System and method for automated trade processing

• US 10,176,523 B1
• Filed: 09/11/2015
• Issued: 01/08/2019
• Est. Priority Date: 03/30/2007
• Status: Active Grant

• Current Assignee: Vestmark, Inc.
• Original Assignee: Vestmark, Inc.
• Inventors: Pathak, Heeren H, Kis, Ladislav, Hartmann, Neal
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US14/851,910
• Time in Patent Office: 1,215 Days
• Field of Search: 705 3- 44
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

An order management system and method are provided for automated management of the trading activity between a buy-side firm and sell-side firm. A trade rotation list is defined that governs trades. Items on the trade rotation list are defined by at least one characteristic that is used to match a trade by assigning a sequence number to that trade. An eligibility policy and a rotation method can be defined for each trade list. The rotation method rotates the sequence in which sponsors receive block trades, so that sponsors alternate the advantage of trading first. A trade route within an order management system comprises a trade context and an allocation context. One of the trade context or allocation context or both are referenced by metadata characteristics. If the trade route references a context by name, then the trade order is routed to the trade proxy associated with the context. If the trade route references the context by metadata, then the context to be used is determined by looking up metadata of a trade order using the metadata specified in the trade route and matching that to the metadata of the context.

Claims

1. A computer-implemented method of managing trade orders through facilities of an electronic-trading platform for improving efficiency of a trading computer system by implementing a metadata-based, order-management system to format and send a trade electronically over a network to different executing brokers, comprising:

at memory of the electronic-trading platform, receiving an identity of an investor;

by a processor in communication with memory of the electronic-trading platform, creating an account for the investor;

at memory of the electronic-trading platform, receiving

a request to perform said trade on the account, the request including a direct reference to a trade proxy in a trade route within the metadata-based, order-management system;

by said processor in communication with memory of the electronic-trading platform, replacing the direct reference to the proxy from the trade route with metadata, wherein the trade route within the metadata-based, order-management system comprises a trade context and an allocation context, wherein each of the trade context and the allocation context includes a list of characteristics that are used to calculate a proxy that is used to process an order or an allocation, and wherein the metadata includes information that is used to determine how a trade or an allocation is to be sent;

by said processor in communication with memory of the electronic-trading platform, comparing the metadata with each of metadata associated with the trade context and metadata associated with the allocation context;

by said processor in communication with memory of the electronic-trading platform, determining which of the metadata associated with the trade context and metadata associated with the allocation context is a close match with the metadata;

by said processor in communication with memory of the electronic-trading platform, based on a determination that the metadata matches the metadata associated with the trade context, determining a proxy for formatting and transmitting said trade electronically over said network to different executing brokers based on the matched metadata associated with the trade context;

by said processor in communication with memory of the electronic-trading platform, based on a determination that the metadata matches the metadata associated with the allocation context, determining a proxy for formatting and transmitting said trade electronically over said network to different executing brokers based on the matched metadata associated with the allocation context;

by said processor in communication with memory of the electronic-trading platform, based on the proxies automatically formatting and sending the trade electronically over said network to different executing brokers;

by said processor in communication with memory of the electronic-trading platform, based on a determination that the metadata does not match either the metadata associated with the trade context or the metadata associated with the allocation context, tagging the request to perform the trade with a routing error; and

automatically electronically updating the account for the investor in memory of the electronic-trading platform.

2. The computer-implemented method of managing trade orders through facilities of an electronic-trading platform of claim 1, further comprising:

by said processor in communication with memory of the electronic-trading platform, defining at least one trade rotation list that governs trades; and

by said processor in communication with memory of the electronic-trading platform, defining items on the trade rotation list by at least one characteristic that is used to match said trade by assigning a sequence number to that trade.

3. The computer-implemented method of managing trade orders through facilities of an electronic-trading platform of claim 2, further including, by said processor in communication with memory of the electronic-trading platform, defining at least one trade rotation list that governs how trades are released.

4. The computer-implemented method of managing trade orders through facilities of an electronic-trading platform of claim 2, further including, by said processor in communication with memory of the electronic-trading platform, defining at least one trade rotation list that governs how trades executed trades are allocated.

5. The computer-implemented method of managing trade orders through facilities of an electronic-trading platform of claim 2, further including, by said processor in communication with memory of the electronic-trading platform, defining at least one trade rotation flat list.

6. The computer-implemented method of managing trade orders through facilities of an electronic-trading platform of claim 2, further including, by said processor in communication with memory of the electronic-trading platform, defining at least one trade rotation hierarchical list of lists.

7. The computer-implemented method of managing trade orders through facilities of an electronic-trading platform of claim 2, further including, by said processor in communication with memory of the electronic-trading platform, defining at least one trade rotation list that varies based on a characteristic.

8. The computer-implemented method of managing trade orders through facilities of an electronic-trading platform of claim 2, further including, by said processor in communication with memory of the electronic-trading platform, defining separate rotation lists that vary based on investment type.

9. The computer-implemented method of managing trade orders through facilities of an electronic-trading platform of claim 2, further including, by said processor in communication with memory of the electronic-trading platform, defining separate rotation lists that vary based on product type.