Billing workflow system for crediting charges to entities creating derivatives exposure

• US 8,160,942 B2
• Filed: 07/20/2010
• Issued: 04/17/2012
• Est. Priority Date: 12/15/2003
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Miller, Harold, Toghill, Julian Mark, Pham, Tuan
• Primary Examiner(s): Dixon, Thomas
• Assistant Examiner(s): VIZVARY, GERALD C
• Application Number:
  US12/839,891
• Publication Number:
  US 20100287082A1
• Time in Patent Office: 637 Days
• Field of Search: 705/30, 705/34, 705/38
• US Class Current: 705/34
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• 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 40/12 Accounting

Abstract

An automated billing workflow system receives credit valuation adjustment (CVA) amounts associated with derivatives trades. The automated billing workflow system interacts with an Accounting System in order to make appropriate Profit and Loss (P&L) entries for the CVA amounts. The CVA amounts are billed to the business units which actually created the risk. The invention employs a plurality of Workflow Queues. As an item makes it way through the billing workflow, it may be slotted in one or more of these queues where further action will take place.

Claims

1. A computer system for allocating charges related to derivatives trading to a business unit in a business organization, comprising:

a computer memory configured to store reserve amount information based on an exposure associated with a derivative trade; and

a risk allocation computer operatively coupled to the computer memory, the risk allocation computer configured to calculate a credit valuation adjustment amount associated with a derivative trade; and

a workflow queue computer operatively coupled to the risk allocation computer, the workflow queue computer configured to hold the credit valuation adjustment amount for further review.

2. The system of claim 1, wherein the workflow queue computer comprises a frozen/excluded queue configured to hold the credit valuation adjustment amount if the derivative trade is on an excluded list.

3. The system of claim 1, wherein the workflow queue computer comprises a failed threshold queue configured to assess whether the credit valuation adjustment amount exceeds a predefined threshold amount.

4. The system of claim 1, wherein the workflow queue computer comprises a business queue configured to provide access to the credit valuation adjustment amount to an individual associated with a business unit involved in the derivative trade.

5. The system of claim 1, wherein the workflow queue computer comprises an invoice queue configured to bill the credit valuation adjustment amount to a business unit involved in the derivative trade.

6. The system of claim 1, wherein the workflow queue computer comprises a disputed item queue configured to bill the credit valuation adjustment amount to a business unit involved in the derivative trade.

7. The system of claim 1, wherein the workflow queue computer comprises an event queue configured to store information relating to a derivative trade having an associated event.

8. The system of claim 1, wherein the workflow queue computer comprises a do not bill queue configured to receive a derivative trade for which the credit valuation adjustment amount is not charged to a business unit involved in the derivative trade.

9. A method for managing a credit valuation adjustment amount related to a derivative trade to a business unit in a business organization, comprising:

receiving, by a computer processor, derivative trade information;

calculating, by the computer processor, a credit valuation adjustment amount based on the derivative trade information; and

providing, by the computer processor, the derivative trade information and credit valuation adjustment amount to at least one of a plurality of workflow queues configured to facilitate further review or processing of the derivative trade information and the credit valuation adjustment amount.

10. The method of claim 9, wherein the at least one of the plurality of work flow queues comprises a frozen,/excluded queue configured to hold the credit valuation adjustment amount if the derivative trade is on an excluded list.

11. The method of claim 9, wherein the at least one of the plurality of workflow queues comprises a failed threshold queue configured to assess whether the credit valuation adjustment amount exceeds a predefined threshold amount.

12. The method of claim 9, wherein the at least one of the plurality of work flow queues comprises a business queue configured to provide access to the credit valuation adjustment amount m an individual associated with a business unit involved in the derivative trade.

13. The method of claim 9, wherein, the at least one of the plurality, of workflow queues comprises an invoice queue configured to bill the credit valuation adjustment amount to a business unit involved in the derivative trade.

14. The method of claim 9, wherein the at least one of the plurality of workflow queues comprises a disputed item queue configured to bill the credit valuation adjustment amount to a business unit involved in the derivative trade.

15. The method of claim 9, wherein the at least one of the plurality of workflow queues comprises an event queue configured to store information relating to a derivative trade having an associated event.

16. The method of claim 9, wherein the at least one of the plurality of workflow queues comprises a do not bill queue:

configured to receive a derivative trade for which the credit valuation adjustment amount is not charged to a business unit involved in the derivative trade.

17. A program storage device readable by a machine, tangibly embodying a program of instructions executable on the machine to perform method steps for crediting charges to entities creating derivatives exposure, the method steps comprising:

receiving reserve information associated with a derivative;

identifying an entity creating the derivative exposure; and

generating billing information for the entity creating the derivative exposure.