FINANCIAL DATA PROCESSING SYSTEM

• US 20120203682A1
• Filed: 02/01/2012
• Published: 08/09/2012
• Est. Priority Date: 10/14/2003
• Status: Active Grant

• Current Assignee: FTEN, Inc. (Nasdaq, Inc.)
• Original Assignee: FTEN, Inc. (Nasdaq, Inc.)
• Inventors: Kittelsen, Douglas Guy, LaFever, Malcolm Gary, Myerson, Ted Nathan, Prasad, A. M., ANGLE, Corby Drake
• Granted Patent: US 8,489,496 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

To process financial articles of trade and manage risk, data messages originating from a plurality of sources arranged to trade at least one of securities, commodities, options, futures and derivatives are collected. The collected data including information on submitted transactions and completed transactions of financial articles of trade. The collected data is analyzed against established user criteria to identify select portions of the collected data. If a match is detected a risk alert signal will be transmitted.

Claims

1. A system configured to process financial articles of trade, comprising:

a collector configured to collect data messages originating from a plurality of sources trading at least one financial article of trade, said collected data messages including information on submitted transactions and completed transactions of financial articles of trade, wherein the collected data messages comprises data of varying formats; and

an analysis component, of a processing means, coupled to the collector and configured to identify a transaction from the collected data messages for which a party is financially liable as one of a plurality of parties involved in affecting said identified transaction, wherein the financially liable party lacked prior knowledge of submission of the identified transaction to one of said plurality of sources because another party in said plurality of parties submitted said identified transaction to one of said plurality of sources.

2. The system of claim 1, wherein the analysis component is configured to:

identify select portions of the collected data messages comprising one or more transactions for which the party is financially liable and including the identified transaction; and

compare the select portions of said collected data messages against a defined criteria, and to identify a situation when said select portions of said collected data messages matches the defined criteria for purposes of performing risk management for the financially liable party.

3. The system of claim 1, further comprising:

an aggregation component of the processing means coupled to said collector, the analysis component configured to aggregate the collected data, normalize said collected and aggregated data into a standard format, and stream said data in the standard format for further processing by said analysis component.

4. A method of processing financial articles of trade, comprising:

collecting, by a processing means, data messages originating from at least one of a plurality of sources trading at least one financial article of trade, the collected data messages including information on submitted transactions and completed transactions of financial articles of trade, wherein the collected data messages comprises data of varying formats; and

from the collected data messages, identifying, using the processing means, a transaction which a party is financially liable as one of a plurality of parties involved in affecting the identified transaction, wherein the financially liable party lacked prior knowledge of submission of the identified transaction to one of the plurality of liquidity destinations because another party in the plurality of parties submitted said identified transaction to one of the plurality of sources.

5. The method of claim 4, further comprising:

identifying, using the processing means, relevant portions of the collected data messages comprising information of one or more transactions for which the party is financially liable and including said identified transaction;

comparing, using an analysis component of the processing means, said relevant portions of the collected data messages against a defined criteria; and

identifying, using the analysis component of the processing means, a situation when the relevant portions of the collected data messages matches the defined criteria for purposes of performing risk management for the financially liable party.

6. The method of claim 4, further comprising:

aggregating, by the processing means, the collected data messages; and

normalizing by the processing means, the collected and aggregated data messages into a common format.

7. A risk management system configured to detect market anomalies comprising:

a receiver configured to receive electronic data messages originating from at least one market venue being arranged to trade financial articles of trade and which received electronic data messages include digital order information and/or digital execution information;

a processing means, configured to;

extract digital order information and/or digital execution information, from the received electronic data message; and

analyze the received electronic data messages by comparing select sections of the extracted digital order information and/or digital execution information, against a set of defined criteria in order to detect market anomalies in respective market venue; and

a transmitter configured to transmit a risk alert signal to users of the risk management system when a market anomaly is detected.

8. The risk management system of claim 7, wherein the receiver is further configured to

consolidate the received electronic data messages, having various data formats, into an aggregated common format.

9. The risk management system of claim 7 wherein the risk alert signal includes digital information about the detected anomaly.

10. The risk management system of claim 7 wherein the risk management system is a financial risk management system configured to detect financial market anomalies.

11. The risk management system of claim 9, wherein the risk alert signal comprises an electronic data message having a standardized format.

12. A method of managing risk, comprising:

receiving, by a receiver, electronic data messages originating from at least one market venue being arranged to trade financial articles of trade and which received electronic data messages include digital order information and/or digital execution information;

extracting, by a processing means, digital order information and/or digital execution information from the received electronic data message;

analyzing, by the processing means, the received electronic data messages by comparing select sections of the extracted digital order information and/or digital execution information, against a set of defined criteria in order to detect market anomalies in respective market venue; and

transmitting, by a transmitter, a risk alert signal when a market anomaly is detected.

13. The method of claim 12, further comprising consolidating, by an aggregator means, the received electronic data messages, having various data formats, into an aggregated common format.

14. The method of claim 12, wherein detecting market anomalies in respective market venue is detecting financial market anomalies.

15. The method of claim 12, wherein transmitting a risk alert signal includes transmitting the risk alert signal as an electronic data message having a standardized format.