Portfolio compliance managing techniques

• US 20050049954A1
• Filed: 09/03/2004
• Published: 03/03/2005
• Est. Priority Date: 09/03/2003
• Status: Abandoned Application

• Current Assignee: BondWave LLC
• Original Assignee: BondWave LLC
• Inventors: Rieger, David A., Graham, Russell J., Volle, Jonathan J., Treter, Matthew R.
• Application Number:
  US10/934,976
• Publication Number:
  US 20050049954A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A computer and Internet based system and method for managing portfolios of various securities, especially fixed income securities, is provided. This system and method enables the defining of the various investment goals and strategies for the portfolios and enables the evaluation of the suitability of potential purchases and/or sales of securities related to the portfolios, preferably with a menu driven system. The system and method combines portfolio modeling and analytics with tools that connect investment managers to buyers and sellers in fixed income securities markets. The integration of decision-making analytics with bond market access creates a more efficient way to manage, buy and/or sell fixed income securities.

Claims

1. A method for a user to manage portfolios of fixed income securities utilizing a computer, comprising:

creating one or more accounts by using the computer, wherein each account comprises one or more fixed income security holdings;

creating an investment model by using the computer, wherein the investment model is defined by a set of first parameters;

assigning the one or more accounts to the investment model by using the computer;

determining aggregate measures of characteristics of the security holdings in a selected account of the one or more accounts;

correlating the set of first parameters with the aggregate measures of the characteristics of the security holdings in the selected account and characteristics of each of the security holdings in the selected account;

generating in response to the correlating step measures of correlation by using the computer; and

displaying indicia of the measures of correlation by using the computer.

2. The method of claim 1, further comprising the step of:

(a) adding a fixed income security offering to the selected account;

(b) removing all or part of a fixed income security holding in the selected account;

or

(c) a combination thereof.

3. The method of claim 2, wherein the step of correlation further includes a correlation of the set of first parameters with the addition of the security offering, the removal of all or part of the security holding, or the combination thereof.

4. The method of claim 1, further comprising the step of defining each of the one or more accounts with a set of second parameters.

5. The method of claim 4, wherein the step of correlation further includes a correlation to the set of second parameters of the selected account with the aggregate measures of the characteristics of the security holdings and the characteristics of each of the security holdings in the selected account.

6. The method of claim 5, further comprising:

(a) adding a fixed income security offering to the selected account;

(b) removing all or part of a fixed income security holding in the selected account;

or

(c) a combination thereof.

7. The method of claim 6, wherein the step of correlation further includes a correlation of the sets of first and second parameters with (a) the addition of the security offering, (b) the removal of all or part of the security holding, or (c) the combination thereof.

8. The method of claim 4, wherein the sets of first and second parameters are based on bond types.

9. The method of claim 8, wherein the bond types are defined by one or more security characteristics.

10. The method of claim 1, wherein the first parameters comprise parameters defining acceptable fixed income security characteristics, parameters defining unacceptable fixed income security characteristics, parameters defining acceptable bounds for a measured characteristic of an assigned account;

parameters defining a preferred value of a measured characteristic of an assigned account, or a combination thereof.

11. The method of claim 4, wherein the second parameters comprise parameters defining unacceptable fixed income security characteristics, parameters defining acceptable bounds for a measured characteristic of the account, parameters defining a preferred value of a measured characteristic of the account, or a combination thereof.

12. The method of claim 1, further comprising transferring model data of the investment model to a web-server of a service provider by using the computer, wherein the model data is accessible by another user via a computer communication network.

13. The method of claim 12, wherein the computer communication network is an Internet, wherein the model data comprises information selected from the group consisting of aggregate demand amount, description of fixed income securities as defined by the first parameters of the investment model, and a combination thereof.

14. The method of claim 1, further comprising searching fixed income security offerings in a market or fixed income security holdings in the one or more accounts.

15. The method of claim 14, wherein the searching is based on a selected bond type, a selected model definition, or a combination thereof.

16. The method of claim 14, wherein the searching is based on account characteristics.

17. The method of claim 14, wherein the searching is based on the aggregate measures of the characteristics of the security holdings in the selected account.

18. The methods of claim 2, wherein the offering is posted on a service provider'"'"'s web-server.

19. The method of claim 2, wherein the offering is a directed offering sent via a service provider'"'"'s web-server to the user.

20. The method of claim 2, wherein the offering is manually entered into the electronic trading system by using the computer.

21. The method of claim 2, wherein the offering is a new issuance.

22. The method of claim 3, further comprising:

generating a proposal for a transaction using the indicia of the measures of correlation.

23. The method of claim 22, further comprising:

saving the proposal and the indicia to provide a retained record of a basis for a trading decision.

24. The method of claim 22, further comprising:

enabling a locked condition of the proposal in response to the user'"'"'s approval of the proposal and displaying indicia of the locked condition in connection with the security offering or holding.

25. The method of claim 22, further comprising:

enabling completion of the transaction.

26. The method of claim 22, further comprising:

generating e-mail messages describing impact of the transaction of the proposal upon the selected account; and

sending the e-mail messages to e-mail addresses associated with the selected account.

27. The method of claim 1 wherein generating the measures of correlation comprises:

identifying potential conflicts between the set of first parameters and the security holdings in the selected account; and

displaying indicia of the potential conflicts.

28. The method of claim 3, wherein generating the measures of correlation comprises:

identifying potential conflicts between the set of first parameters and the addition of the security offering; and

displaying indicia of the potential conflicts.

29. The method of claim 3, wherein generating the measures of correlation comprises:

identifying potential conflicts between the set of first parameters and the combination of the addition of the security offering and the removal of the security holding; and

displaying indicia of the potential conflicts.

30. The method of claim 5, wherein generating the measures of correlation comprises:

identifying potential conflicts between the set of first parameters or the set of second parameters of the selected account and the security holdings in the selected account; and

displaying indicia of the potential conflicts.

31. The method of claim 6, wherein generating the measures of correlation comprises:

identifying potential conflicts between the set of first parameters or the set of second parameters of the selected account and the addition of the security offering or the combination of the addition of the security offering and the removal of the security holding; and

displaying indicia of the potential conflicts.

32. The method of claim 1, wherein generating the measures of correlation comprises:

generating a numerical score indicating how well the set of first parameters correlate with the aggregate measures of the security holdings in the selected account; and

displaying indicia of the score.

33. The method of claim 3, wherein generating the measures of correlation comprises:

generating a numerical score indicating how well the set of first parameters correlate with the aggregate measures of the security holdings in the selected account resulting from (a) the addition of the security offering, (b) the removal of the security holding, or (c) the combination thereof; and

displaying indicia of the score.

34. The method of claim 5, wherein generating the measures of correlation comprises:

generating a numerical score indicating how well the sets of first and second parameters correlate with the aggregate measures of the security holdings in the selected account; and

displaying indicia of the score.

35. The method of claim 6, wherein generating the measures of correlation comprises:

generating a numerical score indicating how well the sets of first and second parameters correlate with the aggregate measures of the security holdings in the selected account resulting from (a) the addition of the security offering, (b) the removal of the security holding, or (c) the combination thereof; and

displaying indicia of the score.

36. The method of claim 3, wherein generating the measures of correlation comprises:

generating a first numerical score indicating how well the set of first parameters correlate with the selected account before (a) the addition of the security offering, (b) the removal of the security holding, or (c) the combination thereof;

generating a second numerical score indicating how well the set of first parameters correlate with the selected account after (a) the addition of the security offering, (b) the removal of the security holding, or (c) the combination thereof;

comparing the second numerical score to the first numerical score of the selected account; and

displaying the difference between the first and second numerical scores.

37. The method of claim 6, wherein generating the measures of correlation comprises:

generating a first numerical score indicating how well the sets of first and second parameters correlate with the selected account before (a) the addition of the security offering, (b) the removal of the security holding, or (c) the combination thereof;

generating a second numerical score indicating how well the sets of first and second parameters correlate with the selected account after (a) the addition of the security offering, (b) the removal of the security holding, or (c) the combination thereof;

comparing the second numerical score to the first numerical score of the selected account; and

displaying the difference between the first and second numerical scores.

38. A method for a user to manage portfolios of fixed income securities utilizing a computer, comprising:

creating a first investment model by using the computer, wherein the first investment model is defined by a first set of first parameters;

creating a plurality of accounts by using the computer, wherein each of the plurality of accounts comprises one or more fixed income security holdings, wherein each of the plurality of accounts has a set of second parameters defined; and

assigning one or more of the plurality of accounts to the first investment model by using the computer.

39. The method of claim 38, further comprising:

creating a second or more investment models by using the computer, wherein the second or more investment models are defined by a second or more sets of first parameters; and

assigning one or more of the plurality of accounts to each of the second or more investment models by using the computer.

40. The method of claim 38, wherein the set of second parameters of a selected account is blank.

41. The method of claim 38, wherein the fist and second parameters are based on bond types.

42. The method of claim 41, wherein the bond types are defined by one or more security characteristics.

43. The method of claim 41, further comprising searching for a kind of security holdings among one or more of the plurality of accounts or a kind of accounts among the plurality of accounts based on a selected bond type, a selected account type, a selected model definition, account characteristics, aggregate measures of characteristics of the security holdings in a selected account, or a combination thereof.

44. The method of claim 38, further comprising running an account report or a benchmark analysis.

45. The method of claim 44, wherein running the account report comprises:

correlating a selected account assigned to the first investment model with the set of second parameters of the selected account and the set of first parameters;

generating in response to the correlating measures of correlation; and

displaying the account report showing indicia of the measures of correlation.

46. The method of claim 45, wherein generating the measures of correlation comprises:

identifying a potential conflict between the first or second parameters and the selected account; and

providing indicia of the potential conflict in the account report.

47. The method of claim 45, wherein generating the measures of correlation comprises:

generating a numerical score indicating how well the sets of first and second parameters correlate with the selected account; and

providing indicia of the numerical score in the account report.

48. The method of claim 47, wherein the sets of first and second parameters provide one or more preferred account characteristic values for account characteristics of the selected account, wherein the numerical score is a composite measure based on the one or more preferred account characteristic values.

49. The method of claim 48, wherein generating a numerical score comprises:

calculating a difference between each preferred account characteristic value and each actual value of the selected account;

weighing the difference based on a unit measure assigned to each preferred account characteristic value;

determining an effect of the weighted difference on the numerical score based on a type assigned to each preferred account characteristic value; and

producing a composite measure based on the determined effects of the one or more preferred account characteristic values.

50. The method of claim 44, wherein running the benchmark analysis comprises:

assigning a benchmark to a selected account; and

comparing statistics within the selected account to statistics within the assigned benchmark.

51. The method of claim 38, further comprising transferring model data of the first investment model to a web-server of a service provider by using the computer, wherein the model data is accessible by another user via a computer communication network.

52. The method of claim 51, wherein the computer communication network is an Internet, wherein the model data comprises information selected from the group consisting of aggregate demand amount, description of fixed income security holdings assigned to the investment model, and a combination thereof.

53. The method of claim 51, further comprising setting up limits for dissemination of the model data to the web-server or other users of the web-server.

54. The method of claim 38, further comprising:

creating a list of holdings, wherein the list includes one or more fixed income security holdings in the plurality of accounts; and

offering the listed holdings for sale.

55. The method of claim 54, further comprising uploading the list of holdings to a service provider'"'"'s web-server.

56. The method of claim 55, further comprising offering the holdings for sale exclusively to a selected user of the web-server.

57. The method of claim 56, wherein the selected user is a fixed income securities broker/dealer.

58. The method of claim 54, further comprising directing the list of holdings for sale to a selected user by using the computer.

59. The method of claim 38, further comprising:

selecting an offering, wherein the offering is a fixed income security offered for sale in a market;

selecting one or more of the plurality of accounts;

matching the offering to the selected accounts;

identifying one or more of the selected accounts that will be most positively impacted by allocation of the offering; and

allocating the offering to the identified accounts.

60. The method of claim 59, wherein the matching step comprises:

allocating a target quantity of the offering to each of the selected accounts, wherein the target quantity is a hypothetical quantity not limited by the actual quantity of the offering;

scoring each of the selected accounts before and after the allocation of the target quantity of the offering to give a score change for each account.

61. The method of claim 60, wherein the identifying step comprises comparing the score changes of all the selected accounts.

62. The method of claim 38, further comprising:

selecting one or more offerings, wherein the offerings are fixed income securities offered for sale in a market;

selecting an account;

matching the offerings to the selected account;

identifying one or more of the offerings that will most positively impact the selected account; and

allocating the identified offerings to the selected account.

63. The method of claim 62, wherein the matching step comprises:

allocating a target quantity of each of the one or more offerings to the selected account, wherein the target quantity is a hypothetical quantity not limited by the actual quantities of the offerings;

scoring the selected account before and after the allocation of the target quantity of each of the offerings to give a score change caused by the allocation of each offering.

64. The method of claim 63, wherein the identifying step comprises comparing the score changes caused by each of the offerings.

65. The method of claim 38, further comprising:

selecting a fixed income security holding from a selected account; and

evaluating the impact of the sale of all or part of the selected fixed income security holding on the selected account.

66. The method of claim 38, further comprising:

selecting a quantity of a fixed income security holding in a selected account;

selecting an offering of a fixed income security in a market;

evaluating the impact of replacing the quantity of the selected holding with the same or a different quantity of the selected offering on the selected account.

67. The method of claim 66, further comprising

selling the quantity of the fixed income security holding and buying the same or a different quantity of the offering for the selected account.

68. The method of claim 66, wherein the impact evaluated is an income-tax-adjusted impact.

69. A computer software application for a user to manage portfolios of fixed income securities, comprising a set of instructions that when executed by a computer allows the user to:

create an investment model, wherein the investment model is defined by a set of first parameters;

create a plurality of accounts, wherein each of the plurality of accounts comprises one or more fixed income security holdings, wherein each of the plurality of accounts is defined by a set of second parameters; and

assign one or more of the plurality of accounts to the investment model.

70. A computer software application of claim 69, wherein the set of instructions further allows the user to search for fixed income security offerings that are offered for sale in a market or fixed income security holdings in the plurality of accounts.

71. A computer software application of claim 70, wherein the set of instructions further allows the user to search the offerings or holdings by a model definition, a bond type, or a combination thereof.

72. A computer software application of claim 69, wherein the set of instructions further allows the user to propose, negotiate, or execute a sale or purchase of a fixed income security.

73. A computer software application of claim 69, wherein the set of instructions further causes the computer to correlate a selected account assigned to the investment model with the set of first parameters and the set of second parameters of the selected account.

74. A computer software application of claim 73, wherein the set of instructions further causes the computer to generate in response to the correlating measures of correlation.

75. A computer software application of claim 74, wherein the set of instructions further causes the computer to display indicia of the measures of correlation.

76. A computer software application of claim 69, wherein the set of instructions further causes the computer to correlate a selected account resulting from (a) an addition of a fixed income security offering offered for sale in a market, (b) a removal of a fixed income security holding in the selected account assigned to the investment model, or (c) a combination thereof with the set of first parameters and the set of second parameters of the selected account.

77. A computer software application of claim 76, wherein the set of instructions further causes the computer to generate in response to the correlating measures of correlation.

78. A computer software application of claim 77, wherein the set of instructions further causes the display of indicia of the measures of correlation.