Method and system for implementing effective governance of transactions between trading partners

• US 8,301,529 B1
• Filed: 10/23/2006
• Issued: 10/30/2012
• Est. Priority Date: 11/02/2005
• 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: Anderson, Milton M.
• Primary Examiner(s): Cheung, Mary
• Assistant Examiner(s): Malhotra, Sanjeev
• Application Number:
  US11/551,966
• Time in Patent Office: 2,199 Days
• Field of Search: 705/1, 705/10, 705/39, 705/40, 705/54, 705/80, 707/1, 709/223
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

An embodiment of the present invention is directed to receiving a first independent log from a first trading partner wherein the first independent log comprises at least one request log entry associated with a transaction wherein the request log entry comprises at least a request identifier; receiving a second independent log from a second trading partner wherein the second independent log comprises at least one reply log entry associated with the transaction between the first trading partner and the second trading partner, wherein the reply log entry comprises at least a reply identifier; matching the at least one request log entry and the at least one reply log entry based on one or more of the request identifier and the reply identifier at a third party interface; identifying non-matching log entries at the third party interface; and forwarding the non-matching log entries for one or more of error processing and dispute resolution.

Claims

1. An automated computer implemented method for governing business transactions between trading partners, wherein the method is executed by a programmed computer processor which communicates with a user via a network, the computer implemented method comprising the steps of:

receiving a first independent log from a first trading partner wherein the first independent log comprises at least one request log entry associated with a transaction wherein the at least one request log entry comprises at least a request identifier via the network;

receiving a second independent log from a second trading partner wherein the second independent log comprises at least one reply log entry associated with the transaction between the first trading partner and the second trading partner, wherein the at least one reply log entry comprises at least a reply identifier via the network;

matching the at least one request log entry and the at least one reply log entry based on one or more of the request identifier and the reply identifier at a third party interface, using the programmed computer processor;

identifying matching log entries at the third party interface for implementing a billing process for the matching log entries;

identifying non-matching log entries at the third party interface; and

forwarding the non-matching log entries for one or more of error processing and dispute resolution, via the network.

2. The method of claim 1, wherein the matching log entries are used to perform a business function as agreed to in a preexisting agreement between the first trading partner and the second trading partner.

3. The method of claim 2, wherein the business function comprises one or more of billing the first trading partner or the second trading partner and transferring value between the partners.

4. The method of claim 1, wherein each of the at least one request log entry and the at least one reply log entry contains at least part of a message plaintext exchanged between the first trading partner and the second trading partner.

5. The method of claim 4, wherein the at least part of the message plaintext is encrypted and each of the at least one request log entry and the at least one reply log entry contains cryptographic hash functions to allow later verification that the message plaintext logged by the first trading partner and the second trading partner was an actual message communicated in the transaction.

6. The method of claim 4, wherein the at least part of the message plaintext is encrypted and each of the at least one request log entry and the at least one reply log entry contains cryptographic digital signatures to allow later verification that the message plaintext logged by the first trading partner and the second trading partner was an actual message communicated in the transaction.

7. The method of claim 1, wherein the first independent log and the second independent log are sent by the first trading partner and the second trading partner, respectively, to the third party interface in real time, wherein each of the at least one request log entry and the at least one reply log entry contains time stamps.

8. The method of claim 1, wherein each of the at least one request log entry and the at least one reply log entry is cryptographically signed by each of the first trading partner and the second trading partner before the first independent log and the second independent log are sent to the third party interface.

9. The method of claim 1, wherein the third party interface matches each log entry in real time and notifies one or more of the first trading partner and the second trading partner that a mismatch has occurred.

10. The method of claim 1, wherein the third party interface matches each log entry in real time and notifies one or more of the first trading partner and the second trading partner that a match has occurred.

11. The method of claim 1, wherein each log entry contains data describing a value of a transaction.

12. The method of claim 11, wherein the value of the transaction comprises an amount of money transferred in the transaction between the first trading partner and the second trading partner.

13. The method of claim 11, wherein the third party interface uses the value of transaction with matching log data to provide financial settlement between or among the first trading partner and the second trading partner.

14. The method of claim 1, wherein the first trading partner and the second trading partner regard a transaction as settled when no notification of a mismatch is received from the third party interface or when notification of a match is received from the third party interface.

15. The method of claim 1, wherein the first trading partner and the second trading partner redo the transaction when one or more of the first trading partner and the second trading partner detects a failure.

16. The method of claim 1, wherein the first trading partner and the second trading partner redo the transaction when one or more of the first trading partner or the second trading partner is notified of a log entry mismatch by the third party interface.

17. A computer implemented system for governing business transactions between trading partners, the computer implemented system comprising:

a receiving module for receiving a first independent log from a first trading partner wherein the first independent log comprises at least one request log entry associated with a transaction wherein the at least one request log entry comprises at least a request identifier and receiving a second independent log from a second trading partner wherein the second independent log comprises at least one reply log entry associated with the transaction between the first trading partner and the second trading partner, wherein the at least one reply log entry comprises at least a reply identifier; and

a matching module for matching the at least one request log entry and the at least one reply log entry based on one or more of the request identifier and the reply identifier at a third party interface;

identifying matching log entries at the third party interface for implementing a billing process for the matching log entries;

identifying non-matching log entries at the third party interface; and

forwarding the non-matching log entries for one or more of error processing and dispute resolution.

18. The system of claim 17, wherein the matching log entries are used to perform a business function as agreed to in a preexisting agreement between the first trading partner and the second trading partner.

19. The system of claim 18, wherein the business function comprises one or more of billing the first trading partner or the second trading partner and transferring value between the partners.

20. The system of claim 17, wherein each of the at least one request log entry and the at least one reply log entry contains at least part of a message plaintext exchanged between the first trading partner and the second trading partner.

21. The system of claim 20, wherein the at least part of the message plaintext is encrypted and each of the at least one request log entry and the at least one reply log entry contains cryptographic hash functions to allow later verification that the message plaintext logged by the first trading partner and the second trading partner was an actual message communicated in the transaction.

22. The system of claim 20, wherein the at least part of the message plaintext is encrypted and each of the at least one request log entry and the at least one reply log entry contains cryptographic digital signatures to allow later verification that the message plaintext logged by the first trading partner and the second trading partner was an actual message communicated in the transaction.

23. The system of claim 17, wherein the first independent log and the second independent log are sent by the first trading partner and the second trading partner, respectively, to the third party interface in real time, wherein each of the at least one request log entry and the at least one reply log entry contains time stamps.

24. The system of claim 17, wherein each of the at least one request log entry and the at least one reply log entry is cryptographically signed by each of the first trading partner and the second trading partner before the first independent log and the second independent log are sent to the third party interface.

25. The system of claim 17, wherein the third party interface matches each log entry in real time and notifies one or more of the first trading partner and the second trading partner that a mismatch has occurred.

26. The system of claim 17, wherein the third party interface matches each log entry in real time and notifies one or more of the first trading partner and the second trading partner that a match has occurred.

27. The system of claim 17, wherein each log entry contains data describing a value of a transaction.

28. The system of claim 27, wherein the value of the transaction comprises an amount of money transferred in the transaction between the first trading partner and the second trading partner.

29. The system of claim 27, wherein the third party interface uses the value of transaction with matching log data to provide financial settlement between or among the first trading partner and the second trading partner.

30. The system of claim 17, wherein the first trading partner and the second trading partner regard a transaction as settled when no notification of a mismatch is received from the third party interface or when notification of a match is received from the third party interface.

31. The system of claim 17, wherein the first trading partner and the second trading partner redo the transaction when one or more of the first trading partner and the second trading partner detects a failure.

32. The system of claim 17, wherein the first trading partner and the second trading partner redo the transaction when one or more of the first trading partner or the second trading partner is notified of a log entry mismatch by the third party interface.

33. An automated computer implemented method for governing business transactions between trading partners, wherein the method is executed by a programmed computer processor which communicates with a user via a network, the computer implemented method comprising the steps of:

receiving a first independent log from a first trading partner wherein the first independent log comprises at least one request log entry associated with a transaction wherein the at least one request log entry comprises at least a request identifier via the network;

receiving a second independent log from a second trading partner wherein the second independent log comprises at least one reply log entry associated with the transaction between the first trading partner and the second trading partner, wherein the at least one reply log entry comprises at least a reply identifier via the network;

matching the at least one request log entry and the at least one reply log entry based on one or more of the request identifier and the reply identifier at a third party interface, using the programmed computer processor;

identifying matching log entries at the third party interface;

identifying non-matching log entries at the third party interface; and

forwarding the non-matching log entries for one or more of error processing and dispute resolution via the network;

wherein the matching log entries are used to perform a business function as agreed to in a preexisting agreement between the first trading partner and the second trading partner;

wherein the business function comprises one or more of billing the first trading partner or the second trading partner and transferring value between the partners;

wherein each of the at least one request log entry and the at least one reply log entry contains at least part of a message plaintext exchanged between the first trading partner and the second trading partner;

wherein the at least part of the message plaintext is encrypted and each of the at least one request log entry and the at least one reply log entry contains one or more of cryptographic hash functions and cryptographic digital signatures to allow later verification that the message plaintext logged by the first trading partner and the second trading partner was an actual message communicated in the transaction;

wherein the first independent log and the second independent log are sent by the first trading partner and the second trading partner, respectively, to the third party interface in real time, wherein each of the at least one request log entry and the at least one reply log entry contains time stamps;

wherein the third party interface matches each log entry in real time and notifies one or more of the first trading partner and the second trading partner that a mismatch or match has occurred;

wherein each log entry contains data describing a value of a transaction;

wherein the value of the transaction comprises an amount of money transferred in the transaction between the first trading partner and the second trading partner; and

wherein the third party interface uses the value of transaction with matching log data to provide financial settlement between or among the first trading partner and the second trading partner.