Foreign exchange transaction system

• US 5,978,485 A
• Filed: 06/29/1998
• Issued: 11/02/1999
• Est. Priority Date: 11/21/1995
• Status: Expired due to Term

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Inventors: Rosen, Sholom S.
• Primary Examiner(s): Gregory, Bernarr E.
• Application Number:
  US09/106,441
• Time in Patent Office: 491 Days
• Field of Search: 380/9, 380/23, 380/24, 380/25, 380/30, 380/49, 380/50, 235/379, 235/380, 705/35, 705/37, 705/39, 705/41, 705/42, 705/44
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/3678 e-cash details, e.g. blinded, divisible or detecting double spending
• CPC Class Codes: G06Q 20/381 Currency conversion
• 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 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

Abstract

A realtime multilateral foreign exchange settlement system having a computer implemented netting system, a processor-based multilateral settlement coordinator (MSC) having a first money module and a first host application, where the first host application receives debit and credit data from said netting system. A plurality of processor-based multilateral settlement agents (MSAs) each having a second money module and a second host application. A plurality of processor-based counterparty settlement agents (CSAs) each having a third money module and a third host application. The second and third money modules communicate via cryptographically secure sessions. The first money module receives electronic money from the third money modules of net debit CSAs via the second money modules. When all net debit counterparties have paid, the first money module sends the electronic money to the third money modules of net credit CSAs via the second money modules.

Claims

1. A method for realtime multilateral settlement using a processor-based multilateral settlement coordinator (MSC), a plurality of processor-based multilateral settlement agents (MSAs), and a plurality of processor-based counterparty settlement agents (CSAs), comprising the steps:

(a) said MSC receiving net counterparty debit and credit data from a netting system;

(b) said MSC sending said net counterparty debit data to said MSAs;

(c) said MSAs sending said net counterparty debit data to net debit CSAs;

(d) said net debit CSAs transferring electronic money to said MSAs, in accordance with said net counterparty debit data;

(e) said MSAs transferring said electronic money to said MSC;

(f) said MSC transferring electronic money to said MSAs, for net credit counterparties; and

(g) said MSAs transferring said electronic money to said net credit counterparty CSAs, in accordance with said net counterparty credit data.

2. The method of claim 1, wherein said MSC, MSAs and CSAs each have a host application and a money module.

3. The method of claim 1, wherein step (b) further comprises said MSC sending settlement data and time data to said MSAs, and step (c) further comprises said MSAs sending said settlement data and time data to said net debit CSAs.

4. The method of claim 3, further comprising the step:

after step (e), at the date and time specified by said date and time data, said MSC checking if all said net debit counterparty CSAs have paid.

5. The method of claim 4, further comprising the steps:

if not all said net debit counterparty CSAs have paid, said MSC transferring electronic money to said MSAs to be returned to debited CSAs along with a notification that settlement has failed.

6. The method of claim 1, further comprising the steps:

after step (c), said net debit CSAs acquiring electronic money via money module withdrawal or payment.

7. The method of claim 1, wherein step (f) further comprises the step of said MSC notifying said MSAs of successful settlement for reporting to said net debit counterparty CSAs.

8. A method for realtime multilateral settlement using a processor-based multilateral settlement coordinator (MSC), and a plurality of processor-based counterparty settlement agents (CSAs), comprising the steps:

(a) said MSC receiving net counterparty debit and credit data from a netting system;

(b) said MSC sending said net counterparty debit data to said net debit CSAs;

(c) said net debit CSAs transferring electronic money to said MSC, in accordance with said net counterparty debit data;

(d) said MSC checking if all said net debit CSAs have paid; and

(e) said MSC transferring electronic money to said net credit CSAs, in accordance with said net counterparty credit data.

9. The method of claim 8, wherein step (b) further comprises said MSC sending settlement data and time data to said net debit CSAs.

10. A realtime multilateral settlement system, comprising;

a computer implemented netting system;

a processor-based multilateral settlement coordinator (MSC) that receives debit and credit data from said netting system;

a plurality of processor-based multilateral settlement agents (MSAs); and

a plurality of processor-based counterparty settlement agents (CSAs);

wherein said CSAs store electronic money and have a protocol to transfer electronic money to said MSAs when having a net debit position, and to receive electronic money from said MSAs when having a net credit position, and where said CSAs maintain a transaction log to record electronic money transfers;

wherein said MSAs store electronic money and have a protocol to receive electronic money from net debit CSAs and to transfer electronic money to said MSC, and to receive electronic money from said MSC and to transfer electronic money to net credit CSAs, and where said MSAs maintain a transaction log to record electronic money transfers; and

wherein said MSC stores electronic money and has a protocol to receive electronic money from MSAs that were paid by said net debit CSAs, and to transfer electronic money to MSAs for said net credit CSAs, and where said MSC maintains a transaction log to record electronic money transfers.

11. The system of claim 10, wherein said MSC checks whether all net counterparties have paid at a particular settlement date and time which has been reported to said net debit CSAs.