We involve simultaneously the theory of matched pairs of groups and the
theory of braces to study set-theoretic solutions of the Yang-Baxter equation
(YBE). We show the intimate relation between the notions of a symmetric group
(a braided involutive group) and a left brace, and find new results on
symmetric groups of finite multipermutation level and the corresponding braces.
We introduce a new invariant of a symmetric group (G,r), \emph{the derived
chain of ideals of} G, which gives a precise information about the recursive
process of retraction of G. We prove that every symmetric group (G,r) of
finite multipermutation level m is a solvable group of solvable length at
most m. To each set-theoretic solution (X,r) of YBE we associate two
invariant sequences of symmetric groups: (i) the sequence of its derived
symmetric groups; (ii) the sequence of its derived permutation groups and
explore these for explicit descriptions of the recursive process of retraction.
We find new criteria necessary and sufficient to claim that (X,r) is a
multipermutation solution.Comment: 44 page