Method and system for administering prime brokerage

• US 7,756,777 B2
• Filed: 05/22/2008
• Issued: 07/13/2010
• Est. Priority Date: 03/25/2003
• Status: Active Grant

• Current Assignee: Tradeweb Markets LLC (Tradeweb Markets, Inc.)
• Original Assignee: Tradeweb Markets LLC (Tradeweb Markets, Inc.)
• Inventors: Garley, Thomas, Toffey, James Worden
• Primary Examiner(s): Havan; Thu Thao
• Application Number:
  US12/125,744
• Publication Number:
  US 20080281750A1
• Time in Patent Office: 782 Days
• Field of Search: 705 37- 38
• US Class Current: 705/37
• 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

Abstract

A Straight-Through-Processing (STP) trading platform provides a fully electronic and seamless solution to substantially all aspects of the trading cycle for fixed income instruments and other financial instruments. In an exemplary embodiment, one or more customers, one or more dealers and one or more prime brokers have access to computer software that facilitates trade order management, trade order generation, trade execution, trade allocation, allocation acknowledgement, trade confirmation, acquisition of settlement instructions, and the generation of progress reports based on specific metrics criteria. In said exemplary embodiment, the STP trading platform allows a prime broker to monitor and approve a trade where the STP trading platform includes software modules including at least an account management module and an electronic trading module to handle the various stages of executing a trade, confirming the trade, and facilitating settlement of the trade.

Claims

1. A computer implemented method of effecting straight-through-processing of trades executed between one or more customers having one or more customer computer systems and one or more dealers having one or more dealer computer systems utilizing one or more prime brokers having one or more prime broker computer systems, the method comprising:

generating a trade order;

receiving an indication from the at least one prime broker computer system that the trade order has been approved;

executing a block trade based on the trade order wherein the trade order includes a reference to the one or more prime brokers selected by the one or more customers and a pre-allocation of customer accounts;

storing one or more account information records associated with one or more settlement instruction sets in an account database;

storing a block trade record including details of the block trade;

generating an allocated trade record associated with the block trade record for each of the account allocations received from the at least one customer computer system;

receiving an indication from the at least one dealer computer system that the allocated trade records are confirmed;

enriching the allocated trade records by incorporating one of the settlement instruction sets into each of the allocated trade records.

2. The method of claim 1 wherein the block trade is executed between the one or more customers and the one or more dealers.

3. The method of claim 1 wherein the block trade is executed between the one or more prime brokers and the one or more dealers.

4. The method of claim 1 further comprising:

transmitting each of the enriched allocated trade records to an appropriate clearing institution.

5. The method of claim 1 further comprising:

transmitting each of the enriched allocated trade records to the one or more customers, the one or more dealers or the one or more prime brokers.

6. The method of claim 1, wherein the block trade records and allocated trade records are accessible by the one or more customer computers systems, one or more dealer computer systems and one or more prime broker computers such that the one or more customers, one or more dealers and one or more prime brokers can view reports.

7. The method of claim 1, wherein the method is performed in a client-server environment.

8. The method of claim 1 further comprising:

generating trade inquiries and transmitting the trade inquiries to the one or more dealers.

9. The method of claim 8 further comprising:

generating firm prices in response to the trade inquiries and transmitting firm prices to the one or more customers.

10. A computer implemented method of electronically effecting straight-through-processing of a trade between one or more dealers, one or more customers and one or more prime brokers comprising the steps of:

receiving a first signal indicative of a trade request from the one or more customers to be executed utilizing the one or more prime brokers;

receiving a second signal indicative of a trade order corresponding to said trade request;

receiving a third signal indicative of an acceptance of the trade by the one or more customers;

notifying the one or more prime brokers of the acceptance, and trade order;

receiving a fourth signal indicative of an acceptance of the trade by the one or more prime brokers;

executing a block trade based on the trade order wherein the trade order includes a reference to the one or more prime brokers selected by the one or more customers and a pre-allocation of customer accounts.

11. The method of claim 10 wherein the block trade is executed between the one or more customers and the one or more dealers.

12. The method of claim 10 wherein the block trade is executed between the one or more prime brokers and the one or more dealers.

13. The method of claim 10 further comprising:

storing one or more account information records associated with one or more settlement instruction sets in an account database;

storing a block trade record including details of the block trade;

generating an allocated trade record associated with the block trade record for each of the account allocations;

receiving an indication from the at least one dealer computer system that the allocated trade records are confirmed;

enriching the allocated trade records by incorporating one of the settlement instruction sets into each of the allocated trade records.

14. The method of claim 13, further comprising:

generating an electronic trade confirmation for each of the allocated trade records that includes at least trade details associated with the allocated trade record and a settlement instruction set.

15. The method of claim 10, wherein the first signal is an indication of a click of a graphical button at the one or more customer'"'"'s computer and the third signal is an indication of a click of a graphical button at the one or more prime broker'"'"'s computer.

16. A system for effecting straight-through-processing of a trade between one or more dealers having one or more dealer computer systems, one or more customers having one or more customer computer systems and one or more prime brokers having one or more prime broker computer systems, the system comprising:

a trade execution system;

wherein the one or more customer computer systems, one or more dealer computer systems and one or more prime broker computer systems each have software thereon for permitting communication of trading data through the trade execution system the trade execution system operative programming to;

receive an inquiry for a trade from at least one of the customers directed to the one or more dealer computer systems;

transmit said trade inquiry to said dealer computer systems and receive a trade price for the trade from at least one of said dealer computer systems;

transmit said trade price to said at least one customer computer system;

receive from said customer computer system an indication that said trade price is accepted and that the one or more prime brokers is to be a part of the trade;

transmit said trade price to said one or more prime broker systems;

receive from said prime broker system an indication that said trade price is accepted;

executing a block trade based on the accepted trade price.

17. The system of claim 16 wherein the block trade is between the one or more customers and the one or more dealers.

18. The system of claim 16 wherein the block trade is between the one or more dealers and the one or more prime brokers.

19. The system of claim 16 further comprising a trade history database wherein details related to the trade are stored wherein the trade history database is accessible by the one or more customer computers systems, one or more dealer computer systems and the prime broker computer systems.