Order Book Auditing

Order book auditing is the process of continuously verifying the integrity and accuracy of the exchange's order book. This involves comparing the internal state of the matching engine with external records and monitoring for anomalies that might indicate manipulation or system errors.

It is a vital tool for both internal risk management and external regulatory compliance. By making the order book transparent and verifiable, exchanges can build trust with their users.

This process often uses cryptographic proofs, such as Merkle trees, to allow users to verify that their orders are included and processed correctly. Effective auditing is a key component of modern, trustworthy exchange architecture.