Method and system for initiating and clearing trades

• US 8,682,776 B2
• Filed: 03/24/2008
• Issued: 03/25/2014
• Est. Priority Date: 05/04/2000
• Status: Active Grant

• Current Assignee: American International Group Incorporated
• Original Assignee: American International Group Incorporated
• Inventors: Feilbogen, Robert J., Varnish, Paul
• Primary Examiner(s): Nguyen, Nga B.
• Application Number:
  US12/054,026
• Publication Number:
  US 20080172323A1
• Time in Patent Office: 2,192 Days
• Field of Search: 705/35, 705/36.R, 705/37, 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• 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 system and method are provided for facilitating the exchange of data between one or more price providers and customers who communicate with the price providers through various portals, each of which may use it own data format. In transmitting data from customer to price provider, the data output from each portal is normalized to a standardized format and then transmitted to the appropriate price provider(s) where the data exchanged with the various portals can be viewed by a trader at a single display or can be exchanged with an automated pricing engine. The customer may also be provided with a universal Web site at which a customer may access any of the portals'"'"' Web sites to simplify access for the customer as well.

Claims

1. A method for straight through processing of trades by electronically exchanging data related to financial transactions between a plurality of price providers which provide price quotes for trading financial instruments and execute trades and a plurality of customers of the plurality of price providers through a plurality of electronic portals, wherein at least two of the plurality of electronic portals are adapted to use one of multiple different standardized portal-specific data formats, and wherein a particular customer may use any of the plurality of electronic portals to which the customer has access to communicate with the plurality of price providers, the method comprising:

linking each of the plurality of electronic portals and the plurality of price providers to a central transit point through which data from all of the plurality of electronic portals is transmitted;

receiving customer data from each of the plurality of electronic portals, wherein the customer data is received in a first standardized portal-specific format corresponding to the particular portal of the plurality of electronic portals through which the customer data is received;

normalizing the received, standardized data from the first standardized portal-specific format in which the data is received into a second standardized format, wherein the first standardized portal-specific format is different from the second standardized format; and

transmitting the normalized data through the central transit point to at least one of the plurality of price providers.

2. The method of claim 1, wherein the central transit point is at one of a central router, at least one of the plurality of price providers, or a credit intermediary.

3. The method of claim 1, wherein the data comprises at least one of a request for a price quote, an instruction to execute a trade, a recap of details of the trade, or a free-format text-based conversation.

4. The method of claim 1, wherein the step of normalizing the data further comprises converting the data from a portal-specific communication protocol in which the data is received into a standardized communication protocol.

5. The method of claim 1, wherein the step of transmitting the data comprises providing the data to at least one of the plurality of price providers in the second standardized format.

6. The method of claim 1, further comprising receiving further data from at least one of the plurality of price providers that is directed to a particular portal of the plurality of electronic portals, and translating the further data from the second standardized format into a portal-specific format used by the particular portal through which the further data is to be sent, wherein the portal-specific format is different from the second standardized format.

7. The method of claim 6, wherein the data comprises a customer request by a customer for a price quote and the further data comprises a price quote sent in response to the request, and wherein the method further comprises transmitting the price quote to the customer via the portal from which the price quote request was received.

8. The method of claim 7, wherein the price quote is provided by one of a trader at least one of the plurality of price providers or an automated pricing engine at least one of the plurality of price providers for automatically providing the price quotes.

9. The method of claim 7, further comprising transmitting an instruction to proceed with a trade from the customer to at least one of the plurality of price providers in response to the price quote, whereupon the respective price provider fulfills the trade at the price quote.

10. The method of claim 1, further comprising sending a customer who has executed a trade an electronic confirmation via the portal through which the customer data was received, the electronic confirmation including details of the trade.

11. The method of claim 10, further comprising receiving the trade details at one of the plurality of price providers.

12. The method of claim 7, further comprising:

receiving a second request for a second price quote from a second customer that is sent through a second portal of the plurality of electronic portals in a third standardized portal-specific format that is different from the first standardized portal-specific format;

normalizing the second request from the third standardized portal-specific format in which it is received into the second standardized format;

transmitting the second request to at least one of the plurality of price providers in the second standardized format;

transmitting a second price quote from the one of the plurality of price providers to the second customer who requested the second price quote through the second portal; and

transmitting an instruction from the first customer to the price provider providing the first price quote to proceed with a trade, whereupon the price provider providing the first price quote fulfills the trade at the first price quote.

13. The method of claim 12, further comprising withdrawing the second price quote by the price provider providing the second price quote by one of manually entering an instruction to withdraw the second price quote or providing a system for automatically withdrawing the second price quote at a particular point based on specific criteria.

14. The method of claim 1, further comprising:

receiving the normalized data at one of the plurality of price providers; and

simultaneously displaying on a single display at the respective price provider the received data exchanged with at least two of the plurality of electronic portals.

15. The method of claim 14, further comprising using the data on the display to determine at the respective price provider whether to make a price quote based on criteria comprising at least one of exposure of the respective price provider to market risk, a credit risk associated with the second customer, a trade position of the respective price provider, or a marketplace-specific factor.

16. The method of claim 14, wherein the data from the at least two electronic portals are simultaneously displayed in separate windows on the display but with a substantially identical graphical user interface for each of the windows.

17. The method of claim 14, wherein each portal utilizes a respective portal-specific graphical user interface, the method further comprising displaying the data from the at least two electronic portals simultaneously in separate windows on the display using the respective graphical user portal-specific interfaces, and providing a set of uniform commands for interacting with the at least two electronic portals despite the different graphical user interfaces.

18. The method of claim 1, wherein a gateway corresponding to each of the plurality of electronic portals is connected between each of the plurality of electronic portals and the central transit point, and wherein the step of normalizing the data is performed at the gateway corresponding to the portal from which the data originated.

19. The method of claim 1, further comprising providing a central router comprising gateway at the central router corresponding to each of the plurality of electronic portals, the normalizing of data being performed at each respective gateway.

20. The method of claim 1, further comprising providing a gateway at each of the plurality of price providers corresponding to each of the plurality of electronic portals, the normalizing of data being performed at the respective gateways.

21. The method of claim 1, further comprising linking a credit intermediary of a customer to the central transit point.

22. The method of claim 1, wherein at least one of the plurality of price providers comprises a bank, a financial institution, an exchange, or any other trading entity, wherein the customer comprises a commercial entity that wishes to obtain a price quote, and wherein the financial instrument for which the price quote is requested comprises at least one of securities, commodities, options, futures, currency, or any other tradable item.

23. The method of claim 1, wherein each of the plurality of electronic portals is connected to a customer by one of a private network, a public network, or the Internet.

24. The method of claim 1, wherein the plurality of price providers are connected to a Central Router by one of a private network, a public network, or the Internet.

25. A method for straight through processing of trades by electronically exchanging data related to financial transactions between a plurality of price providers which provide price quotes for trading financial instruments and execute trades and a plurality of customers of the price provider through a plurality of electronic portals, wherein at least two of the plurality of electronic portals are adapted to use one of multiple different portal-specific data formats, and wherein a particular customer of the plurality of customers may use any of the plurality of electronic portals to which the particular customer has access to communicate with the price provider, the method comprising:

linking each of the plurality of electronic portals and the plurality of price providers to a central transit point through which the data is transmitted;

receiving data from at least one of the plurality of price providers to be sent to a particular customer through a particular portal of the plurality of electronic portals, wherein the data is received in a first standardized format;

translating the received data from the first standardized format into a second standardized portal-specific format, wherein the second standardized portal-specific format is different from the first standardized format; and

transmitting the data in the second standardized portal-specific format through the central transit point to the particular customer.

26. The method of claim 25, wherein the central transit point is at one of the central router, at least one of the plurality of price providers, or a credit intermediary.

27. The method of claim 25, wherein the data comprises at least one of a price quote, a recap of details of the trade, or a free-format text-based conversation.

28. The method of claim 25, wherein the step of translating the data further comprises converting the data from a standardized communication protocol in which the data is received into a portal-specific communication protocol.

29. The method of claim 25, wherein the data comprises a price quote, the method further comprising receiving an instruction from the particular customer to proceed with the trade in response to the price quote, and electronically sending the particular customer details of the trade through the particular portal after a trade is executed.

30. The method of claim 25, further comprising:

displaying the received data exchanged with at least two of the plurality of electronic portals on a single display substantially simultaneously.

31. The method of claim 30, further comprising using the data on the display to determine by at least one of the plurality of price providers whether to make a price quote based on criteria comprising at least one of exposure of the respective price provider to market risk, a credit risk associated with the second customer, a trade position of the respective price provider, or a marketplace-specific factor.

32. The method of claim 30, wherein the data from the at least two customers are displayed substantially simultaneously in separate windows on the display but with a substantially identical graphical user interface for each of the windows.

33. The method of claim 30, wherein each portal utilizes a respective portal-specific graphical user interface, and wherein the method further comprises displaying the data from the at least two electronic portals simultaneously in separate windows on the display using the respective graphical user portal-specific interfaces, and providing a set of uniform commands for interacting with the at least two electronic portals despite the different graphical user interfaces.

34. The method of claim 25, wherein the data comprises a price quote that is provided by one of a trader at least one of the plurality of price providers or an automated pricing engine at the respective price provider for providing the price quotes.

35. The method of claim 25, further comprising providing a gateway at each of the plurality of price providers corresponding to each of the plurality of electronic portals, the translation of data being performed at the respective gateways for each of the plurality of electronic portals.

36. The method of claim 25, further comprising providing a central router comprising a gateway at the central router corresponding to each of the plurality of electronic portals, the translation of data being performed at each respective gateway.

37. The method of claim 25, wherein a gateway corresponding to each of the plurality of electronic portals is connected between each of the plurality of electronic portals and the central transit point, and wherein the step of translation of the data is performed at the respective gateway for the portal from which the data originated.

38. The method of claim 25, further comprising linking a credit intermediary of a customer to the central transit point.

39. The method of claim 25, wherein at least one of the plurality of price providers comprises at least one of a bank, a financial institution, an exchange, or any other trading entity, wherein the particular customer comprises a commercial entity that wishes to obtain a price quote, and wherein the financial instrument for which the price quote is requested comprises at least one of securities, commodities, options, futures, currency, or any other tradable item.

40. The method of claim 25, wherein each of the plurality of electronic portals is connected to a customer by one of a private network, a public network, or the Internet.

41. The method of claim 25, wherein the plurality of price providers are connected to a Central Router by one of a private network, a public network, or the Internet.