
Abstract Current financial regulation faces a critical enforcement crisis: it relies on ex-post forensic reconstruction. When an algorithm fails or a market manipulation event occurs, regulators must reconstruct "intent" from fragmented logs. This creates legal ambiguity and reliance on institutional "good faith." This monograph introduces Ternary Logic (TL) not merely as a software update, but as a constitutional layer for economic systems. TL operates on a non-negotiable covenant: "No Log = No Action." No financial transaction can execute unless it has generated a secured, immutable Decision Log proving regulatory adherence. The framework introduces three architectural enforcement mechanisms: The Epistemic Hold (Safe Harbor): A mandatory state of "Prudence" (State 0) that triggers when truth is uncertain, transforming liability from negligence to documented due care. Audit-Grade Evidence: A chain of custody meeting Federal Rules of Evidence (FRE 901/902) standards, secured by multi-chain cryptographic Anchors. The Hybrid Shield: An architectural defense against capture and fraud that physically blocks non-compliant transactions (e.g., sanctions violations) in real-time. This standard operationalizes the "Standard of Care" for the Digital Age, ensuring economic systems are architected to be incapable of non-compliance.
Risk Management, Financial Regulation, Digital Evidence, Basel III, Automated Compliance, Ternary Logic, EU AI Act, Sovereign Standards, Algorithmic Governance, FRTB, Audit Trails, Blockchain Anchoring, AI Safety, High-Frequency Trading
Risk Management, Financial Regulation, Digital Evidence, Basel III, Automated Compliance, Ternary Logic, EU AI Act, Sovereign Standards, Algorithmic Governance, FRTB, Audit Trails, Blockchain Anchoring, AI Safety, High-Frequency Trading
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 0 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Average | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Average | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
