Methods and systems for electronic order routing (CORS)

• US 7,110,969 B1
• Filed: 07/26/2000
• Issued: 09/19/2006
• Est. Priority Date: 07/30/1999
• Status: Expired due to Term

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: CROSSMARK Incorporated
• Inventors: Schreier, David, Bennett, Deborah A., Rayner, Peter E., Irwin, Fred, Potter, Neil D.
• Primary Examiner(s): Bashore, Alain L.
• Application Number:
  US09/626,205
• Time in Patent Office: 2,246 Days
• Field of Search: 705/35, 705/37
• US Class Current: 705/35
• 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

Abstract

The present invention provides automated methods and systems for electronic order routing, and, more particularly, for selecting, ordering, routing, confirming, and tracking orders for financial instruments, such as mutual funds, among multiple buyers and sellers. More specifically, the present invention provides end-to-end, straight-through-transaction processing methods and systems for multiple financial instruments combining order routing, execution, settlement, foreign exchange, and custodial services to financial service providers with a retail customer base. Further, the methods and systems may be utilized to perform one or more of the following tasks: (1) monitor the real-time status of a financial order at various stages; (2) accommodate additional financial instruments and additional users as the system expands; (3) facilitate lower transaction and processing costs; (4) provide multilingual capabilities, settlement currencies, and other identifiers necessary to quote and execute an order for a financial instrument; (5) minimize the manual entry and re-keying of information into multiple formats and templates used by brokers, fund managers, and other parties to a financial transaction.

The system components may include a plurality of client terminals running an interactive user interface, a network server, and at least one communications network. In other possible embodiments of the present invention, the methods and systems: (1) provide an archive capability for storing transactional data, including order data; (2) provide detailed reports; (3) provide integration with external and internal systems; (4) utilize state-of-the-art technology; and/or (5) allow for real-time system configuration and modifications.

Claims

1. A method of electronic order routing using a global communications network, comprising the steps of:

receiving financial parameters for available financial instruments from each of a plurality of fund managers at respective fund manager terminals via the global communications network;

allowing each fund manager to designate a single predetermined daily cutoff time for all of the fund manager'"'"'s financial parameters;

allowing a plurality of brokers at respective broker terminals to access the financial parameters associated with the available financial instruments via the global communications network;

receiving transactional data from one of the brokers at one of the broker terminals, wherein said transactional data comprises user account data and user instructional data for a financial instrument;

authenticating said transactional data;

relating the transactional data to at least one of the available financial instruments via a relational database storing order details for each broker and fund details for each fund manager;

retrieving financial parameters received from at least one of the fund managers for the available financial instrument for said transactional data;

calculating a real-time market value for said available financial instrument;

managing said transactional data;

storing said transactional data; and

using said transactional data to complete an order for said financial instrument according to the retrieved financial parameters, if the order is completed before the predetermined daily cutoff time.

2. The method of claim 1, wherein managing said transactional data comprises:

translating said transactional data into a user specified language and a user specified currency;

communicating said transactional data among multiple users to complete said order for said financial instrument;

editing said transactional data;

updating said transactional data;

monitoring said transactional data;

maintaining said transactional data;

notifying a user that said order for said financial instrument is complete; and

generating reports associated with said transactional data.

3. The method of claim 1, further comprising:

transmitting said transactional data from a broker to a fund manager.

4. The method of claim 1, further comprising:

transmitting said transactional data from said fund manager to said broker.

5. The method of claim 1, further comprising:

generating a payment message, wherein said payment message sets forth settlement instructions.

6. The method of claim 1, further comprising:

translating said transactional data into any language selected by a user; and

translating said user instructional data and said financial parameters into a selected currency to pay for said order.

7. The method of claim 1, further comprising:

transferring commission information; and

verifying commission information.

8. The method of claim 1, wherein said order comprises one of an order to purchase, an order to switch, or an order to redeem said financial instrument.

9. The method of claim 8, wherein said order to switch comprises one of an order to purchase said financial instrument, or an order to sell said financial instrument.

10. The method of claim 9, wherein said order to switch further comprises portfolio switching from a first fund of many funds to a second fund of many funds.

11. The method of claim 1, further comprising:

transmitting incremental marketing and valuation data associated with said financial instrument.

12. The method of claim 1, further comprising:

incorporating data parameters for small intermediaries to complete an order for said financial instrument.

13. The method of claim 1, wherein said financial parameters comprise real-time world-wide market values.

31. The method of claim 1, wherein using said transactional data to complete an order for said financial instrument further comprises:

receiving a message by a host server from said one of the fund managers at the fund manager terminal via the global communications network requesting a download of the order;

packaging information about the order by the host server and returning the order information to the fund manager at the fund manager terminal via the global communications network;

allowing the fund manager at the fund manager terminal options for one of filling the order, rejecting the order, or holding the order for further instructions;

if the fund manager fills the order, receiving an upload of information about the filled order by the host server from the fund manager at the fund manager terminal via the global communications network; and

sending the information about the filled order to said one of the brokers at the broker terminal by the host server via the global communications network.

14. A system for electronic order routing using a global communications network, comprising:

a plurality of fund manager terminals each displaying a graphical user interface adapted for receiving financial parameters for available financial instruments from each of a plurality of fund managers at respective ones of the fund manager terminals via the global communications network;

wherein the graphical user interface is further adapted for allowing each fund manager to designate a single predetermined daily cutoff time for all of the fund manager'"'"'s financial parameters;

a plurality of broker terminals each displaying a graphical user interface adapted for allowing a each of a plurality of brokers at respective ones of the broker terminals to access the pricing parameters associated with the available financial instruments via the global communications network;

wherein the graphical user interface displayed on each of the broker terminals is further adapted for receiving transactional data from one of the brokers at one of the broker terminals, and wherein said transactional data comprises user account data and user instructional data for a financial instrument;

means for authenticating said transactional data;

a relational database storing order details for each broker and fund details for each fund manager and adapted for relating the transactional data to at least one of the available financial instruments;

means for retrieving financial parameters received from at least one of the fund managers for the available financial instrument for said transactional data;

means for calculating a real-time market value for said available financial instrument;

means for managing said transactional data;

means for storing said transactional data; and

means for using said transactional data to complete an order for said financial instrument according to the retrieved financial parameters, if the order is completed before the predetermined daily cutoff time.

15. The system of claim 14, wherein the means for managing said transactional data comprises:

means for translating said transactional data into a user specified language and a user specified currency;

means for communicating said transactional data among multiple users to complete said order for said financial instrument;

means for editing said transactional data;

means for updating said transactional data;

means for monitoring said transactional data;

means for maintaining said transactional data;

means for notifying a user that said order for said financial instrument is complete; and

means for generating reports associated with said transactional data.

16. The system of claim 14, further comprising:

means for transmitting said transactional data from a broker to a fund manager.

17. The system of claim 14, further comprising:

means for transmitting said transactional data from said fund manager to said broker.

18. The system of claim 14, further comprising:

means for generating a payment message, wherein said payment message sets forth settlement instructions.

19. The system of claim 14, further comprising:

means for translating said transactional data into any language selected by a user; and

translating said user instructional data and said financial parameters into a selected currency to pay for said order.

20. The system of claim 14, further comprising:

means for transferring commission information; and

means for verifying commission information.

21. The system of claim 14, wherein said order comprises one of an order to purchase, an order to switch, or an order to redeem said financial instrument.

22. The system of claim 21, wherein said order to switch comprises one of an order to purchase said financial instrument, or an order to sell said financial instrument.

23. The system of claim 22, wherein said order to switch further comprises portfolio switching from a first fund of many funds to a second fund of many funds.

24. The system of claim 14, further comprising:

means for transmitting incremental marketing and valuation data associated with said financial instrument.

25. The system of claim 14, further comprising:

means for incorporating data parameters for small intermediaries to complete an order for said financial instrument.

26. The system of claim 14, wherein said financial parameters comprise real-time world-wide market values.

27. An automated method for electronic order routing having a plurality of computer executable steps, comprising:

displaying a remote interactive user interface, wherein said interface provides means for displaying one or more user modules and for inputting one or more transactional attributes, said transactional attributes comprising at least one of the following;

user account data,

purchase instructions,

redemption instructions,

switching instructions,

financial limitations,

order attributes,

confirmation instructions,

settlement instructions,

financial parameters for available financial instruments from each of a plurality of fund managers, and

a designation by each fund manager of a single predetermined daily cutoff time for all of the fund manager'"'"'s financial parameters;

storing said transactional attributes in a secure communications system consisting at least in part of a relational database storing order details for each broker and fund details for each of a plurality of fund managers and adapted for relating the transactional attributes to at least one of the available financial instruments;

selectively retrieving and routing said transactional attributes to a user associated with a financial transaction;

allowing said user to access said transactional attributes to determine a financial instrument order outcome;

storing said financial instrument order outcome in said secure communications system;

transmitting said financial instrument order outcome to said user at a remote interface to complete a transaction for said financial instrument order outcome according to the retrieved transactional attributes, if the transaction is completed before the predetermined daily cutoff time.

28. The method of claim 27, wherein said secure communications system further comprises a financial institution'"'"'s communications system.

29. An automated system for electronic order routing having a plurality of computer executable steps, comprising:

means for displaying a remote interactive user interface, wherein said interface provides means for displaying one or more user modules and for inputting one or more transactional attributes, said transactional attributes comprising at least one of the following;

user account data,

purchase instructions,

redemption instructions,

switching instructions,

financial limitations,

order attributes,

confirmation instructions,

settlement instructions,

financial parameters for available financial instruments from each of a plurality of fund managers, and

a designation by each fund manager of a single predetermined daily cutoff time for all of the fund manager'"'"'s financial parameters;

means for storing said transactional attributes in a secure communications system consisting at least in part of a relational database storing order details for each broker and fund details for each of a plurality of fund managers and adapted for relating the transactional attributes to at least one of the available financial instruments;

means for selectively retrieving and routing said transactional attributes to a user associated with a financial transaction;

means for allowing said user to access said transactional attributes to determine a financial instrument order outcome;

means for storing said financial instrument order outcome in said secure communications system; and

means for transmitting said financial instrument order outcome to said user at a remote interface to complete a transaction for said financial instrument order outcome according to the retrieved transactional attributes, if the transaction is completed before the predetermined daily cutoff time.

30. The system of claim 29, wherein said secure communications system further comprises a financial institution'"'"'s communications system.

32. A method of electronic order routing using a global communications network, comprising the steps of:

allowing a plurality of fund managers at respective fund manager terminals to import pricing parameters for available financial instruments in a spreadsheet format to a host server via the global communications network;

allowing each fund manager to designate a single predetermined daily cutoff time for all of the fund manager'"'"'s pricing parameters;

allowing a plurality of brokers at respective broker terminals to access the pricing parameters associated with the available financial instruments on the host sever via the global communications network;

receiving an order comprising broker account data and broker instructional data for one of the financial instruments by the host server from one of the brokers at one of the broker terminals via the global communications network;

relating the order for the financial instrument to at least one of the available financial instruments via a relational database storing order details for each broker and fund details for each fund manager;

receiving a message by the host server from one of the fund managers at one of the fund manager terminals via the global communications network requesting a download of the order;

if said one of the fund managers fills the order before the predetermined daily cutoff time, receiving an upload of information about the filled order by the host server from said one of the fund managers at said one of the fund manager terminals via the global communications network; and

sending the information about the filled order to said one of the brokers at said one of the broker terminals by the host server via the global communications network.

33. The method of claim 32, wherein receiving the order further comprises:

retrieving pricing parameters for the order by the host server via an indicative price feed coupled to the host server;

calculating a real-time market value for the financial instrument by the host server; and

storing the order on a database by the host server.

34. The method of claim 33, wherein receiving the order further comprises:

executing a stored procedure by the host server on the database to select the requested order;

packaging information about the order by the host server and returning the order information to said one of the fund managers at said one of the fund manager terminals via the global communications network; and

allowing said one of the fund managers at said one of the fund manager terminals options for one of filling the order, rejecting the order, or holding the order for further instructions.