Systems, methods and computer program products for processing orders subject to investment restrictions

• US 20070226120A1
• Filed: 03/27/2006
• Published: 09/27/2007
• Est. Priority Date: 03/27/2006
• Status: Active Grant

• Current Assignee: Tegra118 Wealth Solutions, Inc.
• Original Assignee: Checkfree Corporation (Fiserv Incorporated)
• Inventors: Nanjundamoorthy, Hari
• Granted Patent: US 7,912,778 B2
• Time in Patent Office: Days
• 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 40/03 Credit; Loans; Processing thereof
• 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

Methods and systems process multiple trade orders subject to investment account restrictions. The restrictions are associated with the holding of one or more securities or with a cash position in an investment account. Each received order to perform an investment account management action is processed to determine whether performance of the action violates any stored restriction. The investment account is updated to reflect the result of executing the orders that did not violate any stored restriction. All received orders that are found to be in violation of a restriction are then processed again to determine whether performance of the action now violates any stored restriction. This technique allows for approving for execution as many trade orders subject to restrictions as possible.

Claims

1. A method of processing trade orders, comprising:

receiving two or more trade orders;

identifying, from the two or more trade orders;

at least one trade order that does not violate any of one or more stored restrictions; and

at least one violating trade order that violates at least one of the one or more stored restrictions;

identifying an impact, on an account position, of the at least one trade order that does not violate any of the one or more stored restrictions; and

determining whether the at least one violating trade order violates any of the one or more stored restrictions based at least in part on the identified impact, on the account position, of the at least one trade order that does not violate any of the one or more stored restrictions.

2. The method of claim 1, further comprising ordering at least one of:

(i) the received two or more trade orders prior to identifying at least one trade order that does not violate any of the one or more stored restrictions; and

(ii) the at least one violating order prior to determining whether the at least one violating trade order violates any of the one or more stored restrictions based at least in part on the identified impact, on the account position, of the at least one trade order that does not violate any of the one or more stored restrictions.

3. The method of claim 2, wherein ordering comprises ordering the received two or more trades orders, or the at least one violating order, based on order type, order value, or an account associated with each of the received two or more trade orders or the at least one violating order.

4. The method of claim 1, wherein identifying the at least one violating trade order that violates at least one of the one or more stored restrictions comprises iteratively comparing each of the two or more orders against all of the one or more stored restrictions.

5. The method of claim 1, further comprising approving the at least one violating trade order for execution.

6. The method of claim 5, further comprising executing the at least one violating order subsequent to approving the at least one violating trade order for execution.

7. The method of claim 1, wherein the one or more stored restrictions are associated with one of a single investment account, an investment style under which one or more investment accounts are transacted, an investment program with which one or more investment accounts are associated, or a client with which one or more investment accounts are associated.

8. The method of claim 1, wherein the one or more stored restrictions:

prohibit holding of a security in an investment account;

prohibit holding less than a percentage of a security in an investment account;

prohibit holding less than a monetary value of a security in an investment account;

prohibit holding less than a pre-defined percentage of securities in a particular industry, or

prohibit holding less than a pre-defined monetary value of securities in a particular industry.

9. The method of claim 1, wherein the one or more stored restrictions:

require holding of a security in an investment account;

prohibit holding more than a percentage of a security in an investment account;

prohibit holding more than a monetary value of a security in an investment account;

prohibit holding more than a pre-defined percentage of securities in a particular industry;

or

prohibit holding more than a pre-defined monetary value of securities in a particular industry.

10. The method of claim 1, wherein identifying an impact, on an account position, of the at least one trade order that does not violate any of the one or more stored restrictions comprises identifying an asset allocation in an account after execution of the at least one trade order that does not violate any of the one or more stored restrictions.

11. A computer-readable medium having stored thereon computer-executable instructions for performing the method of claim 1.

12. A system for processing more than one trade order subject to one or more investment account restrictions, comprising:

a memory configured to store one or more restrictions; and

a processor configured to receive two or more orders to perform an investment account action;

wherein the processor is configured to;

identify at least one order, of the two or more orders, that does not violate any of the stored one or more restrictions.

identify at least one violating order, of the two or more orders, that violates at least one of the stored one or more restrictions; and

determine that at least one violating order fails to violate any of the stored one or more restrictions when executed with the at least one order that does not violate any of the stored one or more restrictions.

13. The system of claim 12, wherein the processor is further configured to order the received two or more orders prior to determining that at least one violating order fails to violate any of the stored one or more restrictions when executed with the at least one order that does not violate any of the stored one or more restrictions.

14. The system of claim 13, wherein the processor is further configured to order the received two or more orders based on order type, order value, the identity of an account associated with each order, or the type of account associated with each order.

15. The system of claim 12, wherein the processor is further configured to process the received two or more orders to determine if performance of each order violates any of the stored one or more restrictions.

16. The system of claim 12, wherein the processor is further configured to iteratively compare each of the received two or more orders against all of the stored one or more restrictions.

17. The system of claim 12, wherein the processor is further configured to update an account position to reflect the execution of an order, of the two or more orders, that does not violate any of the stored one or more restrictions.

18. The system of claim 12, wherein the processor is further configured to approve at least one of the two or more orders that does not violate any of the stored one or more restrictions.

19. The system of claim 12, wherein the memory configured to store one or more restrictions further comprises a memory configured to store restrictions:

prohibiting holding of a security in an investment account;

prohibiting holding less than a percentage of a security in an investment account;

prohibiting holding less than a monetary value of a security in an investment account;

prohibiting holding less than a pre-defined percentage of securities in a particular industry, or

prohibiting holding less than a pre-defined monetary value of securities in a particular industry.

20. The system of claim 12, wherein the memory configured to store one or more restrictions further comprises a memory configured to store restrictions:

requiring holding of a security in an investment account;

prohibiting holding more than a percentage of a security in an investment account;

prohibiting holding more than a monetary value of a security in an investment account;

prohibiting holding more than a pre-defined percentage of securities in a particular industry;

or

prohibiting holding more than a pre-defined monetary value of securities in a particular industry.