In Options Trading, How Can a Cryptographic Signature Be Used to Create an Undeniable Audit Trail of Trades?

Every order, modification, and cancellation in options trading can be digitally signed by the trader using their private key. This creates a unique cryptographic signature for each action, which is then time-stamped and recorded.

This signed record serves as an undeniable audit trail, as it is computationally infeasible to forge a signature without the private key. This provides a verifiable and tamper-proof history of all trading activity, which can be used to resolve disputes and for regulatory compliance.

The audit trail can be independently verified by anyone with access to the public key.