Electronic trading confirmation system

• US 9,935,460 B2
• Filed: 10/31/2007
• Issued: 04/03/2018
• Est. Priority Date: 11/13/2001
• Status: Active Grant

• Current Assignee: Intercontinental Exchange Holdings, Inc. (Intercontinental Exchange, Inc.)
• Original Assignee: Intercontinental Exchange Holdings, Inc. (Intercontinental Exchange, Inc.)
• Inventors: Tupper, Bruce, Vice, Charles, Xia, DongChun, Tullis, III, Henry D., Rane, Sanjay, Worley, Cynthia L., Hughes, Tracy, Marcial, Edwin
• Primary Examiner(s): Liu, I Jung
• Application Number:
  US11/932,747
• Publication Number:
  US 20080262959A1
• Time in Patent Office: 3,807 Days
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: H02J 3/008 involving trading of energy or energy transmission rights
• CPC Class Codes: Y04S 10/50 Systems or methods supporting the power network operation or management, involving a certain degree of interaction with the load-side end user applications
• CPC Class Codes: Y04S 50/10 Energy trading, including energy flowing from end-user application to grid

Abstract

A system and method of confirming trades of financial instruments such as OTC derivatives is disclosed. The system includes a data interface which accepts data relating to a trade from both the trader and counter party. The data includes different data fields of differing importance. The system includes a matching engine which compares the submitted data and assigns the trade a status depending on which of the data fields match. The system allows a user to filter trades on their status and display the details relating to that trade. The system also allows a user to display the data fields and change the data fields in order to change the status of the trades. The system thus allows a user to electronically confirm a trade and also identify unmatched trades and the information necessary to reconcile such unmatched trades.

Claims

1. An electronic data conversion and trade data confirmation system comprising:

a processing system comprising a computing device comprising at least one processor for executing program instructions, said program instructions causing the processing system to match and categorize a trading transaction based on trade data received from two or more trading participants, said processing system comprising;

a data interface for reading the trade data, the data interface comprising an Extensible Markup Language (XML) Application Programming Interface (API) interface receiving XML-type trade data via the Internet in a standard format;

a memory for storing the program instructions;

a database coupled to the data interface for storing the trade data and trading transaction category data; and

a matching engine that when run enables the processing system to;

identify trade data having a format other than the standard format,

activate a mapping engine only upon identifying the trade data having the format other than the standard format, the mapping engine comprising computer-readable instructions causing the mapping engine to;

convert the trade data into the standard format and transmit the converted trade data to the matching engine,

identify one or more XML tags, the XML tags defining trade product characteristics and matching criteria,

translate the trade product characteristics and matching criteria from the one or more XML tags,

compare selected subsets of the trade data received from the two or more trading participants using the translated trade product characteristics and matching criteria to determine whether any of the selected subsets are inconsistent,

categorize the trading transaction based on the comparison,

wherein if none of the selected subsets of trade data are inconsistent, the trading transaction is categorized as matched, otherwise the trading transaction is categorized to indicate which of the selected subsets of the trade data are inconsistent and wherein each trading participant may store, retrieve, search, edit, and track the trading transaction according to the categorization, and

generate an electronic trade confirmation if the trading transaction is categorized as matched.

2. The system of claim 1, wherein the matching engine comprises:

a matching program that when run enables the matching engine to compare selected subsets of trade data, categorize trading transactions, and confirm trading transactions.

3. The system of claim 2, further comprising:

a data input port in communication with the processing system, for providing trade data from the two or more trading participants to the data interface; and

a data processor in communication with the data interface and the matching engine for processing the trade data received at the data interface and providing the processed trade data to the matching engine.

4. The system of claim 1, wherein the database is coupled to the matching engine and further configured for storing trade-confirmation data and trade life cycle data, said database being accessible by either of the trading participants for storing, retrieving, searching, editing, saving, and tracking the trading transaction according to the transaction categorization.

5. The system of claim 4, wherein the data interface is further configured to report matched trades, trade-confirmation data, and life cycle data, the life cycle data including information relating to each stage of a trade'"'"'s life cycle.

6. The system of claim 5, further comprising one or more trading terminals in communication with the processing system for transmitting trade data provided by the one or more trading participants to the processing system.

7. The system of claim 2, wherein the matching program further enables the matching engine to categorize trading transactions as at least one of a matched, alleged, unmatched, pending and canceled trade.

8. The system of claim 7, wherein the matching program, when run, enables a system administrator to manage and authorize users to access trade data and view summaries of executed trades, said summaries comprising trade life cycle data.

9. The system of claim 8, wherein the matching program, when run, enables the matching engine to identify inconsistencies between the trade data provided by the two or more trading participants, and to reconcile the inconsistencies according to additional trade data provided by at least one of the two or more trading participants.

10. The system of claim 9, further comprising a back office systems terminal coupled to at least one trading terminal and to the processing system, the back office systems terminal being operable for tracking trading transactions.

11. The system of claim 1, wherein the data interface further comprises:

a tab delimited file interface for receiving trade data in a tab delimited format; and

a (Simple Object Access Protocol) SOAP data interface protocol for inputting trade data to the processing system.

12. The system of claim 11, wherein the data interface further comprises an XML API interface for providing an XML response mechanism for requests received via the XML API interface.

13. The system of claim 12, wherein the data interface further comprises an e-mail notification interface for providing responses to requests based on predefined specific events occurring within the processing system.

14. The system of claim 13, wherein the database comprises a web server cluster, a weblogic application server cluster, a trade mapping engine, and an e-mail server.

15. The system of claim 1, wherein the trading participants comprise at least one of a trader, a trading firm, a broker, a brokerage firm, a company, a company subsidiary, and an energy company.

16. The system of claim 15, wherein the trading participants comprise a combination of brokers and brokerage firms.

17. The system of claim 16, wherein the matching engine is configured to provide a broker matching service for confirming, consummating, and reporting electronic over-the-counter trading transactions to broker-type trading participants.

18. A computer-implemented method of data conversion in an electronic trade confirmation, consummation, and reporting system, the computer-implemented method comprising:

providing an electronic trading system comprising at least one computing device comprising a data input port, a matching engine, a data processor in communication with the matching engine, and a data interface module in communication with the input port and the data processor;

reading, by the data interface, received trade data from two or more trading participants, wherein the data interface comprises an Extensible Markup Language (XML) Application Programming Interface (API) interface for receiving XML-type trade data via the Internet in a standard format;

identifying, by the matching engine, trade data having a format other than the standard format;

activating a mapping engine only upon identifying the trade data having a format other than the standard format, the mapping engine comprising computer-readable instructions causing the mapping engine to perform the following functions;

converting the trade data into the standard format, and

transmitting the converted trade data to the matching engine;

identifying, by the matching engine, one or more XML tags, the XML tags defining trade product characteristics and matching criteria;

translating, by the matching engine, the trade product characteristics and matching criteria from the one or more XML tags;

comparing, by the matching engine, selected subsets of the trade data of a trading transaction using the translated trade product characteristics and matching criteria to determine whether any of the selected subsets of trade data are inconsistent;

categorizing, by the matching engine, the trading transaction based on the comparison,

wherein if none of the selected subsets of trade data are inconsistent, the trading transaction is categorized as matched, otherwise the trading transaction is categorized to indicate which of the selected subsets of the trade data are inconsistent, and

wherein each trading participant may store, retrieve, search, edit, and track the trading transaction according to said categorizing;

generating, by the electronic trading system, an electronic trade confirmation if the trading transaction is categorized as matched;

consummating the trading transaction by the electronic trading system; and

automatically reporting, by the electronic trading system, trade confirmation data, trade consummation data, and trade life cycle data associated with the trading transaction.

19. An electronic data conversion and trading data confirmation system comprising:

at least one computing device comprising;

a data input port for receiving trade data of a trading transaction;

a matching engine for comparing selected subsets of the received trade data to determine whether any of the selected subsets are inconsistent, and for categorizing the trading transaction based on the comparison, wherein if none of the selected subsets of trade data are inconsistent, the trading transaction is categorized as matched, otherwise the trading transaction is categorized to indicate which of the selected subsets of the trade data are inconsistent;

a data processor in communication with the matching engine for processing the received trade data and providing the processed trade data to the matching engine for comparison and categorization;

a database for storing trade data, matched trades, and trade life cycle data; and

a data interface in communication with the data input port, the data processor, and the database,

said data interface providing trade data received via the data input port to the data processor and reporting trade confirmation data, matched trade data, and trade life cycle data to one or more system participants, wherein the data interface comprises an Extensible Markup Language (XML) Application Programming Interface (API) interface for receiving XML-type trade data via the Internet in a standard format,

wherein the matching engine identifies trade data having a format other than the standard format and activates a mapping engine only upon identifying the trade data having a format other than the standard format, the mapping engine comprising computer-readable instructions causing the mapping engine to convert the trade data into the standard format and transmit the converted trade data to the matching engine, and

wherein the matching engine identifies and translates one or more XML tags, the XML tags defining trade product characteristics and matching criteria, the translated trade product characteristics and matching criteria used by the matching engine to compare data.