Central counterparty for data management

• US 8,055,575 B2
• Filed: 11/18/2010
• Issued: 11/08/2011
• Est. Priority Date: 10/14/2005
• Status: Expired due to Fees

• Current Assignee: Financial Intergroup Holdings Limited
• Original Assignee: Financial Intergroup Holdings Limited
• Inventors: Grody, Allan D., Tinervin, Richard R.
• Primary Examiner(s): Kyle; Charles
• Assistant Examiner(s): Pollock; Greg
• Application Number:
  US12/927,597
• Publication Number:
  US 20110071958A1
• Time in Patent Office: 355 Days
• Field of Search: 705/35, 705/36.T, 705/36.R, 705/37
• US Class Current: 705/37
• 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

A central counterparty for data management (CCDM) receives data relating to financial transactions, associates the data with metadata to create reference data, stores the reference data and provides the reference data in “push” and “pull” ways. The “push” techniques for providing the data include distributing on a data feed, sending the data to parties known to be relevant to the transaction, and sending the data to parties who have a standing query that is satisfied by the data. The “pull” techniques for providing the data include responding to queries received from a variety of parties. The CCDM generates and distributes unique, unambiguous and universal identifiers (U3id'"'"'s) and associates the U3id identifiers with the reference data.

Claims

1. A method for processing a financial transaction, comprising:

providing, by a computer at a central source operating according to a computer program, reference data for the financial transaction, the reference data identifying a security and a market where the security is traded, the reference data being provided to a first firm for storage in a first data repository and then for creating a first order for transmission to the market,

providing, by the computer at the central source operating according to the computer program, the reference data for the financial transaction to a second firm for storage in a second data repository and then for creating a second order for transmission to the market, the first firm being different from the second firm, the first data repository being different from the second data repository,

receiving, by the central source computer, an execution notice from the market that created an executed trade based on the first order and the second order, each of the first order and the second order created from the reference data received from the central source,

generating, by the central source computer, a first unique tag based on the execution notice,

associating, by the central source computer, the first unique tag with the execution notice to create a validated execution,

storing the validated execution at the central source computer, and

sending, by the central source computer, the validated execution to the first firm and the second firm,

wherein the central source, the market, the first firm and the second firm are different entities.

2. The method of claim 1, further comprising receiving, by the central source computer, a settlement submission from the first firm based on the validated execution,

comparing, by the central source computer, the settlement submission with the stored validated execution,

generating, by the central source computer, a second unique tag based on the settlement submission,

associating, by the central source computer, the second unique tag with the settlement submission to create a validated settlement submission,

storing the validated settlement submission at the central source computer, and

sending, by the central source computer, the validated settlement submission to the first firm and a settlement facility.

3. The method of claim 1, further comprising

receiving, by the central source computer, new reference data from a data-providing entity,

determining, by the central source computer, that the new reference data is acceptable when the new reference data meets an acceptance threshold, to generate accepted reference data, and

storing the accepted reference data at the central source.

4. The method of claim 3, further comprising

associating, by the central source computer, syntax data with the accepted reference data, to generate structured reference data, and

storing the structured reference data at the central source computer.

5. The method of claim 3, further comprising sending, by the central source computer, the accepted reference data to the first firm for storage at the first firm.

6. The method of claim 3, further comprising

receiving, by the central source computer, a profile from the first firm,

storing, by the central source computer, the profile in a router that is part of the central source computer,

providing, by the central source computer, the accepted reference data to the router,

comparing, by the router, the stored profile to the accepted reference data to determine whether the accepted reference data should be sent to the first firm, and

sending, by the router, the accepted reference data to the first firm when the router determines is that the accepted reference data should be sent to the first firm.

7. The method of claim 1, further comprising

determining, by the central source computer, that a trigger event has occurred,

generating, by the central source computer, triggered reference data, and

storing the triggered reference data at the central source computer.

8. The method of claim 7, further comprising sending, by the central source computer, the triggered reference data to the first firm for storage at the first firm.

9. The method of claim 8, further comprising

receiving, by the central source computer, a profile from the first firm,

storing, by the central source computer, the profile in a router that is part of the central source computer,

providing, by the central source computer, the triggered reference data to the router,

comparing, by the router, the stored profile to the accepted reference data to determine whether the triggered reference data should be sent to the first firm, and

sending, by the router, the triggered reference data to the first firm when the router determines that the triggered reference data should be sent to the first firm.

10. The method of claim 8, further comprising indemnifying, by the central source computer, the first firm from a loss due to faulty reference data.

11. A method for processing a financial transaction, comprising:

providing, by a computer at a central source operating according to a computer program, reference data for the financial transaction, the reference data identifying a security and a market where the security is traded, the reference data being provided to a first department in a first firm for storage in a first data repository and then for creating a first order for transmission to the market,

providing, by the computer at the central source operating according to the computer program, the reference data for the financial transaction to a second department in the first firm for storage in a second data repository and then for creating a second order for transmission to the market, the first data repository being different from the second data repository,

receiving, by the central source computer, an execution notice from the market that-created an executed trade based on the first order and the second order, each of the first order and the second order created from the reference data received from the central source,

generating, by the central source computer, a first unique tag based on the execution notice,

associating, by the central source computer, the first unique tag with the execution notice to create a validated execution,

storing the validated execution at the central source computer, and

sending, by the central source computer, the validated execution to the first firm,

wherein the central source, the market and the first firm are different entities.

12. The method of claim 11, further comprising

receiving, by the central source computer, a settlement submission from the first firm based on the validated execution,

comparing, by the central source computer, the settlement submission with the stored validated execution,

generating, by the central source computer, a second unique tag based on the settlement submission,

associating, by the central source computer, the second unique tag with the settlement submission to create a validated settlement submission,

storing the validated settlement submission at the central source computer, and

sending, by the central source computer, the validated settlement submission to the first firm and a settlement facility.

13. The method of claim 11, further comprising

receiving, by the central source computer, new reference data from a data-providing entity,

determining, by the central source computer, that the new reference data is acceptable when the new reference data meets an acceptance threshold, to generate accepted reference data, and

storing the accepted reference data at the central source.

14. The method of claim 13, further comprising

associating, by the central source computer, syntax data with the accepted reference data, to generate structured reference data, and

storing the structured reference data at the central source computer.

15. The method of claim 13, further comprising sending, by the central source computer, the accepted reference data to the first firm for storage at the first firm.

16. The method of claim 13, further comprising

receiving, by the central source computer, a profile from the first firm,

storing, by the central source computer, the profile in a router that is part of the central source computer,

providing, by the central source computer, the accepted reference data to the router,

comparing, by the router, the stored profile to the accepted reference data to determine whether the accepted reference data should be sent to the first firm, and

sending, by the router, the accepted reference data to the first firm when the router determines that the accepted reference data should be sent to the first firm.

17. The method of claim 11, further comprising

determining, by the central source computer, that a trigger event has occurred,

generating, by the central source computer, triggered reference data, and

storing the triggered reference data at the central source computer.

18. The method of claim 17, further comprising sending, by the central source computer, the triggered reference data to the first firm for storage at the first firm.

19. The method of claim 18, further comprising

receiving, by the central source computer, a profile from the first firm,

storing, by the central source computer, the profile in a router that is part of the central source computer,

providing, by the central source computer, the triggered reference data to the router,

comparing, by the router, the stored profile to the accepted reference data to determine whether the triggered reference data should be sent to the first firm, and

sending, by the router, the triggered reference data to the first firm when the router determines that the triggered reference data should be sent to the first firm.

20. The method of claim 18, further comprising indemnifying, by the central source computer, the first firm from a loss due to faulty reference data.