Method and apparatus for automating the process of settling financial transactions
First Claim
1. A method for automatically settling a financial transaction, comprising:
- receiving a trade record specifying previously-agreed-to details of the financial transaction between a first party and a second party;
wherein the trade record includes settlement instructions specifying a first transfer of a first financial instrument belonging to the first party into a second party destination account belonging to the second party;
wherein the trade record includes a second digital signature created by digitally signing at least a portion of the trade record including the settlement instructions with a second private key belonging to the second party;
ensuring that funds are available to complete the financial transaction; and
if funds are ensured to be available, causing the first transfer of the first financial instrument into the second party destination account on condition that the second digital signature can be verified using a corresponding second public key.
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Accused Products
Abstract
One embodiment of the present invention provides a system for automatically settling a financial transaction. This system operates by receiving a trade record specifying previously-agreed-to details of the financial transaction between a first party and a second party. This trade record includes settlement instructions specifying a transfer of a first financial instrument belonging to the first party into a second party destination account belonging to the second party. It also includes a second digital signature created by digitally signing at least a portion of the trade record, including the settlement instructions, with a second private key belonging to the second party. Upon receiving this trade record, the system attempts to ensure that funds are available to complete the financial transaction. If funds can be ensured, the system causes the first financial instrument to be transferred into the second party destination account on condition that the second digital signature can be verified using a corresponding second public key.
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Citations
39 Claims
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1. A method for automatically settling a financial transaction, comprising:
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receiving a trade record specifying previously-agreed-to details of the financial transaction between a first party and a second party;
wherein the trade record includes settlement instructions specifying a first transfer of a first financial instrument belonging to the first party into a second party destination account belonging to the second party;
wherein the trade record includes a second digital signature created by digitally signing at least a portion of the trade record including the settlement instructions with a second private key belonging to the second party;
ensuring that funds are available to complete the financial transaction; and
if funds are ensured to be available, causing the first transfer of the first financial instrument into the second party destination account on condition that the second digital signature can be verified using a corresponding second public key. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39)
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14. A computer-readable storage medium storing instructions that when executed by a computer cause the computer to perform a method for automatically settling a financial transaction, the method comprising:
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receiving a trade record specifying previously-agreed-to details of the financial transaction between a first party and a second party;
wherein the trade record includes settlement instructions specifying a first transfer of a first financial instrument belonging to the first party into a second party destination account belonging to the second party;
wherein the trade record includes a second digital signature created by digitally signing at least a portion of the trade record including the settlement instructions with a second private key belonging to the second party;
ensuring that funds are available to complete the financial transaction; and
if funds are ensured to be available, causing the first transfer of the first financial instrument into the second party destination account on condition that the second digital signature can be verified using a corresponding second public key.
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27. An apparatus that automatically settles a financial transaction, comprising:
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a receiving mechanism that is configured to receive a trade record specifying previously-agreed-to details of the financial transaction between a first party and a second party;
wherein the trade record includes settlement instructions specifying a first transfer of a first financial instrument belonging to the first party into a second party destination account belonging to the second party;
wherein the trade record includes a second digital signature created by digitally signing at least a portion of the trade record including the settlement instructions with a second private key belonging to the second party; and
a transferring mechanism that is configured to, ensure that funds are available to complete the financial transaction, and if funds are ensured to be available, to cause the first transfer of the first financial instrument into the second party destination account on condition that the second digital signature can be verified using a corresponding second public key.
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Specification