research-article

Certified symbolic management of financial multi-party contracts

Authors:

Martin ElsmanAuthors Info & Claims

ACM SIGPLAN Notices, Volume 50, Issue 9

Pages 315 - 327

https://doi.org/10.1145/2858949.2784747

Published: 29 August 2015 Publication History

Abstract

Domain-specific languages (DSLs) for complex financial contracts are in practical use in many banks and financial institutions today. Given the level of automation and pervasiveness of software in the sector, the financial domain is immensely sensitive to software bugs. At the same time, there is an increasing need to analyse (and report on) the interaction between multiple parties. In this paper, we present a multi-party contract language that rigorously relegates any artefacts of simulation and computation from its core, which leads to favourable algebraic properties, and therefore allows for formalising domain-specific analyses and transformations using a proof assistant. At the centre of our formalisation is a simple denotational semantics independent of any stochastic aspects. Based on this semantics, we devise certified contract analyses and transformations. In particular, we give a type system, with an accompanying type inference procedure, that statically ensures that contracts follow the principle of causality. Moreover, we devise a reduction semantics that allows us to evolve contracts over time, in accordance with the denotational semantics. From the verified Coq definitions, we automatically extract a Haskell implementation of an embedded contract DSL along with the formally verified contract management functionality. This approach opens a road map towards more reliable contract management software, including the possibility of analysing contracts based on symbolic instead of numeric methods.

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Arusoaie A(2021)Certifying Findel derivatives for blockchainJournal of Logical and Algebraic Methods in Programming10.1016/j.jlamp.2021.100665121(100665)Online publication date: Jun-2021
https://doi.org/10.1016/j.jlamp.2021.100665
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Certified symbolic management of financial multi-party contracts

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Published In

cover image ACM SIGPLAN Notices

ACM SIGPLAN Notices Volume 50, Issue 9

ICFP '15

September 2015

436 pages

ISSN:0362-1340

EISSN:1558-1160

DOI:10.1145/2858949

Editor:
Andy Gill
University of Kansas, Lawrence, KS

Issue’s Table of Contents

ICFP 2015: Proceedings of the 20th ACM SIGPLAN International Conference on Functional Programming
August 2015
436 pages
ISBN:9781450336697
DOI:10.1145/2784731
General Chair:
Kathleen Fisher
Tufts University, USA
,
Program Chair:
John Reppy
University of Chicago, USA

Copyright © 2015 ACM.

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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 29 August 2015

Published in SIGPLAN Volume 50, Issue 9

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https://doi.org/10.5937/jcfs2-44362
Arusoaie A(2021)Certifying Findel derivatives for blockchainJournal of Logical and Algebraic Methods in Programming10.1016/j.jlamp.2021.100665121(100665)Online publication date: Jun-2021
https://doi.org/10.1016/j.jlamp.2021.100665
Do BNguyen QNguyen TNguyen TDao TNguyen B(2020)BML: A Data Mapping Language for Blockchain Platforms2020 IEEE 19th International Conference on Trust, Security and Privacy in Computing and Communications (TrustCom)10.1109/TrustCom50675.2020.00174(1297-1303)Online publication date: Dec-2020
https://doi.org/10.1109/TrustCom50675.2020.00174
Vinayak MSantos SThulasiram RThulasiraman PAppadoo S(2019)Design and Implementation of Financial Smart Contract Services on Blockchain2019 IEEE 10th Annual Information Technology, Electronics and Mobile Communication Conference (IEMCON)10.1109/IEMCON.2019.8936267(1023-1030)Online publication date: Oct-2019
https://doi.org/10.1109/IEMCON.2019.8936267
Vinayak MPal Singh Panesar HSantos SThulasiram RThulasiraman PAppadoo S(2018)Analyzing Financial Smart Contracts for Blockchain2018 IEEE International Conference on Internet of Things (iThings) and IEEE Green Computing and Communications (GreenCom) and IEEE Cyber, Physical and Social Computing (CPSCom) and IEEE Smart Data (SmartData)10.1109/Cybermatics_2018.2018.00284(1701-1706)Online publication date: Jul-2018
https://doi.org/10.1109/Cybermatics_2018.2018.00284
Egelund-M ller BElsman MHenglein FRoss O(undefined)Automated Execution of Financial Contracts on BlockchainsSSRN Electronic Journal10.2139/ssrn.2898670
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Perez IGoodloe ADedden F(2024)Runtime Verification in Real-Time with the Copilot Language: A TutorialFormal Methods10.1007/978-3-031-71177-0_27(469-491)Online publication date: 13-Sep-2024
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Grimmelmann JWeitzner DFeigenbaum JYoo C(2022)Programming Languages and Law: A Research AgendaProceedings of the 2022 Symposium on Computer Science and Law10.1145/3511265.3550447(155-165)Online publication date: 1-Nov-2022
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ANNENKOV DMILO MNIELSEN JSPITTERS B(2022)Extracting functional programs from Coq, in CoqJournal of Functional Programming10.1017/S095679682200007732Online publication date: 22-Aug-2022
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Sarswat SSingh A(2020)Formally Verified Trades in Financial MarketsFormal Methods and Software Engineering10.1007/978-3-030-63406-3_13(217-232)Online publication date: 19-Dec-2020
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