Billing workflow system for crediting charges to entities creating derivatives exposure

• US 20050131804A1
• Filed: 02/06/2004
• Published: 06/16/2005
• Est. Priority Date: 12/15/2003
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Pham, Tuan, Toghill, Julian Mark, Miller, Harold
• Granted Patent: US 7,814,003 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• 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
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

An automated billing workflow system receives credit valuation adjustment (CVA) amounts associated with derivatives trades. The automated billing workflow system interacts with an Accounting System in order to make appropriate Profit and Loss (P&L) entries for the CVA amounts. The CVA amounts are billed to the business units which actually created the risk. The invention employs a plurality of Workflow Queues. As an item makes it way through the billing workflow, it may be slotted in one or more of these queues where further action will take place.

Claims

1. A computer system for crediting charges to entities creating derivatives exposure, comprising:

an input component for receiving reserve information associated with a derivative; and

an automated billing workflow component that uses the inputted reserve information to generate billing information for the entity creating the derivative exposure.

2. The system of claim 1, wherein the automated billing workflow component includes a plurality of workflow queues to process the billing information.

3. The system of claim 1, wherein the reserve information includes a reserve amount to set aside

4. The system of claim 3, wherein the reserve amount is based on an estimation of risk of counter-party default.

5. The system of claim 3, wherein the reserve amount is held in a special queue for further review, if the reserve amount exceeds a predetermined amount.

6. The system of claim 1, wherein the automated billing workflow component generates a reminder.

7. The system of claim 1, wherein at least one of the plurality of queues is viewable.

8. The system of claim 7, wherein at least one of the viewable queues is modifiable.

9. The system of claim 3, wherein a reserve amount found to be invalid is reversed.

10. The system of claim 1, where the automated billing workflow component generates an invoice for the entity creating the derivative exposure.

11. The system of claim 1, where the automated billing workflow component includes an accounting component for posting Profit and Loss (P&

L) amounts.

12. A computerized method for crediting charges to entities creating derivatives exposure, comprising:

receiving reserve information associated with a derivative;

identifying an entity creating the derivative exposure; and

generating billing information for the entity creating the derivative exposure.

13. The method of claim 12, wherein the step of generating the billing information includes using a plurality of workflow queues to process the billing information.

14. The method of claim 12, wherein the reserve information includes a reserve amount to set aside

15. The method of claim 14, wherein the reserve amount is based on an estimation of risk of counter-party default.

16. The method of claim 14, wherein the reserve amount is held in a special queue for further review, if the reserve amount exceeds a predetermined amount.

17. The method of claim 12, further including the step of generating a reminder.

18. The method of claim 13, wherein at least one of the plurality of queues is viewable.

19. The method of claim 18, wherein at least one of the viewable queues is modifiable.

20. The method of claim 14, further including the step of reversing the reserve amount, if the reserve amount is invalid.

21. The method of claim 12, further including the step of generating an invoice for the entity creating the derivative exposure.

22. The method of claim 12, further including the step of posting a Profit and Loss (P&

L) amount for the derivative.

23. A program storage device readable by a machine, tangibly embodying a program of instructions executable on the machine to perform method steps for crediting charges to entities creating derivatives exposure, the method steps comprising:

receiving reserve information associated with a derivative;

identifying an entity creating the derivative exposure; and

generating billing information for the entity creating the derivative exposure.