System and method for allocating nominal and cash amounts to trades in a netted trade
First Claim
Patent Images
1. A computer-implemented method for allocating stock and cash amounts to individual trades combined into a netted trade, the method comprising:
- receiving, via a computer, a single settlement message that applies to settlement of the netted trade, the settlement message identifying stock and cash amounts to be delivered based upon the combined individual trades in the netted trade;
identifying, via the computer, the individual trades in the netted trade that are eligible for allocation of the stock and cash amounts identified in the settlement message, by matching a message-trade identifier in the settlement message with an internal-trade identifier in the computer;
identifying, via the computer, the individual trades in the netted trade that are purchase trades;
identifying, via the computer, the individual trades in the netted trade that are sales trades;
sorting, via the computer, the purchase trades so that smaller purchase trades are before larger purchase trades;
allocating, via the computer, stock and cash amounts to the purchase trades as a group in sorted order;
sorting, via the computer, the sales trades so that smaller sales trades are before larger sales trades; and
allocating, via the computer, stock and cash amounts to the sales trades as a group in sorted order.
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Abstract
A system and method for allocating stock and cash amounts to individual trades in a netted trade. The system and method include bundling individual securities trades into a netted trade, transmitting the netted trade to a clearing house, receiving a settlement message from the clearing house, and allocating stock and cash amounts to individual trades in the netted trade in a manner consistent with the settlement message.
248 Citations
40 Claims
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1. A computer-implemented method for allocating stock and cash amounts to individual trades combined into a netted trade, the method comprising:
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receiving, via a computer, a single settlement message that applies to settlement of the netted trade, the settlement message identifying stock and cash amounts to be delivered based upon the combined individual trades in the netted trade; identifying, via the computer, the individual trades in the netted trade that are eligible for allocation of the stock and cash amounts identified in the settlement message, by matching a message-trade identifier in the settlement message with an internal-trade identifier in the computer; identifying, via the computer, the individual trades in the netted trade that are purchase trades; identifying, via the computer, the individual trades in the netted trade that are sales trades; sorting, via the computer, the purchase trades so that smaller purchase trades are before larger purchase trades; allocating, via the computer, stock and cash amounts to the purchase trades as a group in sorted order; sorting, via the computer, the sales trades so that smaller sales trades are before larger sales trades; and allocating, via the computer, stock and cash amounts to the sales trades as a group in sorted order. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8)
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9. A computer-implemented method for executing individual trades combined into a netted trade, the method comprising:
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transmitting, via a computer, information regarding the netted trade, receiving a single settlement message that applies to settlement of the netted trade; selecting, via the computer, the individual trades which are eligible for processing in accordance with the settlement message, wherein eligible trades are identified by matching a message-trade identifier in the settlement message with an internal-trade identifier in the computer; allocating, via the computer, stock and cash amounts to the eligible trades in a manner consistent with the settlement message, and posting, via the computer, the allocated stock and cash amounts to the eligible trades in accordance with said allocation. - View Dependent Claims (10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25)
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26. A processing system for allocating stock and cash amounts to individual trades combined in a netted trade, the system comprising:
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a storage component that stores instructions; a communication device; and a processing component communicatively connected to the storage device and communication device, the processing device programmed by the instructions to perform actions comprising; transmitting information regarding the netted trade via the communication device; receiving a single settlement message from the communication device that applies to settlement of the netted trade; selecting eligible trades within the individual trades which are eligible for processing in accordance with the settlement message, wherein eligible trades are identified by matching a message-trade identifier in the settlement message with an internal-trade identifier in the processing system; allocating stock and cash amounts to the eligible trades in a manner consistent with the settlement message, and posting the allocated stock and cash amounts to the trades within the individual trades in accordance with said allocation. - View Dependent Claims (27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40)
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Specification