Apparatus and method of a distributed capital system

• US 20100145876A1
• Filed: 07/20/2009
• Published: 06/10/2010
• Est. Priority Date: 02/14/2002
• Status: Active Grant

• Current Assignee: Distributed Capital Investments LLC
• Original Assignee: Zachary Pessin
• Inventors: Pessin, Zachary
• Granted Patent: US 8,224,744 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• 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, systems, and articles of manufacture consistent with the present invention provide for conducting financial transactions over a network. A user requests to execute at least one financial transaction with at least one of a number of parties, each of the parties corresponding to a data processing system on the network. Real-time financial information relating to the financial transaction is obtained, and the user can test and confirm that the financial transaction with the at least one party can take place prior to execution of the financial transaction.

Claims

1. A method of conducting a financial transaction over a computerized network, comprising:

instituting a financial transaction as a currency exchange from a first currency to a second currency; and

matching said first currency from at least one party, with said second currency from at least one counterparty.

2. The method according to claim 1, wherein said matching step further comprises:

implementing movement of funds from said second currency into said first currency.

3. The method according to claim 2, wherein successive matches with additional counterparties are conducted until said financial transaction is completed.

4. The method according to claim 2, further comprising:

receiving instructions to perform said financial transaction, at least one of a predetermined currency rate, a predetermined time, an event trigger, and a predetermined program requirement.

5. The method according to claim 4, wherein prior to said predetermined currency rate, said predetermined time, said event trigger, and said predetermined program requirement, said funds are automatically invested in short-term investments.

6. The method according to claim 5, wherein a type of said short-term investments is optimized by providing a maximum return for a required system liquidity level.

7. The method according to claim 5, wherein profits from short-term investments are placed in a financial system-owned account.

8. The method according to claim 7, wherein the user can vote for allocation of said system-owned profits.

9. The method according to claim 6, further comprising:

borrowing capital from available financial channels when said system liquidity level is below a predetermined amount.

10. The method according to claim 4, wherein a credit rating is developed from a pattern of user usage.

11. The method according to claim 7, wherein system profits are used in a credit scheme.

12. A method of conducting financial transactions over a computerized network comprising:

providing capital from an individual user for loan to other users of a financial system;

debiting an account of said user for said loan;

crediting an account of at least one borrower of said loan; and

providing a payment schedule to said user for said loan.

13. The method according to claim 12, wherein a rating is attached to each said borrower based on their loan repayment history.

14. A method conducting financial transactions over a computerized network, comprising:

conducting awareness propagation such that capital movement over a participant system-network is optimized.

15. The method according to claim 14, further comprising:

receiving a command to perform a first capital movement from a user at a first financial institution;

determining by awareness propagation that a second capital movement is scheduled at a second financial institution to said first financial institution;

trading information on said first capital movement and said second capital movement and transfer parameters thereof;

determining net parameter positions intended at said first financial institution and said second financial institution;

recursively computing optimal transfer parameters for said first capital movement; and

conducting a distributed transfer of said first capital movement and said second capital movement.

61. The method according to claim 14, further comprising:

implementing a transaction protocol to monitor and match data requirements, and allow Unrelated party matching;

taking digital representations of financial vectors and executing a netting summation of said financial vectors for said unrelated parties; and

executing and settling financial transactions for said unrelated parties.

63. The method according to claim 15, wherein said awareness propagation is conducted such that vector transactions are executed and settled.

64. The method according to claim 15, further comprising:

performing at least one net capital deduction to an account of a first user;

performing at least one net capital addition to an account of at least one second user;

recursively conducting said awareness propagation such that said at least one net capital addition and said at least one net capital deduction to accounts of successive users for which one of meet and exceed an absolute value of a current net capital imbalance are executed.

65. The method according to claim 63, further comprising:

recursively conducting said awareness propagation such that at least one net capital addition and at least one net capital deduction from user accounts result in optimizing an iteratively netted capital imbalance.

16. A financial services system comprising:

means for instituting a financial transaction as a currency exchange from a first currency to a second currency; and

means for matching said first currency from at least one party, with said second currency from at least one counterparty.

17. The system according to claim 16, further comprising:

means for implementing movement of funds from said second currency into said first currency.

18. The system according to claim 16, further comprising:

means for receiving instructions to perform said financial transaction at, at least one of, a predetermined currency rate, a predetermined time, an event trigger, and a predetermined program requirement.

19. The system according to claim 16, further comprising:

means for borrowing capital from available financial channels when a system liquidity level is below a predetermined amount.

20. A financial services system comprising:

a module which operates a user interface and enables a construction, testing, and execution of financial transactions on-screen.

21. The system according to claim 20, wherein said module is a vector flow topography program module.

22. A financial services system comprising:

a module which uses a communication protocol and a transaction protocol to monitor and match data requirements, and allows random-party matching.

23. The system according to claim 22, wherein said module is a code-division multiple transaction program module.

24. The system according to claim 23, wherein said code-division multiple transaction program module monitors at least one of the following types of user-programmed transactions:

real time transactions, passive transactions, fixed transactions, and installment transactions.

25. The system according to claim 24, wherein said code-division multiple transaction program module executes a codestamping function.

26. The system according to claim 24, wherein said code-division multiple transaction program module executes a codecycling function.

27. The system according to claim 24, wherein said code-division multiple transaction program module executes a codematch aggregation function.

28. A financial services system comprising:

a module which takes digital representations of financial vectors and executes an inclusion of unrelated parties together in the same netting summation.

29. The system according to claim 28, wherein said module is a spread vector resolution program module.

30. The system according to claim 29, wherein said spread vector resolution program module performs one of accounting netting and transaction spread-vector netting.

31. A financial services system comprising:

a module which converts conclusive aggregate transaction information and converts said aggregate transaction information into execution instructions, and initiates execution of financial transactions.

32. The system according to claim 31, wherein said module is a matrix quartermaster program module.

33. The system according to claim 32, wherein said matrix quartermaster program module executes said financial transactions over existing infrastructure.

34. The system according to claim 33, wherein said matrix quartermaster program module includes a bank multiplexer program module.

35. The system according to claim 31, further comprising:

a spread vector resolution program module which takes digital representations of financial vectors and executes an inclusion of unrelated parties together in a same netting summation.

36. The system according to claim 35, further comprising:

a code division multiple transaction program module which works with said spread vector resolution program module to execute matching of fungible trade counterparties.

37. A financial services system comprising:

a vector flow topography program module which operates a user interface and enables a construction, testing, and execution of financial transactions on-screen;

a code division multiple transaction program module which uses a communication protocol and a transaction protocol to monitor and match data requirements, and allows random-party matching;

a spread vector resolution program module which takes digital representations of financial vectors and executes an inclusion of unrelated parties together in a same netting summation; and

a matrix quartermaster program module which converts conclusive aggregate transaction information and converts said aggregate transaction information into execution instructions, and initiates execution of financial transactions.

38. A computer-readable medium whose contents cause a computer system to perform financial transactions over a network, the computer system having a program which performs the steps of:

instituting a financial transaction as a currency exchange from a first currency to a second currency; and

matching said first currency from at least one party, with said second currency from at least one counterparty.

39. A computer system adapted to perform financial services over a network comprising:

at least one memory including a program having instructions adapted to enable the computer system to perform the steps of;

instituting a financial transaction as a currency exchange from a first currency to a second currency; and

matching said first currency from at least one party, with said second currency from at least one counterparty; and

at least one processor which runs said program.

40. A financial services system, comprising:

means for providing capital from an individual user for a loan to other users of a financial system;

means for debiting an account of said user for said loan;

means for crediting an account of at least one borrower of said loan; and

means for providing a payment schedule to said user for said loan.

41. A financial services system, comprising:

means for conducting awareness propagation such that capital movement over a participant system-network, is optimized.

42. A computer-readable medium whose contents cause a computer system to perform financial transactions over a network, the computer system having a program which performs the steps of:

providing capital from an individual user for loan to other users of a financial system;

debiting an account of said user for said loan;

crediting an account of at least one borrower of said loan; and

providing a payment schedule to said user for said loan.

43. A computer-readable medium whose contents cause a computer system to perform financial transactions over a network, the computer system having a program which performs the step of:

conducting awareness propagation such that capital movement over a participant system-network, is optimized.

44. A computer system adapted to perform financial services over a network, comprising:

at least one memory including a program having instructions adapted to enable the computer system to perform the steps of;

providing capital from an individual user for loan to other users of a financial system;

debiting an account of said user for said loan;

crediting an account of at least one borrower of said loan; and

providing a payment schedule to said user for said loan; and

at least one processor which runs said program.

45. A computer system adapted to perform financial services over a network, comprising:

at least one memory including a program having instructions adapted to enable the computer system to perform the steps of;

conducting awareness propagation such that capital movement over a participant system-network is optimized; and

at least one processor which runs said program.

46. A user interface invocable by an application program in response to selection of a command in a financial transaction, comprising:

a first display region on which the financial transaction is conducted.

47. The user interface according to claim 46, further comprising:

a second display region where transaction icons are displayed.

48. The user interface according to claim 47, further comprising:

a plurality of entity icons in said second display region.

49. The user interface according to claim 48, wherein said first display region is a transaction workpad on which transactions are assembled using said entity icons and said transaction icons.

50. The user interface according to claim 49, wherein said transactions are assembled using vectors.

51. The user interface according to claim 49, wherein information on each transaction icon and each entity icon are displayed on said transaction workpad.

52. The user interface according to claim 51, wherein information on said transaction is displayed when said transaction is assembled using said vectors.

53. The user interface according to claim 52, wherein a visual representation of said transaction is displayed during a transaction test.

54. The user interface according to claim 52, wherein a visual representation of said transaction in progress is displayed on a display.

55. The user interface according to claim 47, further comprising:

a plurality of action buttons displayed on said second display region, for at least one of saving, testing, and executing said transaction.

56. A computer program product for enabling a computer to perform financial transactions over a network, comprising:

software instructions for enabling the computer to perform predetermined operations, and a computer readable medium bearing the software instructions;

the predetermined operations including the steps of;

instituting a financial transaction as a currency exchange from a first currency to a second currency; and

matching said first currency from at least one party, with said second currency from at least one counterparty.

57. A computer program product for enabling a computer to perform a financial transaction over a network, comprising:

software instructions for enabling the computer to perform predetermined operations, and a computer readable medium bearing the software instructions;

the predetermined operations including the steps of;

providing capital from an individual user for loan to other users of a financial system;

debiting an account of said user for said loan;

crediting an account of at least one borrower of said loan; and

providing a payment schedule to said user for said loan.

58. A computer program product for enabling a computer to perform financial transactions over a network, comprising:

software instructions for enabling the computer to perform predetermined operations, and a computer readable medium bearing the software instructions;

the predetermined operations including the steps of;

conducting awareness propagation such that capital movement over a participant system-network, is optimized.

59. A method of conducting a financial transaction over a computerized network, comprising:

instituting a financial transaction as a fungible trade between parties; and

implementing said financial transaction by matching a first item to be traded from at least one party with at least a second item to be traded from at least one counterparty.

60. The method according to claim 59, wherein successive matches with additional counterparties are conducted until said financial transaction is complete.

62. A method of conducting a financial transaction over a computerized network, comprising:

instituting a fungible financial transaction between parties; and

implementing said fungible financial transaction by matching a first item to be transacted from at least one party with at least a second item to be transaction from at least one counterparty; and

performing a netting summation between said parties and counterparties.