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https://github.com/lux-apps/papers.git
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zeekayandHanzo Dev
70f6883235
A July commit removed eight papers on the premise "no license — DEX/non-custodial only". That premise is wrong: Lux operates an ATS, a broker-dealer, a transfer agent and a bank, and this material is resold at lux.financial. The merge that brought main in preserved the removal because the commit stated a reason, which is how a stale reason outlives the fact it rested on. Back, at the versions main carried — main never received the removal, so its copies are the later ones: the ATS architecture, the security-token standard, smart order routing, institutional custody, MPC custody, post-quantum securities, the SSB partnership and the CoinBridge brief. 83 files. Co-authored-by: Hanzo Dev <[email protected]>
68 lines
2.6 KiB
TeX
68 lines
2.6 KiB
TeX
\section{Compliance-Aware Routing}
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\label{sec:compliance}
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\subsection{Pre-Route Compliance Check}
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Before allocating order quantity to a venue, the SOR checks compliance at three levels:
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\begin{enumerate}[nosep]
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\item \textbf{Security level}: Does the security's transfer restriction policy permit trading on this venue? (e.g., a Reg D security may only trade on US-registered ATS platforms.)
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\item \textbf{Investor level}: Does the investor's accreditation, KYC status, and jurisdiction permit trading on this venue?
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\item \textbf{Venue level}: Is the venue currently accepting orders for this security? (e.g., a venue may pause trading for a corporate action.)
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\end{enumerate}
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\begin{lstlisting}[language=Go,caption={Pre-route compliance check.}]
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func (r *Router) checkCompliance(
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order Order, venue Provider,
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) error {
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// Security-level check
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token := r.registry.GetSecurity(order.SecurityID)
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restrictions := token.TransferRestrictions()
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if !restrictions.AllowsVenue(venue.ID()) {
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return fmt.Errorf("security %s: venue %s not permitted",
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order.SecurityID, venue.ID())
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}
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// Investor-level check
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investor := r.registry.GetInvestor(order.InvestorID)
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did := investor.DID()
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for _, jur := range venue.Jurisdictions() {
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if did.Jurisdiction() == jur {
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goto jurisdictionOK
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}
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}
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return fmt.Errorf("investor jurisdiction %s not permitted on venue %s",
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did.Jurisdiction(), venue.ID())
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jurisdictionOK:
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if restrictions.RequiresAccreditation() {
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if !did.HasValidCredential("accreditation") {
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return fmt.Errorf("investor %s: accreditation expired", order.InvestorID)
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}
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}
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// Venue-level check
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if !venue.Supports(order.SecurityID) {
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return fmt.Errorf("venue %s does not support security %s",
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venue.ID(), order.SecurityID)
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}
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return nil
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}
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\end{lstlisting}
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\subsection{Cross-Venue Settlement}
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When an order is split across multiple venues, settlement occurs independently at each venue. The SOR tracks settlement status and reconciles:
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\begin{itemize}[nosep]
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\item \textbf{On-chain venues} (Lux DEX VM, Lux ATS internal): Atomic T+0 settlement on Lux EVM.
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\item \textbf{External ATS platforms}: Settlement per the venue's protocol (typically T+0 to T+2).
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\item \textbf{Traditional venues}: Settlement via DTCC (T+1 for equities).
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\end{itemize}
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The ATS maintains a settlement ledger that tracks the net position across all venues and reconciles on-chain state with off-chain settlements via the \texttt{position\_reconcile} cron job \cite{lux-ats-architecture}.
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