Financial data processing system

• US 8,489,496 B2
• Filed: 02/01/2012
• Issued: 07/16/2013
• Est. Priority Date: 10/14/2003
• Status: Active Grant

• Current Assignee: FTEN, Inc. (Nasdaq, Inc.)
• Original Assignee: FTEN, Inc. (Nasdaq, Inc.)
• Inventors: Angle, Corby Drake, Kittelsen, Douglas Guy, Myerson, Ted Nathan, Prasad, Anandan Murali, Lafever, Malcolm Gary
• Primary Examiner(s): Maguire, Lindsay M
• Assistant Examiner(s): Fu, Hao
• Application Number:
  US13/363,838
• Publication Number:
  US 20120203682A1
• Time in Patent Office: 531 Days
• Field of Search: 705/35, 705/37
• 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 consolidated risk monitoring system configured to monitor financial transaction networks to detect market deviations in a plurality of categories of financial articles of trade, the system comprising:

a network interface device configured to collect integrity-verified data messages originating from a plurality of sources trading at least one financial article of trade; and

a processing system that includes at least one processor, the processing system coupled to the network interface device and configured to;

receive a set of risk parameters for each category of the plurality of categories of financial articles of trade;

identify a deviant transaction from the collected data messages based on comparison of at least some of the collected integrity-verified data messages to the received set of risk parameters for at least one of the plurality of categories;

perform a risk priority level calculation for each identified deviant transaction; and

generate a risk priority level alert message based on the performed risk priority level calculation and associated deviant transaction,

wherein the plurality of categories includes at least one of the following categories;

     1) buying power/threshold restrictions,

     2) restricted and hard to borrow securities risk management,

     3) short sell restriction risk management,

     4) single order quantity limit management,

     5) single order value risk management, and

     6) realized and unrealized profit and loss.

2. The consolidated risk monitoring system of claim 1, wherein the processing system is further configured to:

identify pre-defined segments of the collected data messages;

compare the pre-defined segments of said collected data messages against defined criteria of the received set of risk parameters; and

identify the deviant transaction when said pre-defined segments of said collected data messages matches the defined criteria for purposes of generating the risk priority level alert message.

3. The consolidated risk monitoring system of claim 1, wherein the processing system is further configured to:

aggregate the collected data messages into a common format, and store, to a non-transitory storage medium, said aggregated data messages in the common format for further processing.

4. A consolidated method of monitoring financial transaction networks to detect market deviations in several categories associated with financial articles of trade, the method comprising:

collecting, via an interface to a computer network, integrity-verified data messages originating from a plurality of sources trading at least one financial article of trade;

receiving a set of risk parameters for each category of the several categories that are associated with the financial articles of trade;

from the integrity verified collected data messages, identifying for each one of the several categories, via a computing system that includes at least one processor, a deviant transaction by comparing the collected data messages to the received set of risk parameters of the several categories;

calculating, via the computing system, a risk priority level for each identified deviant transaction; and

generating, via the computing system, a risk priority level alert message based on the risk priority level for the respective identified deviant transaction,

wherein the several categories includes at least one of the following categories;

     1) buying power/threshold restrictions,

     2) restricted and hard to borrow securities risk management,

     3) short sell restriction risk management,

     4) single order quantity limit management,

     5) single order value risk management, and

     6) realized and unrealized profit and loss.

5. The method of claim 4, further comprising:

identifying pre-defined segments of the collected data messages;

comparing said pre-defined segments of the collected data messages against a defined criteria of the received set of risk parameters;

identifying the deviant transaction when the pre-defined segments of the collected data messages match the defined criteria; and

generating the risk priority level alert message based on the identified deviant transaction, the risk priority level alert message containing information associated with a financially liable party of the identified deviant transaction.

6. The method of claim 4, further comprising:

aggregating the collected data messages into a common format; and

storing, to a non-transitory medium, said aggregated data messages into a common format for further processing.

7. A consolidated risk management system configured to detect market anomalies in several categories of financial articles of trade, the system comprising:

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

a processing system that includes at least one processor, the processing system configured to;

extract digital order information and/or digital execution information from the integrity-verified received electronic data message; and

analyze the received integrity-verified electronic data messages by comparing select sections of the extracted digital order information and/or digital execution information against a set of defined criteria per category of the several categories of financial article of trade in order to detect market anomalies in the respective market venue; and

a transmitter configured to transmit a risk alert signal per category of the several categories of financial article of trade to users of the consolidated risk management system when a market anomaly is detected,

wherein the several categories includes at least one of the following categories;

     1) buying power/threshold restrictions,

     2) restricted and hard to borrow securities risk management,

     3) short sell restriction risk management,

     4) single order quantity limit management,

     5) single order value risk management, and

     6) realized and unrealized profit and loss.

8. The consolidated risk management system of claim 7, wherein the receiver is further configured to consolidate the received integrity-verified electronic data messages of financial articles of trade into an aggregated common format, wherein some of the integrity verified electronic data messages of financial articles of trade have various data formats.

9. The consolidated risk management system of claim 7, wherein the risk alert signal includes digital information about the detected anomaly and a corresponding category of financial article of trade.

10. The consolidated risk management system of claim 8, wherein the consolidated risk management system is a financial risk management system configured to detect financial market anomalies.

11. The consolidated 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 integrity-verified data messages originating from at least one market venue being arranged to trade financial articles of trade, the electronic integrity-verified data messages including digital order information and/or digital execution information associated with several risk management categories;

extracting, by a processing system that includes at least one computer processor, the digital order information and/or digital execution information from the received integrity-verified electronic data message associated with the several risk management categories;

analyzing, by the processing system, the received electronic integrity-verified data messages by comparing select sections of the extracted digital order information and/or digital execution information against a set of defined criteria of the several risk management categories in order to detect market anomalies in a respective market venue related to a respective risk management category; and

transmitting, by a transmitter, a risk alert signal when a market anomaly is detected in accordance with analysis of the received electronic integrity-verified data messages,

wherein the several risk management categories includes at least one of;

     1) buying power/threshold restrictions,

     2) restricted and hard to borrow securities risk management,

     3) short sell restriction risk management,

     4) single order quantity limit management,

     5) single order value risk management, and

     6) realized and unrealized profit and loss.

13. The method of claim 12, further comprising consolidating the received electronic integrity-verified data messages, some having different 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.

16. The method of claim 12, further comprising:

setting the defined criteria per risk management category of the several risk management categories for each one of a plurality of potentially financially liable entities,

wherein the risk alert signal includes information on the financially liable entity associated with the detected market anomaly.

17. The method of claim 16, wherein the financially liable entity was unaware of a respective transaction that was performed by another party prior to receiving the associated electronic integrity verified data message related to the respective transaction.

18. The method of claim 12, wherein the receiving of electronic integrity-verified data messages and transmitting the risk alert signal are performed on an intra-day basis.