Method of computerized monitoring of investment trading and associated system

• US 20050240509A1
• Filed: 06/03/2004
• Published: 10/27/2005
• Est. Priority Date: 04/23/2004
• Status: Active Grant

• Current Assignee: Access Data Corp. (Broadridge Financial Solutions Incorporated)
• Original Assignee: Access Data Corp. (Broadridge Financial Solutions Incorporated)
• Inventors: Campbell, David H.
• Granted Patent: US 8,214,279 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 10/0639 Performance analysis of employees; Performance analysis of enterprise or organisation operations
• CPC Class Codes: G06Q 30/018 Certifying business or products
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• 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

A method of computerized monitoring of investment trading includes providing historic trading data for a specific trader, selecting a plurality of trading parameters for the specific trader and obtaining current information regarding the selected parameters, and/or providing historic trading data and applying rules to the current information and/or historic trading data to determine if a rules violation has occurred. The system may be employed to monitor whether market timing of mutual fund investments has occurred. A corresponding computerized system is disclosed.

Claims

1. A method of computerized monitoring of investment trading comprising

providing historic trading data for a specific trader,

selecting a plurality of trading parameters for said specific trader and obtaining current information regarding said selected parameters, and

applying rules to said current information and/or historic trading data to determine if a rules violation has occurred.

2. The method of claim 1, including

prior to applying said rules, comparing said current information with said historic trading data.

3. The method of claim 1, including

applying said rules employing both current information and said historic trader data.

4. The method of claim 1, including

employing said process on a specific investment of said trader.

5. The method of claim 4, including

employing said process on a said specific investment which is a mutual fund.

6. The method of claim 4, including

repeating said process periodically for a said specific trader and specific investment.

7. The method of claim 6, including

employing the trade date and time as said parameters.

8. The method of claim 4, including

effecting said comparison employing historic trading data specific to said specific investment and said specific trader.

9. The method of claim 1, including

employing said method to determine if market timing mutual fund transactions have occurred.

10. The method of claim 1, including

if a rules violation has occurred, delivering an alarm report.

11. The method of claim 4, including

employing said process to detect specific patterns of trading in mutual funds.

12. The method of claim 11, including

monitoring said specific patterns in respect of higher- or lower-than-expected volumes of trading in said mutual fund by said specific investor.

13. The method of claim 1, including

customizing said rules with respect to said specific investor.

14. The method of claim 4, including

customizing said rules with respect to said specific investment.

15. The method of claim 10, including

effecting said delivery by at least one method selected from the group consisting of html, xml, xbrl, spreadsheets and comma-separated variable files.

16. The method of claim 1, including

selectively assigning and tracking trades for an omnibus account differently than trades for the underlying sub account.

17. The method of claim 1, including

providing with said historical trading data sub account information.

18. The method of claim 1, including

providing with said historical trading data omnibus information.

19. The method of claim 1, including

coordinating selection of said trading parameters with the said rules employed.

20. The method of claim 19, including

modifying said rules to monitor for specific trading conduct.

21. The method of claim 9, including

employing said method to detect market timing in sub accounts.

22. The method of claim 9, including

employing said method to detect market timing in omnibus accounts.

23. A computerized system for monitoring investment trading comprising

a data receiving interface for receiving trading data and organizing it according to a specific trader and specific investor,

a server structured to receive said organized trader- and investor-specific current data from said data receiving interface,

a historic trading data unit for delivering historic data regarding said specific trader and specific investment to said server, and

a rules unit structured to deliver rules to said server, and

said server structured to compare said current data and/or said historic trading data with said rules to determine if a rules violation has occurred.

24. The computerized system of claim 23 includes

said server structured to compare both said current data and said historic trading data with said rules.

25. The computerized system of claim 23, including

said server structured to compare said current information with said historic trading data before comparing said current information and said historic trader data with said rules.

26. The computerized system of claim 23, including

terminals operatively associated with said server for receiving output therefrom.

27. The computerized system of claim 23, including

said server being structured to process data regarding specific mutual funds, and

said interface being structured to receive said current data in the form of a plurality of trading parameters specifically related to said specific investor and said specific investment.

28. The computerized system of claim 27, including

said trading parameters including trade date and time.

29. The computerized system of claim 27, including

said trading parameters including the specific account and transaction price.

30. The computerized system of claim 23, including said server in the event of a rules violation being structured to issue an alarm report.

31. The computerized system of claim 23, including

said rules being structured to determine if specific trading patterns have existed.

32. The computerized system of claim 23, including

said rules being structured to determine if certain market timing transactions have been made by said specific investor in a specific mutual fund.

33. The computerized system of claim 23, including

said server being structured to deliver output in at least one form selected from the group consisting of html, xml, xbrl, spreadsheets and comma-separated variable files.

34. The computerized system of claim 23, including

said server being structured to assign and track an omnibus account differently from an underlying detail account.

35. The computerized system of claim 23, including

said historical trading data being structured to contain sub account information.

36. The computerized system of claim 23, including

providing with said historical trading data information relating to detailed trades as related to omnibus trades.

37. The computerized system of claim 23, including

said server being structured to monitor trading activity in sub accounts.

38. The computerized system of claim 27, including

said screen being structured to monitor trading activities in omnibus accounts.