Method and system for confirmation and settlement for financial transactions matching

• US 6,247,000 B1
• Filed: 06/16/1998
• Issued: 06/12/2001
• Est. Priority Date: 08/21/1996
• Status: Expired due to Term

• Current Assignee: Citibank NA (Citigroup Incorporated)
• Original Assignee: Crossmar Inc (Citigroup Incorporated)
• Inventors: Fitzpatrick, Rick, Jacobs, Dave M., Hawkins, John G.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Hayes, John W.
• Application Number:
  US09/097,695
• Time in Patent Office: 1,092 Days
• Field of Search: 705/37, 705/35, 705/39, 705/36, 705/40
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present invention, an embodiment of which is known as Crossmar Matching Service (CMS) provides a method and system for matching order routing of securities and other instrument types, and for matching other transaction information on a post-execution basis, such as during the confirmation and settlement phase. The functions of the present invention occur on the post-execution side of the value chain and include matching the financials, matching the delivery instructions, and confirming those deliveries and instructions. The method and system of the present invention thus further provide a confirmation and settlement system for these functions.

Claims

1. A method for a first user to identify matching pairs of predetermined financial transactions for the first user and a second user, comprising:

the first user transmitting at least one set of data for at least one predetermined financial transaction for the first user from a first terminal to a server, wherein each predetermined financial transaction for the first user has a corresponding set of data and a corresponding set of summary data;

the first terminal automatically displaying a first combined summary set, wherein the first combined summary set comprises a combination of each of the corresponding sets of summary data for each predetermined financial transaction for the first user;

the first terminal automatically providing an option to display the corresponding set of data for a selected predetermined financial transaction;

the second user transmitting a second set of data for at least one predetermined financial transaction for the second user from a second terminal to the server, wherein each predetermined financial transaction for the second user has a corresponding set of data and a corresponding set of summary data;

the server automatically transmitting to the first terminal the second set of data for at least one predetermined financial transaction for the second user;

the first terminal automatically displaying a second combined summary set, wherein the second combined summary set comprises a combination of the first combined summary set and a combination of each of the corresponding sets of summary data for each predetermined financial transaction for the second user;

the first terminal automatically providing an option to display the corresponding set of data for a selected predetermined financial transaction for the second user, wherein the first user may toggle between the display of the corresponding set of data for the selected predetermined financial transaction for the first user and the display of the corresponding set of data for the selected predetermined financial transaction for the second user;

the first terminal automatically providing an option to select at least two summary sets from the combined set of summary sets for matching predetermined financial transactions;

the first terminal automatically providing an option to select to identify automatically matching pairs of predetermined financial transactions, wherein each matching pair includes a first pair half comprising at least one predetermined financial transaction for the first user having a first pair half data set, and a second pair half comprising at least one predetermined financial transaction for the second user having a second pair half data set, the first pair half and the second pair half matched by matching the first pair half data set and the second pair half data set;

selecting the option to select to identify automatically matching pairs of predetermined financial transactions; and

automatically matching pairs of predetermined financial transactions.

2. The method of claim 1 wherein predetermined financial transactions comprise at least one transaction selected from the group of securities, foreign exchange, money markets, and derivatives.

3. The method of claim 1 further comprising:

automatically providing an option to quick match pairs of predetermined financial transactions;

selecting the option to quick match pairs of predetermined financial transactions; and

automatically quick matching pairs of predetermined financial transactions.

4. The method of claim 3 wherein automatically providing an option to quick match pairs of predetermined financial transactions further comprises:

selecting the option to display the corresponding set of data for the selected predetermined financial transaction for the second user;

confirming the selection of the option to display the corresponding set of data for the selected predetermined financial transaction for the second user;

inputting a set of quick confirmation instructions; and

automatically quick matching the set of data for the selected predetermined financial transaction for the second user to a matching predetermined financial transaction for the first user.

5. The method of claim 4 wherein the set of quick confirmation instructions includes a transaction reference number.

6. The method of claim 4 wherein the set of quick confirmation instructions includes an account identifier.

7. The method of claim 1 further comprising:

the first user selecting a first predetermined financial transaction;

automatically presenting the first user with an option to view a history for the first predetermined financial transaction, the history including a list of selected matching predetermined financial transactions corresponding to the second pair half for the predetermined financial transaction matching the first predetermined financial transaction; and

if the first user selects the option to view a trade history, automatically presenting the first user with the history for the first predetermined financial transaction.

8. A method for identifying matching pairs of predetermined financial transactions, comprising:

receiving at least one set of data for at least one first predetermined financial transaction, wherein each of the at least one first predetermined financial transaction has a corresponding set of data and a corresponding set of summary data;

automatically displaying a first combined summary set, wherein the first combined summary set comprises a combination of each of the corresponding sets of summary data for each of the at least one first predetermined financial transaction;

automatically providing an option to display the corresponding set of data for a selected predetermined financial transaction;

receiving a second set of data for at least one second predetermined financial transaction, wherein each of the at least one second predetermined financial transaction has a corresponding set of data and a corresponding set of summary data;

automatically transmitting the second set of data for the at least one second predetermined financial transaction;

automatically displaying a second combined summary set, wherein the second combined summary set comprises a combination of the first combined summary set and a combination of each of the corresponding sets of summary data for each of the at least one second predetermined financial transaction;

automatically providing an option to display the corresponding set of data for the at least one second predetermined financial transaction, wherein the display may be toggled between the display of the corresponding set of data for the at least one first predetermined financial transaction and the display of the corresponding set of data for the at least one second predetermined financial transaction;

automatically providing an option to select at least two summary sets from the combined set of summary sets for matching predetermined financial transactions;

automatically providing an option to select to identify automatically matching pairs of predetermined financial transactions, wherein each matching pair includes a first pair half comprising the at least one first predetermined financial transaction having a first pair half data set, and a second pair half comprising the at least one second predetermined financial transaction having a second pair half data set, the first pair half and the second pair half matched by matching the first pair half data set and the second pair half data set;

selecting the option to select to identify automatically matching pairs of predetermined financial transactions; and

automatically matching pairs of predetermined financial transactions.

9. The method of claim 8, wherein predetermined financial transactions comprise at least one transaction selected from the group of securities, foreign exchange, money markets, and derivatives.

10. The method of claim 8, further comprising:

automatically providing an option to quick match pairs of predetermined financial transactions;

selecting the option to quick match pairs of predetermined financial transactions; and

automatically quick matching pairs of predetermined financial transactions.

11. The method of claim 10, wherein automatically providing an option to quick match pairs of predetermined financial transactions further comprises:

selecting the option to display the corresponding set of data for the at least one second predetermined financial transaction;

confirming the selection of the option to display the corresponding set of data for the at least one second predetermined financial transaction;

inputting a set of quick confirmation instructions; and

automatically quick matching the set of data for the at least one second predetermined financial transaction to a matching one of the at least one first predetermined financial transaction.

12. The method of claim 11, wherein the set of quick confirmation instructions includes a transaction reference number.

13. The method of claim 11, wherein the set of quick confirmation instructions includes an account identifier.

14. The method of claim 8, further comprising:

receiving a selection of a first predetermined financial transaction;

automatically presenting an option to view a history for the first predetermined financial transaction, the history including a list of selected matching predetermined financial transactions corresponding to the second pair half for the at least one second predetermined financial transaction matching the first predetermined financial transaction; and

if the option to view a trade history is selected, automatically presenting the first user with the history for the first predetermined financial transaction.

15. A method of matching a plurality of predetermined financial transactions for a plurality of users, wherein each of the plurality of predetermined financial transactions is conducted using a transaction currency, and wherein data for the plurality of predetermined financial transactions are categorized into at least one field of a plurality of fields such that data is contained in a total number of fields, and wherein the plurality of users includes at least a first user and at least a second user, comprising:

initiating a communication link between the first user and a server;

initiating a communication link between the second user and the server;

the first user selecting at least one predetermined financial transaction;

the second user selecting at least one predetermined financial transaction;

selecting a number of fields for obtaining matching, wherein the number of fields is not greater than the total number of fields;

automatically identifying matching pairs of predetermined financial transactions, wherein each matching pair includes a first pair half comprising a first predetermined financial transaction for the first user, and a second pair half comprising a second predetermined financial transaction for the second user, and wherein the first pair half and the second pair half are within the selected number of fields;

automatically providing an option to the first user to generate a summary report; and

if the user selects the option to generate the summary report, automatically generating the summary report;

wherein the summary report includes at least two fields, each of the fields including a set of elements and a set of data further comprising;

the first user selecting from the at least two fields a first field containing a first set of elements and a set of data;

automatically providing an option to suggest matches for the field;

if the first user selects the option to suggest matches for the field, automatically searching a second set of elements for a second field; and

automatically identifying a set of data for which the set of elements for the second field matches the set of data for the first field.

16. The method of claim 15 further comprising:

automatically presenting the first user with an option to select a set of fields to display, the set of fields comprising not more than the at least two fields; and

if the first user selects the option to select the set of fields, automatically providing the first user with a group of selections corresponding to the fields comprising the set of fields; and

the user selecting from the group of selections such that the set of fields comprises fields corresponding to the group of selections.

17. A method of matching a plurality of predetermined financial transactions for a plurality of users, wherein each of the plurality of predetermined financial transactions is conducted using a transaction currency, and wherein data for the plurality of predetermined financial transactions are categorized into at least one field of a plurality of fields such that data is contained in a total number of fields, and wherein the plurality of users includes at least a first user and at least a second user, comprising:

initiating a communication link between the first user and a server;

initiating a communication link between the second user and the server;

the first user selecting at least one predetermined financial transaction;

the second user selecting at least one predetermined financial transaction;

selecting a number of fields for obtaining matching, wherein the number of fields is not greater than the total number of fields;

automatically identifying matching pairs of predetermined financial transactions, wherein each matching pair includes a first pair half comprising a first predetermined financial transaction for the first user, and a second pair half comprising a second predetermined financial transaction for the second user, and wherein the first pair half and the second pair half are within the selected number of fields; and

the first user selecting matching pairs of predetermined financial transactions, wherein each matching pair includes a first manual match pair half comprising a first predetermined financial transaction for manual match for the first user, and a second manual match pair half comprising a second predetermined financial transaction for manual match for the second user, and wherein the first predetermined financial transaction for manual match for the first user and the second predetermined financial transaction for manual match for the second user contain the same data.

18. A method of matching a plurality of predetermined financial transactions, wherein data for the plurality of predetermined financial transactions are categorized into at least one field of a plurality of fields such that data is contained in a total number of fields, comprising:

receiving a selection of a predetermined financial transaction from a first remote terminal;

receiving a selection of a predetermined financial transaction from a second remote terminal;

receiving a selection of a number of fields for obtaining matching, wherein the number of fields is not greater than the total number of fields;

automatically identifying matching pairs of predetermined financial transactions, wherein each matching pair includes a first pair half comprising a first predetermined financial transaction from the first terminal, and a second pair half comprising a second predetermined financial transaction from the second terminal, and wherein the first pair half and the second pair half are within the selected number of fields;

automatically providing an option to one of the first and second terminals to generate a summary report; and

if the option to generate the summary report is selected, automatically generating the summary report;

wherein the summary report includes at least two fields, each of the fields including a set of elements and a set of data further comprising;

receiving a selection from the at least two fields a first field containing a first set of elements and a set of data;

automatically providing an option to suggest matches for the field;

if the option to suggest matches for the field is selected, automatically searching a second set of elements for a second field; and

automatically identifying a set of data for which the set of elements for the second field matches the set of data for the first field.

19. The method of claim 18, wherein the predetermined financial transactions comprise at least one transaction selected from the group of securities, foreign exchange, money markets, and derivatives.

20. The method of claim 18, wherein the plurality of predetermined financial transactions include one from the group of an order to buy an investment instrument and an order to sell an investment instrument.

21. The method of claim 18, further comprising:

initiating a communication link with the first terminal;

initiating a communication link with the second terminal; and

wherein initiating a communication link with the first terminal further includes;

automatically prompting for a user identifier;

transmitting a user identifier prompt response;

automatically comparing the response to a predetermined user identifier; and

if the response does not match the predetermined user identifier, automatically preventing the communication link.

22. The method of claim 18, further comprising:

requesting a display of differences between fields for the identified unmatched pairs of predetermined financial transactions; and

automatically displaying differences between fields for the identified unmatched pairs of predetermined financial transactions.

23. The method of claim 18, further comprising:

selecting charges associated with the plurality of predetermined financial transactions.

24. The method of claim 23, wherein the charges consist of at least one from the group of commission, broker commission, shared commission, stamp duty, transaction tax, value added tax, withholding tax, postage, shipping, soft dollar, tax, transfer tax, payment levy, SEC fees, matching fee, local tax, and country tax.

25. The method of claim 18, wherein each of the plurality of predetermined financial transactions is conducted using a transaction currency.

26. The method of claim 18, further comprising:

selecting a base currency;

automatically comparing the transaction currency of each of the plurality of predetermined transactions to the base currency; and

for each of the plurality of predetermined transactions for which the transaction currency does not match the base currency, automatically applying an exchange rate to the transaction currency.

27. The method of claim 18, further comprising:

selecting a data file to import, the data file containing data; and

automatically importing data from the data file.

28. The method of claim 27, wherein the data file comprises a file in SWIFT format.

29. The method of claim 28, wherein the data file comprises a file in tab delimited format.

30. The method of claim 18, further comprising:

automatically assigning a record to the identified matching pairs of predetermined financial transactions, such that each predetermined financial transaction has an assigned record for each of the identified matching pairs of predetermined financial transactions; and

automatically providing an option to view the assigned record for each of the identified matching pairs of predetermined financial transactions.

31. The method of claim 18, further comprising:

automatically presenting at the first terminal an option to select a set of fields to display, the set of fields comprising not more than the at least two fields; and

if the option to select the set of fields is selected, automatically providing the first user with a group of selections corresponding to the fields comprising the set of fields; and

receiving a selection from the group of selections such that the set of fields comprises fields corresponding to the group of selections.

32. The method of claim 18, further comprising:

transmitting a message to a banking institution to settle the predetermined financial transaction; and

the banking institution settling the financial transaction.

33. A method of matching a plurality of predetermined financial transactions, wherein data for the plurality of predetermined financial transactions are categorized into at least one field of a plurality of fields such that data is contained in a total number of fields, comprising:

propagating a first data signal that provides a first communication link;

propagating a second data signal that provides a second communication link;

propagating a third data signal over the first communication link that indicates a first predetermined financial transaction has been selected;

propagating a fourth data signal over the second communication link that indicates a second predetermined financial transaction has been selected;

propagating a fifth data signal that identifies selected number of fields for obtaining matching, wherein the number of fields is not greater than the total number of fields;

propagating a sixth data signal based at least on the third, fourth, and fifth data signals that identifies matching pairs of predetermined financial transactions, wherein one of the identified matching pairs includes a first pair half comprising a first predetermined financial transaction, and a second pair half comprising a second predetermined financial transaction, and wherein the first pair half and the second pair half are within the selected number of fields;

propagating a seventh data signal over the first communication link that indicates a desire to generate a summary report;

propagating an eighth data signal over the first communication link that indicates the summary report;

wherein the summary report includes at least two fields, each of the fields including a set of elements and a set of data further comprising;

a first selected field from the at least two fields that contains a first set of elements and a set of data;

propagating a ninth data signal over the first communication link that indicates a desire to suggest matches for the field; and

propagating a tenth data signal that identifies a set of data for which a set of elements for the second field matches the set of data for the first field, wherein the set of data is identified based on a search of the second set of elements for the second field.

34. The method of claim 33, further comprising:

propagating an eleventh data signal that indicates a desire to display a set of fields, the set of fields comprising not more than the at least two fields;

propagating a twelfth data signal that indicates a group of selections corresponding to the fields comprising the set of fields; and

propagating a thirteenth data signal that indicates a selection from the group of selections such that the set of fields comprises fields corresponding to the group of selections.

35. A method of matching a plurality of predetermined financial transactions, wherein data for the plurality of predetermined financial transactions are categorized into at least one field of a plurality of fields such that data is contained in a total number of fields, comprising:

propagating a first data signal that provides a first communication link;

propagating a second data signal that provides a second communication link;

propagating a third data signal over the first communication link that indicates a first predetermined financial transaction has been selected;

propagating a fourth data signal over the second communication link that indicates a second predetermined financial transaction has been selected;

propagating a fifth data signal that identifies selected number of fields for obtaining matching, wherein the number of fields is not greater than the total number of fields;

propagating a sixth data signal based at least on the third, fourth, and fifth data signals that indicates an automatic identification of matching pairs of predetermined financial transactions, wherein one of the identified matching pairs includes a first pair half comprising a first predetermined financial transaction, and a second pair half comprising a second predetermined financial transaction, and wherein the first pair half and the second pair half are within the selected number of fields; and

selecting matching pairs of predetermined financial transactions, wherein each matching pair includes a first manual match pair half comprising a first predetermined financial transaction for manual match, and a second manual match pair half comprising the second predetermined financial transaction for manual match, and wherein the first predetermined financial transaction for manual match and the second predetermined financial transaction for manual match contain the same data.