Method and apparatus for managing financial transactions involving multiple counterparties and processing data pertaining thereto

• US 20040039689A1
• Filed: 06/18/2003
• Published: 02/26/2004
• Est. Priority Date: 06/19/2002
• Status: Abandoned Application

• Current Assignee: FX Alliance (The Woodbridge Co. Ltd.)
• Original Assignee: FX Alliance (The Woodbridge Co. Ltd.)
• Inventors: Wright, David, Penney, Neill, Hasenfus, Paul
• Application Number:
  US10/463,866
• Publication Number:
  US 20040039689A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Method and apparatus for managing financial transactions for multiple counterparties that allows traders, market makers, dealers, and prime brokers to negotiate with multiple liquidity providers simultaneously, and to receive and respond to transaction processing directives and settlement instructions in real time. The invention, which may be accessed over an interconnected data communications network, such as the Internet, using a standard Web browser, as well as via a proprietary user interface, automatically provides customers, traders, executing banks, funding banks, prime brokers and liquidity providers with up-to-date settlement and allocation details for previously-executed financial transactions as they are received.

Claims

1. A computer system for processing a previously-executed financial transaction, comprising:

an interface to a data communications network;

a message database;

a settlement processor, coupled to said interface, configured

to establish an online connection to a remote computer via the data communications network,

to receive from the remote computer, via the online connection, an incoming message containing a set of details pertaining to the previously-executed financial transaction, and

to store the incoming message in said message database; and

a matching subsystem configured

to retrieve said incoming message from said database, and

to determine whether a match exists between the set of details in the incoming message and a second set of details in a second message stored in said database;

wherein, if the match exists, the settlement processor is further configured to book the previously-executed financial transaction.

2. The computer system of claim 1, wherein the settlement processor is further configured to provide a match status to the remote computer via said online connection prior to booking the previously-executed financial transaction.

3. The computer system of claim 1, further comprising:

a deal execution-stage processor configured

to receive, via another online connection, an original request to participate in the previously-executed financial transaction, and

to provisionally book the previously-executed financial transaction prior to the matching subsystem determining whether the match exists.

4. The computer system of claim 1, wherein

said set of details comprises a field identifying a counterparty for the previously-executed financial transaction;

and

said settlement processor is further configured

to establish a second online connection to the counterparty, and

to avoid booking the previously-executed financial transaction until said settlement processor has received a confirmation from the counterparty via said second online connection.

5. The computer system of claim 1, wherein

the settlement processor is further configured

to generate an outgoing message pertaining to the previously-executed financial transaction, said outgoing message comprising a notification that the previously-executed financial transaction has been booked, and

to transmit the outgoing message to the remote computer via the data communications network.

6. The computer system of claim 5, further comprising an adapter program, configured to execute on the remote computer in cooperation with said settlement processor, said adapter program being further configured

to receive the incoming message from a user application running on the remote computer, and

to transmit the incoming message from said remote computer to said settlement processor via said data communications network.

7. The computer system of claim 6, wherein the adapter program is further configured to translate the incoming message into a format compatible with the settlement processor.

8. The computer system of claim 6, wherein the adapter program is further configured

to receive the outgoing message from said settlement processor via said data communications network, and

to send said outgoing message to the user application.

9. The computer system of claim 8, wherein the adapter program is further configured to translate the outgoing message into a format compatible with the user application.

10. The computer system of claim 1, wherein the matching subsystem comprises:

a workflow processor; and

a matching engine configured to compare the set of details to the second set of details under the control of the workflow processor.

11. The computer system of claim 1, wherein the settlement processor comprises:

a session manager configured to control the online connection; and

a user interface manager configured to control data communications with the remote computer.

12. The computer system of claim 11, wherein the user interface manager is further configured to control data communications with an adapter program running on the remote computer.

13. The computer system of claim 1, wherein said settlement processor is further configured to translate the incoming message into a format compatible with said matching subsystem prior to storing the incoming message in said message database.

14. The computer system of claim 13, wherein the format is the SWIFT MT300 format.

15. The computer system of claim 1, wherein the data communications network is the Internet.

16. The computer system of claim 1, wherein the data communications network is the SWIFT network.

17. The computer system of claim 1, wherein the data communications network is a virtual private network.

18. A computer-aided method for settling a previously-executed financial transaction, comprising:

receiving from a Party-A a Party-A-perspective set of details for the previously-executed financial transaction;

receiving from a Party-B a Party-B-perspective set of details for the previously-executed financial transaction;

determining whether the Party-A-perspective set of details matches the Party-B-perspective set of details;

establishing an online connection for the Party-A via a data communications network, said online connection being configured to convey information pertaining to the previously-executed financial transaction to the Party-A;

transmitting the Party-A-perspective set of details and the Party-B-perspective set of details to the Party-A via said online connection; and

if there is a match between the Party-A-perspective set of details and the Party-B-perspective set of details, booking the previously-executed financial transaction.

19. The method of claim 18, further comprising the step of providing a match status to the Party-A via said online connection prior to said step of booking the previously-executed financial transaction.

20. The method of claim 18, further comprising the step of:

receiving, via another online connection, an original request from the A Party to participate in the previously-executed financial transaction with the Party-B, and

to provisionally book the previously-executed financial transaction prior to the step of determining whether the match exists.

21. The method of claim 18, further comprising:

establishing a second online connection for the Party-B, said second online connection being configured to convey information pertaining to the previously-executed financial transaction to the Party-B;

transmitting the Party-A-perspective set of details and the Party-B-perspective set of details to the Party-B via said second online connection; and

providing a match status to the Party-B via said second online connection.

22. The method of claim 19, further comprising the steps of:

receiving a processing directive from the Party-A responsive to said match status via said online connection;

receiving a confirmation for said processing directive from the Party-B via said second online connection; and

responsive to said processing directive and said confirmation, booking the previously-executed financial transaction.

23. The method of claim 18, wherein the previously-executed financial transaction comprises a foreign exchange transaction.

24. The method of claim 18, wherein each of said receiving steps comprises receiving a SWIFT MT300 confirmation message.

25. The method of claim 18, wherein the Party-A-perspective set of details comprises a set of economic details for the previously-executed financial transaction.

26. The method of claim 25, wherein the Party-B-perspective set of details comprises a set of economic details for the previously-executed financial transaction.

27. The method of claim 18, wherein the Party-A-perspective set of details comprises an account identifier for the previously-executed financial transaction.

28. The method of claim 27, wherein the Party-B-perspective set of details comprises an account identifier for the previously-executed financial transaction.

29. The method of claim 18, wherein the Party-A-perspective set of details comprises a counterparty identifier for the previously-executed financial transaction.

30. The method of claim 29, wherein the Party-B-perspective set of details comprises a counterparty identifier for the previously-executed financial transaction.

31. The method of claim 18, wherein the previously-executed financial transaction is initiated via a computerized online financial transaction network.

32. The method of claim 31, wherein the computerized online financial transaction network comprises a foreign exchange trading portal.

33. The method of claim 18, wherein the previously-executed financial transaction is initiated via a public switched telephone network (PSTN).

34. The method of claim 18, wherein the previously-executed financial transaction is initiated via a face-to-face meeting between Party-A and Party-B.

35. The method of claim 18, wherein each of said receiving steps comprises storing a set of details for the previously-executed financial transaction in a database.

36. A computer-aided method for processing a plurality of previously-executed financial transactions, comprising:

receiving an incoming message associated with a previously-executed financial transaction in the plurality of previously-executed financial transactions, said previously-executed financial transaction involving a Party-A and a Party-B;

determining whether the incoming message comprises a set of details matching a second set of details contained in a message previously-received from the Party-A or the Party-B;

establishing an online connection with the Party-A, said online connection being configured to convey information pertaining to the previously-executed financial transaction to the Party-A;

transmitting said set of details and said second set of details to the Party-A via said online connection; and

if there is a match between said set of details and said second set of details, booking the previously-executed financial transaction.

37. The method of claim 36, further comprising the step of providing a match status to the Party-A via said online connection prior to said step of booking the previously-executed financial transaction.

38. The method of claim 36, further comprising the step of provisionally booking the previously-executed financial transaction prior to said step of determining whether the match exists.

39. The method of claim 36, wherein said booking step comprises the steps of:

establishing a second online connection for the Party-B, said second online connection being configured to convey information pertaining to the previously-executed financial transaction to the Party-B;

receiving from the Party-A, via said online connection, a processing directive responsive to the match status;

transmitting the processing directive to the Party-B via said second online connection; and

receiving from the Party-B, via said second online connection, a confirmation responsive to the processing directive.

40. The method of claim 39, wherein said processing directive comprises at least one of the following:

a directive to break said match,

a directive to create a forced match between said set of details and said second set of details,

a directive to create a new message containing a third set of details, wherein said third set of details matches said set of details,

a directive to cancel the incoming message,

a directive to send a notice pertaining to the incoming message to the Party-B,

a directive to send a notice pertaining to the incoming message to a Party-C,

a directive to remove the incoming message from a message matching queue, and

a directive to mark the incoming message for deferral.

41. The method of claim 36, wherein said receiving step comprises storing the incoming message in a message database.

42. The method of claim 36, wherein said receiving step comprises determining whether said incoming message comprises an amendment request for a message previously received from the Party-A.

43. The method of claim 36, wherein said receiving step comprises determining whether said incoming message comprises a cancellation request for a message previously received from the Party-A.

44. The method of claim 36, further comprising the step of determining whether said incoming message comprises a set of settlement instructions.

45. The method of claim 44, further comprising the step of adding a set of settlement instructions to the incoming message.

46. The method of claim 36, wherein said receiving step comprises placing the incoming message in a message matching queue.

47. The method of claim 36, wherein said receiving step comprises sending a notification to the Party-B indicating that said incoming message has been received.

48. The method of claim 36, wherein said receiving step comprises sending a notification to a Party-C indicating that said incoming message has been received.

49. The method of claim 36, further comprising the step of converting the incoming message to SWIFT MT300 format.

50. The method of claim 36, wherein said determining step comprises assigning a message state to the incoming message.

51. The method of claim 36, wherein said determining step comprises assigning a match status to the incoming message.

52. The method of claim 36, wherein said determining step comprises sending a notification to the Party-B indicating that said second set of details has been matched.

53. The method of claim 36, wherein said determining step comprises sending a notification to a Party-C indicating that said second set of details has been matched.

54. The method of claim 36, further comprising the step of receiving a settlement instruction election from the Party-A via said online connection.

55. The method of claim 54, wherein said settlement instruction election comprises a request to use a pre-defined set of settlement instructions.

56. The method of claim 54, wherein said settlement instruction election comprises a request to use a new set of settlement instructions.

57. The method of claim 54, wherein said settlement instruction election comprises a request to modify a pre-defined set of settlement instructions.

58. The method of claim 36, further comprising the step of presenting a set of netted settlement payments to the Party-A for the plurality of previously-executed financial transactions.

59. The method of claim 58, wherein said presenting step comprises:

receiving, from the Party-A via said online connection, a selected value date and a selected combination of accounts and counterparties for a subset of previously-executed financial transactions in the plurality of previously-executed financial transactions;

calculating the set of netted payments for the subset of previously-executed financial transactions based on the selected value dates and the selected combinations; and

transmitting the set of netted payments to the Party-A via said online connection.

60. The method of claim 59, further comprising the step of transmitting the set of netted payments to each counterparty in the selected combination for approval.

61. The method of claim 59, wherein the calculating step is carried out using a specified netting mode.

62. The method of claim 61, wherein the netting mode requires producing a netted payment for each currency pair in the subset of previously-executed financial transactions.

63. The method of claim 61, wherein the netting mode requires producing a netted payment for each currency in the subset of previously-executed financial transactions.

64. The method of claim 61, wherein the netting mode requires producing a set of netted payments to be paid directly between two or more counterparties other than the Party-A to reduce a number of settlement payments to be paid by the Party-A.

65. The method of claim 59, further comprising the step of receiving from the Party-A a settlement instruction for each netted payment in the set of netted payments.

66. The method of claim 36, wherein the previously-executed financial transaction comprises a foreign exchange transaction.

67. The method of claim 36, wherein said receiving step comprises receiving a SWIFT MT300 confirmation message.

68. The method of claim 36, wherein said set of details comprises a set of economic details for the previously-executed financial transaction.

69. The method of claim 36, wherein said set of details comprises an account identifier for the previously-executed financial transaction.

70. The method of claim 36, wherein said set of details comprises a counterparty identifier for the previously-executed financial transaction.

71. The method of claim 36, wherein the previously-executed financial transaction is initiated via a computerized online financial transaction network.

72. The method of claim 71, wherein the computerized online financial transaction network comprises a foreign exchange trading portal.

73. The method of claim 36, wherein the previously-executed financial transaction is initiated via a public switched telephone network (PSTN).

74. The method of claim 36, wherein the previously-executed financial transaction is initiated via a face-to-face meeting.

75. A computer system for processing financial transactions, comprising:

a settlement server program; and

a matching subsystem, operating under control of said settlement server program, configured to generate a match status for two sets of financial transaction details pertaining to a previously-executed financial transaction;

wherein the settlement server program is configured

to transmit the two sets of transaction details and the match status to a broker client program via a first data communications channel, and

to accept from the broker client program a processing directive responsive to the match status,

to transmit the processing directive to a provider client program via a second data communications channel and a customer client program via a third communications channel, and

responsive to the input, to book the previously-executed financial transaction.

76. The computer system of claim 75, wherein the processing directive comprises at least one of:

a request to change the previously-executed financial transaction,

a request to modify a settlement date for the previously-executed financial transaction,

a request to modify a rate associated with the previously-executed financial transaction,

a request to use a specified account to settle the previously-executed financial transaction,

a request to split the previously-executed transaction into multiple financial transactions,

a request to force a match between the two two sets of financial transaction details,

a request to break a match between the two sets of financial transaction details,

a request to create a match between the two sets of financial transaction details, and

a request to transmit a notice regarding one or more details in the two sets of transaction details.

77. A computer system for processing a previously-executed financial transaction involving a Party-A and a Party-B, comprising:

an interface to a data communications network;

a settlement processor, coupled to said interface, configured

to establish a first online connection for the Party-A via the data communications network,

to establish a second online connection for the Party-B via the data communications network,

to receive from the Party-A, via the first online connection, a set of Party-A give-up details pertaining to a first financial transaction between the Party-A and a Party-C, and

to receive from the Party-B, via the second online connection, a set of Party-B give-up details pertaining to a second financial transaction between the Party-B and the Party-C; and

a matching subsystem configured to determine whether a match exists between the Party-A give-up details and the Party-B give-up details;

wherein, if the match exists, the settlement processor is further configured

to book the first financial transaction between the Party-A and the Party-C, and

to book the second financial transaction between the Party-B and the Party-C.

78. The computer system of claim 77, wherein the settlement processor is further configured to provide a match status to the Party-A via said first online connection prior to booking the first financial transaction.

79. The computer system of claim 77, wherein the settlement processor is further configured to provide a match status to the Party-B via said first online connection prior to booking the second financial transaction.

80. The computer system of claim 77, further comprising:

a deal execution-stage processor configured

to receive, via another online connection, an original request from the Party-A to participate in the previously-executed financial transaction with the Party-B,

to provisionally book the first financial transaction prior to the matching subsystem determining whether the match exists, and

to provisionally book the second financial transaction prior to the matching subsystem determining whether the match exists.

81. The computer system of claim 80, wherein

the original request from the Party-A to participate in the previously-executed financial transaction with the Party-B is based on an arrangement between the Party-A and the Party-C;

and

prior to transmitting the original request to the Party-B, said deal execution-stage processor confirms whether said arrangement authorizes the Party-A to make said original request.

82. The computer system of claim 81, wherein the arrangement comprises at least one of:

a credit limit,

a currency pair restriction,

a forward date limitation,

a requirement to use a specified account,

an execution date restriction, and

a settlement date restriction.

83. The computer system of claim 77, wherein said settlement processor is further configured

to establish a third online connection for the Party-C;

to transmit the Party-A give-up details to the Party-C on behalf of the Party-A; and

to transmit the Party-B give-up details to the Party-C on behalf of the Party-B.

84. The computer system of claim 83, wherein the settlement processor is further configured to transmit a notification to the Party-A that the Party-A give-up details have been transmitted to the Party-C.

85. The computer system of claim 83, wherein the settlement processor is further configured to transmit a notification to the Party-B that the Party-B give-up details have been transmitted to the Party-C.

86. The computer system of claim 83, wherein the settlement processor is further configured

to receive a Party-C give-up acceptance from the Party-C responsive to the transmission to the Party-C of the Party-A give-up details and the Party-B give-up details;

and

to transmit the Party-C give-up acceptance to the Party-A and the Party-B on behalf of the Party-C.

87. The computer system of claim 77, wherein the first financial transaction is booked at a higher rate than the second financial transaction.

88. The computer system of claim 77, wherein the settlement processor is further configured to transmit a notification to the Party-A and to the Party-B that the first and second financial transactions have been booked.

89. The computer system of claim 77, wherein

the settlement processor is further configured

to receive from the Party-A, via the first online connection, a set of Party-A details pertaining to a third financial transaction between the Party-A and the Party-B, wherein said third financial transaction comprises a portion of the previously-executed financial transaction not given up to the Party-C, and

to receive from the Party-B, via the second online connection, a set of Party-B details pertaining to the third financial transaction;

and

a matching subsystem further configured to determine whether a second match exists between the Party-A details and the Party-B details;

wherein, if the second match exists, the settlement processor is further configured to book the third financial transaction.

90. The computer system of claim 89, wherein the settlement processor is further configured to provide a match status for the Party-A details and the Party-B details to the Party-A via said first online connection prior to booking the third financial transaction.

91. The computer system of claim 89, wherein the settlement processor is further configured to provide a match status for the Party-A details and the Party-B details to the Party-B via said second online connection prior to booking the third financial transaction.

92. The computer system of claim 89, wherein the settlement processor is further configured to transmit a notification to the Party-A and to the Party-B that the third financial transaction has been booked.

93. The computer system of claim 89, further comprising:

a deal execution-stage processor configured

to receive, via another online connection, an original request from a Party-A to participate in the third financial transaction with the Party-B, and

to provisionally book the third financial transaction prior to the matching subsystem determining whether the second match exists.

94. The computer system of claim 77, wherein the settlement processor is further configured

to receive from the Party-C a set of settlement details based on a fund allocation provided to the Party-C by the Party-A;

and

to establish a fourth online connection for a Party-D, and

to transmit the set of settlement details to the Party-D via said fourth online connection.

95. The computer system of claim 94, wherein said set of settlement details comprises data representative of one or more of:

a funding account,

a funding amount, and

a value date.

96. The computer system of claim 94, wherein the settlement processor is further configured

to receive from the Party-D a Party-D settlement confirmation message responsive to the set of settlement details;

to transmit said Party-D settlement confirmation message to the Party-C on behalf of the Party-D;

to receive from the Party-C a Party-C confirmation message responsive to said Party-D settlement confirmation message; and

to transmit said Party-C settlement confirmation message to the Party-A.

97. The computer system of claim 96, wherein said matching subsystem is further configured to determine whether there is a match between the Party-C settlement confirmation message and the set of settlement details.

98. The computer system of claim 77, further comprising an adapter program, configured to execute on a remote computer operated by the Party-A and in cooperation with said settlement processor, said adapter program being further configured

to receive a Party-A give-up message containing the Party-A give-up details from a user application running on the remote computer, and

to transmit the Party-A give-up message from said remote computer to said settlement processor via said data communications network.

99. The computer system of claim 98, wherein the adapter program is further configured to translate the Party-A give-up message into a format compatible with the matching subsystem.

100. The computer system of claim 98, further comprising an adapter program, configured to execute on a remote computer operated by the Party-B and in cooperation with said settlement processor, said adapter program being further configured

to receive a Party-B give-up message from a user application running on the remote computer, and

to transmit the Party-B give-up message from said remote computer to said settlement processor via said data communications network.

101. The computer system of claim 100, wherein the adapter program is further configured to translate the Party-B give-up message into a format compatible with the matching subsystem.

102. The computer system of claim 77, wherein the matching subsystem comprises:

a workflow processor; and

a matching engine configured to compare the first set of details to the second set of details under the control of the workflow processor.

103. The computer system of claim 77, wherein the settlement processor comprises:

a session manager configured to control the online connection; and

a user interface manager configured to control data communications over the data communications network with the Party-A, the Party-B, the Party-C or the Party-D.

104. The computer system of claim 103, wherein the user interface manager is further configured to control data communications with an adapter program running on a remote computer operated by the Party-A or the Party-B.

105. The computer system of claim 103, further comprising a message database configured to store the first and second incoming messages.

106. The computer system of claim 105, wherein said settlement processor is further configured to store the Party-A give up details and Party-B give-up details in said message database.

107. The computer system of claim 77, wherein the data communications network is the Internet.

108. The computer system of claim 77, wherein the data communications network is the SWIFT network.

109. The computer system of claim 77, wherein the data communications network is a virtual private network.

110. A computer-aided method for processing a previously-executed financial transaction involving a Party-A and a Party-B, comprising the steps of:

establishing a first online connection for the Party-A via a data communications network,

establishing a second online connection for the Party-B via the data communications network,

receiving from the Party-A, via the first online connection, a set of Party-A give-up details pertaining to a first financial transaction between the Party-A and a Party-C, and

receiving from the Party-B, via the second online connection, a set of Party-B give-up details pertaining to a second financial transaction between the Party-B and the Party-C;

determining whether a match exists between the Party-A give-up details and the Party-B give-up details; and

if the match exists,

booking the first financial transaction between the Party-A and the Party-C, and

booking the second financial transaction between the Party-B and the Party-C.

111. The method of claim 110, further comprising the step of providing a match status to the Party-A via said first online connection prior booking the previously-executed financial transaction.

112. The method of claim 110, further comprising the steps of:

receiving, via another online connection, an original request from the Party-A to participate in the previously-executed financial transaction with the Party-B;

provisionally booking the first financial transaction prior to the matching subsystem determining whether the match exists; and

provisionally booking the second financial transaction prior to the matching subsystem determining whether the match exists.

113. The method of claim 112, further comprising the step of:

prior to transmitting the original request to the Party-B, confirming whether an arrangement between the Party-A and the Party-C authorizes the Party-A to make said original request

114. The method of claim 113, wherein the arrangement comprises at least one of:

a credit limit,

a currency pair restriction,

a forward date limitation,

a requirement to use a specified account,

an execution date restriction, and

a settlement date restriction.

115. The method of claim 110, further comprising the steps of:

establishing a third online connection for the Party-C;

transmitting the Party-A give-up details to the Party-C on behalf of the Party-A; and

transmitting the Party-B give-up details to the Party-C on behalf of the Party-B.

116. The method of claim 115, further comprising the step of transmitting a notification to the Party-A that the Party-A give-up details have been transmitted to the Party-C.

117. The method of claim 115, further comprising the step of transmitting a notification to the Party-B that the Party-B give-up details have been transmitted to the Party-C.

118. The method of claim 115, further comprising

receiving a Party-C give-up acceptance from the Party-C responsive to the transmission to the Party-C of the Party-A give-up details and the Party-B give-up details;

and

transmitting the Party-C give-up acceptance to the Party-A and the Party-B on behalf of the Party-C.

119. The method of claim 115, wherein the step of booking the first financial transaction comprises booking the first financial transaction at a higher rate than the second financial transaction.

120. The method of claim 115, further comprising the step of sending a notification to the Party-A and to the Party-B that the first and second financial transactions have been booked.

121. The method of claim 115, further comprising the steps of:

receiving from the Party-A, via the first online connection, a set of Party-A details pertaining to a third financial transaction between the Party-A and the Party-B, wherein said third financial transaction comprises a portion of the previously-executed financial transaction not given up to the Party-C, and

receiving from the Party-B, via the second online connection, a set of Party-B details pertaining to the third financial transaction;

determining whether a second match exists between the Party-A details and the Party-B details; and

if the second match exists, booking the third financial transaction.

122. The method of claim 121, further comprising the step of providing a match status for the Party-A details and the Party-B details to the Party-A via said first online connection prior booking the third financial transaction.

123. The method of claim 121, wherein the settlement processor is further configured to provide a match status for the Party-A details and the Party-B details to the Party-B via said second online connection prior booking the third financial transaction.

124. The method of claim 121, further comprising the step of sending a notification to the Party-A and to the Party-B that the third financial transaction has been booked.

125. The method of claim 121, further comprising:

receiving, via another online connection, an original request from a Party-A to participate in the third financial transaction with the Party-B, and

provisionally booking the third financial transaction prior to determining whether the second match exists.

126. The method of claim 110, further comprising the steps of:

receiving from the Party-C a set of settlement details based on a fund allocation provided to the Party-C by the Party-A;

establishing a fourth online connection for a Party-D; and

transmitting the set of settlement details to the Party-D via said fourth online connection.

127. The method of claim 126, wherein said set of settlement details comprises data representative of one or more of:

a funding account,

a funding amount, and

a value date.

128. The method of claim 126, further comprising the steps of:

receiving from the Party-D a Party-D settlement confirmation message responsive to the set of settlement details;

transmitting said Party-D settlement confirmation message to the Party-C on behalf of the Party-D;

receiving from the Party-C a Party-C confirmation message responsive to said Party-D settlement confirmation message; and

transmitting said Party-C settlement confirmation message to the Party-A.

129. The method of claim 128, further comprising the step of determining whether there is a match between the Party-C settlement confirmation message and the set of settlement details.

130. A computer-aided method for processing financial transactions, comprising the steps of:

receiving an original trading request for an original transaction from a Party-A, said original trading request being directed to a Party-B;

generating a secondary trading request based on the original trading request;

submitting said secondary trading request to a set of providers on behalf of the Party-B, said set of providers being selected based on a set of outsourcing rules;

receiving from a subset of said set of providers an original stream of responses responsive to the secondary trading request;

selecting one or more responses from the original stream of responses to form a secondary stream of responses;

transmitting said secondary stream of responses to the Party-A on behalf of the Party-B; and

receiving an acceptance from the Party-A responsive to the secondary stream of responses; and

responsive to the acceptance,

choosing a selected provider based on said original stream of responses and a set of arbitration rules,

forwarding the acceptance to the selected provider on behalf of the Party-B,

receiving a confirmation from the selected provider responsive to said acceptance, and

substantially simultaneously with receiving said confirmation, booking a pair of financial transactions based on the original financial transaction;

wherein the pair of financial transactions comprises a first financial transaction between the Party-A and the selected provider and a second financial transaction between the Party-B and the selected provider.

131. The method of claim 130, wherein

the original trading request comprises a request for quotes;

and

the stream of responses comprises a stream of price quotes

132. The method of claim 130, wherein the original financial transaction is a foreign exchange transaction.

133. The method of claim 130, wherein said subset of providers and said set of providers are the same.

134. The method of claim 130, further comprising the step of receiving the set of outsourcing rules from the Party-B.

135. The method of claim 130, further comprising the step of receiving the set of arbitration rules from the Party-B.

136. The method of claim 130, wherein the steps of receiving the confirmation and booking the pair of financial transactions on a real time basis.

137. The method of claim 130, further comprising the step of adding a spread to said one or more responses selected from the original stream of responses.

138. The method of claim 130, wherein the set of outsourcing rules is based on one or more of the following:

a currency designation associated with the original trading request,

a time zone associated with the original trading request,

a credit risk associated with the Party-A,

a market risk associated with the original trading request,

a funding amount associated with the original trading request,

an availability status associated with one or more providers in said set of providers,

a target percentage of business associated with one or more providers in the set of providers,

an available credit status for the Party-B with one or more providers in the set of providers,

a service level agreement for one or more providers in the set of providers, and

a performance metric for one or more providers in the set of providers.

139. The method of claim 130, further comprising the steps of:

tracking a set of performance metrics for each liquidity provider in the set of providers to form a historical performance record for said set of providers; and

automatically adjusting said set of arbitration rules based on the historical performance record.

140. The method of claim 139, wherein the set of performance metrics comprises one or more of the following:

a number of confirmations received,

an average response time,

an average price differential,

an average price stability rating,

an average bid-offer spread,

a percentile ranking of providers, and

a percentage of acceptances confirmed.

141. The method of claim 130, further comprising the step of submitting said secondary trading request to a second set of providers.

142. A computer system for processing financial transactions, comprising the steps of:

means for receiving an original trading request from a Party-A, said original trading request being directed to a Party-B;

means for generating a secondary trading request based on said original request receiving means;

means for submitting said secondary trading request to a set of providers on behalf of the Party-B, said set of providers being selected based on a set of outsourcing rules;

means for receiving from a subset of said set of providers an original stream of responses responsive to the secondary trading request;

means for selecting one or more responses from the original stream of responses to form a secondary stream of responses;

means for transmitting said secondary stream of responses to the Party-A on behalf of the Party-B; and

means for receiving an acceptance from the Party-A responsive to the secondary stream of responses; and

means, responsive to the acceptance, for

choosing a selected provider based on said original stream of responses and a set of arbitration rules,

forwarding the acceptance to the selected provider on behalf of the Party-B,

receiving a confirmation from the selected provider responsive to said acceptance, and

substantially simultaneously with receiving said confirmation, booking a pair of financial transactions based on the original financial transaction;

wherein the pair of financial transactions comprises a first financial transaction between the Party-A and the selected provider and a second financial transaction between the Party-B and the selected provider.

143. The computer system of claim 142, wherein the set of outsourcing rules is specified by the Party-B.

144. The computer system of claim 142, wherein the set of arbitration rules is specified by the Party-B.

145. The computer system of claim 142, wherein the means for receiving the confirmation and booking the pair of financial transactions operate on a real time basis.

146. The computer system of claim 142, further comprising means for adding a spread to said one or more responses selected from the original stream of responses.

147. The computer system of claim 142, wherein the set of outsourcing rules is based on one or more of the following:

a currency designation associated with the original trading request,

a time zone associated with the original trading request,

a credit risk associated with the Party-A,

a market risk associated with the original trading request,

a funding amount associated with the original trading request,

an availability status associated with one or more providers in said set of providers,

a target percentage of business associated with one or more providers in the set of providers,

an available credit status for the Party-B with one more providers in the set of providers,

a service level agreement for one or more providers in the set of providers, and

a performance metric for one or more providers in the set of providers.

148. The computer system of claim 142, further comprising:

means for tracking a set of performance metrics for each liquidity provider in the set of providers to form a historical performance record for said set of providers; and

means for automatically adjusting said set of arbitration rules based on the historical performance record.

149. The computer system of claim 148, wherein the set of performance metrics comprises one or more of the following:

a number of confirmations received,

an average response time,

an average price differential,

an average price stability rating,

an average bid-offer spread,

a percentile ranking of providers, and

a percentage of acceptances confirmed.

150. The computer system of claim 142, further comprising a credit engine configured to provide credit information about the Party-A prior to submitting the trading request to the Party-B.

151. The computer system of claim 142, wherein said means for choosing a selected provider comprises a relationship router.

152. The computer system of claim 142, wherein said means for submitting said secondary trading request comprises a relationship router.