System and method for execution of trades made pursuant to stock option and purchase plans

• US 7,472,098 B2
• Filed: 02/08/2001
• Issued: 12/30/2008
• Est. Priority Date: 02/14/2000
• Status: Expired due to Fees

• Current Assignee: UBS Business Solutions AG (UBS Ag)
• Original Assignee: UBS Financial Services Incorporated (UBS Ag)
• Inventors: Carsten, Keith, Brewster, George, Humza, James A., Maurer, Robert H., Cranor, Michael, Mooney, James P., Shields, Lawrence P., Bhargava, Amod
• Primary Examiner(s): PATEL, JAGDISH
• Application Number:
  US09/779,114
• Publication Number:
  US 20020032636A1
• Time in Patent Office: 2,882 Days
• Field of Search: 705/37, 705/36.R, 705/35, 705/36
• US Class Current: 706/36
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• 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

A system and method for inquiry of option and/or stock status and for processing trades made pursuant to stock option and purchase plans is provided. Participant information is stored and transmitted to a finance system. Rules may be enforced for stock option and stock purchase plans with the finance system. Participants are provided with incentive compensation that can be utilized in a simplified, user friendly, streamlined process.

Claims

1. A system for inquiry and processing of trades made pursuant to a trading plan including at least one of a stock option plan and a stock purchase plan, the system comprising:

a finance system for automatic processing of a transaction pursuant to at least one of the stock option plan and the stock purchase plan; and

a communication system connected to the finance system for enabling a participant of the trading plan to input transaction information regarding a requested transaction in accordance with the trading plan,

wherein the finance system includes;

a volatile data storage for storing participant information, specific to the participant, pursuant to a data transfer from a nonvolatile database of a remote third party administration system;

a first connection for accessing a quote server that provides real-time stock market quotes to the finance system;

a monitoring system for ensuring proper function of the quote server by preventing inaccurate quotes from being provided to the participant;

an interface system, connected to receive the participant information from the volatile data storage and quotes from the quote server in accordance with the monitoring system, for processing the requested transaction in accordance with the participant information; and

a second connection to a trading system for conducting the processed requested transaction on a public exchange.

2. The system of claim 1, wherein the monitoring system makes a detection of when the connection for accessing the quote system fails to receive a quote for a predetermined amount of time, and determines whether a quote from the quote system is accurate or inaccurate in accordance with the detection.

3. The system of claim 2, wherein the predetermined amount of time is predetermined in accordance with dictates of the trading plan.

4. The system of claim 1, wherein said interface system processes requested stock option and purchase transactions to be conducted on one of a cash, cashless and stock swap basis.

5. The system of claim 1, wherein the finance system further includes a confirmation system connected for confirming execution of stock option and stock purchase contracts by the trading system.

6. The system of claim 1, wherein the communication system is selected from the group consisting of Internet, an interactive voice response system and an Intranet.

7. The system of claim 1, wherein distribution proceeds from a transaction are selected from the group consisting of transfer to participant account, wire, check, and payment though an employee payroll system.

a confirmation system;

and

a journaling system.

8. A method for automatically processing transactions made pursuant to a trading plan including at least one of a stock option plan and a stock purchase plan, the method comprising the steps of:

inputting, to a volatile data storage of a finance system, participant information from a nonvolatile database of a remote third party administration system, the participant information being specific to a participant of the trading plan;

inputting, via a communication system accessible by the participant, transaction information regarding a requested transaction in accordance with the trading plan;

inputting to the finance system, from a quote server, real-time stock market quotes;

monitoring the quote server for ensuring proper function of the quote server by preventing inaccurate quotes from being transmitted to the participant;

inputting, to an interface system of the finance system, the participant information from the volatile data storage and quotes in accordance with the monitoring step;

processing, by the interface system, the requested transaction in accordance with the participant information; and

conducting, via a trading system connected to the finance system, the processed requested transaction on a public exchange.

9. The method of claim 8, wherein the monitoring step makes a detection of when the connection for accessing the quote system fails to receive a quote for a predetermined amount of time, and determines whether a quote from the quote system is accurate or inaccurate in accordance with the detection.

10. The method of claim 9, wherein the predetermined amount of time is predetermined in accordance with dictates of the trading plan.

11. The method of claim 8, further comprising transmitting updateable transaction information to the nonvolatile database of the administration system.

12. The method of claim 8, wherein the processing step processes requested stock option and purchase transactions to be conducted on one of a cash, cashless and stock swap basis.

13. The method of claim 8, further including the step of confirming, by a confirmation system connected to the finance system, execution of stock option and stock purchase contracts by the trading system.

14. The method of claim 8, wherein the communication system is selected from the group consisting of Internet, an interactive voice response system and an Intranet.

15. The method of claim 8, wherein distribution proceeds from a transaction are selected from the group consisting of transfer to participant account, wire, check, and payment through an employee payroll system.