Apparatus and method of a distributed capital system

• US 7,590,595 B2
• Filed: 02/14/2003
• Issued: 09/15/2009
• Est. Priority Date: 02/14/2002
• Status: Active Grant

• Current Assignee: Distributed Capital Investments LLC
• Original Assignee: Zachary Pessin
• Inventors: Pessin, Zachary
• Primary Examiner(s): CHEUNG, MARY DA ZHI WANG
• Application Number:
  US10/366,446
• Publication Number:
  US 20030182230A1
• Time in Patent Office: 2,405 Days
• Field of Search: 705/35, 705 38- 44, 705/53, 705/64, 705/68, 705 74- 79, 725/1, 725 4- 5, 902 1- 10
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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

Methods, systems, and articles of manufacture consistent with the present invention provide for conducting financial transactions over a network. A user requests to execute at least one financial transaction with at least one of a number of parties, each of the parties corresponding to a data processing system on the network. Real-time financial information relating to the financial transaction is obtained, and the user can test and confirm that the financial transaction with the at least one party can take place prior to execution of the financial transaction.

Claims

1. A computer implemented method of conducting financial transactions over a computerized network, having at least a first client computer connected thereto, comprising:

initiating a request at the first client computer for a financial transaction, said request being received at one of a second client computer or a first server;

obtaining information, at said second client computer or said first server, from at least one entity having at least one of a third client computer or a second server involved in said financial transaction;

confirming, at said second client computer or said first server, with said at least one entity that said financial transaction can be executed; and

performing said financial transaction, at said second client computer or said first server, based on predetermined parameters input by at least said one entity, or said client computers or said servers involved in said financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution of risk, or an optimal combination thereof.

2. The method according to claim 1, further comprising:

testing said financial transaction with said information at any of said client computers or said servers prior to confirming that said financial transaction can take place.

3. The method according to claim 2, further comprising:

receiving and displaying said financial information on a display at any of said client computers or said servers.

4. The method according to claim 2, wherein said entity is a currency exchange entity.

5. The method according to claim 1, further comprising:

saving said financial transaction at any of said client computers or said servers for future retrieval.

6. The method according to claim 5, wherein said financial transaction is saved as a template at any of said client computers or said servers for future financial transactions.

7. The method according to claim 6, wherein any of said client computers or said servers forwards a comprehensive transaction summary to said first client computer.

8. The method according to claim 7, further comprising:

assigning a unique transaction number at any of said client computers or said servers to each said financial transaction.

9. The method according to claim 5, wherein said financial transaction is used in combination with other financial transactions to structure a compound financial transaction.

10. The method according to claim 5, wherein said financial transaction can be edited at said first client computer.

11. The method according to claim 1, wherein said information is obtained from said at least one entity prior to initiating any financial transaction.

12. The method according to claim 1, wherein said information is received during execution of said financial transaction.

13. The method according to claims 11 or 12, wherein said steps of obtaining information, and testing said financial transaction, include:

sending a request from any of said client computers or said servers to said at least one entity for status information related to said financial transaction;

accessing, at any of said client computers or said servers, an account registry, to obtain information on at least one account at said at least one entity, and obtain access-authorizing data for said at least one entity;

timestamping said request and assigning a unique transaction code to said request at any of said client computers or said servers;

retrieving said status information from said account registry which timestamps, codes, and stores said status information; and

providing said retrieved status information from said entity to said first client computer.

14. The method according to claim 13, wherein at least one of said testing step is communicated to said first client computer in a distinguishable manner.

15. The method according to claim 13:

wherein any of said client computers or said servers assembles, forwards, and presents a test transaction summary to said first client computer.

16. The method according to claim 13, wherein testing of said financial transaction can be programmed at any of said client computers or said servers to take place at one of predetermined times and when predetermined events are met.

17. The method according to claim 12, wherein said steps of obtaining information and executing said financial transaction include:

sending a request to said at least one entity for status information related to said financial transaction;

retrieving said status information from said entity;

providing said retrieved status information from said entity to said first client computer;

verifying said financial transaction can be completed;

locking in said financial transaction; and

receiving an execution instruction to execute said financial transaction.

18. The method according to claim 17, wherein said execution instruction step is communicated to any of said client computers or said servers in a distinguishable manner.

19. The method according to claim 18, wherein execution of said financial transaction can be programmed to take place at predetermined times and when predetermined requirements are met.

20. The method according to claim 1, wherein said financial transaction is performed immediately.

21. The method according to claim 20, wherein performing said transaction immediately is a default setting.

22. The method according to claim 1, wherein said first client computer forwards instructions to said second client computer or said first server to perform said financial transaction at one of a predetermined time and predetermined event.

23. The method according to claim 1, wherein said financial transaction is event-triggered.

24. The method according to claim 1, further comprising:

authenticating at any of said client computers or said servers prior to initiating the financial transaction; and

displaying at least one transaction icon on a transaction workpad representative of said financial transaction at any of said client computers or said servers.

25. The method according to claim 24, wherein said transaction workpad includes at least one entity icon representative of at least one financial account involved in said financial transaction.

26. The method according to claim 25, wherein said transaction icon includes at least one entity icon connected to a transaction object icon.

27. The method according to claim 26, further comprising;

receiving vector parameters at said first client computer for said financial transaction.

28. The method according to claim 27, wherein said vector parameters include, at a minimum, direction and amount.

29. The method according to claim 27, wherein all transaction parameters are encrypted.

30. The method according to claim 29, wherein filters are provided to detect illegal financial transactions.

31. The method according to claim 26, wherein said vector parameters further include at least one of currency type, date of payment, amount of payments, password, timing of payment, and triggering event.

32. The method according to claim 24, wherein said transaction pad includes at least one transaction object icon representative of a financial action.

33. The method according to claim 1, wherein said performing step comprises:

activating said financial transaction;

changing said financial transaction from inactive to active status; and

communicating said change of status to said first client computer.

34. The method according to claim 33, wherein execution of said financial transaction can be pre-set to require approval at said first client computer.

35. The method according to claim 1, further comprising:

notifying said first client computer that said financial transaction has been completed.

36. The method according to claim 1, wherein said performing step comprises:

preparing for execution;

verifying said financial transaction can be completed;

locking in said financial transaction;

executing said financial transaction; and

settling said financial transaction.

37. The method according to claim 36, further comprising:

following user preferences for one of authentication and approval prior to execution.

38. The method according to claim 36, wherein a subsequent financial transaction can be programmed at any of said client computers or said servers to be performed at a predetermined time after said financial transaction is executed.

39. The method according to claim 1, wherein said financial transaction is a loan.

40. The method according to claim 39, wherein said entity is a counterparty offering capital for loan.

41. The method according to claim 40, further comprising:

matching said financial transaction for said loan with said at least one counterparty offering capital for loan.

42. The method according to claim 1, wherein said financial transaction is a funds withdrawal.

43. The method according to claim 42, wherein said confirming step comprises:

granting quantified access to said entity for the user requesting said funds withdrawal, such funds withdrawal fees are not paid from the user to a disbursing financial institution when said withdrawal is made.

44. The method according to claim 1, wherein said financial transaction involves the transfer of funds, and said funds are transferred using a distributed funds transfer method.

45. The method according to claim 1, wherein a credit rating is developed from a pattern of usage traceable to any of said client computers or said servers.

46. The method according to claim 1, further comprising:

notifying any of said client computers or said servers that said financial transaction is in progress.

51. The method according to claim 37, wherein a currency provided by said potential participant for said first financial transaction is automatically converted to said required currency at any of said client computers or said server.

47. A computer implemented method of conducting a financial transaction over a computerized network, having at least a first client computer connected thereto, comprising:

initiating a request at the first client computer for a first financial transaction, said request being received at one of a second client computer or a server;

receiving information, at any of said client computers or said server, on at least one potential participant in said first financial transaction;

notifying, at any of said client computers or said server, said at least one potential participant of said first financial transaction; and

performing said first financial transaction, at said second client computer or said server, based on predetermined parameters input by at least said one potential participant, or said client computers or said server involved in said first financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution of risk, or an optimal combination thereof.

48. The method according to claim 47, further comprising:

receiving parameter constraints on said first financial transaction at any of said client computers or said server.

49. The method according to claim 48, wherein said parameter constraints include a time limit for acceptance.

50. The method according to claim 48, wherein said parameter constraints of said first financial transaction includes a required currency.

52. The method according to claim 48, wherein said at least one potential participant can set parameters for engaging in said first financial transaction.

53. The method according to claim 48, wherein said parameters include a predetermined credit rating.

54. The method according to claim 48, wherein said first financial transaction can be divided into a plurality of transaction vectors.

55. The method according to claim 47, further comprising:

receiving instructions from the potential participant at said first client computer on said first financial transaction.

56. The method according to claim 55, further comprising:

receiving a second request for a second financial transaction at any of said client computers or said server;

wherein a result of said second financial transaction is directed to initiate said first financial transaction.

57. The method according to claim 56, wherein when said first financial transaction is completed, the first financial transaction becomes unavailable to the potential participants.

58. The method according to claim 47, wherein an authentication process is required from the potential participant prior to accessing said first financial transaction.

59. The method according to claim 47, wherein said first financial transaction includes real-time status information.

60. The method according to claim 59, wherein said real-time-status information includes at least one of an amount requested, a date said amount is requested, identifying information of other potential participants, and amounts already provided by other potential participants.

61. The method according to claim 47, wherein each potential participant can limit their engagement with any other potential participant in said first financial transaction.

62. The method according to claim 47, wherein said at least one potential participant can decline to engage in said first financial transaction with any other potential participant.

63. The method according to claim 47, further comprising:

automatically locating other potential participants in said first financial transaction.

64. A financial services system comprising:

means for initiating a request at a first client computer for a financial transaction, said request being received at one of a second client computer or a first server;

means for obtaining information, at said second client computer or said first server, from at least one entity having at least one of a third client computer or a second server involved in said financial transaction;

means for confirming, at said second client computer or said first server, with said at least one entity that said financial transaction can be executed; and

means for performing said financial transaction, at said second client computer or said first server, based on predetermined parameters input by at least said one entity, or said client computers or said servers involved in said financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution of risk, or an optimal combination thereof.

65. The system according to claim 64, further comprising:

means for testing said financial transaction with said information at any of said client computers or said servers prior to confirming that said financial transaction can take place.

66. The system according to claim 65, further comprising:

means for displaying said information on a display at any of said client computers or said servers.

67. The system according to claim 64, further comprising:

means for saving said financial transaction at any of said client computers or said servers for future retrieval.

68. The system according to claim 67,

wherein any of said client computers or said servers assembles, forwards and presents a comprehensive transaction summary to said first client computer.

69. The system according to claim 68, further comprising:

means for assigning a unique transaction number to each said financial transaction at any of said client computers or said servers.

70. The system according to claim 64, further comprising:

means for authenticating any of said client computers or said servers prior to initiating the financial transaction; and

means for displaying at least one transaction icon on a transaction workpad representative of said financial transaction at any of said client computers or said servers.

71. The system according to claim 70, further comprising:

means for sending a request from any of said client computers or said servers to said at least one entity for status information related to said financial transaction;

means for accessing an account registry at any of said client computers or said servers to obtain information on at least one account at said at least one entity, and obtain access-authorizing data for said at least one entity;

means for timestamping said request and assigning a unique transaction code to said request at any of said client computers or said servers;

means for retrieving the status information from said at least one entity;

means for providing the retrieved status information to said account registry which timestamps, codes, and stores said status information at any of said client computers or said servers; and

means for providing said retrieved status information from said at least one entity to any of said client computers or said servers.

72. The system according to claim 70, further comprising:

means for receiving vector parameters for said financial transaction at any of said client computers or said servers.

73. The system according to claim 64, wherein said performing means comprises:

means for activating said financial transaction;

means for changing said financial transaction from inactive to active status; and

means for communicating said change of state to any of said client computers or said servers.

74. The system according to claim 64, further comprising:

means for notifying any of said client computers or said servers that said financial transaction has been completed.

75. The system according to claim 64, wherein said performing means comprises:

means for preparing for execution;

means for verifying said financial transaction can be completed;

means for locking in said financial transaction;

means for executing said financial transaction; and

means for settling said financial transaction.

76. The system according to claim 64, wherein said at least one entity is a counterparty offering capital for a loan.

77. The system according to claim 76, further comprising:

means for matching said financial transaction for said loan with at least one counterparty offering funds for the loan.

78. The system according to claim 64, further comprising:

means for granting quantified access to said at least one entity for an account traceable to at any of said client computers or said servers requesting said financial transaction, such that fees associated with said financial transaction are not paid from the account traceable to at any of said client computers or said servers to a disbursing financial institution when said financial transaction is made.

79. The system according to claim 64, further comprising:

means for notifying any of said client computers or said servers that said financial transaction is in progress.

80. A financial services system comprising:

means for initiating a request at a first client computer for a first financial transaction, said request being received at one of a second client computer or a server;

means for receiving information, at any of said client computers or said server, on at least one potential participant in said first financial transaction;

means for notifying, at any of said client computers or said server, said at least one potential participant of said first financial transaction; and

means for performing said first financial transaction, at said second client computer or said server, based on predetermined parameters input by at least said one potential participant, or said client computers or said server involved in said first financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution of risk, or an optimal combination thereof.

81. The system according to claim 80, further comprising:

means for receiving parameter constraints at any of said client computers or said server on said first financial transaction.

82. The system according to claim 81, further comprising:

means for receiving instructions from the at least one potential participant on said first financial transaction.

83. The system according to claim 80, further comprising:

means for receiving a second request for a second financial transaction;

wherein a result of said second financial transaction is directed to initiate said first financial transaction.

84. A computer-readable medium whose contents cause a computer system to perform financial transactions over a computerized network having at least a first client computer connected thereto, the computer system having a program which performs the steps of:

initiating a request at the first client computer for a financial transaction, said request being received at one of a second client computer or a first server;

obtaining information, at said second client computer or said first server, from at least one entity having at least one of a third client computer or a second server involved in said financial transaction;

confirming, at said second client computer or said first server, with said at least one entity that said financial transaction can be executed; and

performing said financial transaction, at said second client computer or said first server, based on predetermined parameters input by at least one entity, or said client computers or said servers involved in said financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution of risk, or an optimal combination thereof.

85. A computer-readable medium whose contents cause a computer system to perform financial transactions over a computerized network, having at least a first client computer connected thereto, the computer system having a program which performs the steps of:

initiating a request at the first client computer for a first financial transaction, said request being received at one of a second client computer or a server;

receiving information, at any of said client computers or said server, on at least one potential participant in said first financial transaction;

notifying, at any of said client computers or said server, said at least one potential participant of said first financial transaction; and

performing said first financial transaction, at said second client computer or said server, based on predetermined parameters input by at least said one potential participant, or said client computers or said server involved in said first financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution or risk, or an optimal combination thereof.

86. A computer system adapted to perform financial services over a computerized network, having at least a first client computer connected thereto, comprising:

at least one memory including a program having instructions adapted to enable a computer system to perform the steps of;

initiating a request at the first client computer for a financial transaction, said request being received at one of a second client computer or a first server;

obtaining information, at said second client computer or said first server, from at least one entity having at least one of a third client computer or a second server involved in said financial transaction;

confirming, at said second client computer or said first server, with said at least one entity that said financial transaction can be executed; and

performing said financial transaction, at said second client computer or said first server, based on predetermined parameters input by at least said one entity, or said client computers or said servers involved in said financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution of risk, or an optimal combination thereof; and

at least one processor which runs said program.

87. A computer system adapted to perform financial services over a computerized network, having at least a first client computer connected thereto, comprising:

at least one memory including a program having instructions adapted to enable the computer system to perform the steps of;

initiating a request at the first client computer for a first financial transaction, said request being received at one of a second client computer or a server;

receiving information, at any of said client computers or said server, on at least one potential participant in said first financial transaction;

notifying, at any of said client computers or said server, said at least one potential participant of said first financial transaction; and

performing said first financial transaction, at said second client computer or said server, based on predetermined parameters input by at least said one potential participant, or said client computers or said server involved in said first financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution of risk, or an optimal combination thereof; and

at least one processor which runs said program.

88. A computer program product stored in a computer readable medium for enabling a computer to perform financial transactions over a computerized network, having at least a first client computer connected thereto, comprising:

software instructions for enabling the computer to perform predetermined operations, and

said computer readable medium bearing the software instructions;

the predetermined operations including the steps of;

initiating a request at the first client computer for a financial transaction, said request being received at one of a second client computer or a first server;

obtaining information, at said second client computer or said first server from at least one entity having at least one of a third client computer or a second server involved in said financial transaction;

confirming, at said second client computer or said first server, with said at least one entity that said financial transaction can be executed; and

performing said financial transaction, at said second client computer or said first server, based on predetermined parameters input by at least said one entity, or said client computers or said servers involved in said financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution of risk, or an optimal combination thereof.

89. A computer program product for enabling a computer to perform financial transactions over a computerized network, having at least a first client computer connected thereto, comprising:

software instructions for enabling the computer to perform predetermined operations, and

a computer readable medium bearing the software instructions;

the predetermined operations including the steps of;

initiating a request at the first client computer for a first financial transaction, said request being received at one of a second client computer or a server;

receiving information, at any of said client computers or said server, on at least one potential participant in said first financial transaction;

notifying, at any of said client computers or said server, said at least one potential participant of said first financial transaction; and

performing said first financial transaction, at said second client computer or said server, based on predetermined parameters input by at least said one potential participant, or said client computers or said server involved in said first financial transaction, that optimize capital or risk distribution utilizing at least a netting process, the results of said netting process which include at least one of an optimal number of payments or value transfers, an optimal amount of capital movement, an optimal distribution of risk, or an optimal combination thereof.