System and method for trade entry

• US 7,430,532 B2
• Filed: 06/11/2002
• Issued: 09/30/2008
• Est. Priority Date: 06/12/2001
• Status: Active Grant

• Current Assignee: Blackrock Financial Management Incorporated (Blackrock Incorporated)
• Original Assignee: Blackrock Financial Management Incorporated (Blackrock Incorporated)
• Inventors: Kochansky, Joseph M., Wizon, Adam
• Primary Examiner(s): Patel; Jagdish N
• Assistant Examiner(s): Bartley; Kenneth L
• Application Number:
  US10/167,354
• Publication Number:
  US 20020188544A1
• Time in Patent Office: 2,303 Days
• Field of Search: 705/36.R
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method for analyzing and effectuating a transaction involving financial instruments which includes an analytics platform capable of modeling the performance of a financial instrument under user-defined conditions integrated for data sharing with a trading platform for executing a transaction involving the analyzed financial instrument.

Claims

1. A method for analyzing and effectuating a transaction involving an individual fixed income security, comprising the steps of:

a) accessing an analytics platform adapted and configured to perform an economic analysis on a selected individual fixed income security under user defined conditions to model the economic effects on a selected portfolio of a hypothetical future transaction involving the selected individual fixed income security and the selected portfolio, the platform including a plurality of adjustable options for conducting the economic analysis;

b) inputting a plurality of adjustable options into the platform for conducting the economic analysis;

c) selecting a proposed individual fixed income security for potential inclusion in at least one portfolio thereby creating a hypothetical transaction;

d) selecting a plurality of portfolios from a group of portfolios under management from a portfolio database in operable communication with the analytics platform, each portfolio containing at least one existing individual fixed income security;

e) conducting an economic analysis on the selected portfolios with the proposed individual fixed income security using at least one of the adjustable options on the analytics platform to determine effects of the hypothetical transaction on the selected portfolios;

f) choosing a plurality of the selected portfolios for completing the hypothetical transaction;

g) transferring information relating to the hypothetical transaction from the analytics platform to a trade entry system with a single action controlled by an agent, wherein the single action is selection of a trade button; and

h) actualizing the hypothetical transaction across the plurality of portfolios as a result of step (g).

2. A method according to claim 1, further comprising the steps of (i) displaying the results of the analysis in a graphical user interface, wherein the results of the analysis include at least one of static measures, option adjusted measures, key rate durations and projected prepayment speeds, (j) receiving financial data relating to the selected individual fixed income security from a server associated with the world wide web, and (k) selecting the conditions for the economic analysis in a graphical user interface.

3. A method according to claim 2, wherein:

a) the static measures include at least one of a price yield table, spread pricing, modified duration and modified convexity; and

b) the option adjusted measures include at least one of an option adjusted spread, an option adjusted duration and option adjusted convexity.

4. A method according to claim 1, further comprising the step of displaying the results of the analysis in a graphical user interface.

5. The method of claim 1, wherein the individual fixed income security is chosen from the group consisting of a U.S. Treasury notes, bonds, mortgage backed securities and derivative instruments.

6. The method of claim 1, wherein the transaction is actualized by activating an actuator displayed in a graphical user interface

7. The method of claim 6, wherein the actuator is activated by an investment manager to actualize the transaction across the plurality of investor portfolios under management by the investment manager.

8. A method for analyzing and effectuating a transaction involving an individual fixed income security, comprising the steps of:

a) accessing an analytics platform adapted and configured to perform an economic analysis on a selected individual fixed income security under user defined conditions to model the economic effects on a selected portfolio of a hypothetical future transaction involving the selected individual fixed income security and the selected portfolio, the platform including a plurality of adjustable options input thereto for conducting the economic analysis;

b) selecting a proposed individual fixed income security for potential inclusion in at least one portfolio thereby creating a hypothetical transaction;

c) selecting a plurality of portfolios from a group of portfolios under management from a portfolio database in operable communication with the analytics platform, each portfolio containing at least one existing individual fixed income security;

d) conducting an economic analysis on the selected portfolios with the proposed individual fixed income security using at least one of the adjustable options on the analytics platform to determine effects of the hypothetical transaction on the selected portfolios;

e) choosing a plurality of the selected portfolios for completing the hypothetical transaction; and

f) transferring information relating to the hypothetical transaction from the analytics platform to a trade entry system by selection of a trade button controlled by an agent, wherein the information relating to the hypothetical transaction includes instructions for the trade entry system to complete the hypothetical transaction for the chosen portfolios.