METHOD AND SYSTEM FOR PROVIDING ELECTRONIC INFORMATION FOR RISK ASSESEMENT AND MANAGEMENT VIA DYNAMIC TOTAL NET WORTH FOR MULTI-MARKET ELECTRONIC TRADING

• US 20110125672A1
• Filed: 01/19/2011
• Published: 05/26/2011
• Est. Priority Date: 06/08/2004
• Status: Abandoned Application

• Current Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Original Assignee: Rosenthal Collins Group LLC (Marex Spectron Group Ltd.)
• Inventors: Adams, Brian, Rosenthal, Leslie
• Application Number:
  US13/008,980
• Publication Number:
  US 20110125672A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• 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
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method and system for providing risk assessment and management reporting via dynamic total net worth for multi-market electronic trading. The method and system allow risk assessment management and reporting to be determined using current and historical trading losses for dynamically calculated current total net worth values for electronic trading at a trading firm, a trading firm office and a trading account. Risk thresholds are selectively and dynamically configurable for automatically displaying risk information for and automatically disabling electronic trading when risk thresholds are exceeded. Risk information is displayed in two dimensional (2D) and three dimensional (3D) display elements.

Claims

1. A method for analyzing risk for electronic trading, comprising:

collecting automatically and dynamically in real-time total current assets for an electronic trader via a communications network via a risk application executing in a memory on a server network device with one or more processors;

collecting automatically and dynamically in real-time total current liabilities for the electronic trader via the communications network via the risk application;

calculating automatically and dynamically in real-time a total net worth for the electronic trader via the risk application with the collected total currents assets and total current liabilities;

collecting automatically and periodically in real-time electronic trading information for the electronic trader via the communications network via the risk application, wherein the collected electronic trading information includes current and historical electronic trading execution information, current trading profit and loss information and historical profit and loss information for the electronic trader and current market trading information collected from a plurality of data streams from a plurality of electronic trading exchanges;

processing the calculated total net worth financial information and the collected electronic trading information via the risk application with a pre-determined method to create a set of risk parameters, wherein the set of risk parameters include current risk parameters and historical risk parameters and provide an integrated view of current changes in total net worth financial information across all financial resources of electronic trader and an integrated view of current and historical trading activities and trading resources of the electronic trader across all electronic trading exchanges the electronic trader is trading on;

determining a risk assessment in real-time from the created set of risk parameters via the risk application, wherein the risk assessment includes one or more risk thresholds determined automatically and dynamically from the created set of risk parameters and wherein the one or more risk threshold values are dynamically and automatically determined using a pre-determined hierarchy;

conducting a test via the risk application to determine if the risk assessment exceeds one or more determined risk thresholds,

and if so, issuing one or more risk trading alerts in real-time via the risk application from the server network device to another risk application on a target network device with one or more processors via the communications network,

wherein the test is conducted periodically and continuously in real-time as the electronic trader'"'"'s positions dynamically change, as market conditions dynamically change on the plurality of electronic trading exchanges or as the electronic trader'"'"'s calculated total current net worth changes,

wherein the one or more risk trading alerts are used to notify one or more brokers servicing the electronic trader and other designated parties that the electronic trader has currently exceed one or more risk thresholds; and

displaying automatically the one or more issued risk trading alerts in one or more different colors via the risk application in one or more graphical windows on a graphical user interface on the server network device.

2. One or more processors with a computer readable medium having stored therein a plurality of instructions for causing the one or more processors to execute the steps of the method of claim 1.

3. The method of claim 1 wherein the pre-determined hierarchy includes a trading account hierarchy comprising a trading firm, a trading firm office and a trading account.

4. The method of claim 1 wherein the risk assessment includes determining a plurality of risk ratios comprising a calculation of any current and historical trading losses over a pre-determined trading period against a pre-determined percentage of current and historical calculated total net worth value for the electronic trader.

5. The method of claim 1 wherein the total current assets or the total current liabilities are dynamically collected from one or more dynamic information sources that dynamically change in real-time any time an asset or a liability of the electronic changes.

6. The method of claim 1 wherein the total current assets or the total current liabilities are dynamically collected from one or more static information sources that do not dynamically change in real-time any time an asset or a liability of the electronic changes.

7. The method of claim 1 wherein the one or more graphical windows include a Risk Display window, a Risk Query window, an Aggregated Book View/Ask Bid Volume (ABV) window with a dynamic price column, an Order Ticket window or a Reports window.

8. The method of claim 1 wherein the one or more issued risk trading alerts include a plurality of different notification, warning and emergency risk trading alerts.

9. The method of claim 1 further comprising:

determining whether the calculated total net worth for the electronic trader exceeds a pre-determined risk threshold and if so,

sending a message from the server network device via the communications network to the target network device indicating that any further electronic trading is being suspended; and

rejecting automatically any further electronic trade requests on the server network device requested by the target network device via the communications network.

10. The method of claim 1 wherein the one more different colors include a green color for an issued risk trading alert for a notification, a yellow color for an issued risk trading alert for a warning and a red color for an issued risk trading alert for an emergency.

11. The method of claim 1 further comprising:

displaying automatically the one or more risk trading alerts in or more different colors via another risk application in one or more graphical windows on a graphical user interface on the target network device.

12. The method of claim 1 further comprising:

conducting a test on the risk application on the server network device to determine if any of the issued one or more risk trading alerts include an emergency risk trading alert, and if so

sending a message from the server network device via the communications network to the target network device indicating that any further electronic trading is being suspended; and

rejecting automatically any further electronic trade requests on the server network device requested by the target network device via the communications network.

13. The method of claim 1 wherein the issued risk trading alerts are displayed graphically using one more different colors in one or more graphical windows on a graphical user interface including a risk management graphical meter, a graphical line graph or a graphical bar graph in two dimensional (2D) and three dimensional (3D) format.

14. The method of claim 1 wherein the calculated total net worth, the collected total assets or the collected total liabilities are displayed via the risk application in one or more graphical windows on a graphical user interface on the server network device.

15. A system for analyzing risk for electronic trading, comprising in combination:

means for collecting automatically and dynamically in real-time total current assets for an electronic trader via a communications network via a risk application executing in a memory on a server network device with one or more processors;

means for collecting automatically and dynamically in real-time total current liabilities for the electronic trader via the communications network via the risk application;

means for calculating automatically and dynamically a total net worth for the electronic trader via the risk application with the collected total currents assets and total current liabilities;

means for collecting automatically and periodically in real-time electronic trading information for the electronic trader via the communications network via the risk application, wherein the collected electronic trading information includes current and historical electronic trading execution information, current trading profit and loss information and historical profit and loss information for the electronic trader and current market trading information collected from a plurality of data streams from a plurality of electronic trading exchanges;

means for processing the calculated total net worth financial information and the collected electronic trading information via the risk application with a pre-determined method to create a set of risk parameters, wherein the set of risk parameters include current risk parameters and historical risk parameters and provide an integrated view of current changes in total net worth financial information across all financial resources of electronic trader and an integrated view of current and historical trading activities and trading resources of the electronic trader across all electronic trading exchanges the electronic trader is trading on;

means for determining a risk assessment from the created set of risk parameters via the risk application, wherein the risk assessment includes one or more risk thresholds determined automatically and dynamically from the created set of risk parameters and wherein the one or more risk threshold values are dynamically and automatically determined using a pre-determined hierarchy;

means for conducting a test via the risk application to determine if the risk assessment exceeds one or more determined risk thresholds,

and if so, means for issuing one or more risk trading alerts in real-time via the risk application from the server network device to another risk application on a target network device with one or more processors via the communications network,

wherein the test is conducted periodically and continuously in real-time as the electronic trader'"'"'s positions dynamically change, as market conditions dynamically change on the plurality of electronic trading exchanges or as the electronic trader'"'"'s calculated total current net worth changes,

wherein the one or more risk trading alerts are used to notify one or more brokers servicing the electronic trader and other designated parties that the electronic trader has currently exceed one or more risk thresholds;

means for displaying automatically the one or more issued risk trading alerts in one or more different colors via the risk application in one or more graphical windows on a graphical user interface on the server network device;

means for displaying automatically the one or more risk trading alerts in or more different colors via another risk application in one or more graphical windows on a graphical user interface on the target network device; and

means for conducting a test on the risk application on the server network device to determine if any of the issued one or more risk trading alerts include an emergency risk trading alert, and if so sending a message from the server network device via the communications network to the target network device indicating that any further electronic trading is being suspended, and rejecting automatically any further electronic trade requests on the server network device requested by the target network device via the communications network.

16. The system of claim 15 wherein the pre-determined hierarchy includes a trading account hierarchy comprising a trading firm, a trading firm office and a trading account.

17. The system of claim 15 wherein the risk assessment includes determining a plurality of risk ratios comprising a calculation of any current and historical trading losses over a pre-determined trading period against a pre-determined percentage of dynamically calculated current total net worth and historical net worth value for the electronic trader.

18. The system of claim 15 wherein the one or more graphical windows include a Risk Display window, a Risk Query window, an Aggregated Book View/Ask Bid Volume (ABV) window, an Order Ticket window or a Reports window.

19. The system of claim 15 wherein the total current assets or the total current liabilities are dynamically collected from one or more static information sources that do not dynamically change in real-time any time an asset or a liability of the electronic trader changes.

20. The system of claim 15 wherein the total current assets or the total current liabilities are dynamically collected from one or more dynamic information sources that dynamically change in real-time any time an asset or a liability of the electronic trader changes.