System and method for conducting web-based financial transactions in capital markets

• US 20030033212A1
• Filed: 03/22/2002
• Published: 02/13/2003
• Est. Priority Date: 06/14/1999
• Status: Active Grant

• Current Assignee: Integral Development Corp.
• Original Assignee: Integral Development Corp.
• Inventors: Rees, Stephen, Tolat, Viral V., Sandhu, Harpal S.
• Granted Patent: US 8,862,507 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• 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

Abstract

The present invention provides a system and method that enables users, such as institutional investors and financial institutions, to interactively engage in capital market transactions, including the trading of Over-the-Counter financial products, via the Internet (including the World Wide Web). The system includes a variety of servers, applications, and interfaces that enable users to interactively communicate and trade financial instruments among one another. Interactive communications supported by the system include: requesting price quotes, monitoring and reviewing quote requests, issuing price quotes, monitoring and reviewing price quotes, negotiation between users, acceptance of price quotes, reporting, portfolio management, analysis of financial information and market data, and communications among users via an automated processor. Such automated communications enable connectivity with users'"'"' internal, back-end systems to execute automated, straight-through processing, including transaction pricing, payment scheduling and journaling, derivatives trading, trade confirmation, and trade settlement.

Claims

1. A method for converting a first set of internal objects, representing the terms of a transaction involving the exchange of financial instruments between a plurality of users of a system for facilitating transactions involving the exchange of financial instruments, into a second set of internal objects representing the terms of the transaction, the method comprising the following steps:

(a) applying an XSL stylesheet to convert the first set of internal objects into a document in a non-XML format;

(b) applying an XSL stylesheet to the document in the non-XML format in order to dynamically generate a JavaScript program; and

(c) executing the JavaScript program to produce the second set of internal objects, wherein the second set of internal objects includes transaction data describing the transaction, including;

(i) a type of the transaction;

(ii) a plurality of parties to the transaction, including a buyer user and a seller user selected by the buyer user from a plurality of seller users of the system;

(iii) a payment schedule pursuant to which the buyer user will make one or more payments to the seller user; and

(iv) rate information which can include information relating to an interest rate or an exchange rate that can affect the calculation of the amount of one or more of the payments made pursuant to the payment schedule.

2. The method of claim 1 wherein the second set of internal objects includes Java objects.

3. An automated messaging system for exchanging messages describing transactions involving the exchange of financial instruments between one or more buyer users of the system and one or more seller users of the system, the system comprising:

(a) a processor that processes the messages;

(b) a plurality of portals connected to the system, where each portal provides access to the system for one or more buyer or seller users of the system;

(c) a plurality of clients, where each client is associated with a portal and transfers messages between the portal and the processor;

(d) a plurality of bridges, where each bridge is associated with a portal and translates (i) messages from the portal into a standard message format and (ii) messages in the standard format into messages in the format used by the portal;

(e) a plurality of bus clients, where each bus client is associated with a bridge and sends messages to and receives messages from a system bus;

(f) a message builder and associated bridge that create response messages to messages received from portals; and

(g) a system bus that connects the bus clients and determines the bus client to which each message will be delivered.

4. The system of claim 3 wherein the standard message format is an XML format.

5. The system of claim 3 wherein the standard message format is a non-XML format.

6. The system of claim 3 wherein each bus client includes a filtering mechanism that enables a user to limit the messages received by the user'"'"'s portal to messages sent by other users that satisfy filtering criteria selected by the user receiving messages.

7. The system of claim 6 wherein the filtering criteria selected by the member user includes one or more of the following categories:

(a) name of the user sending a message;

(b) corporate nationality of the user sending a message;

(c) message type;

(d) transaction type; and

(e) currency type.

8. The system of claim 6 wherein the standard message format is an XML format.

9. The system of claim 6 wherein the standard message format is a non-XML format.

10. A method for exchanging messages describing transactions involving the exchange of financial instruments between one or more buyer users and one or more seller users of a system, the method comprising the following steps:

(a) receiving a message at a client associated with a user from a portal associated with the user, where the message is in a format used by the user;

(b) converting the message into a standard format;

(c) sending the message in the standard format to a system bus;

(d) delivering the message to a message builder;

(e) creating a response message in the standard format to the delivered message;

(f) sending the response message to the system bus;

(g) delivering the message to a client associated with a recipient user;

(h) converting the message into a format used by the user; and

(i) sending the converted message to a portal associated with the user.

11. The method of claim 10 wherein the standard format is an XML format.

12. The method of claim 10 wherein the standard format is a non-XML format.

13. A method for providing automated electronic price quotes for transactions involving the exchange of financial instruments between a corporate user and one or more bank users of a system for facilitating such transactions, the method comprising the following steps:

(a) receiving an electronic request for price quote from a buyer user;

(b) determining whether the buyer user can receive automated electronic price quotes;

(c) performing automated credit verification of the buyer user;

(d) accessing market data;

(e) performing automated verification of the parameters of the request for price quote;

(f) calculating trade spreads or margins;

(g) preparing an electronic price quote; and

(h) sending the electronic price quote to the buyer user.

14. An online system for facilitating financial transactions involving the exchange of financial instruments, the system comprising:

(a) a first client node that can be used by a corporate user of the system to conduct a transaction, including selection by the corporate user of a bank user from a plurality of bank users of the system;

(b) a second client node that can be used by a bank user of the system to conduct the transaction with the corporate user; and

(c) a server node that facilitates the exchange of messages among the first client and second client nodes, including transaction messages that contain information and data regarding transactions between corporate users and bank users, the server node including;

(i) an interactive trading mechanism that enables a corporate user to engage in a transaction with one or more bank users, the interactive trading mechanism including;

(1) an interactive interface that enables the corporate user to generate the details of a request for price quote and communicate such request for price quote to one or more bank users;

(2) an interactive interface that enables a bank user to generate and modify the details of price quotes and communicate such price quotes to one or more corporate users;

(3) an interactive interface that enables the corporate user to view price quotes received from one or more bank users; and

(4) an interactive interface that enables a corporate user to accept price quotes received from one or more bank users, generate transaction terms related to each price quote, and communicate the transaction terms and acceptances to the bank users; and

(ii) a communication mechanism that enables corporate users to communicate with bank users.

15. The system of claim 14 wherein the request for price quote generated by the corporate user includes a request for both purchase and sale price quotes.

16. The system of claim 14 wherein a price quote generated by a bank user includes both purchase and sale price quotes.

17. A method for providing electronic price quotes for transactions involving the exchange of financial instruments in different currencies between a corporate user and one or more bank users of a system for facilitating such transactions, the method comprising the following steps:

(a) sending a request for price quote for a transaction involving a particular currency pair from the corporate user to a regional bank user;

(b) determining whether the regional bank user trades in the currency pair;

(c) sending a price quote from the regional bank user to the corporate user if the regional bank user trades in the currency pair;

(d) sending a request for price quote for the transaction involving the particular currency pair from the regional bank user to a money centre bank user if the regional bank user does not trade in the currency pair; and

(e) sending a price quote from the money centre bank user to the regional bank user and from the regional bank user to the corporate user if the regional bank user does not trade in the currency pair.

18. An online system for facilitating financial transactions involving the exchange of financial instruments, the system comprising:

(a) a first client node that can be used by a corporate user of the system to conduct a transaction, including selection by the corporate user of a bank user from a plurality of bank users of the system;

(b) a second client node that can be used by a bank user of the system to conduct the transaction with the corporate user; and

(c) a server node that facilitates the exchange of messages among the first client and second client nodes, including transaction messages that contain information and data regarding transactions between corporate users and bank users, the server node including;

(i) an interactive trading mechanism that enables a buyer user to engage in a transaction with one or more seller users, the interactive trading mechanism including;

(1) an interactive interface that enables bank users to generate the details of price quotes for both purchase and sale transactions and communicate such price quotes to a pricing mechanism, wherein the pricing mechanism determines the purchase and sale price quotes to be displayed to the corporate user, based on pre-selected pricing criteria associated with each corporate user, and communicates such price quotes to the corporate user;

(2) an interactive interface that enables the corporate user to view the purchase and sale price quotes received from the pricing mechanism; and

(3) an interactive interface that enables the corporate user to accept price quotes received from one or more bank users, generate transaction terms related to each price quote, and communicate the transaction terms and acceptances to the bank users; and

(ii) a communication mechanism that enables corporate users to communicate with bank users.

19. The system of claim 18 wherein the pricing criteria selected by the corporate user includes one or more of the following categories:

(a) the type of transaction of the price quote;

(b) the currency of the price quote;

(c) the interest rate or exchange rate of the price quote;

(d) the notional amount of the price quote;

(e) the name of the bank user that provided the price quote; and

(f) the corporate user'"'"'s credit relationship with the bank user that provided the price quote.

20. An online system for facilitating financial transactions involving the exchange of financial instruments, the system comprising:

(a) a first client node that can be used by a corporate user of the system to conduct a transaction with one or more bank users of the system;

(b) a second client node that can be used by a bank user of the system to conduct the transaction with the corporate user; and

(c) a server node that facilitates the exchange of messages among the first client and second client nodes, including transaction messages that contain information and data regarding transactions between corporate users and bank users, the server node including;

(i) an interactive trading mechanism that enables a corporate user to engage in a transaction with one or more bank users, the interactive trading mechanism including;

(1) an interactive interface that enables a bank user to generate and modify the details of price quotes and communicate such price quotes to one or more corporate users;

(2) an interactive interface that enables the corporate user to view price quotes received from one or more bank users; and

(3) an interactive interface that enables a corporate user to accept price quotes received from one or more bank users, generate transaction terms related to each price quote, and communicate the transaction terms and acceptances to the bank users; and

(ii) a communication mechanism that enables corporate users to communicate with bank users.

21. The system of claim 20 wherein a price quote generated by a bank user includes both purchase and sale price quotes.

22. The system of claim 20 wherein the interactive trading mechanism also includes a mechanism that aggregates the acceptances of one or more corporate users and communicates the net difference of the orders to bank users for processing.