applications, and managing data flow.
Graphics Processing Unit (“GPU”):
A vital component of modern-day computing used in a wide range of applications, GPU’s are specialized electronic circuits that process graphical data and perform mathematical calculations at high speeds, making them useful for machine learning, creative production, image processing and high performance computing. GPU’s can be integrated into a computer’s CPU (i.e. built into a PC’s motherboard designed for thin, lightweight, and power efficient computing devices); or offered as a discrete hardware unit. GPU’s perform graphics-related calculations very quickly and in parallel to allow for smooth rendering of content on the computer screen. Whilst the GPU takes care of calculations, the CPU is free to handle everything else not related to graphics applications.
Neural Processing Unit (“NPU”):
A specialized processor designed specifically for the types of calculations used in artificial intelligence, particularly neural networks. NPUs are optimized for parallel processing and matrix operations, making them more efficient than CPUs and GPUs for certain AI tasks.
Cloud:
A network of servers and other infrastructure that delivers computing resources and services over the Internet. Cloud services can include data storage, processing power, software applications, etc.
Edge:
The point where a network connects to the outside world. In the context of computing, the edge refers to devices and systems located close to the source of data, such as sensors, smartphones, and IoT devices. Edge computing allows for faster processing and reduced latency by performing computations closer to the data source.
Edge Artificial Intelligence Computing Device (“EAICD”):
A machine powering a permissionless peer-to-peer marketplace facilitating the decentralized exchange of offsetting long and short spot index cryptoasset pairs whose respective market prices are geared to track those of a referenced weighted average benchmark. Each network node with an EAICD incorporates cryptographic protocols synergizing the effects of artificial intelligence, machine language and dongle-authentication hardware and software to provide its user with operating, security and regulatory bandwidth needed to automate repetitive tasks.
Distributed Ledger Technology (“DLT”):
A database of information shared and duplicated across a network of computers (aka nodes) in different locations. Information on the ledger is updated by those participating in the ledger, rather than by a central authority. The information can be (i) shared by some or all users, (ii) accessed by some or all users, (iii) verified and (iv) audited. Although a blockchain is one type of DLT, not every distributed ledger is a blockchain. Some DLT’s don’t share all the data with all the participants in the way that blockchains do.
Centralized Exchange (“CEX”):
CEX is a platform run by a company that facilitates trading of listed cryptocurrencies. Users deposit funds with the exchange, and the exchange acts as an intermediary to execute the trades. Examples are Binance, Coinbase, and Kraken.
Decentralized Exchange (“DEX”):
DEX is a peer-to-peer marketplace where users can trade cryptocurrencies directly with each other sans intermediaries. These exchanges typically operate on a blockchain and use smart contracts to automate transactions. Examples are Uniswap and PancakeSwap.
DEX Protocol:
A DEX protocol refers to the underlying software and rules that dictate how a DEX operates. This includes the smart contracts that facilitate trades, the mechanisms for order matching and execution, and the governance structure of the DEX.
DEX Pair Trading:
DEX pair trading involves utilizing a DEX to execute pair trading strategies with cryptocurrency pairs. This could involve identifying two cryptocurrencies that are correlated or have a historical relationship and taking advantage of price discrepancies between them on the DEX.
Decentralized Finance (“DeFi”):
DeFi encompasses growing ecosystems of applications and services that leverage blockchain technology and cryptocurrencies to provide decentralized financial services to end users, allowing them to borrow, lend, and earn interest on cryptocurrencies. DeFi applications (“dApps”) are programs running on top of blockchain networks and using smart contracts to provide trustless tools and services for end users, and define the exact processes and flows of user funds.
Traditional Finance (“TradFi”):
TradFi encompasses the conventional financial system, including banks, investment firms, and regulatory bodies. It relies on centralized institutions and intermediaries to facilitate financial transactions.
Permissioned Network:
Private network with access and participation controlled by a central authority, often customized by businesses or organizations to maintain security and control over their data and resources.
Permissionless Network:
Public network where anyone can join and participate. Cryptocurrencies like Bitcoin and Ethereum operate on a permissionless basis, allowing anyone to join the network, send transactions, or run a node.
Peer-to-Peer (“P2P”):
P2P refers to a decentralized network architecture where individual computers (nodes) connect and share resources directly with each other, without relying on a central server. File-sharing networks and some cryptocurrencies utilize P2P technology.
Dongle:
Uniquely configured hardware and/or software operating in conjunction with a network community of interest (“COI”) member’s server, enabling an Exchange to exercise controls over who can access what data at any given time, where the data is stored, and who manages various storage needs and server networks. Dongles are made according to Exchange specifications and supplied to network COI members either as (i) serialized USB thumb drives or stick devices connectable to independently employed servers, requiring a PIN to reboot each server into an Exchange Cloud-enabled operating environment or (ii) an integral component of the Exchange’s proprietary data interchange terminal.
Dongle Authentication:
Dongles facilitate transformational data protection via encryption that adds authentication and fault tolerant information as digital data moves through an ECN, allowing similarly uniquely-authorized COI to share a common infrastructure and related ledgers sufficient to record, store and maintain digital asset data of a financial, administrative, legal, physical and electronic nature without fear of other COI or a general population at large accessing digital data that is not intended to be openly available.
AI Dongle:
An AI dongle contains hardware (like an AI accelerator chip) dedicated to running AI algorithms or applications. Adding AI and ML to dongle-authentication hardware and software can also regulate identity and access management, plus detect and predict anomalous behavior threatening security.
Cryptography:
The science of keeping information secure and safe, used in many areas in computing today. In particular, blockchains and cryptocurrencies are secured through the use of hashing algorithms attendant to private-key/public-key cryptography for authenticating and validating cryptocurrency transfers
Cryptoassets:
Issued and transferable digital assets using cryptography, peer-to-peer networks and a distributed ledger or blockchain technology to create, verify and secure transactions. Examples are cryptocurrencies (see later below) as well as:
Stablecoins, which are designed to maintain a stable value relative to a specified unit of account, such as a national currency or a commodity;
Central bank digital currencies issued so far by the central banks of various countries;
Asset referenced tokens seeking to maintain a stable value by referring to several currencies, commodities, or other cryptoassets; for one particular example, see the term “Spot Cryptoasset Index Tracking WAB Prices” provided later in this Glossary;
Blockchain assets representing stakes in a particular project or company; and
Non-fungible tokens (“NFT’s”), unique indivisible digital assets representing ownership of a specific item, like digital art or collectables, recorded on a blockchain for verifiable provenance and scarcity, enabling new forms of digital ownership and exchange. Each has unique authentication codes and metadata serving to differentiate them from one another.
Cryptocurrencies:
Digital currencies that can be used as a store of value or a means of exchange for products and services; prime examples, such as Bitcoin Ether, Ripple, and Litecoin, are based on supply and demand, and not considered legal tender.
Native cryptocurrencies (aka native tokens):
Launched by a crypto exchange platform to be an integral part of its blockchain ecosystem, where they can be used as accounting units for transaction and other service fee payments, for network security and governance, and as a means of offering holders’ incentives, awards, voting rights or other exclusive privileges.
Asset Backed Exchange Traded Basket (“ABATB”):
Novel financial product backed by Exchange-specified tradable assets formulated in baskets that can be transparently maintained and regularly replenished by proprietary asset cycling systems employing practically opposite matching and relative value equivalency processes predicated on BCS. ABETB are structured inter alia to serve as major drivers of tradable asset liquidity throughout a multiple of targeted markets.
Digitize:
Taking a real-world asset and converting it into digital representation that can be securitized and tokenized (see below) for buying and selling.
Tokenize:
The process of representing a digitally securitized real-world asset as a token on a blockchain or other distributed ledger in order to facilitate easier transfer and fractional ownership on a decentralized platform.
Securitize:
In this context, refers to the process of structuring a digital asset into a security that can be bought or sold over an exchange.
Digitized Asset Backed Medium of Exchange (“DABMoE”):
A digital token or cryptocurrency that represents ownership of, or a claim on, an underlying asset. Such asset backing provides stability and intrinsic value to the digital asset. It's designed to be used for transactions, potentially offering a more efficient and secure way to store and transfer value compared to traditional methods.
Exchange-Traded Derivatives (“ETD”):
Standardized derivative contracts that are bought and sold on exchanges, allowing for relatively greater accessibility and efficiency vs. over-the-counter derivatives. Examples are futures, options and some forwards, swaps and spreads.
Futures:
Futures are ETD contracts to buy or sell an asset at a specific price on a future date. They are often used for hedging or speculation.
Options:
Options are ETD contracts that provide the buyer with the choice to exercise the contract or not, depending on whether it's profitable. There are two main types of options: call options (right to buy) and put options (right to sell).
Spot:
Transactions that involve the buying and selling of currencies, commodities, stocks, cryptocurrencies or other assets for immediate delivery.
Forward:
A non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed on in the contract, making it a type of derivative instrument.
Spot and forward transactions attendant to physical assets settled by BCS:
Rather than settling for cash, sellers deliver the contracted physical assets specified and buyers co-deliver an algorithmically customized combination of ETD contracts previously acquired, including WAB’s, Complementary Differential Indexes, Logistics Differential Indexes, and Forward Point Delivery Differential Indexes. Sellers exchange the co-delivered ETD contracts in exchange for cash paid by the operative Exchange clearinghouse.
Over-the-Counter (“OTC”):
A spot or forward transaction that occurs directly between two parties without the supervision of an exchange, whereby the sell side is settled by physical delivery and the buy side can settled either by cash or an algorithmically customized combination of futures contracts previously acquired, including WAB’s, Complementary Differential Indexes, Logistics Differential Indexes and Forward Point Delivery Differential Indexes.
Spot Cryptoasset Index Tracking WAB Prices (“SCAITWABP”):
Instruments that allow peer-to-peer traders to access market index exposures without having to make direct investments in physical assets, asset baskets or ETD’s underlying referenced WAB’s defined earlier herein. Each of the WAB’s referenced is essentially a counterpart index because it is linked to a specified set of fungible-yet-varying assets qualifying for physically settled purchases and sales executed separately over cloud-based OTC and permissioned centralized ETD platforms.
Predictive Trade Analytics:
Predictive trade analytics involves using data analysis and machine learning algorithms to forecast future market trends, asset prices, and trading opportunities. This can help traders make more informed decisions, identify potential risks and rewards, and optimize their trading strategies.
Trade Reporting Service:
A trade reporting service helps businesses and institutions comply with trade reporting regulations by providing a platform to collect, format, and submit trade data to the appropriate authorities. This ensures transparency and helps prevent market manipulation.
On-Chain:
On-chain refers to activities or data that occur directly on a blockchain network. This includes transactions, smart contract executions, and other events recorded on the blockchain. On-chain data is publicly viewable and verifiable.
Off-Chain:
Off-chain refers to activities or data that occur outside of a blockchain network. This could include computations, transactions, or data storage that happen on private networks or centralized servers. Off-chain transactions can be faster and cheaper than on-chain transactions but may require trust in a third party.
DEX Liquidity Pool Providers:
DEX liquidity pool providers are individuals or entities who deposit their cryptocurrencies into a liquidity pool on a decentralized exchange. By providing liquidity, they enable trading on the DEX and earn a share of the trading fees generated by the pool.
Automated Market Maker (“AMM”):
A key part of the DeFi ecosystem, an AMM is a computer program that allows digital assets to be traded in a permissionless and automatic way using liquidity pools rather than a traditional market of buyers and sellers. AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula (algorithm) that automatically determines the price of assets in a DEX liquidity pool based on a predefined mathematical formula attendant to the ratio of assets in the pool . This eliminates the need for traditional order books and facilitates continuous, permissionless trading.
CEX Custodial Wallet:
A wallet provided by a centralized exchange to store users' cryptocurrencies. The exchange acts as the custodian, managing the private keys and securing the funds on behalf of the users. This offers convenience but also introduces counterparty risk, as users rely on the exchange's security measures.
Self-Directed Non-Custodial DEX Wallet:
A wallet that gives users complete control over their private keys and funds while allowing them to interact with decentralized exchanges. This offers greater security and autonomy but requires users to take responsibility for managing their own keys and ensuring the security of their wallet.
Know Your Customer (“KYC”):
Refers to the process by which a financial service provider must gather and verify information about their customers on registration, requirements which are enforced by government bodies in both customer and business jurisdictions.
Anti-money-laundering (“AML”):
Refers to a framework of laws, regulations and enforcement that aims to prevent criminals from disguising illegal funds as legitimate ones.
Proof-of-Reserves:
Refers to the development and implementation of rules that require cryptocurrency custodians to regularly prove they hold enough assets to back all customer funds. These regulations aim to increase transparency and accountability in the crypto industry, especially in light of recent events that highlighted the risks of inadequate reserves and fraudulent practices