System and method for specified pool trading

• US 10,049,405 B2
• Filed: 08/12/2013
• Issued: 08/14/2018
• Est. Priority Date: 03/10/2008
• Status: Active Grant

• Current Assignee: Tradeweb Markets LLC (Tradeweb Markets, Inc.)
• Original Assignee: Tradeweb Markets LLC (Tradeweb Markets, Inc.)
• Inventors: Toffey, James W., Williams, Jonathon
• Primary Examiner(s): Baird, Edward J
• Application Number:
  US13/964,526
• Publication Number:
  US 20130332331A1
• Time in Patent Office: 1,828 Days
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A computer system and related methods configured to store and deliver, upon request, information related to asset-backed security pools, and execute transactions between one or more parties relating to the same. The system generally comprises a computer and a network interface that includes a data storage system in communication with the computer, the data storage system storing information relating to the securities, and account information related to at least one or more parties. The computer operative to provide information related to security pools to at least one of the parties, enable the at least one party to select one or more security pools for inclusion in a specified pool, provide aggregate pool data and information related to the selected specified pool to at least one other party, receive pricing information from at least one other party, and execute a trade for the asset-backed security pools in the specified pool.

Claims

1. A computer-implemented method for creating specified lists of mortgage-backed security pools using a computer system capable of communication with a buyer computer and a plurality of seller computers, the method comprising:

providing to the buyer computer information from the computer system relating to a plurality of mortgage-backed security pools;

obtaining securitization of the mortgage-backed security pools from a government sponsored enterprise;

receiving from the buyer computer a first signal indicating a selection of one or more of the mortgage-backed security pools;

creating on a processor a specified list of mortgage-backed security pools based on the selection of the one or more mortgage-backed security pools received from the buyer computer wherein each of the mortgage-backed security pools that are part of the specified list is associated with a unique CUSIP number and contains a pool factor that is reflective of the principal left to be distributed in each of the mortgage-backed security pools,

wherein the creating further comprises;

generating a matrix of one or more mortgage-backed security pools based on the selection of the one or more mortgage backed security pools; and

aggregating information related to the matrix;

transmitting the specified list to at least one of the plurality of seller computers;

displaying the specified list on at least one of the plurality of seller computers;

receiving a second signal indicative of pricing for at least one of the one or more mortgage-backed security pools in the specified list from at least one of the plurality of seller computers; and

executing on a processor a transaction for at least one of the one or more mortgage-backed security pools in the specified lists for which pricing was received from the at least one of the plurality of seller computers.

2. The method of claim 1, wherein the step of providing information relating to a plurality of mortgage-backed security pools to an investor using the buyer computer comprises:

retrieving information for each of the mortgage-backed security pools from a source; and

transmitting the information displayed on the buyer computer.

3. The method of claim 2, wherein the source is a database.

4. The method of claim 2, wherein the source is an external information provider.

5. The method of claim 2, further comprising

receiving a third signal indicating a criteria for the mortgage-backed security pools from the buyer computer;

transmitting an inquiry message to a selected seller computer from the plurality of seller computers, the inquiry message including the criteria;

receiving from the selected seller computer, information relating to one or more mortgage-backed security pools based upon at least a portion of the criteria; and

transmitting the received information to the buyer computer.

6. The method of claim 1, wherein the information includes a pool number.

7. The method of claim 1, wherein the information includes a weighted average maturity.

8. The method of claim 1, wherein the information includes a weighted average coupon.

9. The method of claim 1, wherein the information includes a constant prepayment rate.

10. The method of claim 1, wherein the information includes an originator identifier.

11. The method of claim 1, wherein the information includes an average loan size.

12. The method of claim 1, wherein the information includes a maximum loan size.

13. The method of claim 1, wherein the information includes one or more geographic loan locations.

14. The method of claim 1, wherein the information includes an average FICO score.

15. The method of claim 1, wherein the aggregate information includes an aggregate original face value.

16. The method of claim 1, wherein the aggregate information includes an aggregate call value.

17. The method of claim 1, wherein the aggregate information includes an aggregate market value.

18. The method of claim 1, wherein the aggregate information includes aggregated data related to at least one indicator for the one or more mortgage-based security pools.

19. The method of claim 18, wherein the at least one indicator is selected from the group consisting of a CUSIP number, a pool number, a pool factor, a weighted average maturity, a weighted average coupon, a constant prepayment rate, an originator identifier, an average loan size, a maximum loan size, one or more geographic loan locations, and an average FICO score.

20. The method of claim 1, wherein the step of transmitting the specified list to be displayed on at least one of the plurality of seller computers comprises displaying the matrix of mortgage-backed security pools on one or more seller computers.

21. The method of claim 1, wherein pricing for the specified list is received in the form of a spread from the at least one seller.

22. The method of claim 21, wherein a plurality of sellers submit pricing for the specified list.

23. The method of claim 22, wherein the investor selects pricing from one of the plurality of sellers for all of the mortgage-backed security pools in the specified list.

24. The method of claim 22, wherein the investor selects pricing from at least two of the plurality of sellers for a portion of the mortgage-backed security pools in the specified list.