Pith Number

pith:BNA2BU3D

pith:2026:BNA2BU3DOL2YU3IZKJW5DRQVLV

not attested not anchored not stored refs resolved

TradeMech: A Method to Multilaterally Net Trades Without Altering Counterparty Exposure

Daniel Aronoff, Madars Virza, Robert M. Townsend

TradeMech nets trades multilaterally by turning bilateral contracts into chains and cycles while keeping original profits and counterparty exposures unchanged.

arxiv:2605.15210 v1 · 2026-05-03 · q-fin.TR · econ.TH

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\usepackage{pith}
\pithnumber{BNA2BU3DOL2YU3IZKJW5DRQVLV}

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Record completeness

1 Bitcoin timestamp

2 Internet Archive

3 Author claim open · sign in to claim

4 Citations open

5 Replications open

✓ Portable graph bundle live · download bundle · merged state

The bundle contains the canonical record plus signed events. A mirror can host it anywhere and recompute the same current state with the deterministic merge algorithm.

Claims

C1strongest claim

The construction achieves maximal multilateral netting of the designated object while preserving each agent's contractual profit and preserving the location of counterparty risk.

C2weakest assumption

The initial network of bilateral contracts for one or two homogeneous fungible objects can always be transformed into chains and cycles such that the assigned multiparty trades preserve original exposures and profits.

C3one line summary

TradeMech converts bilateral trade networks into chains and cycles for maximal multilateral netting while preserving each party's profits and original counterparty risk locations.

References

13 extracted · 13 resolved · 0 Pith anchors

[1] Netwrap:a deficiency-resilient protocol for multilateral netting with preserved bilateral exposures 2026

[2] Otc derivatives statistics at end-june 2023 2023

[3] F. Boissay, C. Borio, T. Fleischman, R. Townsend, and E Zakrajsek. Multilateral trade credit setoff. Working paper BIS, 2025 2025

[4] Thomas H. Cormen, Charles E. Leiserson, Ronald L. Rivest, and Clifford Stein. Introduction to Algorithms. The MIT Press, 77 Massachusetts Avenue, Cambridge, MA 02139, 2nd edition, 2001. ISBN 026203293 2001

[5] Post-crisis bank regulations and financial market liquidity 2017

Formal links

2 machine-checked theorem links

Receipt and verification

First computed	2026-05-20T00:00:46.368052Z
Builder	pith-number-builder-2026-05-17-v1
Signature	Pith Ed25519 (`pith-v1-2026-05`) · public key
Schema	pith-number/v1.0

Canonical hash

0b41a0d36372f58a6d19526dd1c6155d6b78741464fe30384c66e630bacfa792

Aliases

arxiv: 2605.15210 · arxiv_version: 2605.15210v1 · doi: 10.48550/arxiv.2605.15210 · pith_short_12: BNA2BU3DOL2Y · pith_short_16: BNA2BU3DOL2YU3IZ · pith_short_8: BNA2BU3D

Agent API

Resolver JSON Graph JSON Events JSON Schema Signing key

Verify this Pith Number yourself

curl -sH 'Accept: application/ld+json' https://pith.science/pith/BNA2BU3DOL2YU3IZKJW5DRQVLV \
  | jq -c '.canonical_record' \
  | python3 -c "import sys,json,hashlib; b=json.dumps(json.loads(sys.stdin.read()), sort_keys=True, separators=(',',':'), ensure_ascii=False).encode(); print(hashlib.sha256(b).hexdigest())"
# expect: 0b41a0d36372f58a6d19526dd1c6155d6b78741464fe30384c66e630bacfa792

Canonical record JSON

{
  "metadata": {
    "abstract_canon_sha256": "882d7ee84042110589f978c41ff27ca5a68ae06eea35cdf907fae38a44da0f48",
    "cross_cats_sorted": [
      "econ.TH"
    ],
    "license": "http://creativecommons.org/licenses/by/4.0/",
    "primary_cat": "q-fin.TR",
    "submitted_at": "2026-05-03T17:29:36Z",
    "title_canon_sha256": "c0be71670a06de70e822ad976888f78859735f0036ead295cb979587ddc3aa67"
  },
  "schema_version": "1.0",
  "source": {
    "id": "2605.15210",
    "kind": "arxiv",
    "version": 1
  }
}