What Is the Role of Public Key Infrastructure (PKI) in Managing and Verifying the Cryptographic Signatures of Options Traders?

Public key infrastructure (PKI) is a set of roles, policies, and procedures needed to create, manage, distribute, use, store, and revoke digital certificates and manage public-key encryption. In options trading, a PKI can be used to issue digital certificates to traders, which bind their identity to their public key.

This allows other traders and the exchange to verify the authenticity of a trader's cryptographic signature and to ensure that it has not been forged. The PKI also provides a mechanism for revoking a trader's certificate if their private key is compromised.