Financial data processing system and method

• US 8,433,641 B2
• Filed: 04/22/2011
• Issued: 04/30/2013
• Est. Priority Date: 10/14/2003
• Status: Active Grant

• Current Assignee: FTEN, Inc. (Nasdaq, Inc.)
• Original Assignee: FTEN, Inc. (Nasdaq, Inc.)
• Inventors: Angle, Corby Drake, Kittelsen, Douglas Guy, LaFever, Malcolm Gary, Myerson, Ted Nathan, Prasad, Anandan Murali
• Primary Examiner(s): Maguire, Lindsay M
• Assistant Examiner(s): Fu, Hao
• Application Number:
  US13/064,877
• Publication Number:
  US 20110202447A1
• Time in Patent Office: 739 Days
• Field of Search: 705 35- 37, 705/38
• 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

Abstract

To process financial articles of trade, real time data is collected from a plurality of liquidity destinations in trading at least one of securities, commodities, options, futures and derivatives, the real time data including information on submitted transactions of financial articles of trade. The real time data collected from the plurality of liquidity destinations is aggregated. The real time data is streamed in a standardized form. User criteria are established to identify relevant portions of the streamed real time data. The streamed real time data is analyzed according to the user criteria. The analyzed real time data is consolidated into a computer data base.

Claims

1. A method of monitoring financial articles of trade for risk management purposes, the method comprising:

collecting, by a transceiver, drop-copies of transaction specific data of varying formats from a plurality of liquidity destinations trading at least one financial article of trade; and

identifying, via a risk management processing system that includes at least one processor, irregular transactions within the collected drop-copies by comparing the drop-copies against a pre-defined criteria;

assigning a priority level to drop-copies identified as irregular transactions; and

issuing risk notification alerts in accordance with the assigned priority levels for the respective irregular transactions,

wherein the pre-defined criteria includes criteria for identification of at least one transaction from the collected drop-copies for which a respective party is financially liable, where the respective party that is financially liable lacked knowledge that the at least one transaction had been submitted to at least one of the plurality of liquidity destinations.

2. The method of claim 1, further comprising:

identifying relevant portions of the collected drop-copies comprising one or more transactions for which a party is financially liable and including the identified transaction;

comparing, using an analysis component of said computer, the relevant portions of the collected drop-copies against the pre-defined criteria; and

identifying a situation when said relevant portions of the collected drop-copies matches said pre-defined criteria for purposes of performing risk management for said financially liable party.

3. The method of claim 1, further comprising:

aggregating the collected drop-copies from said plurality of liquidity destinations; and

normalizing said aggregated drop-copies into a standardized form.

4. A system for processing financial articles of trade, comprising:

a transceiver that is coupled to a plurality of liquidity destinations that trade at least one of securities, commodities, options, futures, and/or derivatives, the transceiver configured to;

collect drop-copies of transaction specific data from the plurality of liquidity destinations, where the drop-copies include information on submitted and/or completed transactions of financial articles of trade and the drop-copies include data of varying formats corresponding to the associated liquidity destinations; and

a risk management processing system that includes at least one processor, the risk management processing system configured to;

perform a comparison between the collected drop-copies and a pre-defined criteria;

identify irregular transactions based on the performed comparison;

assign a priority level to drop-copies identified as including irregular transactions; and

issue risk notification alerts according to the assigned priority levels,

wherein the pre-defined criteria includes criteria for identification of whether the collected drop-copies include at least one transaction for which a respective party is financially liable as an irregular transaction, where the respective party that is financially liable lacked knowledge that the at least one transaction had been submitted to at least one of the plurality of liquidity destinations for execution thereon.

5. The system of claim 4, wherein the risk management processing system is further configured to:

identify relevant portions of the drop-copies comprising one or more transactions for which a party is financially liable and including the identified transaction;

compare the relevant portions of the drop-copies against pre-defined criteria; and

identify a situation when said relevant portions of the drop-copies matches pre-defined criteria for purposes of performing risk management for said financially liable party.

6. The system of claim 4, wherein the risk management processing system is further configured to

aggregate the drop-copies collected from said plurality of liquidity destinations;

normalize the collected and aggregated drop-copies into a standardized form; and

stream, via the transceiver, the drop-copies in the standardized form for further processing.

7. A method of monitoring intraday risk management for financial articles, the method comprising:

receiving, via a transceiver, of a plurality of transaction specific data in varying formats that are from a plurality of different liquidity destinations that trade in at least one financial article of trade, the plurality of transaction specific data including a first transaction specific data related to a first transaction performed against a first liquidity destination of the plurality of different liquidity destinations;

performing a comparison of at least the first transaction specific data against a risk management criteria;

identifying the first transaction as an irregular transaction in accordance with the performed comparison;

assigning a priority level to the identified irregular transaction; and

issuing risk notification alert in accordance with the assigned priority level for the irregular transaction,

wherein the risk management criteria includes criteria for identification of transactions with unknown financial liability based on the plurality of transaction specific data, the identified transactions with unknown financial liability including the first transaction for which a respective party is financially liable, where the respective party that is financially liable lacked knowledge that the first transaction had been performed against the first liquidity destination.

8. The method of claim 7, wherein the first transaction specific data is a drop-copy of the first transaction.

9. The method of claim 7, wherein the plurality of transaction specific data in varying formats that are from a plurality of different liquidity destinations are received in real-time in accordance with execution of the respective transaction, near real-time in accordance with execution of the respective transaction, or in accordance with a performed batch process that is to run at a predetermined time interval during intraday trading.

10. The method of claim 7, wherein the issued risk notification is issued on an intraday basis in accordance with execution of the first transaction.

11. The method of claim 7, further comprising:

calculating a cost of performing the first transaction against a second liquidity destination that is different from the first liquidity destination; and

comparing the calculated cost to an actual cost of the first transaction.

12. The method of claim 7, further comprising:

calculating an average cost of performing the first transaction against at least some of the plurality of liquidity destinations; and

comparing the calculated average cost to an actual cost of the first transaction.

13. The method of claim 7, further comprising:

generating a responsive action in accordance with the issued risk notification alert; and

in accordance with risk management, submitting the generated responsive action to a second liquidity destination that is different from the first liquidity destination.

14. The method of claim 7, further comprising:

identifying that a particular entity is financially associated with the first transaction based on the received first transaction specific data.

15. The method of claim 14, further comprising:

generating, via at least one processor, a responsive action based at least in part on the issued risk notification alert.