ELECTRONIC SYSTEM AND METHOD FOR EXECUTING A TRADE

• US 20110218903A1
• Filed: 05/13/2011
• Published: 09/08/2011
• Est. Priority Date: 09/08/1999
• Status: Active Grant

• Current Assignee: Teddy A. Demirjian
• Original Assignee: Teddy A. Demirjian
• Inventors: Demirjian, Teddy A.
• Granted Patent: US 8,112,352 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/00 Commerce
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0635 Processing of requisition or of purchase orders
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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 40/12 Accounting

Abstract

An Internet based investment account management system that consists of data, a rules database, a business logic manager and user profiles is described. The rules database stores information about system responses to modifications of the data. The user profiles store information concerning the availability of information and displays depending upon the user. Automatic updates to user profiles in response to modifications to the data are performed. The business logic manager can be configured to define whether the trader is authorized to execute a trade and whether sufficient holdings are available at a custodian bank in order to execute trade. A data exchange link may then be used to send data to a broker/dealer system to execute the trade.

Claims

1. An electronic method of executing a trade in a system configured to manage a plurality of client accounts, comprising:

querying a user profile database to determine access rights for a user;

receiving trade instructions from the user to trade securities for one or more of the client accounts;

comparing the trade instructions to a rule set to determine whether the trade is a valid trade;

identifying one or more broker/dealers to execute the trade;

determining whether sufficient holdings for the trade are available at the one or more custodian banks for the trade; and

electronically sending the trade to the one or more broker/dealers for execution if sufficient holdings for the trade were determined.

2. The method of claim 1, further comprising providing an Internet web page to the user that includes fields configured to receive the trade instructions from the user.

3. The method of claim 1, wherein determining whether the trade is a valid trade comprises determining whether the user is authorized to execute the trade for the one or more client accounts.

4. The method of claim 1, wherein electronically sending the trade comprises formatting data representing the trade according to a profile for each of the one or more broker/dealers.

5. The method of claim 1, wherein the user is a portfolio manager and the trade is executed for a plurality of client accounts.

6. The method of claim 1, wherein the identifying one or more custodian banks comprises identifying a plurality of custodian banks, wherein each of said custodian banks holds funds and/or securities for a client account.

7. The method of claim 1, wherein securities are corporate equities and/or corporate bonds.

8. The method of claim 1, wherein querying the user profile further comprises determining the display information that the user can view.

9. The method of claim 1, wherein users of the system are portfolio managers, and wherein the method further determines how the trade can be best executed to maximize the efficiency of the trade for the user.

10. The method of claim 9, wherein determining how the trade can be best executed comprises determining whether to place the trade with one or multiple of the one or more broker/dealers

11. An Internet based investment account management system configured to send trade instructions for securities, comprising:

a user profile database comprising user profiles for portfolio managers and traders, wherein said user profiles comprise access rights specifying a subset of client financial information available to the portfolio managers and traders;

a data link to a custodian bank which provides online access to records of client holdings at the bank;

a business logic manager configured to read instructions from a database module, wherein the instructions comprise custom logic routines for each trader, and the logic routines define whether the trader is authorized to execute a trade and whether sufficient holdings are available at the custodian bank for the trade; and

a data exchange link with a broker/dealer system, wherein data representing the trade to be executed and any limitations on the trade are formatted by the system in accordance with a user profile associated with each broker/dealer system and sent to the broker/dealer system for execution.

12. The system of claim 11, wherein the business logic manager is configured to electronically send the trade to one or more broker/dealers for execution if sufficient holdings for the trade are determined.

13. The system of claim 11, wherein the financial information comprises types of securities held by the clients.

14. The system of claim 11, wherein the user profile comprises information defining the functions that the portfolio manager and trader can perform.

15. The system of claim 11, wherein the business logic manager further determines if there are any limitations on how the trade must be executed by the broker/dealer.

16. The system of claim 11, wherein each portfolio manager is presented with a customized display showing the client accounts of each portfolio manager in an Internet browser.

17. The system of claim 11, wherein the business logic manager is programmed to display advice instructing the traders how the trade can be best executed.

18. The system of claim 11, further comprising a transaction manager configured to categorize requests from users of the system as requests to be sent to the business logic manager or the presentation manager.

19. The system of claim 11, further comprising a financial information database comprising the financial information from a plurality of clients.

20. The system of claim 11, wherein the system is hosted on one or more Internet servers.