Method and apparatus for localizing currency valuation independent of the original and objective currencies

• US 6,721,715 B2
• Filed: 12/21/1998
• Issued: 04/13/2004
• Est. Priority Date: 03/30/1998
• Status: Expired due to Fees

• Current Assignee: Martin A. Nemzow
• Original Assignee: Martin A. Nemzow
• Inventors: Nemzow, Martin A.
• Primary Examiner(s): Jeanty, Romain
• Application Number:
  US09/217,257
• Publication Number:
  US 20010011241A1
• Time in Patent Office: 1,940 Days
• Field of Search: 705/35, 705/39, 705/37, 705/41, 705/26, 705/27, 705/1, 705/30, 235/70.A, 235/89.R
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• 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

Abstract

The present invention is a currency translation system that provides for the dynamic translation of a first currency value into a target currency value for the purpose of aiding localization and globalization of financial transactions. The system may be used as a standalone translation system or it may be embedded in a larger application such as a financial analysis program, a spreadsheet, a compound or object-loaded document, dynamic Web pages and other dynamically-generated content, databases or stored procedures, or a Web commerce program. The system takes as input the starting currency, a target currency, and transaction rules. The system maintains a database of currency rates, currency histories, conversion rules and currency representation data. Optimization and backtracking techniques are used to deal with partial rate information and in order to find optimal valuations involving a chain of currency translations. The system can produce a single result or a matrix of results from which the user can choose an optimal valuation. The system also provides for the formatting of a numerical currency value into a presentation specific to the locale of the translation request.

Claims

1. A system for translating a first currency value to a second currency value, comprising:

at least one input component capable of providing a first currency value, a target currency value, and transaction rules;

at least one database capable of storing conversion rules;

at least one processor;

at least one computer usable medium having computer readable code embodied therein, the computer readable code being capable of causing the at least one processor to;

apply optimization methods to maximize a yield of a conversion, said optimization producing customized conversion rules between any two currency values for application at each successive conversion; and

,

apply said customized conversion rules at each said successive conversion step in a series of translation transactions until an optimized value of said target currency is obtained;

the application of optimization methods being capable of causing the at least one processor to resolve conversion issues including differences between bid and ask prices, historical spreads, delayed spreads, future spreads, interest laden spreads, spot quotes, swaps, future contracts, and remittances during the conversion process;

the optimized value being a largest numerical amount obtained from currency translation.

2. The system of claim 1 wherein the computer readable code is further capable of causing the at least one processor to:

provide intermediate objective currency values; and

,

apply the optimization methods to estimate information in order to resolve partial information;

the estimation of information being capable of causing the at least one processor to resolve partial information, the partial information including missing a bid valuation between an original currency and a target currency, an ask valuation between an original currency and a target currency, and a close valuation between an original currency and a target currency.

3. The system of claim 1 wherein said database is also capable of storing historical rate data.

4. The system of claim 3 wherein the computer readable code is further capable of causing the at least one processor to:

apply backtracking techniques to use historical rate data when up-to-date data is not available.

5. In a computer, a method for translating a first currency value to a second currency value along an optimized translation path, comprising the steps of:

providing a first currency value;

providing a target currency value;

providing transaction rules;

providing conversion rules to be applied to the first currency value and subsequent intermediate currency values;

applying optimization methods to maximize a yield of a conversion, said optimization producing customized conversion rules between any two currency values for application at each successive conversion; and

,

applying said customized conversion rules at each said successive conversion step in a series of translation transactions until an optimized value of said target currency is obtained;

the application of optimization methods enabling resolution of conversion issues including differences between bid and ask prices, historical spreads, delayed spreads, future spreads, interest laden spreads, spot quotes, swaps, future contracts, and remittances during the conversion process;

the optimized value being a largest numerical amount obtained from currency translation.

6. The method of claim 5 wherein the conversion rules include currency rate information.

7. The method of claim 5 wherein the conversion rules comprise historical currency exchange rate information,

whereby a past first currency value is converted to a past target currency value.

8. The method of claim 5 wherein the conversion rules comprise projected currency exchange rate information,

whereby the projected currency exchange rate information enables converting a projected first currency value to a projected target currency value.

9. The method of claim 5 wherein the conversion rules include user-specified rules.

10. The method of claim 5 wherein customizing the conversion rules further includes reconciling currency price differences.

11. The method of claim 5 wherein customizing the conversion rules further includes reconciling triangulation discrepancies and rounding differences.

12. The method of claim 5 further comprising the step of:

providing intermediate objective currency values; and

,

wherein the step of applying optimization methods further

includes the step of;

estimating information in order to resolve partial information;

the estimation of information enabling resolution of partial information, the partial information including missing a bid valuation between an original currency and a target currency, an ask valuation between an original currency and a target currency, and a close valuation between an original currency and a target currency.

13. The method of claim 12 further comprising the step of:

applying backtracking techniques in obtaining said optimized value.

14. The method of claim 5 further comprising:

backtracking currency histories to use historical rate data when up-to-date data is not available.

15. The method of claim 5 wherein said transaction rules further comprise a currency description associated with said first currency value.

16. The method of claim 15 wherein said currency description further comprises a code, a code number and a currency symbol.

17. The method of claim 5 wherein said transaction rules further comprise a currency description associated with said target currency value.

18. The method of claim 17 wherein said currency description further comprises a code a code number and a currency symbol.

19. The method of claim 5 wherein the step of providing conversion rules further comprises providing exchange rates via a data feed.