System and method for clearing transactions

• US 9,786,006 B2
• Filed: 03/15/2013
• Issued: 10/10/2017
• Est. Priority Date: 03/26/2012
• Status: Active Grant

• Current Assignee: Tradeweb Markets LLC (Tradeweb Markets, Inc.)
• Original Assignee: Tradeweb Markets LLC (Tradeweb Markets, Inc.)
• Inventors: Kirby, Elisabeth, Hill, Kevin, Stocks, Ian
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US13/832,882
• Publication Number:
  US 20130254089A1
• Time in Patent Office: 1,670 Days
• Field of Search: 705 3- 44
• 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 trading platform for trading financial instruments that provides the ability to manage customer credit limits, assess credit risks, and provide clearing certainty of trades. In an exemplary embodiment, the trading platform includes computer software modules and provides graphical user interfaces to handle the process of assessing credit risk, obtaining clearing certainty from a clearing member prior to trade execution, and providing notices of the existence or absence of clearing certainty with regard to particular trade requests.

Claims

1. A trading platform system comprising:

a message server configured to communicate with one or more customer computers and one or more clearing member computers;

a database configured to store credit limit data associated with one or more customers;

a processor communicatively coupled to the message server and the database, comprising;

means for determining a credit limit for one or more of the one or more customers;

a clearing certainty module programmed to;

receive a clearing certainty request for a trade order from a customer'"'"'s user interface;

generate, based on the request, a requestConsent message comprising an Events.model sub-component with an extended additionalEvent element;

receive a response to the requestConsent message comprising a consentGranted or consentRefused message;

notify the customer if the request is approved;

a deactivation switch module programmed to override negotiation of a trade resulting from the trade order, in response to a signal sent from a clearing member, by disabling at least a portion of the customer'"'"'s user interface so that the trade cannot be completed; and

a trade execution module programmed to execute approved trades.

2. The trading platform system of claim 1 wherein the clearing certainty module is additionally programmed to calculate credit risks relating to at least one of the customer and the trade order.

3. The trading platform system of claim 1 wherein the clearing certainty module is programmed to perform the comparison step at a time of a trade.

4. The trading platform system of claim 1 wherein the credit limit data is configured to direct the clearing certainty module to transmit the clearing certainty request to a corresponding clearing member.

5. The trading platform system of claim 1 wherein the customer'"'"'s user interface is configured to permit the customer to elect to execute approved trades.

6. The trading platform system of claim 5 wherein the message server is programmed to notify a corresponding dealer of a trade execution.

7. The trading platform system of claim 1 wherein the deactivation switch module is programmed to operate substantially on demand.

8. The trading platform system of claim 1 wherein the deactivation switch module is programmed to disable at least a portion of the customer'"'"'s user interface to prevent the customer from clearing the trade with a corresponding dealer.

9. The trading platform system of claim 1 wherein the deactivation switch module is programmed to disable at least a portion of the customer'"'"'s user interface to prevent the customer from clearing the trade at a clearing house with a corresponding dealer.

10. The trading platform system of claim 1 wherein the deactivation switch module is programmed to disable at least a portion of a user interface to prevent the customer from clearing one or more predetermined categories of products with a corresponding dealer.

11. The trading platform system of claim 1 wherein the deactivation switch module is programmed to disable at least a portion of a user interface to prevent the customer from clearing one or more predetermined categories of currency with a corresponding dealer.

12. The trading platform system of claim 1 wherein the clearing certainty module is programmed to seek credit approval from a corresponding clearing member via an FpML API using FIX.